All Forum Posts by: Nathan Killebrew

This is an unprecedented time in all markets. The stock market does not seem to reflect on the overall economy. This is due to the fed's willingness to print money and buy bonds to keep this market afloat. Real estate markets are acting as if we are on the upward side of a bull market. They do not reflect that we have historical unemployment and other typically depressing economic factors.  Demand is up rates are low and money is very cheap. With all these things at play, inefficiencies in the market are inevitable. Where those inefficiencies lead, I do not know? I fear that the lack of understanding in the market could lead to places we do not want to go to. Then again, no one has ever seen this situation. 

The stock market is in a wildly irrational place at this time. The swings can be brutal on both ends. With money being printed at the rate it is, you may want to look towards real estate. You will control the asset and not have constant quotes giving you anxiety. As a beginning investor seeing your money go up and down constantly is no fun. 

I think it may be difficult to find a scenario to get 200k for a down payment by a private lender without crazy rates. 6 months ago the story would be different. However, with the uncertain investment environment, we find ourselves in, the risk premium will be a lot different. 

You could offer a savvy investor a small equity position in your business in exchange for a little cash. However, you may not want to use your ownership as a currency. 

How much do you really need the space? Also, just reach out to lenders, and just getting some dialogue going may offer solutions.  

@Barry Pekin

Thank you, I spent most of my education period working to find motivated sellers. I have a solid process for doing that. (though I will look to scale to a more sophisticated deal flow machine when I get a solid list of buyers) 

I got deals under contract and was hit with the "oh crap I do not know how to find buyers" reaction. Now I am just working on building a target list of buyers and only making offers on deals right in their wheelhouse. I will attend the next meetup. I just struggle with my target market being two hours away. However, those are just sacrifices I will have to make. 

@Jerryll Noorden

I know what you mean. I try to be very conservative in my estimations. I do not want to be the inflated Arv guy. Thank you for your input.

 I agree with @Jim Goebel, Biloxi is a cool little area, but it is a little topy for long-term rentals. 

However, Airbnb might be a nice option.  Many people (in Mississippi) like to run down there for a weekend of casino nights. We stayed in one and paid top dollar. That may be the way to go. 

Hey Bigger Pockets,

I consistently hear the importance of finding good wholesale deals. I have had no trouble finding deals, but I am having trouble getting them in front of cash buyers. How are you guys finding these buyers? I have several deals on hold because I do not want to waste a security deposit by not finding an end buyer. This topic is typically glossed over in podcasts. I would like to know what I am missing. 

Thanks,

Nathan 

 You do not neccessarly need much cash. Maybe 300-1,000 for a security deposit. 

I would pursue knowledge before trying to do a deal.  It seems you need learn a bit more about the various strategies. Do not short change education. It is important. Go to meet-ups and look for people in the game. All investors started with education. 

Hey Jeremy, I am in a very similar situation. I am moving to my area of focus upon my graduation. I was dying to get in and buy some deals, but I really couldn't due to my situation.  I sat down and decided I needed to grow my network and meet people in the game. I explored some options and decided to wholesale some deals. I could do that virtually. I now have been able to meet people working and learn the various regions. I know it may not be what you want to do longterm, but It is a great way to dive into the area and learn some things.

You will learn who the top flippers are, what are the areas that are growing, and how to speak to sellers. It is a win win. Plus, you can make some nice side cash. 

Build relationships with people already working in the game. 

That is the key. Find a mentor if you can.