All Forum Posts by: Mateo Oquendo-Chandler

Quote from @Tyler Jennings:

Hey y’all!

I have a (probably dumb) question about looking for deals. I plan to buy my first property and dipping my toes into REI within the year. I've been immersing myself into everything I can learn every day. One thing i'm trying to figure out are my numbers for analyzing deals. I want to start looking for a deal, but am trying to figure out what makes a good deal for me. Do I go to a lender first and ask what they will probably pre-approve me for, then start looking? I really just want to know what my numbers are that make a good deal for me so I can start looking. Any help would be great. Thanks y'all!

 You can analyze a market with or without having the tools ready to buy. You can start looking at trends of what looks are selling for more money and the style of homes that do well versus those that sit on the market. You can look into rental rates and days on market in the area(s) you desire to be in.

As far as for your own personal numbers, yes a bank can help tell you what you would qualify for, but keep in mind that the bank is going to base it on everything you have and not consider any cash you will need to go into fixing the home if a remodel is needed. Take your time as this is a very important step to begin building your firm foundation.

If you haven't already, consider starting to attend local meet up in the area. BP has a forum posts for meet ups and other social media site will have people advertising meet ups in your area. This will let you begin networking and learning from others experiences.

Quote from @Marco-Dane Samuels:

Just as the title stated, I am a first time home buyer, and I'd like to know how to choose the right location to buy. I've been listening to bigger pockets for about 2 years now, and I hear location brought up a lot. I know from listening it's based off value appreciation on the property, and the surrounding area. How do I find out that information? 

TIA to any insights you guys have. 

Marco if you haven't yet, get involved in local meet-ups in your area. If you feel like you have done a lot of the research and are just trying to find out how to take the steps forward to make this a reality than surround yourself with people who can walk with you through this. I agree with what was previously stated, start where you live. Easier to manage and witness the process from buying to maintaining the property and finding renters. It also allows you to possibly House Hack and use a first time home buyer program that could help with the buying process. For me, I found a program that gave me a grant for an additional 3% on top of my down payment and allowed me to buy without having to worry about PMI.

The worse thing you can do is jump the gun because you didnt take the time to run the numbers. Run your numbers and always add some extra in the budget as prices change everyday and its better to over estimate and come in under than underestimate and have to come up with more than you expected you would need. Best of luck!

If you haven't already, be sure to check out facebook pages and job offering system. There are many pages for not only investors, but contractors as well. Being in both kind of groups allows you to get connected with other local businesses that could prove to be helpful.

It's important to remember that the 70% rule is just a guideline that can be used by investors to help filter out the large amount of listings that are posted each day. It's not a hard set rule that means a deal wont work. We are lucky to have countless number of exit strategies that allow for a home to have the potential of being an opportunity for success if we can find more than one strategy that it works for. Also, specifically for first time home buyers, there are a lot of states that offer programs that can help push a home purchase over the finish line with grants that allow for the buyer to save money and walk in with more equity simultaneously.

I have a feeling that things are likely to start changing much more dramatically once student loan payments are back in action. There are so many stories out there already of the poor decisions being made with the money people were able to keep from not having to make those loan payments. Some used it to pay down the principal without interest while others went and bought more things they couldn't afford. I expect that people's budgets, or lack there of, will collapse when these large payments start hitting again.

Quote from @Jason G Goepper:

I am looking for someone to partner on a deal in the Cincinnati, Ohio area. I am open to almost any arrangement given it will be my first deal. Multifamily properties with 4 or more units are what I am primarily investigating, however; I am open to other possibilities. I would love the opportunity to chat with anyone remotely interested and excited about the possibility of building a future relationship.

 If you haven't yet gotten involved in a real estate meet up and your in the Cincinnati area be sure to check out our local meet up "Real Estate on Tap" in the meet up forums for Cincinnati, Ohio. We meet first Thursday of every month. This would give you a good step forward towards building relationships with people who may also be interested in a similar business venture.

Welcome to Cincinnati. Which area are you moving to?

If you haven't yet, check out the forums meet up page for Cincinnati, Ohio. You should see our group Real Estate on Tap. We try to meet the first Thursday of every month. Just a place to sit and talk with local investors. We have also recently began inviting speakers to come and talk about their specialties so if you are able to attend it would allow you to meet a good group of people.

Quote from @Tyler Jennings:

Hey y’all,

New to investing and just had a few questions.

1. What is the best wait to start building a team so when the time comes I know who to get a hold of?

2. For a BRRRR, do I go to a small bank first and get pre approved for a cash-out-refinance? Then look for a property?

3. I own a primary residence with ~$100,000 in equity. I would like to do a BRRRR on a Single Family Home. Any suggestions?

Thanks a ton! 

 Welcome to the BP forums,

1. The best way to build a team is to get around the people in the space. Start joining meet-ups through the BP tools for Local Meet ups. The more people you meet, the more chances you have of finding people with different skill sets that could be later utilized in a future deal. A step further is that if you get to know people who have done what you want to do in your local area, you possible can be recommended the different companies they used to make their deal work. 

2. A BRRRR can be done through most banks, so always shop out your options. The idea is that you verify that the bank will work with you through the process and that your estimations are reasonable with their expectations. Small and big banks both have their pros and cons so it comes down to building a relationship and understanding with whoever you choose. That all begins with you striking up a conversation with them.

3. You can also explore what options you have using a HELOC to tap into the equity in your home. That will be something to discuss with the banks to ensure that you understand the amount you have access to and the cost you will pay because come day 1, you may not have rental income so you have to make a plan for reserves ahead of time.

I would also encourage that renting is not a bad thing. Especially if your original plan was to be ready in a year. Renting will allow you to have more time to work your plan instead of feeling rushed into a deal. Be cautious that your speed of trying to get into a home doesn't push you to buy a home that isn't the right deal for you.

On the flip side, if you feel ready than begin to increase the number of people within your network and you will begin to find others in the same boat as you, which can prove to be beneficial throughout your Real Estate journey.

Quote from @Michael Paling:

Congrats on getting your debt all paid off. That's a great foundation. If all you have right now is $8K, then I would suggest trying to get out of that expensive vacation. Is going on this vacation worth setting your future back by a year? Your family should be supportive if you explain your situation. Maybe there's an alternative vacation that's much cheaper for your family. 

It really sounds like you might want to build up your financial position a little more. If you're planning on buying a fixer upper, how are you going to pay for the repairs? Can you get an FHA 203K loan? a construction loan? private or hard money lender? Will you have enough money to cover unexpected costs?

If you haven't yet, try to find a local group of investors. You'll be able to get a lot of great info from investors that know your local market. 

I agree. Real estate is a great investment to get into but if you throw everything you have left then you would be doing the opposite of supporting your family. All good things take time and preparation. If you truly want to get involved in Real Estate than I would start with your most important asset, your income. Look into ways to increase your income. While you work on that, invest in your education and improving your network. The more people you know, the more stories you'll hear, which will help you to determine the best course of action when it's time for you to pull the trigger. In the BP podcast they are always talking about adding value. Even without money, you can still add value to other investors and be involved. This could be done through attending meet-ups or helping other local investors with finding property or working on their property along side them.