All Forum Posts by: Ryan Blake

@Chris Elliott this is just plain not true. I am a lender in the area and we require it on all properties. I know of at least 100 builder's risk policies that have been written in Dallas in the last 2 months.

@Chris Elliott you use the photo button on the bottom of the post section. (see the red circle below)

@Drew Herzog I wouldn't say an airport is extremely important. I only mentioned it for when you went to visit the property. Logan, UT is only about an hour outside of Salt Lake and it is mostly city from Salt Lake all the way up to Logan. I think that would be a much better market than Cisco. A friend of mine owns a brewery in Cisco and they have issues with finding employees and there just isn't much out there outside of ranch land. I just worry that you would struggle with finding and maintaining occupancy.

@Greg Scott Thanks for supporting Longhorn. I have been with them for 6 years and have had a great time working for them.

So I am not using this to build my net worth per se. I have a few other rentals already and have been consistently earning well between all my investments, my job and my wife's job. This is more setting up for tax strategies, which is the advice I was given, and for future returns. I have no desire to quit or shift my focus any time soon but want to start preparing better for post-active working days. I don't think I will ever fully retire but I plan to be doing less active work in the future, i.e. not focusing on writing new loans and not flipping.

I am lucky that I can easily handle a down turn and be just fine if things soften even for an extended time but I still hope that doesn't happen. Flipping isn't too worrisome for me because I know in times like these I just need to make sure my quality is there and that my pricing is a little more aggressive to keep the project moving.

Hi Drew!

I hope you are able to get to $1m net worth much quicker than I did. It took me until I was 37. I tried to answer some of the questions that I have some experience with:

When buying a property for a low value ex: a duplex in Cisco TX for 95k and probably cheaper. Does that have increased risk?

I don't think the value comes into play with the risk. It is more about the location. Cisco is a small town over an hour away from a city with 100,000+ population. Not saying it won't be a good deal but you have to know that vacancies can last longer the lower the population. It will ultimately be based on the supply and demand of the area but you have to keep an eye on the total renter pool as well. You also want to keep in mind a exit strategy. It could take longer to sell when you are ready to move on to a bigger / better project.

I have about 25000 saved up and I'm living at home for free how much of that should I spend on a property or save.

You will always want to spend a little as possible. But you also want to make sure you have enough left over to make sure you have some holding costs should things not go as planned. You don't want to get yourself into a bind on your first property. I would say you want to keep your cash to close to $15k or less so you have a little bit of runway if it takes some time to get it rented.

How does someone truly manage a property "effectively" from a distance?

I would highly suggest you do not start remote for your first deal. Specifically as remote as Cisco. It is a 2 hour drive from the nearest commercial airport. I think there is a valid time to invest remotely but I will be honest, I have never done this so take my advice on this for what it is worth. I would say you will want a local property management company if you plan to be remote.

How do I find new expanding and promising areas?

Follow the money. Where are locations that are getting big investments. Where are areas that have a diversified economy? Where are areas that are growing? Those are good questions to research when looking for good investing areas.

Hope my answers help at least a little.

Welcome! Wish you luck. BP is a great resource. Reach out to people. I have found many people on here are willing to answer questions and share their time. We have all had people help us find the success we have had and are willing to pass along the info we have picked up.

Southern Cali style homes are on the rise in DFW. Specifically the modern style with white stucco walls. Just 10 years ago you would never see a stucco home in the metroplex.

I have some friends that do higher end homes in the North Dallas area. Would be willing to make some introductions when you get out here. One focuses on the $1m to 1.5m range and another only works with homes in the $2m+ range.

You should share some pictures of the homes you have built.

I have been investing for awhile but have only recently started picking up properties that I know will not cashflow because of the prices in the area I invest (Dallas/Fort Worth) and the higher rates.

I am still picking them up because it will still pay down debt and provide me with depreciation that I can use to offset my flipping and lending income. It is also a little bit of speculation on my part that 1) home values will continue to appreciate at or above the inflation rate and 2) that eventually rates may drop 1 - 2% (I am at 7.5% on my most recent refinance) and will be able to do a cashout refi in 2 - 5 years.

What are other's thoughts on this? The first 10 years of my investing I would have completely suggested against doing what I am doing now. I thought of banking on appreciation and rate drops as pure speculation and akin to gambling. The only thing I can do to help justify it is that now with income in the highest tax bracket, I am saving 37% on any depreciation I can get.

Will someone either wake me up to my new found delusions or encourage me that I am still on the right track.

I am not sure what your exact lending product is but for me, I focus on transparency. If I have clearly explained the requirements, the time frames, and clearly set expectations, I know that the borrowers will be happy with our service. Issues arise when borrowers feel blindsided with items or delays. Keep them in the loop as much as possible.

I send out a one sheet that has our current rates and terms, all the steps involved, and expectation of documents needed. This has been very well received and we get compliments on it all the time. I keep that one sheet attached to most communication I have with borrowers so they will always have it and I can refer them back to it as necessary.

Hi All! Looking to connect with people in the Atlanta metro area. I have some connections already made and fly out in 2 days for a week long visit. Just curious if there are any meet ups I should attend. I am looking to invest in long-term rentals mostly but am not afraid of a flip either. Thanks for any help.