All Forum Posts by: Tina Wicks

Husband and I have shied away from partnerships but now see that for us to scale, we may need a partner. What are the top things to look for when looking for a partner? What are the top topics to discuss and agree upon when discussing a potential partnership? Do you document everything in the LLC operating agreement?

I know I want to make sure we are on the same page regarding:  buying criteria, immediate and long term goals, division of labors and profits, how to resolve difference of opinions.  What am I missing?

Hello,

Just checking to see if there are any suggestions for insurance companies for investment properties.  I've been using American Modern but the rates have almost doubled even though I've not filed a claim.  I understand that there will be some increase due to increase value of properties but not by 100%.

TIA

The financing has been my hardest issue. I'm still finding great deals with distressed properties that hit all of my numbers. And like others, I'm OK if I get ~95% or more of my money back as it means that I didn't put 25% down on an upgraded property. But I've had to go to DSCR lending which is OK, but the origination costs are greatly more than what I'm used to paying. So that now needs to be factored into my numbers.

Pivoting and adjusting criteria is what we all have to do as market changes.  Some strategies work better than others right now.  I'm still doing BRRRRs as long as I'm confident of getting the money back out.  

For protection purposes, we've created a LLC and had properties transferred into them. But since we've grown, I'm feel I should create a 2nd LLC and put half of the properties in the 2nd one. Does anyone have a rule of thumb they use on when it's time to create another LLC? Is it based on the # of properties or the value of the assets? Is there a down side to having multiple LLCs?

Investment Info:

Single-family residence buy & hold investment.

Purchase price: $17,000
Cash invested: $23,000
Sale price: $70,000

The BRRRR was completed in December but just finished the refi. Was able to pull out all of the money and then some and raised rent by almost 40% after the rehab with a new tenant.

What made you interested in investing in this type of deal?

I'm using the BRRRR model to make my capital go further.

How did you find this deal and how did you negotiate it?

Seller had 3 properties to get rid of offmarket.

How did you finance this deal?

Cash then refi into long term mortgage

Hello,

We have recently started a networking group for the community that I and others invest.  I've only been to networking events put on by a few groups.  Does anyone have any suggestions on what has made a good networking meeting for them?

Thanks!

Hi Brian,

My husband and I started investing at 57 and 3 years later (yes, we are 60) we have 20 units and my income has been replaced.  The goal for 2023 is to grow enough to replace my husbands.  I can't tell you what peace of mind it has brought us while watching our 401Ks shrink and knowing that layoffs are around the corner at our companies.  Both of us should be safe from layoffs and we still have a lot in our 401Ks, but we are not losing sleep wondering about retirement and are still on track to retire in 2 years.  But that's only because of real estate.

My husband and I started with SFH and just last year moved primarily into BRRRRs. Yes, the interest rates for refinancing are rough but I've always heard "Date the rate and Marry the property." Rates change and they will eventually go down. So if we are making cash flow at 7.5%, we definitely will when they get back to the 5% range. We also had to move into BRRRRs as we were having a difficult time finding properties. Alot of investors were cashing out but wanted retail pricing. By going the BRRRR route, we had less competition and got better deals. BUT, BRRRRs are a lot of work. Does your job allow for the added work/stress? Even with the best contractor, there will be issues/questions, etc. that crop up during business hours. Can either one of you accommodate those with your job? What is your refinancing strategy? Always make sure you have that covered before you buy. If getting conventional mortgages, you will probably need to wait 6 to 12 months to refinance. Commercial mortgages don't require the "seasoning" period but have their own cons.

Good luck.

Hi there and congrats for starting your real estate investing journey. I have a mix of SFH, duplexes, and triplexes. Many people have posted all the things you need to look at to run your analysis. The big thing is the current leases as that will be operating with when you purchase. But just remember, this information is just for right now. I recently bought a SFH where the current tenant isn't paying close to market so I'm not making much cash flow. But it will as soon as rents can be raised.

Try to get as much information on the big ticket items such as roof, HVAC, etc.  Just starting out, you don't want any of those popping up.  The other big thing with SMF is the utilities.  Most are not separately metered so you will need to pay for those.  Hopefully, this is built into the rent.  But sometimes, no.  

I also suggest that you make sure to build in vacancy and repairs allowances when running your numbers. Tenants normally do not stay long term in SMF and are not as concerned about maintaining the property as a SFH tenant. But on the flip side, SMF normally throw off more cash flow than SFH.

Good luck and you've come to the right place to get information.

Hi Tricia,

Are you really in Alaska and investing in Muncie, IN?  That's incredible.  How did you find out about this area?  Unfortunately, we don't have the ability to live stream yet.  We do have a facebook page AMPP where we post information from our meetings.  There is also another facebook page called the Muncie/Anderson Real Estate Investment Group.  Are you members of these?  If not, please join.  

Good luck and let me know if you need any connections.

Tina

Thanks.  I would like a few more of those also......