All Forum Posts by: Nate Sanow

I was basically going to say the same thing as Nathan.  Propstream and platforms like it will help.. Fast People Search is a free one….not sure the Canada version but I’d imagine it’s similar.  

Quote from @Nate Sanow:

The gospel of Dave can be treacherous, he is not entirely wrong but will steer you away from ANY leverage and thus cost you years of possible investing. I listened to him way too much at a point where I could have bought properties worth 2-3x now, and avoided buying because I didn't have the 20% down at the time. Chew the meat, spit the bone. Dave is right, expensive car loans, bad idea. Too much credit card debt, bad idea. Etc. That is the meat. He is wrong on telling everyone to avoid mortgage debt to grow in REI. He compares EVERYONES REI debt story to his folly in his 20's, something that 1. I am sure he could do better now at his age if he got just one stinking loan, and 2. If he had better loan products that were fixed and not structured to be called due, he never would have been….well called due.

The answer besides cash is becoming a deal finder. If you don’t have money, you need something else of value - I bet you have time or can make time.  Time = money.  And deals = money.  If you find a HOT deal, the money will find you, especially the more hot deals you have..ask me how I know…partners and lenders will approach you as you build rapport and relationship.  The trick is in investing to grow your mind beyond, what do I currently have, and to learn how to get what I really need.  YES on paper someone needs money / reserves but there’s a lot of ways to have it…Just my $0.02 hope it helps.

UGH. Let me just admit I gave myself 30 seconds of listening to Dave. So ironic he just criticized getting a partner…and he made it sound like getting a partner means that partner is automatically hooked on drugs……..bleh. Listen to Dave on eating out less, side hustles, saving a little bit, all that stuff….there is such a thing as bad debt. But dude if you really want to do REI then you need to take in content besides Ramsey.

The gospel of Dave can be treacherous, he is not entirely wrong but will steer you away from ANY leverage and thus cost you years of possible investing. I listened to him way too much at a point where I could have bought properties worth 2-3x now, and avoided buying because I didn't have the 20% down at the time. Chew the meat, spit the bone. Dave is right, expensive car loans, bad idea. Too much credit card debt, bad idea. Etc. That is the meat. He is wrong on telling everyone to avoid mortgage debt to grow in REI. He compares EVERYONES REI debt story to his folly in his 20's, something that 1. I am sure he could do better now at his age if he got just one stinking loan, and 2. If he had better loan products that were fixed and not structured to be called due, he never would have been….well called due.

The answer besides cash is becoming a deal finder. If you don’t have money, you need something else of value - I bet you have time or can make time.  Time = money.  And deals = money.  If you find a HOT deal, the money will find you, especially the more hot deals you have..ask me how I know…partners and lenders will approach you as you build rapport and relationship.  The trick is in investing to grow your mind beyond, what do I currently have, and to learn how to get what I really need.  YES on paper someone needs money / reserves but there’s a lot of ways to have it…Just my $0.02 hope it helps.

It’s not necessarily a waste of time, but you’ve got to be prepared to be the end buyer and perform once something is accepted.  If you ask him / her to write 1000 offers and 1 is accepted and you back out over being spooked by inspections, then, yeah it’s a waste of time.  If you’ve discovered 2 deals you would pull a trigger on, but only 1 gets accepted, then, ok, it’s just business.  Things to consider if valuing this agent:  Writing offers sight unseen and not asking for showings everywhere will save that person a lot of time.  

In this market, buyers do have more power than a year or two ago…sellers are motivated….so in my opinion if you have an open mindset and do value this agent there is a way to find the win win here.  

If the goal is to free up capital via the refi, and not as worried about rate and term, just the cash out, you can look into a long term Bridge loan up to 24 months. This can help offset the cost of a pre-pay penalty, which a lot of 30 year fixed loans might have. In this current climate I'm looking at a process of brrrr-ing into bridge not permanent finance, to get my HML lender off the books and available for more deals, and allow myself to pivot quickly into lower rate loans that I believe to be coming back sometime 2023. Yes, risky-ish if rates go up, so good personal underwriting of the deal matters & looking into a forecast of multiple exit strategies is helpful, too.

Most hard money lenders do not care about personal income, they value credit and the asset / how good the deal is. They are short term loans…if needing long term, look into non QM which also doesn't need a tax return, and most DSCR do not either…there are several national large companies that will do most or all 50 states, fairly easy to find and a good subject to research. I'd name names, but not wanting to seem like promoting specific ones or being a broker (I am not a lender) but I am available to share privately.

 I wish I knew about them sooner, would’ve saved me some time wasted being loyal to previous employers, thinking I needed a good job to invest. Loans really  are readily available when you have a deal, not when you have a job.  

Congrats 

In a market like mine, Tulsa OK, $15,000 can go pretty far but like others have said this would be with a mix of the 15k plus hard money and finding a deeply discounted deal….which, even in my humble market, isn’t always readily available.  There are certainly other midwestern markets you could select, too.  It’s OKAY to have some pause and use the time to be well researched.  Savings account accumulation isn’t the end of the world…yes the dollar is losing value to inflation, but that is a grand philosophical conclusion and in real life, having some extra reserves is never a bad thing.  In a round about sense, you don’t have 15k, you have lets say 10k, and 5K reserves…if you follow what I mean….always setting aside a good chunk of revenue in reserves is always wise.  

I do wonder if there are other non real estate write offs for you as I trust the responses already given.  Could be a great time to start having some kids!  Joking…sort of :) 

Quote from @David Lund:

Quote from @Nate Sanow:

I like netting at least $200 per door. 

Have I included everything in my cash flow analysis? Do you add or subtract any variables to get your $200 number?

yeah.  If anything, most months it won’t be that bad.  And starting out, with self management, it’s OKAY to not count the property management fee….I know that’s un-popular on BP but I feel like that thinking came during the era of deals being bought during 2010-2015 when everything was low from the last crash and doing nothing but go up during the last bull run….I used to worry about every penny on net cash flow and for me, it was a type of analysis paralysis…..investing beyond cash flow has set me free and let me factor in so many other things like appreciation, equity growth, and reduction of taxes paid especially being self employed now… That is WAY more than you asked me….but I am just saying keep doing the analysis but man at some point you will only know what the net cash flow really is by having something giving you CF….and in reality it is not always perfectly predictable - someone loses a job and stops paying, breaks a lease, a hot water tank goes out, etc, and it wipes out CF for awhile and doesn’t fit into the perfect 5% capex / vacancy reserve formula…just my opinion.