All Forum Posts by: Saad D.

@My Nguyen what's your goal? What type of information are you looking for to make a decision? Simply suggestions from others here or other factors such as rent trends, cap rates, job growth, city demographics, income and so on?

Where do you live? Do you want to be in state or out of state? Are you setup for out of state?

More questions than answers for now.

@Dave Spooner what's the reason these are good cities to invest in?

My partner and I employ the BRRRR strategy and our goal is do double our portfolio in the next 2 years. This translates to one deal a quarter. We have invested our own capital and have a track record of cash out 100% of our capital via forced appreciation. All our units cash flow at a healthy rate. We reinvest all our earnings.

In order to do one deal a quarter, we decided to take our first private money loan to fund a major rehab. However we will need more cash to keep up with our one deal a quarter plan.

Options we've considered, including SBA loans:

1. Add more of our own cash. We've exhausted this option and it's also not scalable.

2. Private money - using this but it's very expensive in my opion

3. Conventional loan - too slow, can't get a loan for uninhabitable buildings

4. SBA - we got an offer through Lendio but the costs are very high. The factor rate is something like 1.35 because our LLC doesn't have a credit history and we don't have massive cash reserves. We reinvest most our cash and income because we are trying to scale.

5. Raise more money from friends and family - it's definitely looking like most vible option

What do others think about this challenge? How have you approached it? Has anyone taken SBA loans out for real estate?

@Annie Balagot love this topic.

Question for you: can you get more rent with nicer floors? I would assume so regardless of the market you are in. It gives the unit a more cleaner and modern look. Imo it's also easier to maintain.

One tip: go for laminate flooring that has 12 or mm thickness. This will last longer and also increasing the padding in case it's an apartment unit with a top and bottom apartment. This is slightly more expensive but worth it. I recommend going to the pros like LL flooring and not home depot when shopping so you can learn more about the tradeoffs and figure out which floor type to go with.

Good luck!

@Nick Coons some other ways to think about it: 1. Get access to lower cost of capital - friends, family, other investors in your area. 2. Derisk it by partnering with someone on the deal.

You will do great! Good luck.

@Joe Hammel I like Joe's suggestion.

1. Which bank are you using? Is it local? Do they know the local market?

2. Which appraisal company did the bank use? Did you read the appraisal report in detail and identify where the gaps are? What aspects of the property fell your in value? Sq ft, # of beds and baths, condition, location, etc? It's very important to ask the appraiser company this and understand it.

3. How many days ago was the appraisal done. Ive been in a situation where the appraisal was already submitted into official record and even if you change banks and get a new appraisal the older appraisal will be considered so timing is critical here.

What can you do now? Find a reputable local lender and or broker who knows this market and get their advice on a. Is it possible to get higher valuation? B. If so what you should do.

Otherwise the rest of the folks have covered the options well.

@Jingwen Dunford I'm curious what is in your wish list of functionality and features for tracking operating expenses?

@Daniel Hyman I'm curious, what reports would you ideally like to have? I'm working on some software and this feedback could be helpful to build the right interface and tool?

What reports are most useful?

How do you use these reports?

What types of featuresare you looking for? Filtering, search, export as csv, share with accountant, share with lender, etc.

Thanks in advance!

@Matt Sumsion this forum is rich with info already. I would say figure out what you need, and do some desktop research on all the options. Get demos of the solutions or try the free ones out to see what you like best. It really depends on your units and your tenants too. What's best for them?

My recommendation is to look for companies that are investing in features and making it better all the time.

I've tried avail, rent redi, cozy, Zillow and Baselane. Each has their tradeoffa and none are perfect imo yet. I'm probt getting off rent redi - too buggy. And liley keeping Zillow rental and Baselane.

@Iliana Oudom it depends on what you want, how many units you manage and plan to manage, and what condition they are in.

Features: Rent collection? Property listing? Tenant screening? Maintenance mgmt? Bookkeeping? Etc..

There are several options out there including Zillow rental, cozy, rent redi, avail, Baselane.

I find Zillow most useful for rental listing and tenant screening.

I recommend googling all and choosing the one that suits you best.

So far I have found none that do a great job of maintenance issues and tenant comms.

And most do not have good bookkeeping and analytics except Baselane.