All Forum Posts by: Shalen Takaaze

Any thoughts or experiences for the current MTR market and overall state of real estate market in Clarksville? 

If I am going to borrow funds from a parent to add to my own initial investment for downpayment and rehab costs, should I get a written legal contract? For context, I already have possession of the money and I am letting it fully season for two months so that the underwriters don't question the deposit. This was one of the options given to me by my mortgage lender and the option that was chosen by the parent I am borrowing the money from. Would appreciate any advice. Thank you!

Quote from @Jamie Banks:

Have you considered finding a partner? That would be a great way to be able to expand your current budget while also working with and learning from a more experienced investor. Don’t discount $100k properties though. Depending on neighborhood class, strategy, etc a lower priced property could still be a great way to get in the door. 

Hi Jamie,

I would love to do this, unfortunately, I don’t know other investors at the moment. The only partner I would be able to find is one that can only provide money without experience. Some people on here have also recommended I don’t use OPM if I have no experience myself unless I’m pairing with a more experienced investor.

Quote from @Luka Milicevic:

Quote from @Shalen Takaaze:

Quote from @Luka Milicevic:

Quote from @Shalen Takaaze:

At the moment, I am looking near Nashville, TN. If I go further out, I can get a B- or C property for 100k. I would need to hire a property manager since I am out of state. 

I agree with you on your statement about using my own money for my first deal. Initially, I wanted to focus on that until I was presented with the option of getting into a more desirable property with a higher price tag. For me, I want to get started in this journey and get off to a good start. Perhaps it would be best to stick to the original plan and use my own money for my beginning stages. What are your thoughts on hard money loan vs. conventional mortgage now that the seasoning period has increased to 12 months? 

 When you say further out from Nashville you can find B and C properties for 100k. How much further out? 7 hours in the midwest???

 A realtor I spoke with had classified Hyde's Ferry Park or Harding Place as B- or C property. Do you more insight into this area?

 There is one active listing under 100k in the whole city of Nashville. The Hydes Ferry Park that you're referring to is on a failed septic that can't be repaired or replaced per the comments.

If your budget is truly 100k, I'd really recommend a different market. 

If you can get up to 250k I'd look into the secondary markets surrounding Nashville, but that is still a very low budget for the area. 

 Do you have any recommendations for markets within that price range? 

Quote from @Luka Milicevic:

Quote from @Shalen Takaaze:

Quote from @Luka Milicevic:

Quote from @Shalen Takaaze:

At the moment, I am looking near Nashville, TN. If I go further out, I can get a B- or C property for 100k. I would need to hire a property manager since I am out of state. 

I agree with you on your statement about using my own money for my first deal. Initially, I wanted to focus on that until I was presented with the option of getting into a more desirable property with a higher price tag. For me, I want to get started in this journey and get off to a good start. Perhaps it would be best to stick to the original plan and use my own money for my beginning stages. What are your thoughts on hard money loan vs. conventional mortgage now that the seasoning period has increased to 12 months? 

 When you say further out from Nashville you can find B and C properties for 100k. How much further out? 7 hours in the midwest???

 A realtor I spoke with had classified Hyde's Ferry Park or Harding Place as B- or C property. Do you more insight into this area?

 There is one active listing under 100k in the whole city of Nashville. The Hydes Ferry Park that you're referring to is on a failed septic that can't be repaired or replaced per the comments.

If your budget is truly 100k, I'd really recommend a different market. 

If you can get up to 250k I'd look into the secondary markets surrounding Nashville, but that is still a very low budget for the area. 

 Thanks for the info!

Quote from @Luka Milicevic:

Quote from @Shalen Takaaze:

At the moment, I am looking near Nashville, TN. If I go further out, I can get a B- or C property for 100k. I would need to hire a property manager since I am out of state. 

I agree with you on your statement about using my own money for my first deal. Initially, I wanted to focus on that until I was presented with the option of getting into a more desirable property with a higher price tag. For me, I want to get started in this journey and get off to a good start. Perhaps it would be best to stick to the original plan and use my own money for my beginning stages. What are your thoughts on hard money loan vs. conventional mortgage now that the seasoning period has increased to 12 months? 

 When you say further out from Nashville you can find B and C properties for 100k. How much further out? 7 hours in the midwest???

 A realtor I spoke with had classified Hyde's Ferry Park or Harding Place as B- or C property. Do you more insight into this area?

What are your thoughts on a realtor putting in an exclusivity clause in a contract? I am a first time investor looking at out of state properties. My MIL is a realtor and she says that in her experience in Hawaii, she does not know many of her associates who use exclusivity clauses in our area. Is this common practice in many other states? For context, I am still in my early stages where I only connected with this realtor last week and have been getting a few property listings sent so we do not have an established relationship yet. Would love any thoughts or personal experiences.

Quote from @Travis Biziorek:

Hey Shalen,

My preference is going with the $100k and doing the light cosmetic updates. I'm biased though because that's exactly what I do.

I live in California but invest in Detroit. I have 12-doors there now and this is the exact strategy I do for my portfolio. I also help others do the same because, well... I just can't do EVERY deal myself.

Feel free to reach out if you want to talk about it.

 Thanks Travis! Just sent you a message.

Quote from @Theresa Harris:

I agree with Michael. What type of property do you get for $100K in the area you are looking at?  IF you can buy a good property for that price, then go for it. On the other hand if it buys you a home in a D class area, save up.

 At the moment, I am looking near the Nashville, TN area and would most likely be looking at a B- or C property 

Quote from @Michael Garofalo:

Hi Shalen,

The bigger question to ask is what class of property can you get at those various price points (A, B, or C) and which class do you actually want to be in? I own assets across that entire spectrum (A class I manage myself locally, B and C I have property mangers for locally and out of state) and I can tell you from experience that managing C class is a fair amount of work. The cash flow is better, but there is always some problem or tenant issue to address. If you have the stomach and want to be in this class that's totally fine, just set your expectations accordingly. 

I would advise against raising money from others for your first deal. I think the responsible thing is to get into something on your own merit, learn the business, make your mistakes an grow as an investor, and once you have more of a track record, then look to borrow or raise money from private sources. 

At the moment, I am looking near Nashville, TN. If I go further out, I can get a B- or C property for 100k. I would need to hire a property manager since I am out of state.

I agree with you on your statement about using my own money for my first deal. Initially, I wanted to focus on that until I was presented with the option of getting into a more desirable property with a higher price tag. For me, I want to get started in this journey and get off to a good start. Perhaps it would be best to stick to the original plan and use my own money for my beginning stages. What are your thoughts on hard money loan vs. conventional mortgage now that the seasoning period has increased to 12 months?

At the moment, I am looking near Nashville, TN. If I go further out, I can get a B- or C property for 100k. I would need to hire a property manager since I am out of state.

I agree with you on your statement about using my own money for my first deal. Initially, I wanted to focus on that until I was presented with the option of getting into a more desirable property with a higher price tag. For me, I want to get started in this journey and get off to a good start. Perhaps it would be best to stick to the original plan and use my own money for my beginning stages. What are your thoughts on hard money loan vs. conventional mortgage now that the seasoning period has increased to 12 months?