All Forum Posts by: Noah Wright

Hi Francis,

Welcome to the BiggerPockets community! It's awesome to hear that you're growing and learning more every day, thanks to the incredible support and shared wisdom here. This is truly a fantastic place to connect, learn, and continue growing your real estate knowledge and network.

Keep up the momentum, and feel free to reach out if you ever want to share more about your journey or need advice. Wishing you continued success!

Best regards,

Hi Jude,

Welcome to the community! It’s fantastic to hear your journey in real estate investing, especially after such a long history, starting in Washington DC and now reigniting that passion with your wife in Charlotte. It’s amazing how life can come full circle, especially with your roots in Birmingham, Alabama, where you’re now building out your next venture.

Flipping homes is a great way to start, and transitioning into the BRRR strategy for rentals sounds like a solid plan, especially with the growth in select Southern markets. The BRRR method is a favorite for scaling, and I'm sure you'll gain a lot of valuable insights as you make that transition. You'll also find plenty of advice here from seasoned investors to help refine your approach!

Feel free to connect if you want to discuss any aspect of the process or share updates on your projects. Looking forward to seeing your progress in Birmingham and beyond. Wishing you much success on your upcoming flips and your shift into rentals.

Best regards,

Hi Shani,

Welcome to the BiggerPockets community! It's great to have someone with your level of expertise and experience here. Tyndall Pointe Townhomes sounds like a fantastic investment—72 units with recent renovations is a solid foundation for a multifamily property. Acquiring it below replacement cost, especially in a growing market like Panama City, could give you a significant edge both in terms of cash flow and long-term appreciation.

With your track record of completing 17 syndications and managing over $500 million in multifamily assets, it’s clear you have a deep understanding of how to unlock value in these types of deals. The fact that you've raised over $170 million and have passive investments in $1.6 billion of assets speaks volumes about the quality of your team and your approach to real estate.

If you’re looking to finance future acquisitions, I'd be happy to get you some very competitive bids on financing...

I'd love to learn more about your investment philosophy and how you approach large multifamily projects. We’re always looking to connect with like-minded professionals in the real estate space, and I believe there could be opportunities for collaboration or sharing insights on future deals.

Looking forward to seeing more of your posts and contributions in the forum!

Best regards,

Welcome to Bigger Pockets, John!

It's great to hear about your progress with rehabs and long-term rentals—congratulations on your successes so far. I wanted to mention that if you're looking for flexible financing solutions, particularly for properties needing rehab, a DSCR loan might be something to explore. It offers benefits like limited documentation, no income verification, and financing based on the property’s cash flow potential. If you'd like more details, I'd be happy to share!

Building a strong network of contractors, agents, and investors is key, and Kansas City is a great market for that. Keep up the fantastic work, and don’t hesitate to reach out if you ever want to chat about financing options or strategies to scale.

Best of luck with your fourth rehab!

Hi Brandon,

I’m glad to hear that you're finding value in the group! It’s always refreshing to see a community where people are eager to share their knowledge and experiences.

Regarding your plans for financing, have you considered the benefits of working with a specialized lender? I offer services that can help streamline your financing options and ensure you get the best rates available, especially given your position.

Let’s connect, I'd love to bid on these numbers!

Best,

You'd be looking at a $4000-$4500 monthly payment on a standard DSCR if you paid off the HELOC and the 2.99%

Hi Brandon! It sounds like you’re at an exciting juncture in your real estate investing journey. With a free and clear rental property and a solid equity position, you're well-positioned to leverage that equity effectively.

Evaluating Your Options

1. Cash-Out Refinance:
   • Given that you want to maintain a conservative leverage ratio of 50%, pulling out $110,000 from your property makes sense. This strategy allows you to tap into your equity without overextending yourself financially.
2. Investment Strategy:
   • Single Property vs. Multiple Properties:
     • Single Property Purchase: Using the entire $110,000 as a down payment on one property could allow you to acquire a more desirable asset or a larger property, potentially leading to higher rental income. This route can simplify management since you’ll only have one additional property to oversee.
     • Multiple Properties: Splitting the funds to purchase two properties can diversify your investment portfolio. This approach mitigates risk; if one property underperforms, the other may still generate income. Given that properties in your target area are around $250,000, a 20% down payment for two properties would indeed be achievable with your cash-out funds.

Market Considerations

• Central Texas Market:
  • The Central Texas market is strong, especially for single-family rentals (SFR). Research the neighborhoods you're interested in to identify areas with growth potential, strong rental demand, and favorable appreciation trends.

Financial Impact

• Cash Flow Analysis:
  • Perform a cash flow analysis for both scenarios. Calculate potential rental income, expenses, and any projected appreciation to see how each option would impact your overall portfolio. Look for properties with a solid cash flow to ensure your investments are self-sustaining.

Final Thoughts

Ultimately, your decision may come down to your risk tolerance and management preferences. If I were forced to pick, I’d lean towards purchasing two properties to diversify and spread the risk while potentially increasing your overall cash flow. This strategy aligns well with the goal of building a more robust portfolio over time.

Feel free to share more details if you have specific properties in mind, and good luck with your investment decisions!

(for the low 200k properties, I'd look around military bases - good demand and disciplined tenants..)

Hi Bryce! It's great to see you're making strides in your real estate journey, and attending the BiggerPockets Conference sounds like an incredible opportunity to network and learn.

With your diverse portfolio, including a fix-and-flip in Cleveland and multiple duplexes in Rochester, you're clearly on a path to scale your investments. Expanding into mid-term rentals and apartment complexes is a smart move, especially in the current market where flexibility in rental strategies can lead to better cash flow.

Networking and Partnerships

• Local Contacts: Connecting with reliable handypeople, lenders, and agents in Cleveland, Rochester, and Austin is crucial for scaling effectively. Building a solid team will enable you to manage multiple projects and properties seamlessly.
  
• Collaboration Opportunities: Since you're open to partnerships, consider exploring co-investment opportunities with fellow investors who share your vision. This could accelerate your growth and diversify your portfolio.

Legal and Tax Strategies

• Engage a CPA: Finding a CPA with experience in real estate holdings and LLCs will help you navigate the complexities of tax strategies and legal protections. This support will be invaluable as you expand your portfolio, ensuring you're optimizing your tax position and protecting your assets. @Account Closed could be a fantastic contact for you.
  
  
• LLC Structure: Ensure your properties are held in an LLC to shield your personal assets. A CPA can guide you on the best structure for your investments to maximize benefits.

Future Plans

• Utilizing Your Lot in Destin: With the lot in Destin, consider the rental potential in a popular vacation destination. Whether you build a rental property or explore other developments, there’s a good chance of a lucrative return.
  
• Goal Setting: Acquiring 25-30 properties is an ambitious and exciting goal! As you scale, continue to reassess your strategies, keeping an eye on market trends and adjusting your approach as needed.

If you’re looking for insights or potential partnerships, feel free to reach out. Networking with others who have similar goals can be incredibly rewarding, and I’m sure you’ll find valuable connections at the conference. Best of luck with your projects, and enjoy the event!

Hi Mohit! It sounds like you have a solid foundation with your real estate investments in Australia, and your strategy of buying in the right market cycle, renovating, and refinancing is a proven approach. Expanding into the US residential market can be a rewarding opportunity, especially with your focus on cash flow and capital appreciation.

Given your interest in properties that yield positive cash flow while also offering capital appreciation potential, I'd like to introduce you to a financing option specifically designed for foreign investors like yourself: Debt Service Coverage Ratio (DSCR) loans. This approach can help you secure funding more easily without the need for traditional income documentation. Here's how you can navigate this transition while considering DSCR financing:

1. Understanding DSCR Financing

• What is DSCR?: DSCR loans are designed for real estate investors, allowing you to qualify based on the property's cash flow rather than your personal income. Lenders typically look for a DSCR of at least 1.0, meaning the property generates enough income to cover its debt obligations.
• Benefits for Foreign Nationals: This type of financing is particularly beneficial for foreign investors because it often has fewer documentation requirements, allowing you to leverage your property’s income potential rather than focusing on your global income.

2. Research the Market

• Local Trends: Texas, particularly Austin and Houston, has been experiencing significant growth. Look into local economic indicators, such as job growth, population trends, and migration patterns, to gauge potential demand in specific neighborhoods.
• Rental Demand: Investigate rental demand in the areas you're considering. Check vacancy rates, average rents, and tenant demographics to understand the rental landscape.

3. Networking

• Local Real Estate Groups: Join local real estate investment groups or forums, especially those focused on Texas markets. Networking with local investors, real estate agents, and property managers can provide insights and potential opportunities.
• Attend Meetups: Participate in local real estate meetups or workshops to connect with others in the industry and gain valuable firsthand knowledge.

4. Property Selection

• Focus on Neighborhoods: When searching for properties, prioritize neighborhoods with good schools, amenities, and access to public transportation. Areas with ongoing infrastructure projects can also indicate future growth.
• Condition of Properties: Look for properties that are well-maintained and require minimal repairs. This will help you avoid significant renovation costs and keep your cash flow positive from the start.

5. Financing Options

• Leverage DSCR Loans: Consider working with lenders who specialize in DSCR loans for foreign investors. This could streamline your financing process and help you acquire properties more efficiently, enabling you to take advantage of investment opportunities as they arise.
• Understand US Financing: Familiarize yourself with the US mortgage market. Since you’re dealing with a different currency, ensure you understand the implications of exchange rates on your financing options.
• Consider Partnerships: Partnering with local investors or using property management companies can help mitigate risks and streamline the investment process, especially if you're not in the country full-time.

6. Legal Considerations

• Consult a Lawyer: Ensure you understand the legal landscape for foreign investors in the US. Consulting a real estate attorney can help you navigate zoning laws, property taxes, and other legalities that may affect your investment.

7. Long-Term Perspective

• Be Patient: Real estate investing is often a long-term game. Focus on properties that align with your financial independence goals and be prepared for market fluctuations.

Your strategy of balancing cash flow with capital appreciation while aiming for financial independence is sound. If I were forced to pick, I would suggest focusing on Austin due to its tech-driven growth and lifestyle appeal. However, Houston’s diverse economy and affordability also present compelling opportunities.

Feel free to reach out if you have more specific questions or if you need insights about particular neighborhoods in Texas! Good luck with your investments!

Joseph, it's great that you're looking to expand into fix and flips, and having three rental properties already gives you a solid foundation. Here are some key tips and insights for getting started:

1. Step-by-Step Process for Evaluating a Flip:

• Find the Deal: Use platforms like MLS, foreclosure auctions, or network with wholesalers.
• Run the Numbers: The 70% Rule is a good starting point. It suggests that you should aim to pay no more than 70% of the ARV (after-repair value), minus repair costs.
  • Example: If the ARV is $300,000 and repairs cost $50,000, you should pay no more than $160,000 for the property. ($300,000 * 0.70 = $210,000 – $50,000 = $160,000).
• Walk the Property: Check for structural issues, roof condition, foundation, HVAC, and plumbing. Focus on the big-ticket items and estimate costs.
• Financing: Whether it's private money, hard money loans, or a traditional lender, make sure your financing is lined up. Factor in carrying costs (utilities, taxes, insurance).

2. Permits and LLCs for Contractors:

• Your associates/relatives don't necessarily need to create an LLC to perform renovations. As long as they pull the proper permits and are licensed contractors (if required in your state), they can legally work on the property. Forming an LLC might give them liability protection and a more formal business structure, but it's not essential.

3. Return on Investment (ROI):

• A good ROI on a fix-and-flip can vary by market, but a typical target is around 10-15% of the ARV after all costs (purchase price, repairs, carrying costs, and selling expenses). This can fluctuate depending on local market conditions and the scope of the flip.

4. Using Tools Like BiggerPockets:

• BiggerPockets has great "premium" calculators, but if you're comfortable with spreadsheets, you can create your own analysis template. You’ll want it to include:
  • Purchase price
  • Estimated repair costs (line item)
  • ARV (after-repair value)
  • Financing costs (interest, points, etc.)
  • Holding costs (taxes, insurance, utilities)
  • Selling costs (agent commissions, closing costs)
  • Profit margin

5. Spreadsheets/Templates:

• If you don’t want to start from scratch, sites like BiggerPockets and others have pre-built templates you can use to run your numbers and track your expenses. I’d suggest starting there, or if you’re comfortable with Excel or Google Sheets, customizing a simple flip analysis template yourself.
  

Final Thought:

Since this is your first flip, starting with a modest project can help you learn the ropes without risking too much capital. It’s easy to underestimate renovation costs and timelines, so always build in a cushion for unexpected expenses.

Good luck with your first flip, and feel free to reach out if you need more detailed guidance along the way!