All Forum Posts by: Nicholas Osweiler

@Corey Stubbs - I forgot to ask, what time is the meet up?

@Corey Stubbs - the idea of a local meetup sounds great! I’ll plan on coming on the 18th. Thanks for reaching out!

@Justin Roberts, at first glance, this looks like a very scary deal. Depending on what your goals are, maybe you're OK with a monthly cash flow of only 7 bucks, but that's pretty razor thin. The least amount I'd be willing to take is $100, and even that's kind of low. In order to make this work, you need to get the purchase price and expenses down, while boosting your ARV.

How are you funding this deal? $2k in closing costs seems to be pretty low, but not unrealistic. Are you OK with leaving $21k in the deal? Your loan points and fees are 0, not unheard of but it is pretty rare. Who's your lender?

Have you compared rents in the area to ensure this isn't too low? Compared vacancy rates? Your capex and repairs might be a bit too low as well. 

For the ARV - how did you get your comps?

Over all, this looks like a bad deal but it also depends on your goals. Are you just very anxious to buy your first property and willing to sacrifice profits? If so, then that's ok, just as long as you know what you're getting into. If not, then don't input numbers to make the deal work, make sure you are using reasonable ones so you don't shoot yourself in the foot. 

Analyzing deals is not just a science, but also an art. Keep at it, the more you do the easier it will be. Feel free to reach out with any questions. 

Thanks, 

Nick 

Hi @Mindy Jensen, I too am having trouble finding the FIRE Starter feature. I am accessing this from a computer browser. After clicking on 'My Goals', this is what I see. 

Thanks, 

Nick

Let me know if you have any luck with the business credit, its been very difficult getting approved on my end. I would stay away from the companies that advertise giving out credit lines but then all they really do is apply for 10-15 credit cards in hopes of getting a bunch of new accounts open and then charging you upwards of 10% just to do so. Save the money and hit to your credit report and just do it yourself slowly over time. 

Thanks, 

Nick 

Hi Ej and welcome to BP! My advice for anyone who's just starting out is to NETWORK, NETWORK, NETWORK! By posting here, you've made a great first step. Once you find others locally that are doing what you want to be doing, start by offering them value in return for you learning from them. Trading your time for education is one of the best ROI's that I can think of. Happy investing!

Nick
 

Hi Herwin, welcome to BiggerPockets! 

Let me begin to answer you question with another question, do you have a property under contract? How many properties have you analyzed? I don't mean to dance around your question, but I think you may be getting a bit ahead of yourself. I see all too often that new investors spend a lot of time on things like setting up an LLC, printing business cards, standing up a website, etc. My advice would be to just start analyzing properties, even if you have no intention of buying them. Run the numbers and send out as many offers as you can. Get really good at this first. If you listen to the podcast, you will hear time and time again, the most important thing is finding deals. Once you have a good deal, the rest will come. I'm not trying to downplay the importance of following sound legal advice and the best way to structure your business, but you will find if you spend more effort in the beginning on just finding deals, everything else will fall into place.

Here's a link to a great resource, BP's Ultimate Beginners Guide to Real Estate Investing; https://www.biggerpockets.com/real-estate-investing

I know a lot of investor's will use 10% of the monthly rent for budgetary purposes. However, you would be better off going though the property and taking inventory of the current major systems in place (i.e. roof, furnace, water heater, flooring, etc), if they are in current need of replacement or when they were last updated. If they currently need to be replaced, you'll need to factor that into your calculations but you know you should get some sort of average life span out of each system, 20 years on a roof for example. Then you can calculate the replacement cost of the roof, say $10,000 and figure on saving that much per month for the roof. For the systems that aren't yet in need of replacing, figure out how much average useful life they have left and then do the same calculation. This way, you are getting a more precise measurement of Cap Ex and you can factor that into your calculations. 

I've use REI/Kit in the past and really loved there software. They have have a Pro member perk discount and really help you to figure out Cap Ex like I just described, making it a lot quicker of a process.

Hope this helps. 

Nick 

View report

*This link comes directly from our calculators, based on information input by the member who posted.

I'm looking at this deal that I found from a local wholesaler. I'm approaching it with the BRRRR strategy and going in with a partner. I feel confident about the rehab budget which includes a $10,000 contingency. I'd appreciate any insights and suggestions the BP community has to offer.

Thanks!

Hi @Jeremiah Johnson and welcome to BP! It sounds like you have a great start for planning on how to achieve your goals. My suggestion would be to narrow your focus to one niche and just run with it. Not sure who said it but its better to be great at one thing than mediocre at 10! I think wholesaling is a lot more difficult than most think. I would read up on the BRRRR strategy (Buy, Rehab, Rent, Refinance, Repeat) if you haven't already (read and watch about it here https://www.biggerpockets.com/blog/brrrr-buyrehabrentrefinancerepeatprimer/ or https://youtu.be/udWrw5vhm2k)

This is the strategy I'm targeting and am currenty in the middle of acquiring a property from a local wholesaler that I found after connecting with him and his partner on BiggerPockets. Networking really is the key to success!

Another great resource to help quench your thirst for knowledge would be BP's "Ultimate Beginners Guide"  http://www.biggerpockets.com/ultimatebeginnersguide.pdf

Hope that helps and I look forward to hearing about your success in REI!