All Forum Posts by: Nate Waters

@Ramsey Blankenship

Following are the areas I am now looking into and why:

Fishers/Carmel, IN

• Jobs added per housing start is favorable = shortage of housing
• Gross rent was stable through the recession
• Fishers named best place to live
• Great schools in Fishers/Carmel

San Antonio, TX

• Identified as a favorable city for millennials
• Stable and growing rents over the long-term
• Good job growth
• Diverse employer base

Provo, Ut

• Identified as a favorable city for millennials
• College town (BYU)
• Up and coming tech center
• Good job growth
Stable and growing rents over the long-term

I'm primarily interested in multifamily but these indicators can also apply to SFR. My goal is to invest for cash flow AND give myself a chance to catch appreciation.

Next step will be looking for teams in each of the areas identified.

@David Fernandez

Some will disagree with me, but, not only should you take advantage of the plan, if you and your wife can afford it, max out ($18,000 annually) her contribution to the 401k. Doing so will reduce your taxable income and you can invest the $$ you would have otherwise given the government. Let's say your tax rate is 30%. 30% of $18k is $5400. By maxing out the contribution you now have $5400 more to invest than you would have otherwise had. Compound that difference plus interest for 20 years and the result is significant. 

Who REALLY know if or when there will be a huge crash? Not me. But, what I do know is some big banks are becoming much more conservative in their lending practices. Wells Fargo, specifically. How do I know that? A WF rep visited me at my "day job" to discuss the new lending standards. She stated that WF believes there are a significant number of over-leveraged commercial properties and speculative loans out there and they are paring back to help protect themselves in the event there is a market correction. She mentioned that most new loans will require an LTV of 50% or less. Granted, my day job is not in the RE field so lending on apartments may be different...but she made it sound like this applies to all loans.

I am not speculating on future market conditions - each of us needs to decide for ourselves when and where to invest - but I thought this information may be helpful to some fellow BPr's...the more we know the better decisions we can make.

@Ryan Luthi Great food for thought - thanks for sharing. 

@Jennifer D. I understand your fear and I encourage you to push past it. Find a local real estate investors club and attend the meetings. Connect with other investors on BP from your area. Find someone with experience to partner with - even if you only get a small piece of the deal...at least it is a piece AND more importantly, you will be able to learn from someone with more experience. If you find the right partner, your risk will be minimal. Good luck!

@Sam Josh Only you can decide what type of lifestyle you live and what is important to you. Although not the best cash-on-cash return, the money I have spent on my personal home has helped make priceless memories for my family and me that I wouldn't trade for anything! Yes, I would have more money in my bank account if I didn't put in a pool and built-in BBQ/entertainment area in my backyard but my goal isn't to have the biggest bank account. My goal is to create great experiences and memories for my family while investing for the future.

To know your goal is to answer your own question.

Good question and one that I have recently answered for myself. This is a personal decision that you, as an investor, need to answer for yourself. It depends how aggressive you want to be (risk tolerance) and what your personal financial goals are. Personally, I have decided to pay down principal and open a line of credit on the property I am paying down. That way, I still have access to the equity if/when I find a deal I can't pass up. 

Referals. Short of that, I recently heard a tip on one of the BP podcasts...go to Home Depot at 7am and talk to the contractors getting an early start on their work day. Those are the contractors you want to work with...not the contractors rolling in at 11am. 

Add me to the list of satisfied Cozy users. Their customer service is great as well. 

Last year Jeff Bezos bought a large (understatement) house in the greater Washington DC area. DC is also on the short list of possible locations for the new HQ. It may be a coincidence...or maybe not. Regardless of where it ends up, it presents an opportunity to invest and not just if you are early. I believe there will be long term and consistent investment opportunities where ever they land. We will know more in mid-October.