All Forum Posts by: Matthew Becker

Adjusters' jobs are to deny claims for many companies or find any reason to. I would not begin construction yet. Is lost rent covered under your insurance? Do you have a separate water meter or does the HOA provide water? Where was the water break located? You should be able to tell if it froze, did it? Who is your insurance company that will determine if they are terrible to deal with or not? Some are great, and some are bad. I would ask them to point out where in the policy it says they wont' cover. This does not add up. Move up the latter to the next person

If credit is ok I would sign it 

I ran a giant PM company in CO for 15 years. PM is a grind. I still run one for my own, which is much easier. You don't have to deal with owners. It is half your job managing your clients and you have to fire the bad ones.  Something needs to be fixed. They don't have the money or just don't want to pay what it costs. I have consulted on several PM companies for people who worked for me, who moved on, and people who have owed ones that I have.  

Like any business, are you willing to put everything into it for 10 years and not make money for the first 5 years?  

I have run 3, and two I owed. Systems are critical. I don't think I could write down what you have to do in the next hour, but I would be glad to do a call with you and answer any questions you have.  

My PM Company saves me over $100K a year in fees, which works for me, but I have been in the game for 30-plus years.  

Quote from @Alyson Anderson:

Hey Matthew,

Appreciate the detailed breakdown—definitely a strong framework for assessing deals. To answer your question, my calculator is mainly designed for flips, though it could be adjusted for BRRRR or buy-and-hold with additional inputs for rental income, loan terms, and long-term returns.

I like your point about including rent, loan interest, and ROI—those would be key for investors looking beyond a simple max-offer analysis. I'll consider adding GRM and CAP rate as well, since those give a clearer picture of long-term value.

Curious—what’s your go-to method for estimating future appreciation or rent growth? Do you prefer historical data, market trends, or a mix of both?

Looking forward to your thoughts!

I think the safest way for rent to go up is 3%, and the same goes for value once the asset is stable. Value goes up slightly more, closer to 5%. It is better, but if the numbers work at 3%, then whatever else happens is gravy. If you know the average GRM in your area, it is very easy to estimate the value once the property is rented.

Example: This is the last thing I bought and will do a long-term hold. I bought a hotel with 22 rooms,10 RV spots, and two cottages in a Idhao, lake/ski town, for 1.5M. This was a very good deal; I was surprised they took my offer. $300K down, $300K improvements. We are putting in kitchens in the rooms and fixing a drain field issue and a few pumps. It is all easy, non-structural stuff.  Then it will be work force housing.   Rent 24@$1000 and 10 RV $600 = $30K.   

I put the GRM at 150 x $30K = 4.5M new value. It will take 4 to 6 months to stabilize. It would sell fast if I listed it at 4.5M and might fetch over 5M if rates go down. It is very simple easy way to determine value. If I ran it like a hotel I would make quite a bit more money I just don't have time to deal with it.

I have found a ridiculously good deal in the last 6 months.  I have gotten two or my top 5 deals recently, and I have been doing this for over 30 years.   I don't understand why other people are not buying them.  Rates for commercial are below 7% and down as low as 6.25%.  Sellers seem like they are unloading really great assets for a good price.   It seems there are a lot of dated things that older people are dumping that just need some love.  I think seller are worried.  Investers are not liquid. 

Welcome.  There is a lot to be answered, but not without some questions.

You can get good enough deals and BRRR if you hire a contractor.

But finding the right contractor is hard depending on where you live.  

Do you have any experience or knowledge of building or remodeling?

Do you make enough money from your current job to invest cash and let it sit for a while?  

What are you looking to accomplish, cash flow or appreciation?  

Can you negative cash flow a little bit? 

In this current market, I think it will be hard to make money.  But you always make money on long-term holds. 

I would suggest you start off with investing in a fund unless you have a bunch of cash to put in.  

Quote from @Jeremy England:

Quote from @Matthew Becker:

Quote from @Mike H.:

Quote from @Matthew Becker:

Labor and I have almost 40 guys.  Banking is slow but still pretty good.  Commercial loans just take a while.  Running your own crew is the way to go.  I know no one does this, but you can save 30% on a build.  Also, buy materials in bulk.  I bought a semi truckload of siding,g and it saved me 40%.  I buy nails, screws, and little stuff like that.  In Bulk, it saves me 50%. Framing materials buy in the off-season save 25%.  Trim 40%. Pretty much everything in bulk is cheaper because the retailer does not have to handle it.  Materials savings 35% and labor 40%.  It is hard to buy land in bulk.  You also have to have enough work to keep it moving.  

 Very interested in how you're able to buy framing material in bulk to save 25%.  Are you buying direct from the mills? How much bulk are you needing to buy?

 I buy semi-truck loads from a local lumber yard, and I spend several million a year at.  He charges me a small margin, and the mills drop it directly to me.  I have other direct supplies I have set up for cabinets,  flooring, and other stuff where I buy from the same people that the store buys from.   I also buy semi-truck loads of cabinets, siding, and trim.   I have yet to be able to save a ton on drywall.  I think it is just a low margin.  My goal in the next 2 years is to have direct for everything it just takes a ton of time.  

 Do you just have warehouses you keep it all in?  

 Yes but not that big.  I have an old green house that is 30 x 40 that came with some land I bought.   I have 10 con boxes and a little shop that my guys mostly use for fixing their trucks.  Lumber is just wrapped and stacked outside. My all in cost for storage is probably 100k. That include a gravel parking lot and hoop attached to con boxes for heavy equipment.   

Quote from @Jeremy England:

Quote from @Robert Ellis:

For those actively building new homes, what’s been your biggest hurdle lately? Rising costs, permitting delays, financing, labor shortages?

In markets like Columbus and other growing cities, new construction can be incredibly profitable, but managing risk is key. Some investors are using:

• Fixed-cost contracts to control expenses

• Pre-designed floor plans to streamline builds

• Creative financing strategies to keep projects moving

What’s been your experience? Are you shifting strategies to keep margins strong? Let’s talk shop!

 Biggest hurdles are finding the land suitable for my intended projects.  Building duplexes and triplexes.  And I don't want them next to trailer parks.  Has to be the right zoning.  Price of land is always an issue.  

Wetland mitigation is what Im researching now.  I really don't know much about building on wetlands.  I mean I know the permitting process.  But i mean the actual methods and techniques to reduce the impact.  Do they want me to build on helical piles instead of a slab?  Does it cost me mitigation credits for just the footprint of the house or the house, driveway and yard?

My brother wants me to invest in FL.  I am in Idaho.  Not many trailer parks and most towns are pro density.  So it is pretty simple.  Draw up plans.  30 days later we are digging a hole.  Our wetlands and wilderness issues are in the county.  

Quote from @Mike H.:

Quote from @Matthew Becker:

Labor and I have almost 40 guys.  Banking is slow but still pretty good.  Commercial loans just take a while.  Running your own crew is the way to go.  I know no one does this, but you can save 30% on a build.  Also, buy materials in bulk.  I bought a semi truckload of siding,g and it saved me 40%.  I buy nails, screws, and little stuff like that.  In Bulk, it saves me 50%. Framing materials buy in the off-season save 25%.  Trim 40%. Pretty much everything in bulk is cheaper because the retailer does not have to handle it.  Materials savings 35% and labor 40%.  It is hard to buy land in bulk.  You also have to have enough work to keep it moving.  

 Very interested in how you're able to buy framing material in bulk to save 25%.  Are you buying direct from the mills? How much bulk are you needing to buy?

 I buy semi-truck loads from a local lumber yard, and I spend several million a year at.  He charges me a small margin, and the mills drop it directly to me.  I have other direct supplies I have set up for cabinets,  flooring, and other stuff where I buy from the same people that the store buys from.   I also buy semi-truck loads of cabinets, siding, and trim.   I have yet to be able to save a ton on drywall.  I think it is just a low margin.  My goal in the next 2 years is to have direct for everything it just takes a ton of time.  

Quote from @Jason Lopez:

hi, @Matthew Becker this is for extra protection. I has a recently experience that one of my renters have to broke the contract lease and having this is more faster to recovery the months that waiting for the tenant to pay back. In other situation if someone broken something or need a mayor fix I just make a claim and receive the payment right away. This things isn't cover with the regular renter insurance. 

What does it cost based on rent?  I would assume it is expensive?  Seems like a bad bet but if it is really cheap maybe not