All Forum Posts by: Kim Stuart

@Steve DellaPelle  Thanks so much that was very insightful!  I like the gradual concept. I am assuming you are leveraging the increase in rent to increase maintenance and repairs, etc. rather than just telling them rent is increased, correct?  I definitely want to be up front with my potential tenants, but also make sure I am breaking even or earning a positive cash flow because more than likely at some point I will be making repairs or upgrades to the units and would want to have an expenses and repairs account built up by then.  I definitely want good tenants too, not just any tenant.  Thanks again!

Hi all

Question for those of you with experience on choosing rental properties to invest in. As I am looking through the list of properties my agent has provided me, I have noticed that there are a lot of properties on the MLS with "unit rent" prices provided. Assuming those are either properties with tenants currently living in there and their current rates (maybe the current property owner has had that property for awhile, and those rates reflect the rental value when they first purchased it) or it is possibly an average price based on the rental value in that area. In any case, would that be a deterrent in your decision and if not, what is the success rate or could you provide any success or failure stories or tips on how to raise the rental value of a property you acquired which involved taking over the leases of current tenants at lower than valued rental prices?

Regards,

Kim

Hi all,

Very stupid questions (I know), but I am looking to close on my first investment property (and property period for that matter) in the next couple months.  My credit score is good, but I just want to make sure I clean up and get every last point I can until them before I go through my broker.  I was wondering for checking and maintaining your credit score, is it better to sign up for Experian and Transunion and Equiafx directly, or to just go through a third party like Credit Karma that can handle them all?

@Cameron Riley lol I am the same way and there is nothing wrong with that.  The investment opportunity in real estate is so profitable.  Do that on the side, look at the appreciation value for properties in your area.  Get properties that you can rent out with positive cash flow, let your qualified tenants pay off your mortgage for you and in 5-10 years your investments could appreciate anywhere from 50-100k+ while you continue to live your life.  Just remember to take care of the people who are taking care of you.  You not being 100% invested in real estate (like myself) means you don't want to put in all the time to manage properties, to find deals, etc. So make sure you find a  great real estate agent will that funnel you investment deals and potentials, that specializes in real estate INVESTMENT and find a good property manager to take care of your units, and take care of them, since they will be putting in the time to take care of you!

@Jason D. thanks! That is so much clearer now. I have read several books and listened to several podcast, and they always mention "have multiple," but the number of options do seem limited at a high level view. The obvious way to get out of a flip...is to sell of course. But refinancing and essentially turning it into a rental (which I think makes that a BRRR if I am not mistaken) seems like the most logical route. I guess the "creative" part is the numbers game. At the end of the day, the lenders want the money that was agreed upon, regardless of how much profit you individually make so understanding how to adjust the numbers need be to make sure they get their return, while making sure you maximize the amount you earn is the key. Thanks a lot! I am just now getting into analyzing the numbers so I'll definitely adjust numbers to come up with multiple options. Thanks a lot Jason!

@Raven Reinmuth that's totally understandable.  I commute an hour and a half to work one way and back so time isn't necessarily always on my side either!  You work with that you are allowed!  Which is why connecting with someone in your area that you know will be of benefit to you, (I will forever say) treating them to lunch or coffee for an hour or 2 and picking their brains completely with a list of questions is so important!  Make it worth their time too!  But part of the reason we find it so difficult or time consuming to begin our path is well...because we focus so much time on everything we don't know!  They are seasoned and experienced and they started out taking wayyyyyy to long to get their deals too but over time, they mastered the art and are doing it now in a fraction of the time it took them when they first started. So they know all the tips to save time so that you don't have to blindly make those same mistakes!  Networking is such a huge role in the success of our journey.  Take full advantage!  I have scheduled more meetings in the last 3 weeks using this than I have in my entire life lol!

@Jason D. So when people say "be prepared to have an exit strategy (or preferable multiple)," what are they referring to exactly?  I would assume on a proposal, it would seem beneficial if you had an exit strategy and then a backup exit or two.  But if those are roughly the only options available, are they referring to the art of being prepared to have a main exit for your desired resell/asking value and then readjusting your numbers by lowering the asking price by 10k....and then 15k...etc. to give you your plan b and c?

Hi all!

I was wondering if I could bounce ideas from everybody here on possible exit strategies you can use when going through a hard money lender or a private lender.  I know there is the selling of the property, refinancing, equitable forfeit (putting your own property on the line in the event the deal falls through).  I was wondering what other possibilities there were for both hard money lenders and/or private lenders.  I feel you can be a little more creative with private lenders, like seller finance, but I would like to build a list of exit strategies, as they are the most important aspect of a project proposal.  It doesn't matter how lucerative a deal is, if you have no plan (or plans) on how to get out, you can forget anybody wanting to chance funding it.  

Thanks all!

Kim

Hi @Raven Reinmuth!

Welcome to BP!

I am a fairly new investor myself, looking to land my first property in August.  I was in a similar situation are you were with wanting to decide where to begin.  The Seattle market is crazy high much like Colorado, so at first I ruled it out!  However, By networking with successful investors in BP (network --> members will show all BP members, filters the ones closest to you at the top of the list!) and by attending local real estate investment meet ups (network --> events), what better way to know more about your market than people who already have success in your market?!  

I say this all the time as a new investor myself, network, connect, and reach out.  This is such a welcoming community.  Take them out for coffee or lunch for an hour or 2 of their time, come with questions, be willing to listen to their stories (both success and failure) and pick their brains apart!  The money you will earn from real estate investing from the tips of a pro will be well worth the money you will spend (or invest) on a meal!

Analysis paralysis hit me hard!  I read read read, researched researched researched and then was too afraid to begin because I wanted that "perfect deal."  Understand how not to completely bomb a deal....but don't wait for the "perfect deal," look for a deal that will set you up for the next great deal!

Good luck on all your real estate investment endeavors!

Kim

Hi @Cameron Riley!

I am taking the part time route.  I earned my college degree doing something I absolutely love!  My job pays for travel, I get to travel for work al expenses paid for, plus what I specialize in is my passion.  However, I also know that I do not want to be dependent on my job for my financial freedom.  I found myself at a point wanting to work every extra hour I could get to get as much overtime I could get, with hopes that I would "stand out," get a promotion and make more money.  That is just way too must stress and time away fromy my family and friends.  

I am getting into investment in general (real estate and stocks) as a way to achieve financial freedom, grow the money I earn from my job, and create multiple streams of revenue so that as far as work goes, everything I earn is all extra money that I can immediately reinvest, while my passive income streams take care of all of my expenses so that I no longer have to stress about making more money, working extra hours, etc.

To be honest, i can openly admit with no problem that I am not cut out to do this full time.  The art of real estate itself isn't a passion.  I don't want to have to worry about contracts, manage contractors, spend all my time finding the best deals that give me the best profits.  I have an agent I just connected with (on BP actually!), that sends me lists on properties available, both for fix and flip and for rental (20% down, multifamily units that I can rent out for positive cash flow).  

There are situations where I want the best profit, so I want the best deal.  There are other times where I'm not concerned about the price.  I don't need to negotiate every last nickel and dime.  It is purely a long term investment that I will invest enough in to hold and acquire positive cash flow.

So only  you know what your investment goals are.  you are not in competition with anybody but yourself.  You don't need to flip 30 properties a year just because the full timers are.  Just remember, you earn more from a smart deal than multiple deals, but multiple smart deals is where you eventually want to get to!  

Make sure  you network network network! Go to real estate investment meet ups, have one on one meetings with investors (treat them out for a meal or coffee, their time and knowleedge in the long run will be worth way more than a 30 dollar meal).  There are many real estate agents that specialize in property value and distressed investment properties that are more than willing to send you new listings as they come out.  Just be willing to act quickly to get them.  Take care of them, make sure they get their cut for their time, treat them to lunch to make up for you not wanting to fully invest in the marketing, and they will take care of you!

Best of luck to all of your endeavors

Kim