All Forum Posts by: Nick Hedberg

@James Syed

The numbers can run the gambit in a zip code. There are 4 plexes on the west side of 63118 which are a bad deal at $100k, but others might be a great deal at $150k if they are on the East side of Jefferson. I passed on a 5 unit commercial deal at $60k with $3k in monthly rent in 63116 but purchased my 4plex in 63116 for $120k with $2k in monthly rent and would do it again in a heartbeat. 63109 is one of the pricier areas, but I'm not sure how it compares to the nice part of Benton Park (63118). South City St. Louis is block by block.

However, I'm not an expert on the St. Louis market. I would defer to experts like @Peter MacKercher and @Bob Hines who know the local markets much better then myself.

I would also recommend coming up with a list of questions and a list of Property Managers for each area. Go over the exact same list of questions with each PM. You'll be surprised at what you can find out. The differing opinions are an absolute wealth of knowledge. 

@Ndy Onyido

I'm open to most properties if they make sense. I've seriously considered a triplex and would purchase a duplex if the right deal came along.

I see myself as having 3 primary constraints I weigh for the number of traditional residential deals I can do: amount of cash invested, amount of time invested and the fact you can only get 10 Fannie loans with cheap financing. My goal is to maximize the amount of cashflow within these 3 criteria. After the 10 Fannie loans you'll either need to use cash, portfolio, commercial lending, etc.

As a result I don't want to buy a SFR or Duplex for $60k where I only net 200 a month and spent a lot of time purchasing the house. I would rather buy a 4plex at $120k and net 400 with the same time invested. Would you rather have 10 SFRs or 10 4plexes?

I really enjoyed BP Podcast 52 with Ken McElroy.  He said doing diligence on a 50 unit is roughly the same as a 200+ units. If you are putting in a similar amount of effort, wouldn't you rather have more cashflow?  During the next cycle I'll be focusing on purchasing ]apartment complexes. Would you rather manage 1 100 unit building or 100 SFRs? Not 100% equivalent, but hopefully you understand my point.

All of this is based on how I can reach my goals. Everyone has different goals, so they can have completely different investing strategies and still reach their goals. Identify your goals and figure out what works for you!

https://www.biggerpockets.com/renewsblog/2014/01/0...

Hi @Ndy Onyido,

I have a 4plex (1/1s) in South City (63116). I bought it earlier this year and things are going ok. I'm in the process of evicting a tenant who was inherited from the previous owner. The eviction process was easy, and I'm hoping she doesn't leave the place trashed. 

@Ben Dao hit the nail on the head. If you want cashflow you need to look in some of the lower graded areas, but be careful. St. Louis can go downhill quickly in just a couple of blocks. 

I watch 63118 but haven't found any properties there I really like so far.  I'm also actively looking in 63116 and 63109. Personally I like the 4plexes, and stay away from the duplexes & SFRs. 

I had a 4 unit with roughly 2400 a month in rental income under contract for $120k in 63118. When I went out to see the property I backed out because of the area, quality of the tenant and it required too much capex.  In the bad areas the numbers can look great but the tenants and repairs can make it a bad investment. $8k for new sewer laterals, $10k for a roof and that can be your profits for a couple years. Low rents and old properties means doing your due diligence is critical. 

I don't like the recent rise in prices in St. Louis. Things have been getting hot and properties are going for price points I don't like.  I would reach out to @Peter MacKercher and get his advice. He an active investor in South City and helped me find the property I bought.

@Zach Hubert-Allen 

I'll be taking my test soon and I just paid it all up front. If I pass the test I don't want to wait again while CALBRE is processing more paperwork, they take forever. Plus I'm not planning on failing!

I took classes through CA Realty Training and they have sample questions you can use to see if you are ready for the test. They recommend passing their 100 question exam with an 80-90% score 3 times before you schedule your exam.

Hi David,

I would reach out to @Heather Skowronsky and get her input. She sold my rental in Centreville a couple months ago and she made it completely painless for me, especially since I live in California.  She's an investor and knows the area well.

Best of luck,

Nick

@Samuel DeMass - There were some last minute updates to the paperwork, so I was too late in the game to use most of the great advice in this thread, but I'll be much more prepared for my next closing (hopefully soon).  I printed off the docs and signed all the ones that didn't need a notary. I swung by a notary on my way home and got all of the paperwork wrapped up and mailed it the next morning with the overnight slip the title company sent.  The title or insurance company didn't have any offices near me, I didn't see any promising title companies in my area, and didn't want to call any to see if they could do a last minute courtesy closing.

Next time I'll check out some more of these options to make the process easier.  Getting the docs at least 7 days out is also key, last minutes discussions/changes are a pain.

@Ralph R.- Excellent advice. I feel like a knucklehead for not thinking of this. Reviewing the docs on my own time would make the whole process easier and I won't feel pressured to get it done in a couple hour block. You only need the notary, not necessarily all the services of a title co. This seems like a low stress way to do an out of state closing. What's a dispersal extension?

@Samuel DeMass - I'm looking around for Title Companies now and hopefully I can schedule a courtesy close today or tomorrow. Knowing this term is surprisingly comforting. Hopefully I can get one penciled in for this short timeframe.  My backup plan is printing off the docs, and just bringing the ones requiring a notary in.  Even just using the title co for shipping the docs and a notary could be a good way to network.

Thanks for all of the great advice everyone. I know how several options I can choose from depending on my schedule and the availability of a title company in the next couple of days. Advice like yours (@Jay Hinrichs, @Samuel DeMass, @Ralph R..) is why I love BP.

@Jay Hinrichs - Thanks Jay, I had never thought about reaching out to the Title Insurance company.  I'll reach out to them.

@Samuel DeMass - Excellent advice, especially for the free cookies! I've never heard of a 'courtesy closing' and figured their had to be some term out there.  I'll ask around and see what title companies offer courtesy closings. I'll gladly pay a couple hundred to make sure the transaction goes smoothly.  Last time I did a closing at a normal notary office, and didn't have any space, privacy and the whole ordeal was unpleasant.  Plus no free cookies.

I'm selling a property in Virginia and am closing this Friday. Any recommendations on a Notary or place to sign the closing docs in the Santa Monica, Venice or El Segundo area? 

I would prefer some form of real estate office that understands a closing can take some time.  Plus, establishing relationships with local real estate professionals is always a plus.

I've been going to CA Realty Training and it's been fantastic so far.  They have a combination of in person and online training.  Rico is the trainer at Santa Monica and he is very knowledgeable and makes the classes entertaining.  Also the highest reviews on Yelp.

http://www.carealtytraining.com/#home

http://www.yelp.com/biz/ca-realty-training-los-angeles-4