All Forum Posts by: Michael Hastings

Thanks for the replies, guys.  Really appreciate the assistance. 

For @Ernest Chamblee, I am looking for PML investors, and have been attempting to make connections here on BP.  I have done as much due diligence as possible, using BP tools and had an agent review them, they look workable.  If you can send me in the right direction, your help would be appreciated. 

For @Casey Mericle, thanks for the link.  I did see this earlier, and began reaching out to a few of these, after my post.  Thanks for taking the time to provide the info.  The properties I have been looking and analyzing at are in KC, MO, KC, KS  and Leavenworth, KS.  I know there is some issue with finding these types of properties and investing remotely, but I was hoping to start off small, see if I could get some success with a deal or two, before biting off more than I can chew.

Being in a market like Denver at the moment makes the whole thing challenging, but not impossible.  I was hoping to build some relationships in other markets where entry into investing was not as competitive and time was available to thoroughly investigate the numbers.

Hi Steven,

I grew up in Oakland, and was there through two real estate booms and busts (early 90's and 2007-2008). We still own my childhood home there in North Oakland, which funny enough was 25K in the late 70's when my parents purchased it. Needless to say, it is worth a lot more than that now with no encumbrances. When I wanted to get back into the Real Estate game about a year ago, I also investigated the Oakland/Berkeley/Richmond/Vallejo markets for long term investments, and you are right, most of what was available on the MLS were not "plug and play" deals. Many of the deals that I was after would barely squeak out a monthly profit, based on rental projections and expenses.

However, as I have found, now living in Denver which is another "hot" market, the MLS is not where deals we want are found in these hot markets. There are off-market deals, driving for dollars deals and other methods of getting property in these areas that make investors who dig for these so successful. Like @Chris Mason states, in the Bay Area, the buyers committing to deals on the MLS are not as sweet as many lead us on to believe (when we considered selling my childhood home in 2015, we tested the MLS market and there were many cash offers, but they were all discounted - There were a lot of jumbo with good down payment offers as well, but we decided against selling).

Although I do not know the Portland market and cannot make comparisons for you, I would ask that you use BP to try and connect with other investors, lenders, speculators and wholesalers in the Bay Area, and find out how they are keeping the wheels turning, as not everyone is coming to the table with all cash or loads of money down, as the process would come to a halt.

Hope this helps, and good luck!

Basil,

Congrats on take the first step. Joining BP and seeking assistance from the professionals here is exactly what I did, when I had that *aha* moment a year or so ago.  As a young investor, there are several things on your side, such as low cash output now (like you should have no or a low car payment, reduced student loans (if any), etc), ability to learn in an orderly fashion about RE investing (and not be rushed) and time is on your side, which can help you multiply your initial investment and give you a chance to expand your knowledge through committing to several RE transactions for the next few years.

You say you want to get started? Well, BP has all of the necessary resources to get you going.  There are forum post, webinars, books, blogs and other tidbits of information that will more than help you create a direction for yourself.  You don't know what you don't know in RE until you get into it, ask questions and make a deal or two.  Believe me, once you do that, your knowledge will expand immediately.

Start with Brandon's book on investing with no money down and get Scott's book as well.  These will open your eyes to the possibilities.

Further, save some money and house hack your first deal (that is what I would do). Keep working at the car dealership to get a down pmt., hook up with a realtor to find a duplex or triplex that you can get an FHA loan for, and move into one of the units (let the tenants in the other pay for your mortgage).

Too much risk?  Then get a condo with a low down payment and get a roommate to offset cost.  There are so many options, especially for young people like yourself, the choices are endless.  Just take the next step to learn and then act.  When talking to realtors, act like you belong there and let them know of your research of the local market.  

You will do great!  Good luck!

Hi Sawyer,

Welcome to BP!  Congrats on the purchase, and I wish I have the financial insight you are applying now when I was your age.  You are at the right location to find like minded people, and should have no problem being able to reach your RE investing goals.

There are countless stories both in the forms and BP blogs that outline this specific technique you have used to get started, and can help you get to the next level.  I have found in RE that you get a lot of success by following the successful crowd, instead of trying to defer from the proven and beaten path.  

I would suggest that you soak up some of the many webinars that BP offers, get Brandon's book on investing and read Scott's book (if you have not already :) . Apply the ideas and be patient.  You will be glad you did.

I don't get to Ohio much, but if I every did, I would need to visit Canton and see that Hall of Fame!

Good luck, and invest wisely!

Hi Kerven,

I think @Bill Goodland and @Ray Lai have hit the nail on the head.  Like you, I struggled a lot with how to get myself inserted into deals, and spent the last year saving money for my first deal.  But, what I noticed when approaching people, asking if I could mirror them or "tag along" with their deal to local investors, potential wholesale home sellers or RE speculators in my local market is that I needed some credibility.  I am now studying for my RE license, and I can tell you I am not even licensed yet and it is opening up doors.

Also, use every part of this site to learn about the business, learn the lingo and study your local market.  Always think "what am I bringing to the deal", which is what Ray elaborated on earlier. 

There is so much helpful info here and the people are great, I think you can go far applying the information you learn from the resources available on BP.

I want to further mention there is this lost art of cold calling people to ask questions, and it has been highly effective for me, as I am building the team for my RE investing business. 

Good luck!

Hi Adam,

I have no where near the amount of scale in my business that you have, but I can answer your question as I have been through two RE bubbles (early to mid 90's and 2007-2008) as a small investor and home owner.  

In both of these bubbles, I owned a single family home and various investment properties (ranging from 1BD condo to Tri-Plex).  I can unconditionally tell you that if there is a correction in the RE market for whatever the reason is, there are only a few types of properties which may be exempt.  Therefore, you can be almost guaranteed that whether it is a regional or national correction, the residential properties that you may be wholesaling and/or flipping will be affected on their price points (and see a decline in value).

What I now know as a more seasoned investor, and all around older dude, is that how you are leveraged into the property is what will affect your position.  For example, if you or your investors are buying property for flipping and using loaned money to make the deal (as most of us do), too much speculation and too much leverage in your position could spell disaster (as your exit strategy will be affected and more property coming onto the market in your range will make it harder to dump the properties).

However, if you are in for buy and hold strategies, then the rents you are getting could isolate you from declines in property value, as the cash flow will help to cover your monthly obligations and things can continue as normal (as long as your numbers are sound and you are taking into consideration all of the expenses).

As no one has a crystal ball into the future, we know all of these investments have a bit of speculation to them, but we use information, leverage and market conditions to hedge our positions.  If only I knew then what I know now, I would insert more into my business plan that diversifies property holding by type, and seeing other methods of deriving income from RE that does not put all my "eggs" in one basket (BTW, this is what I am doing now).

Hope this helps, have a good day! 

Hi Sophie, welcome to BP and good luck with your investing endeavors.

Hi Deon,

Welcome to BP - Sorry, but this is a generic question, as there are a lot of specifics you need to know about everything in Real Estate Purchasing, Selling and Investing.  Is there some specific area of investing (either finding property to wholesale, or buying property from wholesalers) that you are interested in? 

FYI - There is a lot of information on wholesaling on this forum and in the blogs, if you search for them.

Greetings fellow BP'ers,

My name is Michael, I am a business professional who resides in Colorado. I have been a member of Bigger Pockets for a year, listened to almost all of the podcast (over 200), read the books and currently studying for my RE license in Colorado. I am ready to take the next step and purchase my first property in which I can apply the BRRRR strategy to. I have connected with realtors in the KS/MO market, found a few potential properties in which the numbers work well for from our analysis, and I am currently looking for a lender who can help us to implement the strategy.

Can anyone recommend a lender who may work with first time investors, if the numbers are right?  I have searched here (and on the internet) and found a few, but many shy away from new investors (without a track record, which I can understand).

Any assistance would be appreciated (even if you can direct me to a BP member I could reach out to, much oblige!)

Thanks!

Survey completed, you're welcome :)