All Forum Posts by: Logan Ransley

Hey Matthew, fantastic and in-depth constructive feedback about our product. I've shared it with our product team. Also interesting feedback about the name "Landlord Studio" – quite a difficuilt one for us to solve!

Logan Ransley
Co-Founder of Landlord Studio

I think that's a great idea! I'd start looking for new tenants and have your old ones cover the rent in the meantime.

I'd definitely go for buying a couple of rentals. If you're not comfortable with going for 5, go for enough to cover your primary residence.

Go for this instead of paying down your primary residence because although you will have more cashflow, you're missing out on the leverage of real estate.

The key things that make real estate such an attractive investment is 1) the cashflow opportunities 2) the steady market and historical appreciation on investments but 3) and this is the main one that jumps out to me - you're leveraging the total appreciation and cashflow of an asset that is much larger than the amount you put down in the deposit.

Getting the property inspected will help you be aware of any potential issues that may come up in the short-term, even ones that the owner isn't yet aware of. 

Read up more on "seller financing" as this is where you take on the seller's loan if they have a loan, as they may have a much lower interest rate than what's offered in the market right now.

Then take it to an attorney and work out the purchase and sale agreement.

Depending if you're interested in learning more about real estate, I would use that $160k to invest in a multi-family property or 5+ unit commercial property which unlocks commercial loans and either cost in property management or do it yourself. That way, your mortgage is getting paid down by renters, you're hopefully cash flowing well which is building more wealth, and the property should appreciate over time.

If you're not interested in doing it all yourself, you could partner with another investor who's great at finding deals and/or managing the property and you can provide the financial equity. You obviously split the profit in a partnership, but it could be much more passive if you have less time or interest.

As for how much to put down, it depends on how much tolerance you have for loans. But financially, it typically works best if you use as much debt as possible as it adds more momentum to your investment and allows a higher rate of growth. 

Sharon Lechter said recently that if you put $10k down on a $100k property and the bank loans you the rest, you still own the depreciation, the appreciation, and the tax benefits of a $100k property.

I'd recommend putting as little as possible down upfront other than maybe a deposit to lock in the booking. 

I agree with Trevor, payment milestones are a great way to go and ensures the work is completed to standard within good timing

Some investors also offer a cash bonus if the work is finished within a certain timeframe which incentivizes the contractor to stick to a deadline - great for complicated projects.

Hi Jalen, a HELOC is a line of credit that's leveraged on a property. The interest rate on them isn't locked in often, so be aware of that. It's definitely a great tool but make sure you really understand what you're getting into before you go ahead, just like any credit product.

Hi Robert,

This is a very normal problem! Some thoughts I have initially is whether you're making enough on your real estate that you can reduce your hours in your 9-5 so you can spend more time on your portfolio. 

If you weren't able to do that, how many more doors would you need to be generating enough money to be able to do that? Then if you're ready, you could go all in and buy a multi-family with that number of doors or more and reduce your hours.

If you're not willing to leave or reduce hours in your 9-5 soon, you could also partner with another investor. You could leverage "sweat equity" and manage the properties, or offer financial equity and finance the deals while your partner manages the properties. It depends whether you have time or money resources to leverage.

If you have neither, you could partner with someone willing to offer sweat equity, then be the deal maker in the partnership and lead in creative financing strategies to provide the financial side of the deals.

Hope this helps!

I would look into creative financing as interest rates are so high at the moment. A few strategies you could try are seller financing, subject to, or hard money lenders. 

Hope this helps!

BRRRR is definitely not dead! However, you may have to look a bit harder and get a little more creative to get the most out of it - but real estate was never truly passive.

Researching your market, educating yourself on the numbers, what they mean and why they're important, and making offers on properties is my advice to any aspiring BRRRRers out there.