All Forum Posts by: Luke G.

@Michael Ealy.  Fair enough, if you didn't submit it yourself that makes it more reasonable. 

Congrats on the success, I look forward to keep seeing your future posts.  I'm at 60 units now, but will need to scale out of the 2-4 units that most of my portfolio is currently sitting in.  Posts like these certainly help figuring out the next stage.  

@Michael Ealy I never said it doesn't exist, I just want a simple explanation why you submitted the paperwork for it?  I'm guessing someone didn't do it for you...

I enjoy following you, but this thread took a pretty odd turn with that.   

Look at it as a blessing indeed.  I took over 23 new units this summer and about half of them have had turnover.  Which allowed me to renovate to my liking and get market rents in those units.  

Don't step over dollars to make pennies, think long term here...

I'm getting the popcorn ready here.  He's obviously done very well financially, but I'm still waiting for a simple response on why he made himself a proclamation.  

How easy has it been for you to get started?

Not all that difficult, I bought my first single family student rental in Dec of 2016 and BRRR'd it, fast forward to today and I have close to 60 units.  Most of those are through portfolio lender's at local institutions with people whom I've developed relationships with.  If I would've done things differently I likely would've house-hacked.    

What social media platforms are you using to spread word about your business?

I use some instagram and facebook, otherwise I'm not huge into social media, more of a digital minimalism kind of guy.  

What areas around the country do you see younger people moving to?

I invest relatively locally across the state of WI, I haven't ventured out of state...yet.  I enjoy investing in Wausau and Eau Claire, WI.  

We all want to own single family and multfamilies, are there other types of real estate you would like to own? Why?

My next large purchase will be a vacation rental, I'll primarily be renting it out but it's time to start rewarding my better half for supporting me being gone nights/weekends to try and make our dream a reality.  And a vacation rental is a new niche that I don't currently invest in, it will allow my family to use the rental occasionally while diversifying my portfolio.  

I agree with @Brian Garrett.  If you can get those terms on a commercial loan, I'd be finding out how I can sign on it yesterday.  I'd check things like pre-payment penalty on something like that.  Even swap rate numbers on 1mm+ loans aren't that low, even with 20% down.  Sounds too good to be true, but if it's not I'd be jumping on that.  

The low and no money down deals do happen, but they're very difficult for a newer investor to pull off. Nobody else has really suggested it, but you need to get money. If that means just simply saving up and living below your means, than that's what you need to do. Whether that be yours or someone else's. Everyone loves gloating about getting into properties without any cash invested, but a majority of people start with some funds. REI is a capital intensive idea. Once you get to a point where you've done enough deals, you likely won't struggle with finding money. It has a way of finding you when people see your success's.

Too high in my opinion.  I'm closing on a cash out refi on a commercial loan (generally much higher) early next week that has a 20 year amort and 10 year balloon at 4.95%.  6% for a conventional right now is significantly higher than what the market is (at least around me).  Talked with a buddy who has less than stellar credit and secured a 30 year at 3.45%.  

Could approach them and see if they'll hold back a second mortgage.  I've done deals where seller holds back a 20% note, 20 year amort, 5 year balloon; but you'll need to find a willing lender in this scenario as well as they usually like to see skin in the game...but not all require it.  You also need to have an idea how you're going to refinance out of the seller note or pay it off as well.  Or if he's looking for long term payments without the hastle, if you have some cash try and see if he'd finance 90% with a 10% down payment and you could play with the interest rate.  

BS in Kinesiology (completely worthless) and a doctorate in physical therapy.  The W2 salary has helped me look good for the banks, but I likely would've went a different route if I had the chance.