All Forum Posts by: Seth Engelbrecht

Time in the market is better than timing the market!

Hey Jared! When is the next meetup? 

Seth 

the beauty of a cash out refi is you can do whatever you want with the cash out. Typically investors know what they're going to do with the cash well in advance. The most common I see is "paying back" the source of repayment whether that is a HELOC on a different property, personal savings, or something else. Once someone is building momentum with BRRRR typically the funds go right into the next deal.

Seth

Getting started in a market is tough. As others have noted being in person is the best way to get brokers to take you seriously. The thing with brokers is that if they are any good they already have a list of qualified proven buyers. To break through and get on the short list you have to convince them you are serious about the market and able to pull the trigger. If they do start sending you deals and you don’t buy anything they will send those leads to someone else who will, So be very serious when you start connecting with brokers. I am not saying it is right or wrong but everyone is in business to make money and almost everyone is going to take the path of least resistance to do so. 

Seth

Hey Kenneth, I am not in your market but it is my opinion that there are deals in every market.

Driving for dollars has worked well for my investment partner and me recently. Get in the car and drive around the areas you want to own in. Houses with potential will be fairly obvious. Write down the addresses and call the owners. It’s a great way to find deals.  

Due to the demand I. The housing market a lot of investors are saying there aren't deals on the MLS however I disagree. The deals on the MLS certainly move fast but if you have all of your parameters set and know exactly what you are looking for a good local agent can get you information as soon as those properties hit the market. You need to really narrow down your search though because having to underwrite, view, and make an offer the same day can be exhausting. I always say that I have "preunderwritten" properties if they meet my criteria ti even look at.

Hopefully this helps!

Seth

Hey Andrew, I highly recommend finding a local bank to work with. Local banks typically are easier to work with and have experience working with real estate investors and business owners. If I were in your position I would interview a couple banks before making a decision on who to go with. Good Luck! 

You can do a contract sale on a property with a mortgage. Look for a “due one sale” clause in the mortgage to see if a contract would make the mortgage due with the sale. If there is bo due on sale clause there shouldn’t be an issue. If there is a die on sale clause you can talk to the lender and see if they will approve it. Depending on the lender they typically don’t mind so long as the payments are being made 

Here is a quick list of things I would recommend doing as a college student to set yourself up for real estate investing after graduation 

-Work on building your credit

-Keep student loans as low as feasible

-Save up as much money as you can

-Take real estate related classes (banking, appraisal, insurance, etc)

-Network with investors and professionals

-Run numbers and analyze deals from the MLS

These things should get you started on a great trajectory 

Vatsal, in my opinion I would say go ahead and move forward and complete the renovations. If you stay one of the worst properties in the neighborhood you are going to get the worst tenants paying the least rent. If you do not do the updates now they will likely need to be done in the next couple years anyways. Rates are still incredibly low and you should be able to refinance at competitive after completion. If you look at your appraisal from the time of purchase it may give you some ideas of the repair/renovation items the appraiser docked you on and the amount they discounted. That should give you some indication of what it might appraise for after renovations. Even if you aren't able to pull off a "perfect BRRRR", you may be able to get a good portion of your cash back

-Seth 

I am looking at possibly starting to invest from out of state in central Florida (Highlands County and surrounding areas) and I am looking for connections to get started. Is anyone here from that area or have any connections in that area? I am looking to talk with local agents, lenders, and other investors.

Thank you! 

-Seth