All Forum Posts by: Laura Shinkle

Hi @Arthur Means I'm sorry I just saw this post. 

"I'm still looking for guidance on how much operating capital or cash reserves I might need. I'm also trying to get some opinions on whether or not the 2% rule is enough when it comes to generally evaluating properties. I think some of the biggest questions I have revolve around, is this a good deal or not?"

Below are my thoughts for SFH, as I don't deal with anything larger than a quad.

As far as cash reserves, I would say it depends on the property. A new construction home is going to need zero maintenance, a well done flip should need very little, however an older home will most likely need more. It also depends on your comfort level how much you want to have set aside for any cap ex. As far as per month, I typically budget 8% for my clients.

As far as the 1-2% rule goes, I have found that 1% is hard to come by in the Charlotte market. Most are around the .75% mark. However, some investors are comfortable with that as they're looking for stable, good quality rents in good neighborhoods and a good chance at appreciation. The ROI reflects that.

Charlotte is definitely a seller's market, and good deals go quickly. Most sellers also know that homes sell quickly and are unlikely to sell below market value unless there is something specific about the property or their situation.

There are some good rental property calculators out there, including on this site. Play around with the numbers and see what makes sense for you.

Hi @Kyle Pence, love the goal and the enthusiasm. I'm very impressed that you managed to pay off $85k in debt in less than two years. That is no easy feat! I recently got married and inherited through him some massive student debt so we are starting to knock that out. Let's see if we can beat y'alls record ;)

Pretty much what everyone else said, get into the forums, post questions if you find something you're curious about, attend meetups and immerse yourself in it. Figure out what strategy you want, the criteria you're looking for and put that plan in action when you're ready with the DP. There's a million ways to invest, take your time and figure out what is right for you two. Good luck, and hopefully I'll meet you guys at a meetup soon!

Hi @Seung Oh. I'll be honest, I didn't read all the comments on this thread...once people start debating whether there's a bubble or not I tune out. No one has a crystal ball, no one can predict WHEN the next dip in the market will be or how big it is. Markets tend to be cyclical for sure, transitioning from a seller to a buyers market every 5ish years, major crashes every 20ish years, etc. Also, some markets are more volatile than others. California is notoriously volatile with huge swings in value. Some markets may notice a blip but not as much of a downturn as you'd think.

This report caught my eye as it was just released this month by the National Association of Realtors. It names the top ten markets that are predicted to outpace national statistics. Thought you might find it interesting. Just because prices have been on the rise recently doesn't necessarily mean it's a bubble. It can just as easily mean the city/area is growing rapidly and appreciating (which is what most investors hope for). Look at why ppl are moving to certain areas and what the economy is based on. Is it diverse or are all the companies that hire in the same industry? Just my two cents.

Also, @William Stewart try joining a lot of the FB investor groups. There are wholesale deals on there every day with fixer uppers. 

Hi @William Stewart, love the story. Honestly, it takes a special kind of owner to be ok with seller financing. I've honestly never come across it for a property that is listed on the MLS, so your best bet would be FSBO and perhaps CL as you did previously. Definitely be careful with CL though, as scammers and hackers abound on there. Just like the first one, it'll take a lot of searching and a little bit of luck. Just my two cents! Good luck

Hi @Tehane Gallimore, good luck with the classes! It's a tough business to transition into, especially with a family. My best advice would be to save, save, save. Getting business up and running takes time, no matter how you spin it. Time to develop relationships with clients and time to show homes and time to learn. You won't really know your full potential until you jump all the way in. If your family depends on your income paycheck to paycheck, the only way you'll feel secure enough to jump in is if you have a healthy savings (think 3-6 months worth of living expenses). Unless, of course, you have a big sphere of people who you know that are just waiting for you to get your license before they buy/sell their home. 

As far as firms, stay away from the larger firms if you don't want a structured time for training. Smaller, boutique firms may offer more flexibility with that and a more hands on approach. However a lot of boutique firms don't do training at all as they're geared to agents who already have experience and don't need training. If your day job is flexible, would it not be feasible to be in a class for 3 hours in a morning maybe once or twice a week? For training, Keller Williams is the best I found but their initial training courses are set days. I don't personally know of any firms up in that area that do that, but just give them all a call and talk to the owner/BIC. You never know! I'd be happy to chat more about it after you've passed your test and start looking :) Good luck!

@Doniel Winter do I understand that correctly to be saying that you would need that permit to rent out a room within your home on AirBnb? We aren't talking about a specific investment property separate from your own personal residence. And that is only allowed within certain zoning?

@Chris Reynolds congrats on coming this far! How soon are you planning on retiring?

With regards to strategy, fix/flips and buy/holds are two very different strategies with different endgames. What's your goal with the investing? Do you want the monthly cash flow, or are you more interested in the equity gain with flips? I'm not sure I'd consider 5 years a flip, that's a very slow renovation and sounds like more of a labor of love than an investment strategy. Have you considered combining the two, buying a semi distressed property, fixing up and then renting? 

I agree with the previous comments that the rental market is strong, the Asheville region's economy is doing well. @Rodrigo Afanador and @Josh Buchanan what are your thoughts on the AirBnb route in the area? Any regulations hindering those types of rentals?

My recommendation would be to first narrow down what your goal is and what strategy you'd like to employ to get there! That focus will help you narrow down the properties and help you find one easier when the time comes. Good luck!!

@Christopher Holba no problem, happy to help. As far as being prepared for the NC state exam with just FL experience/testing, no. But you can buy books/study guides for NC specific laws that would help prepare you for the test. I think you would have a lot less to learn coming from a real estate background so it wouldn't be as challenging a transition. That being said, I have not done real estate in Florida so I'm not sure how their laws translate. 

As far as a firm taking you for half the year, yes they totally would! Real estate firms vary greatly as far a niches and agent productivity. Some firms may not be ok with it or have a certain amount that you need to sell per month. But there are a lot of agents out there that do it part time, and some that just hang a license with a firm so they can stay compliant with laws and collect referral bonuses. I personally work with Keller Williams Realty which is big on supporting the agent and educating agents on running a business and being successful. Other firms will let you hang your license for a flat fee per month and just charge a certain amount per closing that you bring. It all depends on their business model. I'd recommend just getting out there, talking to different firms and seeing what works for you! (And it's hard, but try to look past the sales pitch and see what they're really offering, maybe talk to a few agents that work there. That can be enlightening) And congrats on your career thus far!!

Hope that helps,

Hi @Christopher Holba, I love the clear goals that you've set for yourself. As a NC licensee, I'll tell you that you do have to sit in a classroom for 75 hours and there is no way around that. There are places that will do weekend classes if that helps at all. 

Getting licensed in a different state and then getting an out of state license for NC is a possibility. If you're active and in good standing for 3 months in another state, you can waive the pre-licensing portion and either take the state test (it's tough!) or do the 3 post-licensing classes within the following 18 months which sounds like would be possible for you. Something to look into. Check out the guidelines HERE.

That being said, you could also focus on the passive income goal, which being a FL agent may help you with. Getting that basis of knowledge, albeit a different state, is always helpful, plus you may find some good opportunities down there before you move up to NC. 

Can I ask why you intend to get your license? Is the goal knowledge, a new career, access...?