All Forum Posts by: Raphael Collazo

Hey @Brad Stegall!

Although I'm somewhat biased (I currently live and invest in Louisville), I have to agree with the analysis provided by @Francisco Alzuru and @Spencer Gray. The landlord friendly laws, lower than average property taxes, steady population growth and a strong rental market make Louisville and Lexington great cities to invest in. It's not uncommon to find residential investment properties that meet the highly sought after "1% rule". 

On the commercial side, we're seeing a lot of industrial activity in areas such as "Blue Grass Industrial Park" and just across the river in Indiana at the "River Ridge" industrial park. This is due in part to Louisville's central location with respect to the rest of the US population (the highway systems in Greater Louisville provide one-day access to more than 60% of the U.S. market via Interstates I-65, I-64 and I-71.) and the fact that UPS and FedEx both have major hubs here. 

Along with that, the market for multifamily properties and storage facilities has been white hot lately and many out of town investors are attempting to capitalize on the above average cap-rates as compared to other larger cities such as Chicago, L.A., New York, Atlanta etc. Kentucky really is a diverse place with a wide-array of real estate investment opportunities. 

I'm currently "house-hacking" a 4-plex and it's been a great investment thus far. I plan to continue investing in multi-family, mixed-use and possibly even industrial properties in the future. Hope this helps.

All the best,

The Louisville Real Estate Investor Meet Up group is for aspiring, beginning and full-time real estate investors interested in networking with other like-minded individuals. During our monthly meetings, we share ideas, learn from one another and host speakers who talk about subjects related to real estate investment.

In this meeting, the Branch Brothers, will talk about their experiences as wholesalers and explain how to start and be successful in the business. After his presentation, we'll open up the floor for a Q&A session. The event begins at 6:30 pm and they'll start their presentation around 7:30 pm. Come join us for a night of networking, learning and enjoyment as we utilize the great space provided to us by The Manhattan Project!

Hey @Clifford Merritt!

Welcome to BP! You're definitely doing the right thing by educating yourself. Real estate investing requires patience, diligence, and knowledge of how to identify a worthwhile investment. To start, I recommend checking out the following books:

1. "The Book On Rental Property Investing" by Brandon Turner
2. "What Every Real Estate Investor Needs to Know About Cash Flow... And 36 Other Key Financial Measures" by Frank Gallinelli
3. "The Millionaire Real Estate Investor" by Gary Keller and Jay Papasan
4. "Hold: How to Find, Buy and Rent Houses for Wealth" by Steve Chader and Jennice Doty
5. "Set for Life" by Scott Trench

These books will give you a solid foundation for you to begin building your real estate investment portfolio. It's also awesome to see you engaging with local investors on the forums. It's one of the most effective ways for you to begin building your network. Have you looked into attending a K.R.I.E.A event? It's biggest real estate investing organization in town. At their monthly meetings, they host excellent speakers who talk about various real estate investing topics. They also host events throughout the month and provide perks to members including discounts for purchases at local businesses, on-site learning experiences (L.O.T.S), happy hours, etc. 

Also, @Luke Neubauer and I host a free monthly meetup at the Manhattan Project on Frankfort ave. As part of the meetup, we invite speakers to talk about topics related to real estate investment and network with other like-minded investors. We usually have a great mix of beginner and experienced investors who attend. It may be a great opportunity for you to make some connections with people in the area who are making moves. Hope this helps.

All the best,

Today is the big day! Looking forward to seeing you all there.

All the best,

@Patrick Kinsella

I second Andy's recommendation of KRIEA. It's an awesome organization that provides a ton of great resources to it's members. Also, @Luke Neubauer and I host a free monthly meetup at the Manhattan Project on Frankfort ave. As part of the meetup, we invite speakers to talk about topics related to real estate investment. We usually have a great mix of beginner and experienced investors who attend. Our next meetup is tomorrow and it may be a great opportunity for you to make some connections with people in the area who are making moves. 

All the best,

Hey @Patrick Kinsella! 

Based on your criteria, I would recommend reaching out to @Rob BergeronHe's an investor friendly real estate agent in town who consistently sources deals for investors looking to flip and/or BRRRR a property. May be worth reaching out to get on his investor email list. Good luck on your real estate investment journey!

All the best,

Hey @Daniel Clark!

I agree with @Allan Bishop Jr.'s assessment of the Louisville market. There has been a lot of investment activity, both on the residential and commercial side in recent years. The benefit of the Louisville market is the cost of living is reasonable, it's centrally located (UPS and FedEx both have a strong presence here) and there's more opportunity to acquire cash flowing properties (the median price of a SFH is $162,800). As a commercial broker and real estate investor myself (currently house-hacking a 4-plex), I'm a huge fan of commercial real estate and the opportunities it affords investors. Unlike residential real estate that's appraised based on comparable sales (i.e. comps), commercial real estate is appraised based on its ability to produce income. Therefore, if you purchase a property that is under performing, update the property and raise rents, you're able to "force" the appreciation of the building. Some of the best books I've read pertaining to commercial real estate investing include:

1. "Multi-Family Millions: How Anyone Can Reposition Apartments for Big Profits" by David Lindhal
2. "Crushing it in Apartments And Commercial Real Estate: How a Small Investor Can Make It Big" by Brian Murphy
3. "The Book On Rental Property Investing" by Brandon Turner
4. "What Every Real Estate Investor Needs to Know About Cash Flow... And 36 Other Key Financial Measures" by Frank Gallinelli
5. "Aggressive Tax Avoidance for Real Estate Investors: How to Make Sure You Aren't Paying One More Cent in Taxes Than The Law Requires" by John T. Reed

These books should give you a solid foundation off which to begin growing your commercial real estate portfolio. Hope this helps and good luck on your investment journey!

All the best,

Hey @Vincent McClendon!

From my interactions with Republic Bank, they tend to be pretty strict on their investment criteria. Have you tried any other banks in the area? River city bank and L&N Credit Union are one's many investors in town use and they tend to be relatively investor friendly. Although I can't promise they'd be willing to fund the deal you're proposing, may be worth reaching out to ask. Second, do you plan on syndicating the deal? If so, you could ask your partners if they'd be willing to personally guarantee the bank loan as well. Although this is not an optimal scenario, it may be the only way a bank would be willing to put their money at risk. Also, have you looked at using private and/or hard money? Although it's often more expensive (7-15%), these individuals tend to be less strict on the down payment requirement than banks and will look more at the investment as a whole. Along with that, they may even be willing to fund some or all the repair costs of the property. You could then refinance the property using a conventional loan and pay back the private/hard money lenders. If you attend the K.R.I.E.A meeting tonight, there are a few private and hard money lenders that regularly attend. Sure-point Equity and Flippin Loan just to name a few. May be worth attending to meet them and ask about their criteria. Hope this helps and good luck!

All the best,

@Zack Aboona I answered a similar question to yours a few weeks back. Here was my response:

There are SO many great books out there. However, below I've provided a list of my top 5 favorites:

1. "Multi-Family Millions: How Anyone Can Reposition Apartments for Big Profits" by David Lindhal
2. "Crushing it in Apartments And Commercial Real Estate: How a Small Investor Can Make It Big" by Brian Murphy
3. "The Book On Rental Property Investing" by Brandon Turner
4. "What Every Real Estate Investor Needs to Know About Cash Flow... And 36 Other Key Financial Measures" by Frank Gallinelli
5. "Aggressive Tax Avoidance for Real Estate Investors: How to Make Sure You Aren't Paying One More Cent in Taxes Than The Law Requires" by John T. Reed

These books will give you a solid understanding of sound investment principles which you can use to build your multi-family portfolio. Good luck on your real estate investing journey and feel free to reach out if you have any questions!

All the best,