All Forum Posts by: Brian Fouts

First, never give up.  We change our strategy as it usually comes full circle (natural market cycles).  

I would recommend looking at Spokane.  It's sorta like its own little island with regards to economy and market.  Good rental market.

Are you managing them yourself?  I ask because out of our 40 or so rentals, only a small few are in Washington state.  There are definitely other areas in the US that have stronger rental markets. 

But if wanting to stick to WA, I would go further south, farther north, look to Bremerton, Spokane, tri-cities.  

Any savvy investor is going to want more than 5-7%, in my opinion.  Our private investment fund returns our members 10% fixed.  Our specific real estate project investors get slightly more.  Our oil/gas private investors get 20-40% returns.  Just to give you some perspective.  

How much are you putting in to the deal?  Investors, just like any lender, are going to want to be secured, so what is the value of the land, etc., would be questions I would ask.

The best source for 5-7% would be a traditional bank, I would recommend starting there.

Where we are at, we have to have a septic tank inspected prior to sale.  If is failing or failed, going to be some costs.   If it is working and passes inspection, good to go. 

But if we are adding square footage, beds, bathrooms, etc., to a renovation, then the county is going to want a more in-depth analysis of the system and bring it up to code.

Requirements vary by location...

Tyson,

We have one project in the Tacoma area and a few more throughout the greater Seattle area.  These are rehab projects.  We also have about 25 owner financed properties throughout this area as well as rentals and some lease options.  

What is it  you are looking to do in real estate?  Buy and hold, flips, wholesale, etc.?

Perhaps we could work something out where you can assist on a project and we can show you our tools, how we evaluate properties, and accompany us when we go to properties to analyze them.

Send me a private message and we can talk.

Brian

100% LTV is the great white buffalo.

Just be cautious, if you blast out there, especially on social media, that you are looking for 100% LTV, you will get a many so-called lenders stating that they can give that to you (hard money). Lot of scams. If they require up front fee and approve you almost immediately, they most likely are not legit. Gmail accounts and no references are indicators.

I would, yes.  Could be good rapport and an understanding of each other.  Especially if they have buy and hold properties, you understand their income.

Also could do business together...

If you don't start out with a hard money lender, and you are looking to rehab, what are your other options if you don't have 100% cash?  Traditional financing, maybe, if the property qualifies and you qualify.  

But, iIt's a numbers game.  Call up hard money lenders and get their terms.  Find a good one recommended by other investors.  LOTS of investors use hard money and good local lenders will also find deals for their clients.  

When you know their terms, combine that with what you have for down payment or cash and you will know your price point.  Hopefully it is realistic.  

It's all a numbers game.  If the numbers don't work, try something else.  If that doesn't work, try something else.  Just like properties, projects, we pass on a lot until one fits the numbers.  Got to know your numbers.  

There are also other ways to invest that use less cash.  Wholesaling, while difficult and time consuming, can be done with little cash.  

I would believe it is overkill as well.  BP probably has more education that schooling would have.  If I had to do college over again, I would have focused on financial services and real estate, but I wouldn't go back now.  

I got an LLC when I started investing. It has operated at a loss for three years due to education expenses, travel, etc., but has some minor revenue as well.

My wife has had business expenses, with no revenue, for her music career. Lot of travel, marketing, etc. No LLC, was able to deduct the expenses. Our CPA did the paperwork at tax time.

You can do quite a bit of research online as to what business expenses can be deducted, just need to get organized at it.  

A credit card in your business name is okay.  We have one and barely ever use it.  If your expenses are paid by your W2 income, just need to track those expenses.  A CC can help is separating them.  

I had one rental out of state with awesome property manager in place.  Never once received a call or communication in the 12 months I owned it. 

Local one, we only hear from them if there is an issue.  Otherwise, drive by twice a year, if a mess outside, will schedule a visit.  I don't want to communication with them.  Once a year inspection is standard for me depending on property.