All Forum Posts by: Paul Shannon

Should you buys stocks or buy bonds?  Should you buy in "linear" or "cyclical markets"? All of the above.  Diversification is key.  All great points.  

For linear markets, I like finding BRRRR deals. I know there's not going to be much appreciation if I buy turnkey, so by creating the equity during the rehab, I'm making up for the lack of appreciation I'd get if I bought in a high growth market. A little more work, but pays off. Not quite as exciting as buying brand new construction and watching it double in 5 years, but chasing those returns is not a winning strategy over the long haul.

I think you've hit your mark and shouldn't question yourself.  I agree with @Lee Ripma.  People that set massive goals and achieve them aren't wired to sit around and do nothing forever.  Maybe that's what you need for a little while to clear your head, but you'll find a goal to work towards that will make money, whether it's continuing to grow in real estate or something else.  

One way to ease the transition mentally would be to get another "job" doing something you would totally love.  Forget about what it pays.  If its $30K a year, or its part-time, or whatever, it will give you a little bit of a buffer on top of the income the 50 units provide.  

I'm a full time real estate investor out of Indianapolis with BRRRR/Flipping experience in 1-4 units. I've been looking to move up into 20-50 unit multi-family for a few years now, and like many areas of the country, its been difficult to find deals that pencil out in my local markets. I've identified Omaha as a market I'd like to branch out towards to meet my goals.

I'm looking for C+-B Value-add opportunities, either through rehab or operational efficiencies. I'm at square one, so I'm looking for property management recommendations, banking connections for agency debt ideally (likely Freddie), and broker contacts. I'd like to get some dialog going with contacts so I can set-up some time to meet with folks when I make a trip out to get my bearings on neighborhoods and submarkets.

Please let me know if we should connect or if you have suggestions that can help point me in the right direction. I realize I'm not the only one looking and its difficult to take one of these down these days, but laser focus overcomes!

Thanks ahead of time.

@Brandon Borah

Hey Brandon, 

Gotta be a local institution for stuff like this. I got it through Crane Credit Union. I believe it was 65% LTV. 4.4% locked in for a year, IO, loan must be paid back in full at least once over the course of the year (from when you pull money out to when you pay it back).

They make you open a savings account to become a member of the CU, but only require a $5 balance.  Additionally, they had to work around our situation.....they only allow CU members who live or work in the counties that they have a presence, which doesn't include rental property locations.  In our case, Hamilton County was not a qualifying county, but since my wife works in Marion County and they do biz there, we were able to become members. 

Good luck. 

@Tucker Cummings

Yes, if I'm understanding correctly we are on the same page.....Have the line of credit available when a distressed opportunity arises. Borrow against it to buy and rehab it. When tenanted, refinance into long-term debt and use the money you receive from the bank to pay back your HELOC. Rinse repeat.

Not sure if you can force specific performance due to the seller not signing the closing extension.  I would talk to an attorney, but that one detail may allow the seller out without having to honor the contract. 

I don't think it will increase your appraised value on your refi, but it will save you a headache to just replace it now before it turns into a maintenance call.  Not sure what a water heater costs in Manhattan, but out my way its about $850 installed. 

Great position to be in and I don't know if there's a wrong answer. We share the mutual goal of cash flow paying for lifestyle. With that said, I have some property with long-term debt on them, and some paid off that I put a business line of credit on (basically a HELOC) for short-term funds when needed for acquisitions. I also have a HELOC on my primary residence for the same reason and a secondary source of reserves.

Long-term debt is cheaper money, but its less flexible and carries a bit more risk.  I love the fact that the lines of credit alway offer you fire power when an opportunity is available.  But I'm not paying interest on it if I don't need it or can't find a place to park it.  Flexibility and options are priceless in my opinion, but at that same time, you'll likely never get cheaper money you can lock into long-term.  

Very serious.  I reached out to the National Multifamily Housing Authority this morning.  We need to be fighting back.  I understood the moritoriums back in the spring.  It was the right thing to do for society.  This new moritoriums is unconstitutional and an over-step, which encourages dependency on the “system”. 

Anyone willing to sign on for a class action lawsuit against the CDC?  Where was this agency of unelected clowns when we were in the depths of the Covid scare in March/April?  Nowhere to be found and basically mute!  Now they are making unconstitutional laws affecting our economy policy?