All Forum Posts by: Skyler Smith

I've found that Zillow usually lists the home owner in the "contact agent" list. You'll get a number of agents in the list, then at the bottom it lists "home owner" with a phone number, there's no picture for them so it is easy to skip over. If you check the box next to the home owner and send an email, it sends it directly to them, or you could obviously just call from the phone number.

It may vary from state to state, but that's been my experience. Good luck!

This is should be low on your list of priorities

I'd focus on getting your first deal before worrying about what kind of computer you're going to use. It's good to think about your systems before you get started, but spending time worrying about which notebook to buy is a distraction. I'd spend that time networking and working on finding deals. Once you have so many leads that you think your current technology can't keep up with you, your investing activities will be making you money and a laptop will be a nominal cost. Warren Buffett didn't even put a computer on his desk until he was a mega millionaire.

I don't think you'll need to buy a new computer if you already have one

Real estate investing is so simple it doesn't really require the fastest computer. You need to be able to get on the web, create spreadsheets, and manage your leads. Most cell phones can handles this, but it's not enjoyable to look at a tiny phone screen for hours a day! If you're on a tight budget, maybe look at a Chromebook, but you'll find limitations with those. PC and Mac laptops that are worth  looking at as a full time computer are going to range between $650-1000. Anything more than that and you're paying too much unless you're doing graphic design or some other development.

Should you get a tablet?

Probably not if it's going to replace getting a computer. A tablet is a great compliment to a computer, but it's not going to do everything for you. If you do decide to get a tablet in place of a computer, get one that runs a full OS. You get better file hierarchy for organizing your docs and contacts. You'll thank me down the line for that one.

Get a Mac

Ha ha, this is my obligatory Mac endorsement because I used to sell and service these before my real estate days. Get whatever you want, like I said before, real estate is so simple compared to what a lot of people use computers for. Anything will work.

Some very good suggestions already here. I also got started by buying a four unit building and got an FHA loan with only 3.75% down. I had to talk to four different lenders before I found one that could use past rents to help me qualify for a larger loan. Holden is right, you have to live in it for at least a year, so you'll need to make arrangements for that. Most local lenders can do a conventional loan for around 5% down that is also owner occupied.

Owner occupied small multifamily deals are a GREAT foot in the door for new investors. Get the hang of property management, get the hang of keeping up with maintenance. Be sure you keep some cash on hand for reserves - the underwriters at the bank are going to look for that as well. It will be really important to not over leverage yourself - any loan can be risky if you have to put every dime you own into the down payment. It might be a good idea to ask your lender up front how much they'll be looking for in reserves on top of your down payment, so neither of you are wasting the other's time. If you can find a lender that understands what you are doing and that routinely works with investors, you could include them in your future planning for deals and positioning of your assets. A good lender should be a part of your investing "board of advisors"

My short answer is no, we're not in a bubble about to pop. 

It's hard to talk about the Utah market as a whole, where Utah is made up of several smaller markets. There are many factors that make the Utah market very attractive, and there are several potential issues that could cause property values to drop as well. Utah has lower than average unemployment, and has many pro business policies that are attracting hip startups, as well as large established companies like Adobe and eBay. 

I worry about the high level of college debt in the nation, that it could cause some catalyst for change in the way the nation handles college. I'm not necessarily worried about that enough to sell off my property. I worry about quantitative easing, about artificially low interest rates, and about some potentially dangerous practices that let banks insure deposits and practice sometimes unsustainable lending. There are always issues that could affect local and national markets, I just don't see anything in several of the major Utah markets that calls for too much caution. These issues will not likely destroy the economy, but let off some steam from the pressure caused by unnatural policies.

I say don't over leverage yourself. Buy valuable assets and add to their value as much as you can. Protect your assets and watch the market, but I think that now's not a good time to sell everything. Anything that will disrupt good real estate investments will hit the rest of the economy as well, and your chances of coming out ahead are higher than being left behind in a potential crash. Good luck, and let us know what you end up doing with your Utah property!

You could ask your agent if they can set up hotsheet alerts for specific searches for you, it's a free service any agent can do for a client in my MLS.

Or you could get your license :) That's maybe more effort than you should need to put in to perform searches. 

My strategy is to start advertising it about a month before, but not show it until it's vacant if I'm in that situation. Ideally over time you'll talk to renters that aren't looking for right now, but maybe in 6-9 months. I've got a lot of them that are interested in hearing back from me if I know of something coming up, and I'll shoot future vacancies out to them. Most renters are fine with letting you show it with a couple days notice, but it doesn't always show the nicest while occupied - so there are pro's and cons. 

Before showing I like to get the cleaners through it and perform all scheduled maintenance so I can get the highest quality tenant in there. Many landlords up by Utah State University have their 2016 tenants lined up already, because they know that their leases follow the school schedule and they can plan for strict move in/out dates. That's one I haven't tried myself yet. It will all greatly depend on where in SLC you are, some renters might want to see it clean and nice, some might not care.

Jake, welcome! Many Northern Utah investors consider Ogden the promised land of investing. There is a lot of opportunity there, and the city is investing a lot to improve the area. I think it's a great move, and I think more agents should be involved in investing. It's a great way to sure up your financial future!

Hope you enjoy the site, and hope to hear more of your investing down the road!

Welcome! 

Buying an owner occupied home as your first investment can be a GREAT option. I bought a 4plex with an FHA owner occupied loan for my first investment. It was four 1bed 1bath units separately metered for a great price. The units had been managed by the same guy for over 40 years and he was under rent, so even though I found it on the MLS, the price ended up being pretty good. He had it vacant when I bought it, so I just raised the rent $100 on each unit, which also improved the valuation of the property when it eventually came time to sell. Getting a small multi as your first property with very little down could be one of the best investments of your life!

Good luck, it sounds like you're on the right track!

@William Govans   

Perhaps you could consider paying off your home's mortgage first. If you're going to have one mortgage and three properties, I'd have your home free and clear and mortgage one of the rental properties. In a worst case scenario your family comes first, and having your home free and clear will maximize your family's safety.

As far as using someone else's money goes, the bank's money would be a good candidate for that risky position. They're paying for ads so that people take out loans from them - It's their business model, and they do a good job of not loaning too much. In case you have to walk from the property, the bank will be able to survive, they know what they're signing up for.

Just a clarification, you wouldn't want to retire off of $250,000. If you invest it in leveraged real estate (like apartments) your portfolio will likely be valued in the millions before you turn 60. Feel free to message me and I could show you the strategies I'm talking about more in depth.