All Forum Posts by: Matthew Brill

@Aaron Schwab

I'm new to the investment game as well. I have been taking in what I can from BP, talking to people, trying to attend REIA meetings and reading books on RE/business for 3 months now. However, id be more than willing to chat and share ideas and what I've learned so far if you think there's anything I'd be able to afford you.

Matt

Hey James, welcome. There are two REIA groups here in okc. One is called millionaire possibilities which meets every first Thursday of the month. Millionairepossibilities.com

The other meets the second Thursday of every month. OKCREIA.com

I attend both. They are great and usually have a good turnout. The websites have information about exact times and places and event topics. 

There is third event that meets once a month, however, it's during the week at noon so I haven't been able to attend to know more about it. 

Do you know which real estate arena you're interested in getting into?

Hope to see you around, both the meetings and BP. Shout if you need anything. 

Matt

Thanks for the advice @Russ Draper

@Aaron Mazzrillo

Welcome @Susan Iwertz

BP can be a valuable asset. I am also new and learning lots and getting advice from other members. 

What kind of investing are you interested in? 

You could have/be a valuable asset with your contractor husband. 

Thanks for the great points @Steve Babiak @Joel Gabelman @Joel Rodriguez @Jay Hinrichs @Brent Coombs

I definitely wouldn't agree to do anything until the appraisals are done, those being by the builders, bank, and one I pay for myself. 

It's seems to be that the bank won't approve such a loan which makes my decision much easier.  I also thought it was all too good to be true when they suggested it to me initially. They claimed they'll still make 10% (I don't know how after seeing their build costs) and it will allow them to recoup some costs quickly without listing on the market. Also, although I do not have much of an income now, I will be finishing my medical residency in less than a year and my income will increase substantially. They claim this is a reason both they and the banker will want to start a relationship now.  They also have a property management company, who's services they would want me to use. 

Although they are offering me these 4 units "below market value" there are a lot more in the complex that they are planning on selling at the proposed $160,000. I have come across some people in my local community that know one of these investors and claim his family is well respected from a business sense, although I know that doesn't necessarily mean anything about him personally. I also spoke to another RE investor removed from the situation from my market who thinks the $1320 rent is attainable. 

Thanks again everyone. I really enjoy the dialogue and it is tremendously helpful.

 Point well taken. And that's why I brought the question to the forums. I don't fancy myself a wholesaler and, although it wouldn't be a wholesale deal, I would essentially be acquiring it at wholesale to sell at retail if it is not bringing passive income. I am trying to decipher if the monthly loss is worth the equity and resale gain. 

Hey OKC BP members,

Does anyone have any familiarity with the rental market just east of I35 by Twin Hills Country Club? I heard there were some new units possibly being built in this area with proposed rents at $1320 per unit. They will be 3/2s and approximately 1200 sq ft. Any thoughts?

Thanks!

@Brent Coombs @Cynthia Calhoun @Doug N. @Steve Babiak

Thank you all for taking your time and for your constructive criticisms.

I met with the two investors and the banker. The banker is, in fact, a commercial banker and doesn't do any conventional mortgages. He did mention briefly taking the lesser of the appraisal value vs purchase price but then was willing to take it to his underwriter once the units are built and appraised. At the meeting, the investors were also approaching the banker regarding a construction loan for the same project. I received copies of all the documents the banker was given. After, I called a lender I already had an established a relationship with to get his take on the financing and I am waiting to hear back from him. In the mean time I am checking on rental comps and will talk to some people at my local REAI regarding some of the above topics.

If everything magically turns out to be accurate, I am still curious as to if you think the likely negative monthly cash flow is worth the equity. The "deal" seems to go against what is in my mind as a buy and hold investment as there will not be passive income. Are the risks of losing money every month (again, assuming the numbers are accurate) worth the potential equity? If not, then trusting these people is a moot point.

Thanks again, I really appreciate it. 

 Thanks Brent. Any recommendations how I could further look into this to cover all my bases? 

 Thanks Doug. I think I get what you are saying. There is a lot of inherent trust that would be assumed from my end and that is something I am dealing with. I feel like I have a good grasp who they are as businessmen and members of my community. I am at the point where I would move forward with them when it is time to put pen to paper but I am trying to decide if it is a worthwhile opportunity or not. Being this would be my first investment purchase, I am also wondering if the advice of @joshua dorkin and @Brandon Turner apply and I should jump in to get some experience. Thanks again for the input!