All Forum Posts by: Nathan Roberts

http://worldpopulationreview.com is a great resource for finding out market demographics or statistics. With that said I am going to sell you on Kansas City haha. The information below is either provided by World Population Review, the Kansas City Regional Association of Realtors (KCRAR), or Zillow. 

Population: 492k

Population Growth: Year 2015-2016 was 1.38%%; Year 2016-2017 was 1.38%; Year 2017-2018 was 0.75%. KC is the largest city by population in Missouri

Median Household Income: $52k

Median Rent Price: $1,025

Median Sales Price: $200k up 5.3% (KC Metropolitan Statistical Area; Includes 15 counties)

Median Home Value: $157k (Up 4.4% from the previous year according to Zillow)

Housing Supply: 2.3 months worth (seller's market)

These statistics showcase a viable market for real estate investors. Out of state investors flock to the Midwest for cash flow, great returns, and appreciation depending on the neighborhood. Areas that have high demand with little supply are likely to appreciate a lot faster than an area that is seeing superb demand. Great areas for rentals include South KC, Grandview, Raytown, core of the city in certain neighborhoods. Obviously the lower the class of real estate you want to invest in, the higher the risk, therefore you expect higher returns. Let me know if I can help out in anyway. 

The current population, population growth rate, median sell price, median property values, median household income, unemployment percentage, etc. You should take all of these metrics into perspective when analyzing a particular market that you may be interested in. Try to connect with local agents to get market demographics or statistics. Many agents will probably sell you on their area so they can get more business; be cautious of this. Always verify the information that is given to you to make sure it's correct so you're not getting the run-around. I hope this brief answer helps you out. Feel free to reach out for questions!

Doing the math, it appears the mortgage payments were amortized over a 20 year period. At the end of the loan (5 years) there is a balloon payment to pay of the mortgage or he will do a cash-out refinance or just simply refinance. The following was included in this calculation:

APR: 4.5%

Present Value (PV): $332k

PMT: $2,100

Amortization Length: 20 years

Post Creator - please correct me if i'm wrong

@Sam Khamvongsa what’s up man? I didn’t know your last name but I know who you are now lol. I would get a license in the state you think you’re going to have the most clients in initially. Personally, I got my license in MO because that’s where most of my investor clients are searching for properties. Figure out what niche you would like to do focus on ie; luxury, small multi-family, investments, commercial real estate such as retail, industrial, office, etc. The exam is not hard but it will be easier to take the courses in person. Good luck my guy; I have a few study books you can use if needed. Talk with you soon!

Hi @Sam Khamvongsa,

You should get your license first in the state you think you're going to be selling the most real estate in. I think choosing a MO or KS real estate license is a personal preference. With that said, the average home in Johnson County, KS sells for a lot higher than a home in Jackson County, MO. Definitely become licensed in both states but if you had to choose a state right now, go with the state you're going to sell the most properties in. I heard CE Shop was good but I didn't complete my courses through them. I recommend taking your courses through Real Estate Express (online) if you're a self-starter. If you want to be done with your course in a couple weeks then take it in person. Online will take more time plus you have to be motivated to do it every day or be on a schedule. Let me know if you have any questions about preparing for the exam. Talk with you soon!

Best Regards, 

Nathan Roberts

Having a college degree doesn't mean you should ask for credit so you can just take the exam. If your degree is not in real estate then you should definitely take the pre and post license courses. Are you currently licensed? Asking because it's hard to pass an exam without knowing the information learned in the courses required for your license.

This is what the BiggerPockets community is here for. Don't hesitate to reach out if you have any additional questions. Pleasure speaking with you!

In this particular situation if I had cash that was not in a bank, I would partner with someone. The reason being that banks are required to have a paper trail of the money used for down payment or closing cost to make sure the money is legal. There is a standard practice that will be nearly impossible to get around. The best thing to do would be to talk with a local bank/lender. They may be able to work something out to where you just need to keep the money in an account for x number of days. 

In my opinion, the BRRRR strategy is the best way to build your wealth. This method allows you to build wealth at an exponentially faster rate than other investing strategies. By forcing appreciation through a rehab, investors can leverage repairs to increase the rental value. On top of this, they are increasing the value of the property as well ie; rehabbing the kitchen, bathroom, adding walls to create a room, etc. After a minimum of 6 months, you can typically do a cash-out refinance where you can pull most if not all of you money out to repeat the process. I don't know how you can get a better deal than waiting a year to pull your money out to repeat the process (you essentially paid nothing for the property).

Hi @Danny Lee,

There are many ways to set up a partnership in real estate investing (REI). Before going into a partnership with someone, you must understand why you would do that in the first place. Is it for a lack of capital or are you fearful of risks? You must also understand that you don't know what you don't know (or supposed to know). Obviously this is the case with anything you get started doing so don't let this hold you back if you've been studying REI. What is your partner bringing to the table? Do they have experience investing or will they just provide capital? These are questions I would ask yourself before partnering on a deal. All partnerships (no exception) should have a legally binding partnership agreement so neither partner can interpret anything out of context. A good partnership agreement should outline all three of the following; who will do what and how, who will contribute capital and how will it be used, and how does everyone get paid and/or equity in property. This can help alleviate some potential risks with investing. Let me know if you have any questions; I would love to follow-up with you on your future successes.

Best Regards,

Nathan Roberts

@Andrew Schneider You need to provide more context to your situation. Are you having a hard time finding properties that meet your criteria? Why are you wanting to start with wholesaling initially? Is it to get capital, experience, meet local professionals, etc? It's hard to provide recommendations or advice without knowing what you're asking.