All Forum Posts by: Ryan Herting

Hey @Chris Cogan

Rule of thumb, always replace the windows first and then put up siding. Doing things this way is usually the order of operations. If it's in your budget, I would also recommend replacing the windows.

Hi @Hector Salas,

Hard to say without seeing the numbers where it went wrong or where the deal needs to improve. HOA insurance is an expense like normal property insurance or taxes that you'll have to pay putting anything less than 20% down. Increasing the amount you're putting down will lower the insurance amount but will also increase your investment, so your ROI will not improve that much, if at all. It sounds like the rent and/or other expenses are hurting this deal. Is there a way to value add to increase rents?

Hi @Mia Duncan,

If you have $100k and you want to start a business with it, you need to find a way to churn that money. You can’t afford to leave too much capital in a deal (even though that might be a good investment strategy for someone else). I would target value add opportunities so you create value and pull cash back out. Maybe throw in a flip along the way to increase capital to reinvest. I would look to utilize a private lender (yes we’re biased) but you’re going to want to take advantage of increased leverage with a private lender versus conventional financing because your capital is limited.

Let me know if that was helpful!

Hi @Zander Kempf

I feel like this is a creative idea and definitely doable, but you might want to clarify for yourself first if you would like to be a BnB on Airbnb or just rent out rooms. I know that might sound the same but Airbnb actually launched a program specifically for listing BnB rooms on their site. They partnered with a platform called Think Reservation to help BnBs. You can read more about this here:https://news.airbnb.com/associ...  Here are some of my suggestions I have as well.

1. you’ll need to do a little research on the demand in your area. If your home is not located in a Airbnb hotspot, you may be handicapped from the get-go. So although renting it out entirely might seem like the easiest option. If you don't have that demand you can run into the risk of low occupancy rates.
2. Put in some time to find whether it’s legal to host in your area and what requirements you need to meet.
3. If all checkout, to reduce the chance of people going into other rooms, I would put a smart lock on the door. If you don't want this expense, provide keys in lockboxes outside. Each lockbox should include a unique code.

Below is also an old post I did on Airbnbs that might be helpful if you move forward with the project.

I have always stayed in Airbnbs with friends or family. I enjoy the space, amenities, and locations of Airbnbs over hotels.

There is also a parallel growth, due to the pandemic, between the travel and real estate industry. More people are looking to travel cross country - in addition to outdoor-related vacations - and avoiding cities to reduce contracting the virus.

This has resulted in greater opportunities for Airbnb investments in suburbs or off the grid locations. If you are looking to pursue one of these investments here's what I would recommend.

• Get high-quality photos taken that highlight your property.
• Create a killer description that speaks about the property and the surrounding area. The more information the better. Even talk about yourself.
• Provide as many amenities as you can. Ping-pong table, Games, Dartboard, Hot Tub (in cold places), Equip the kitchen, Provide mini bathroom essentials, Bonfire, BBQ.
• Always have extra towels!
• Stock the fridge with water.
• Small things REALLY make the guest happy and more likely to leave a review. Provide a welcome kit with a pamphlet of all the best spots in town. Make a smores basket. Think out of the box.

Hey @matthewarodriguez, 

My team actually created this pretty cool smart underwriting spreadsheet. You can plugin your above-mentioned values and it's super helpful to analyze a deal with. Here is a link to it https://ifundcities.com/resour... Select the Deal Underwriting button. If you also feel you missed something, the spreadsheet acts as a checklist. We've created a video as well that walks you through it which can be found here.

Hope this was helpful!

Hi Kyle R Vreeland,

First, congrats on deciding on your career path, and welcome to the investing fam. I get how it could be stressful with student loans holding you back from your passion. With that being said, there is always a way to achieve what you want to accomplish. To answer your question, I recently recommended to a newbie investor some advice on getting her investing career going. She's around the same age and most likely in the same financial position. House hacking is a great way to start your career, but if you feel this might put too much of a financial strain on you, I would recommend first investing in a deal that you can learn the ins and out of.

To do this, I would find someone you trust and who has had experience with Brrr, fix and flip, or house hacks, etc prior. You can invest however much you would like in the deal, and depending on what your terms are, you would then collect the interest. Make sure to be as active as you can the during deal and or construction process.

What you will gain here, in addition to your interest collected, is knowledge and experience. And now that you got your feet wet, you can either revisit this strategy or move forward on doing a deal yourself.

Hope this was helpful.

Hi @TannerFoy, 

First and foremost, I totally understand your frustration. There are a lot of moving parts in the business, and feeling overwhelmed is normal.

What I can say to you is that you are taking your first steps in the right direction. Building a solid network and team is pretty much your key to success.

I read through most of the other responses and I would have to agree that you need to have a deal on the table to get other parties involved with your project. That is not to say you can't obtain the team prior, but keep in mind they might be not as inclined to work with you.

Here are a couple of my tips though to help you build a team.

1- Step Outside Your Comfort Zone - Use Facebook groups, Social Media, local real estate meetups, reach out to friends in the industry to connect you with the people you are looking for. Cold calling is one approach, but try other ways of connecting with these people

2- Be vulnerable - People will connect with you if they feel you are being genuine and that you make mistakes.... because everyone does.

3- Ask Thoughtful Questions - People do like to help, so instead of approaching the conversation as " Can you be my GC" Try asking, "Hey [person name] I'm looking to build my team and I would love to learn what I should be looking out for when finding a GC."

By asking thoughtful questions, these people will 1)provide you with information, and 2) may feel more inclined to help you.

4 - Follow up Religiously

Sometimes the first call won't work, but if you come back, and with a deal on the table, the person might see that enthusiasm and be more willing to work with you.

Again non of this is set in stone. You will fail, you will succeed, but most importantly keep moving.

P.S. 80% is pretty high for a new investor. I would just check into that a little more. I work in the lending space so that's why I'm addressing this.

@sonielestime, would love to figure out some creative financing for you. Just sent you a message on BP.

Hey @Soneil Estime

I'm not a CPA or Attorney, I work in lending, but here is what I can suggest.

1. Consult with a CPA or attorney to create an agreement especially when it comes to selling the property - This will provide a solution when it comes to how to "get out" of the deal if either party wants to sell.
2. Set up a multi-member LLC - I'd suggest using or setting up a series LLC
3. MAKE SURE TO GET EVERYTHING IN WRITING - have an attorney draft contract.
4. If money is needed, decide in advance where it is coming from - if you would like to chat further about hard money, bank loans, or soft loans let me know

Hope this was helpful. Good Luck

Ry

@Isacc Lightbourn no problem! Hope it helps!