All Forum Posts by: Rob Bianco

Yep. We're on the same page. 

It's simply important for the investor to go through which of his properties are easiest to manage and where large repairs are not expected anytime soon. Take the cash from the bank and scale further.

Thank you for all your responses.

I think for now I'm going to leverage my current boots on the ground and perhaps expand my network. I'm a cash buyer so working with someone local to the area to find those deals and project manage is likely my best bet.

@Dan Krupa I'm bringing cash to the table and I want more properties that would fall into either category of needing BRRRR or flipping. I don't see why I shouldn't take advantage of both opportunities. If the property is in an in-demand rental area I'll rent it out and refinance; likewise if it's not in a great rental area I'll flip it.

@Tammy Dobson You are correct. Right now my realtor has contractors he likes to use who are good and dependable. I guess all I'm missing is the person to find deals.

I've been through this before. Easiest way is to contact the title company that was used during the purchase process. They should be able to tell you what to do. Usually there's some paperwork that you have to fill out and get notarized and send to the County Recorder. There is also usually a small fee to pay (mine was $25). 

Have any of these properties been rehabbed in recent memory? I would pick a handful of this investors properties with the newest roof, hvac, water heater and then have the investor refinance 40% of the home's current value to a bank lendor. 

I think a mortgage for 40% of the home's value is a good number because if the economy takes a hit the investor will still be OK. They will presumably also maintain a decent cash flow.

I would take his new money and either continue to buy new properties or hunt for rehab deals and then once rehabbed and rented out go back to the bank and refinance and repeat that process over and over again.

Full Disclosure: I'm not trying to solicit anyone although I'll still take your advice on that.

My PM tends to inflate the costs of even moderate repairs so I'm hesitant to ask them to project manage something like that out of fear I'll end up paying 300% more than I should and not know it.

Do people actually rehab and then rent the property out for 12 months only to then sell via 1031 exchange and avoid the tax? Even if you don't do the 1031 exchange it's considered a Long-Term Capital Gains tax of 15% right? I thought about doing it, but I wasn't sure it was a common strategy or not

Tenants in place make it more attractive to an investor. 

@Alex Mao Has a lot of good advice to offer.

I would caution that your typical Turn Key company prey on OOS investors who simply don't know anything or know anybody. I would first try to makes friends (Bigger Pockets is your greatest resource) in the market you have chosen to invest in, fly out there to see it and meet people and get driven around, and get a feel for what you're getting yourself into.

In my opinion, and this is coming from someone who has been in your shoes, is to meet the Turn Key people 1st so you can see the brand new units and get the shock of how nice they are out of your system because most of the time it doesn't matter; the units likely either cost too much and come with strings attached in the form of a crappy property management contract. Not to mention the property is likely in a C grade neighborhood (even though they tell you they're not) and the only people who will live there will be hell to deal with.

After all that your returns probably will be moot. Should have just invested in a Mutual Fund. 

Then do yourself a favor and meet the other people grinding and hustling just like you - you'll get a more realistic perspective of how to be a real estate investor in the area and have a better experience.

I'm an out-of-state investor in the KC market with 10 doors currently in the suburbs. I'm looking to BRRRR in the area, but for obvious reasons like working a busy day job and not living in Kansas City I'm finding it a colossal task to hunt for good deals to buy and try to rehab on my own.

I'm not entirely sure what my next step should be, but I'm assuming it's to partner with someone with experience. I guess my question is where would I find such a person? The realtor who sold me my current properties does some rehabs, but it seems mostly like he'd be doing me a favor vs treating it like a business relationship. 

Not sure where to start on this - hoping someone can help.

Hey Everyone,

I'm looking for a little guidance on how to move forward. I'm an out-of-state investor in Kansas City and have spent a year being a landlord (10 doors total). My realtor found me solid cash-flow deals on multi-family properties and I'm at about an average of 10% ROI. So far I'm pretty satisfied, but people I know are recommending I pause and consider BRRRR for either larger ROI or even just buying/rehabbing/reselling (aka: flip) to generate another stream of income as I try to slowly get my foot out the door with my current day job.

Right now I'm entirely invested in my day job. My day job has allowed me to be a cash buyer and is the reason I have 10 doors in under a year, so I can't and don't want to forego my day job. This leads me to think I need a middleman? Someone to find the deals, do the rehabbing, and maybe take a cut of the profit as incentive? 

The realtor I normally use mentioned that he does rehabs (mostly for his own investments) and he's got a solid work ethic, knowledge of the area, and crew, but he only does a small handful per year. We've spoken about it at length, but I'm assuming this is the part where I grow my network and perhaps try to find enough people who can help me as my budget grows and perhaps my demand for business grows?

I don't exactly know who would be the right people to speak with, what the right incentive would be, and who to trust/stay away from. Should I try working with my Property Management company on this? 

If I could I would honestly try to do it all by myself, but I simply don't have the time as my business stays pretty busy throughout the year.