All Forum Posts by: Alan Brown

wow, sorry that's been such a cluster.  My first thought is:  how is your team?  Do you have a good realtor there that sees your vision for your future and wants in on that future business, whatever it is?  Because he/she should be able to pull the comps for you, look them over, and be able to guess at what the appraiser would be coming up with...  If there's ever any question about my listings reaching appraised value for a sale, (and even if there's not) as a listing agent, I'll plan to meet the appraiser there, schmooze them (not in a sticky sweet way,  but just be VERY pleasant and welcoming) and offer my comparables, and why I have it priced like I do.  #1, it's my job to do that, really, so he/she won't object or be defensive (hopefully);  as an owner who's paying for their report, you should have that right as well, and if it's a good appraiser, they love information, and it might even make their job easier.  If they're defensive or obviously not doing their job well, there are ways to report them:  talk to you lender.  

Which brings me to one of the other parts of your team:  lending;  a portfolio lender who knows you and sees what you're trying to do long term, stands to make some money off of you and should be very helpful, and be a good resource for you to bounce ideas off... Milwaukee should be a great place to find this person to help you... Pick all of their brains until they can't take anymore, and then go pick some more.  But network your team so that you know exactly what to expect and don't feel guilty asking questions... If you were in my locale, I'd love to have you buy me lunch, help you any way I can (which us usually quite a bit), and plan to help you find the next project or sell one, or maybe have you tell your buddy at work how great I am and to use me when they sell, and be your realtor for life!

Network for the right people to help you!

cheers   

Welcome Courtney!  Good for you for getting on it so early in your career... even if you're just in the planning phase... I wish I started when I was your age!   George is right on, as usual... start thinking about a 2-4plex that you can qualify for as an owner occupant with miniimum down, and use the rent to help you qualify for the payment.  Then, at some point, you move on and you have a cash flowing 4plex!   And you do it again.   Do you have a job?  think about working for a Realtor or property manager for income and for a vast wealth of experience!  We should get Patrick McGowan going on another meetup!  The thing about Bozeman's market, is, if you can get in, at any level, there's a very good chance that you will accrue some mad appreciation over a few years.  and it's amazing how fast those years go by!!  The investors here are not really looking for cash flow, though they wouldn't turn it down, they're looking for the back end, when they pull that equity out and buy something bigger!!  Anyway, feel free to ask any questions whenever.

Good on ya, Dustin! 

 I think Detroit is too great a city not to come back strong at some point!  I can only imagine the incredibly beautiful houses one can get for very reasonable prices.  And it's people like you that will be there when the city gets there, sitting on a gold mine of good properties.  In fact, the town needs your attitude to come back to what it was, or potentially something way better than it was.  Fear is what keeps the masses away and leaves the treasures there for the bold...

Absolutely right, Ryan!  Spec building seems like the place to be in BZN;  although I can't get Las Vegas out of my head for how badly it was hit when the economy faltered... something pretty tempting about putting a contract in on new construction before they break ground, and selling it in six months when it's done and ready to move into, at a 10%-20% gain!!  That's how Vegas was going when 2008 hit, and everyone had to walk away, leaving ghost towns of framed and finished homes that they couldn't even give away!

I don't think Bozeman is anywhere near that, and I hope it stays with a cautious optimism and responsible growth.

Billings sounds great!  why would you go anywhere else, if it feels that stable and gives you a good return??  I'll be lookking you up when my world settles down a bit, and maybe you can introduce me to Billings?  I've only just driven through!  

cheers!

Awesome Penny!  I know, I SO wish that BP had been around 20 years ago when I started;  would have saved me a ton of time and money... I did a bunch of flips, never made less than $50k on them (I didn't count my hours then!) and got cocky and lost big on one... freaked me out and cleaned out my bank account, in fact!   But by the time I was back on my feet I found BP and it fired me up!  

My world is a little crazy right now, but I would love to look at any cool projects in Butte, or just look at some properties and get familiar with that market... If it really is solid over there, it seems like a great buy and hold market.  

I will pm  my contact info to you.

anytime!  I'll pm you w my email address.. 

Wow!  This is a great thread!  Welcome to BP Russ... I look forward to meeting all y'all!

Bozeman does seem a bit inflated, and I heard recently that they're planning for 40,000 new homes in the next ten years!!  it will be called Bozegrade....or Belman.   Most people seem pretty bullish on the RE market in BZN, but I wonder how much of that is optimism... they say, that because there is no large single business carrying the whole economy, it means that people are bringing their work with them, which in turn, means that a bubble shouldn't pop!!??  I was a Realtor in Boulder, CO for many years, and that town was pretty much bubble proof because they ringed the whole town with public open space, so no further expansion was possible in the town.  Which meant that prices just constantly go up.  They may flatten a bit at times, but no drops!  Bozeman could keep building forever in the wide open spaces, which does mean that if the economy falters either nationally or especially locally, there could be a lot of Supply without enough demand... which could leave some boats on dry land!

So I've been thinking about investing in Butte if it seems that the economy is truly coming back, albeit slowly.  Slow is fine, if the cash flow is great, which I imagine it should be in that demographic... A friend has been living there for the last year and I was able to hang with him quite a bit.  I love the history and just the great old feeling of the town.  But my friend felt that the economy was slowly going down... I don't know... What do you think, Russ?

Also thinking about Billings and some of the towns around it... not too far to drive to Butte or Billings from Bozeman, and the right price to rent ratios could be great, and Flips in Billings could be good and strong...?  What do you guys think?  Joshua?  how's Billings economy doing?  is it still growing, and is the appreciation strong?

Thank you guys,  still stumbling through this mess!  each of you had great suggestions;  I appreciate that!  I"m hoping something will happen soon to get these units rented, but in the meantime, I have to start unwrapping the tentacles of their contract to make a change...

Thanks!

Hey BP friends, 

I thought I had done my homework so well, Investing out of state, and finding the property manager first!!  So now I'm about to close on the 3rd of three decent four plexes in Independence, meeting the crazy timelines of a 1031 Exchange, and my 'turnkey, fully rented' units are half empty and I'm not hearing from the property manager I have contracted with and interviewed for 8 months!  Except to hear that they want $950 to change out a water heater (that their inspector found no problem with a few months ago) that sounds like it only needs a $75 thermocouple!

They sounded so impressive... I really like Kansas City, but I sure hope I can find someone decent to manage the places;  I'm half tempted to go there myself and do the leasing, at least, but that was my whole idea for hiring management:  let them do it!  Unfortunately, that will be sucking my reserves right down the toilet, if they don't get something going soon.

When interviewing, I thought a full months rent was a bit high for lease up fees, because where I have been landlording, going rate is 1/2 month's rent... So I mentioned my thought, and they lowered it to 80%;  I thought, well, at least they are working with me, so OK.  Now, after a month and NO success filling my empty, newly rehabbed units in a very nice area, she responds, "maybe  you should offer $100 extra incentive to our lease up people to get them thinking creatively."  So apparently, the fees I've contracted for don't include creative thinking, and maybe not even getting them off their wrinkly bottoms to go show the units!  

Anyone got the perfect leasing agent/prop manager?  let me know!

thanks!

Welcome, Meghan!  I know, right?  it's tight, but with the right financing I think the deals are out there... Hang in there!  

Look forward to seeing you around!

cheers