All Forum Posts by: Ken M.

Ken M. has started 158 posts and replied 1813 times.

@Jay Hinrichs the issue is with employer's telling people where they need to live

Doesn't an employer have a reasonable expectation that an employee is actually working. Studies show that productivity improves when employees are closely monitored.

The Constitution says I can build my empire anywhere I want, as long as I work for myself :-)

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Quote from @Charise Manuel:

Interesting and thank you for the information!

Don's comment "Wholesalers can “come clean” and be transparent upfront by either (1) informing the seller that they will only close if they can find a buyer at a higher price or (2) enter into an option contract usually with an option fee commensurate with the option period."

Some states have enacted this into law now.

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Hammond, Indiana

Quote from @Glen Fitzmaurice:

Quote from @Aaron Zimmerman:

Glen - are you in a position to house hack? To me, that's always the #1 option in my book and the way you can best leverage.

If not, you could start building your portfolio through BRRRR. However, I'd caution you on doing a full gut rehab on your first property unless you have the right team in place. Perhaps do a cosmetic rehab first and then work your way up to a full gut. Making sure there's enough cash on these BRRRR projects is crucial because there will likely be times you need to front money to keep the project moving. Make sure to have plenty of reserves!

Thank you so much for your response! House hacking is a possibility for sure. And I may do that at some point in time.

I'm thinking right now I need to do what you're talking about and find a property that's not the greatest but also not a full rehab.

I'm hoping I can do a few BRRR's then have a decent down payment on a 4 unit.

My goal is to get up to $20K/month of net income. I'd like to think I can do that in the next 5 years but not sure if that is a realistic goal.

Your comment: "My goal is to get up to $20K/month of net income. I'd like to think I can do that in the next 5 years but not sure if that is a realistic goal."

It's an admirable goal, however if it was easy to do on your own, you would have done it by now. With the age and timing you mention, unless you have unlimited wealth, you need creative financing, someone who knows how to put that together for you and someone who will hold you accountable. :-)

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Quote from @Nicholas L.:

@Benjamin Dolly

hello. I have good news and bad news for you. The bad news is that the market is genuinely terrible for new investors right now. That doesn't mean you should give up, it just means you should be cautious.

and the good news is that you don't have 'analysis paralysis.' that's a made up condition by the people selling the things to get you to buy the things. because they make money even if you buy a bad deal. and so, there's no reason to buy before you're ready.

(can you house hack? if you already have a primary residence, or your lifestyle doesn't permit it, that's fine. but i always have to ask because house hacking is such a great way to get started.)

OK. on to out of state. if you have limited capital, should you buy a random property thousands of miles away, just because you found BP and now have to do a deal? nope, nope, nope. again, the market is tough right now for just about every strategy, with prices and interest rates high. and for LTRs - there isn't any cash flow initially. none.

the first few years of ownership of an LTR will be INvesting - as in, you putting your hard-earned money into the property. you may know this from having a primary residence, but even purchasing itself is expensive as you have to pay a bunch of closing costs out of your own pocket.

so, i vote for building initial capital and also trying to stay closer to home even if it's a couple hours away.

how out of state investing can go if not done properly:

https://www.biggerpockets.com/forums/48/topics/1242392-rough...

https://www.biggerpockets.com/forums/48/topics/1137397-balti...

https://www.biggerpockets.com/forums/432/topics/1231840-sell...

https://www.biggerpockets.com/forums/311/topics/840134-memph...

https://www.biggerpockets.com/forums/963/topics/1195280-expe...

hope this helps. i'm happy to dialogue further / answer any questions you have. i've done a bit of everything at this point and i'm on here to help new investors not lose money.

He says he's "New and stuck in analysis, looking for advice for how to start"
since he hasn't responded to all the helpful information, in well over a week, and a long weekend, I'd take his word for it for his condition. It's an internal problem only he can solve.

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Philadelphia, Pennsylvania

Quote from @Andreas Mueller:

Anecdotally: I have 0% vacancy now in my rentals. True that we had an explosion in supply in the high-end apartment market here in nashville. But this is an opportunity for investors. A Cliff is coming and that excess supply is running off fast. I actually just wrote an article on this this week if you care to read it. See that on the BP Blog here: https://www.biggerpockets.com/member-blogs/15226/105397-rent...

Also, a general note, luxury apartment building supply suppresses rental prices at all level levels (A-C class). The data is very convincing on this. I highly recommend a follow to housing analyst JAY Parsons if you wanna dig in more.https://x.com/jayparsons/status/1953124188580982962

Nice perspective!

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Quote from @Ethan Ung:

@Alan Asriants
Hello Mr. Asriants,

Thank you for taking time to write such a thoughtful and detailed response. I genuinely appreciate you sharing your perspective as an experience professional here in Philadelphia.

Your advice to house hack a solid property in an establish neighborhood is my long-term goal (2 years). The challenge I'm currently facing is that if I were to leave my parent's home, I would have to start paying personal expenses (groceries, etc.).

I completely understand the risk averse strategy to slowly build equity in establish markets, and the philosophy of "good things take time." As it is now though, I'm going to be extremely careful and picky when it comes to deals to BRRRR.

Again, I appreciate your advice. I'd be happy to connect.

Your Comment "The challenge I'm currently facing is that if I were to leave my parent's home, I would have to start paying personal expenses (groceries, etc.)."

Yes, that is what grownups do. I paid all my expenses from when I moved out at 18 years old coming from a poor background. I paid my own way through private college ( which was not cheap) and all of my advanced studies. So what, that doesn't make me anything, . . . but growing up did.

1 Vote

Philadelphia, Pennsylvania

Quote from @Jeff Cichocki:

My apologies Ken. I went back and re-read it more closely. You talk about how you use and connect with bridge lenders. The way it's written makes it seem as though you may be a broker. The context is a little hazy to me, but I can see how it's my fault for misreading it. Again, I apologize for the mistake.

No problem at all. If I wasn't clear, it's my error.

1 Vote

Quote from @Rod Hanks:

Not clear what the lawsuit was about, but rest assured if you are in this business you will eventually get sued that's just part of the equation. A mentor or real estate agent won't prevent that.

Actually, there is a lot of false/bad information around Bigger Pockets & Youtube. A lot of that information will get you sued. Some people also think all laws apply to all states. They don't. Approaching people in pre-foreclosure in Texas is okay, it's criminal in Washington State. That will get you sued in Washington State. Making assumptions will get you sued.

Due On Sale Clauses exist in almost every loan, violating them won't get you sued. Not for that anyway, they'll just foreclose. But, it will get you sued if they notice you violated the DOS in an unlawful way.

I agree, real estate agents typically don't have training for creative finance. So, don't expect that kind of service and training from them. A specialist will keep you from getting sued for doing many things promoted here on Bigger Pockets and on YouTube, that are just bad information.

For instance, buying properties using SubTo and not following the law, buying pre-foreclosure the wrong way, lending money to just anyone for just any reason but making a lot of money doing it, not making payments on an investment property who's loan you took over, telling "fibs" on a loan application, omitting information on a loan application. The list is endless.

I haven't calculated the amount of bad advice I've seen on Bigger Pockets, it enormous, but as someone who has repeatedly done creative finance for 30 years now, the pot holes are real. They can be avoided. It's very profitable to do creative finance. It's worth it when you have extra money to work with. This is not for using grocery money to invest. It isn't playing the lottery. It's planned, it's thought through, it has specific goals.

Cautious people become insurance agents and stay in their lane, slow and sure. That's good for them. However, entrepreneurs need protection and boundaries and to know where the land mines are.

Especially when you are new, looking for lenders & considering Fix & Flip, BRRRR, or rentals, I'd get insider information first. Then as a buyer, I’d ask the owner/seller to be one of my private lenders with creative financing. I'd ask someone who has been around for a while, and done a lot of real estate "how do you do this safely, lawfully?".

Real estate investing is not intuitive. We aren't born with insight. We earn it or learn it. In the long run, it's far cheaper to learn it. I for one, focus on Southern California (CA), AZ, WA, and TX. Others choose other parts of the country.

https://housecashaz-qloag.wpcomstaging.com/2024/01/01/43-spr...

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Quote from @Albert Tristan:

Hello, I was involved in a private lending arrangement for a property rehab in Fort Worth where the funds I provided (53k) for the rehab cost, which were handled by the investor's project GC/agent. The property is now listed for sale, but repayment of my investment has been delayed and there’s concern that some of the funds may have been mismanaged as they almost went 100% over rehab budget and have yet to show transactions of where my money went. It was agreed that they would pay me back with the hard money loan draws but have only paid me 8k and still owe 45k+.

The investors are claiming they gave all the reimburstment funds to the agent/P.M. and aren't getting answers from him as to where the money went.

For anyone who’s dealt with this before, what are the best steps to take in Texas to protect myself and ensure I’m repaid properly when the property sells? Should this be handled through title, a lien, or another legal agreement?

Appreciate any guidance or referrals to local real estate attorneys familiar with private money or JV disputes.

Thus far, i've mailed them a "Notice of breach" and "Demand for Remedy" letter to their biz address.
What should my next steps be to recoup the 45k+ still owed & past due?

Since your loss is substantial by deception, if you have documentation for your side of the transaction (agreements in writing, wire transfers, text messages, etc) then first thing you do is contact the state Attorney General https://www.texasattorneygeneral.gov/consumer-protection/fil...
that's their job.

Then you look for an insurance claim and then an attorney if necessary.

1 Vote

Fort Worth, Texas

Housing market chaos as 1 in 7 buyers pull out of deals at the last minute — in chilling echo of 2008 crash

The housing market across the US is seeing a meltdown. Would-be buyers are pulling out of sale contracts in shocking numbers as their demands for expensive repairs and huge price chops are not being met.

And sellers are mad they are even making these demands.

It's a good time to learn Creative Financing and make some Big Bucks. Learn how to make offers that get accepted!

When you are new, looking for lenders & considering Fix & Flip, BRRRR, or rental, as a buyer, I’d ask the owner/seller to be one of my private lenders with creative financing. This works in Southern California (CA), AZ, WA, and TX & GA.

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All Forum Posts by: Ken M.

Ken M. has started 158 posts and replied 1813 times.

Post: Is There A Solution To Housing Unaffordability?

Post: RedFlag Would you sign

Post: Finally have some financing- LET'S GO!!!

Post: New and stuck in analysis, looking for advice for how to start

Post: Nashville's Sour Note - rent prices drop as apartments sit empty

Post: Need advice - Soon to be realtor and investor

Post: How to Buy Rental Property With No Money Down

Post: I spent $125,000 On an Attorney Because I wouldn't Spend $15,000 On A Mentor - True

Post: Help on a private money lending issue... Breach of Contract

Post: Sellers now outnumber buyers, in the housing market by about 500,000