All Forum Posts by: Stephen E.

@Rachel Santos @Lane Kawaoka

Hi Rachel, one thing to take into account when it comes to syndication vs. turnkey. You can take a loan against a turnkey property. I'm not sure that's true about syndication.

I like to get 2% of cost of the property in rent. No matter what else happens then I'm safe at that number.

In properties I'm looking at currently appraisal value is a key consideration. At some point I'm going to refinance each investment property, most likely at 75% loan to value. In order to get most of my money out I want a property that's going to appraise for at least 25% more than what I paid for it.

So basically cash flow and also the deal. If I'm getting a really good deal on the property I'll be less concerned about cash flow since I'll be able to refi or sell. Best case scenario is a good deal on a place with a good cash flow.

At some point I'll want to get at least one property in a place I'm bullish on in terms of appreciation, like Tampa. So appreciation will be a thing to consider, but it hasn't been a primary motivator previously.

@Jason Malabute I know every situation is different. I own properties in some poorer neighborhoods in Jackson. We have a lot of section 8 tenants, which is great during Covid. I pay my property manager 10% of the rent he collects. That's it. There's no markup for repairs. This is in Mississippi but it seems very fair to me. I wouldn't like paying a markup for repairs.

If I lost two out of 3 tenants in the same year that would worry me. But I have also fired people and then regretted it in the past when their replacement was worse. Sorry you've been having a rough year. Hope it turns around for you!

@Liam Mullins I certainly agree with all of that. You have to plan for the worst. My current arrangement is with a flipper/PM. When he gets a property I like we agree on rehab work and I don't purchase the property until it's move-in ready. Works best with someone you trust, obviously.

If it was a different situation I would plan on being there for all of it.

One thing being overlooked here a little bit is the scope of the project. A place that needs a little bit of work obviously won't be as daunting as a full rehab. If you have a good property manager and the place needs a week or two of work is a very different situation from a house that's 3 months away from livable. I've been really happy with my out of state investments but would be hesitant to get into a full rebuild.

Like everything else I suppose, more risk more reward, but more risk. If you're just starting out you probably want to keep that risk to a minimum.

Hey, that was really fun last night. Please send an email around introducing everyone if you can. Thanks!

I would recommend AceRankings, https://acerankings.com/. They do good work with digital ad buys and stuff like this. A strong, ethical group. I haven't actually worked with them on real estate projects but I worked with them on a lot of stuff back when I was doing tech stuff and I'm still friends with the people who own the company and would absolutely stake my reputation on them. 

Hi BP! I own several properties in Jackson Mississippi. I'm refinancing them through a portfolio loan with my bank in New Orleans but my bank is having a difficult time finding an appraiser in Jackson, Mississippi. Anyone know of any appraisers in Jackson I can refer to my banker?

One of the properties is also in Yazoo City.

Thank you!

I've been putting a larger amount of my money into stocks than I used to. They're stocks I want but they're also liquid. I can take the money out of stocks if I need to. It's not a mindless investment since it's something I want to buy. If you want to be safer about it you can put it dividend stock with high returns.

Congratulations @Dave Meyer, 

I'm really curious about your decision to get a real estate license. I've been considering it a lot myself, just because I have too much time on my hands recently. I'd love to hear more about the advantages of that for you. It seems like the best properties are rarely listed on the MLS, and I doubt I would be selling other people's properties.

Anyway, sounds like you're doing great on your journey!

stephen