All Forum Posts by: Noel Hailey

@Colin Fleming

Hi Colin!

Thank you for that! A "first pass" basic screen is what I'm looking for. I'm not totally familiar with everything you referenced so I clearly need to do a bit more research. Guessing off the acronym I'd assumed NOI is _____ on investment? P&I is a bit familiar, something to do with insurance/interest and loan payment?? I'll look into this and try it!!!! I don't know exactly how I'm going to fund a deal yet. I'm not looking to purchase anytime soon. I have an idea of what kinds of funding I will use but I'm very new to all of this and still in the learning phase. Maybe I'm going backwards about all of this and shouldn't practice running numbers/analyzing properties until I do know exactly which form of funding I will use. I'm learning everyday and there's always new bits and pieces to fill in! This definitely gave me more to think about (and do some research on!!) so thank you!!!!

-Noel

@Don Spafford My grandpa is pushing through; not quite out of the woods yet but he’s a strong man and we’re more than hopeful! Thank you so much.

I've got a few grand saved but I can't imagine it's quite enough for any sort of down payment/upfront funding. Maybe if I were able to qualify for an FHA loan (which I know I can't) with that small 3-4% down I'd have enough, other wise I'd imagine I need to save more or get creative. I'll have to do some research in regards to lenders in the area you mentioned; I'd be interested to see "about how much" I'd need for some upfront funding to make something happen there. In the mean time, saving thankfully isn't an issue for me and I'll continue to do so. Caring for my grandfather is my only "real responsibility" (compared to what my life used to be!) so I've got A LOT of time on my hands. I think that really plays to my advantage in terms of finding reaaalllyyy great deals (off market potentially) that will make hard/private money lenders or maybe even a partner more inclined to work with me (considering I have no experience lol.) I'm certainly open to taking less of a cut in a deal if it's going to get me started in the game/real experience. I have something I'd think a lot of investors wish they had and that is TIME. So I'm going to do everything I can to use that to my advantage to help others (which should hopefully in turn help me!)

I’m in Nampa, Idaho! I appreciate your response/insight and would love to connect further in any way that’s worth your time! I feel like a sponge and want to soak up everything I can! Thank you Don!!

Could someone show an example of how they'd find out what the numbers would look like to make this a good deal? I know there are a lot of variables that'd come in to play, here. But I'm stuck on where to even begin. I'm new to real estate investing and want to practice analyzing deals for a couple weeks. Any help will be SO appreciated!

The Property: 516 18th ave, Nampa, Idaho. Duplex. 5bd3ba 2001 sqft. Detached single car garage and plenty of parking for both units. Don't have much info on conditions inside other than "newer paint, windows, etc." Listed at $325,000 (25k price increase last month) and has been listed for 79 days. 

Assuming this is a 3/2 and 2/1 split. 

3bed2bath's in Nampa rent for $1300-$1900 and 2bed1bath for $800-$1200 (based off what I can find on zillow/craigslist. if you have a better suggestion for finding median rent for an area please let me know)

I don't know what my financing would look like but I don't think I'll qualify for any normal type of bank loans. How do I even begin to try to run numbers on something like this? Do I need more personal information before I can get a realistic idea? Do I need to know what my monthly payments are going to look like in regards to the mortgage/loan? Or can I do a rough estimate of what I'd want to purchase the property for/what my monthly expenses would need to be in order for the property to produce positive cash flow? With me living in one of the units (but still renting the extra bedroom/s out. I'm young and single so there's nothing holding me back from renting by the room) How can I practice analyzing potential deals without knowing all the details yet? Or even what the inside of the property is like to estimate repair costs? I know there are ways to get this information. I can call the agent, I can contact local banks/lenders to find out what my finances looks like in terms of receiving a loan, I can hire an inspector or GC to estimate repairs cost, but I'm JUST starting out. I'm just wanting to practice running numbers so I know when things are a good deal or not. How can I practice this without all these little details/filler pieces? Or am I going about this wrong and should practice this differently with different deals? I'd like to apply what I've been learning and see/hear about but in MY market. I'm trying to learn/apply to my area!!! I hope this makes sense! Thank you for any help!!!!!!

-Noel

@Jason Ide

Hi Jason!

I’m new to all of this as well! I know virtually nothing about investing out of state so I can’t offer much here. But from what I do know I’d say having 13k in savings and being debt free puts you in a much better starting position than a lot of people. If you haven’t yet, I’d highly encourage you to read Brandon Turners “How to invest in real estate with no (and low) money down.” He offers tons of solutions to what it sounds like you’re struggling with. Hopefully someone else can offer a more detailed response to your questions. Best of luck!

-Noel :)

Thank you for the response, sent a message your way!!!! 

I'm new to real estate investing but eager and excited about everything I've learned. Eventually I'd like to have a portfolio well seasoned with different investment strategies. I think big but have to remind myself to start small. There's several strategies I could use to get started but I'm thinking I'd like to start with house hacking. The details I'm struggling with are....

- FHA loan doesn't sound like it's an option for me (unless there's something I don't know.) I moved to Idaho a year ago to care for my grandpa during covid/his treatments for kidney cancer. I've been out of work/on unemployment since. Before that, I worked retail/service industry for years. I'd like to take advantage of my curtain situation to get started in real estate investing but as far as I know, a bank won't be comfortable loaning to me considering my financial/work situation. I know there's several other strategies for funding a deal (I've read Brandon Turners "Investing in Real Estate with with no (and low) money down) so I could use a partnership, find a hard/private money lender, try seller financing, etc., but do you think using one of these alternative strategies and structuring the contract similar to how an FHA loan would be structured is possible/likely? Furthermore, I'd like to use the BRRRR method at some point down the line and am not sure what/how that will work if I'm not the one who's able to refinance through a bank? Are there ways to work with a bank if I don't have a W-2 job or proof of 'reoccurring income' that a bank is comfortable with? I know there must be ways around this because its tons of peoples jobs already, so how do I have my "job/career/source of income" (however you'd like to refer to it) be Real Estate Investing but still leverage all these great strategies I read/hear about that involve working with a bank at some point or another in the investment venture? I plan to find a multi family property that has the right numbers to make it work and move into one of the units and rent the other unit/s out. If this were my situation and I financed the deal creatively to obtain the property (since I'm currently only receiving unemployment) but am actively trying to wholesale properties as my new source of income (this will also benefit me down the line by filtering deals to keep for myself), will a bank accept wholesaling as a solid enough/reoccurring income to work with me so I'm able to go to them when I'm ready? Or do I need to get some sort of W-2 type job in order to make this all work? At least to start? I don't want me being on unemployment to be an excuse for me not to get started. But do I need a 'real' job of sorts? My biggest struggle with that is the time it'd take away from me being out searching for off-market deals or investing in my education. (also the risks with covid/caring for my grandfather.) Any insight anyone can provide or help/suggestions, examples.., anything really! I've spent the last month reading books and listening to podcasts and doing my research but this post is the 1st time I'm actually reaching out for any sort of advice/help. I can be a bit shy but more so seem to think I can "figure it out on my own" when I should've come here with my questions and concerns a looonnggg time ago. I don't have anyone to discuss real estate investing, with. I'm new to Idaho, all my friends in Seattle aren't interested in any of this so I'm pretty secluded with my own learnings and grandpa lol. I'm ready to start taking action. I plan to find an agent and an attorney this week with experience in real estate investing to help me with some of my questions, as well. I will appreciate ANY response or connection I can get!!! Eager to learn and get started. I think I may be the one holding myself back, but I'd be nice to hear from someone with experience that either A) yes I'm holding myself back and just need to take action or B) I'm on the right path..? My situation is specific and I don't want to give too many details on here but I do hope this has made sense and someone is able to understand where I'm struggling/where my fear is coming from. If you've read this far..THANK YOU!

-Noel