All Forum Posts by: Travis Steinemann

@Jeff Mack Hello Jeff, any luck on this? I'm interested too. If not, happy to set up something small for a weekend or evening meet up. I'm new to this market but am looking to buy.

@Ryan Friess Hey man, I'm interested in West Palm too. Are there any groups? I seems like there isn't much activity on here or on Facebook.

@Jon Foley J Scott's book on estimating rehab costs helped me tremendously.

The other key is finding deals, because even if you have all the knowledge in the world on how to renovate, if you buy high it isn't going to work. You will not find many properties that you can cash out refi successfully on the market. Find out how by listening to the wholesaling podcast episodes. You don't need to know how to wholesale, but they generally are good with marketing.

Finding lenders is important too, because the higher loan to value (LTV) you get, the less of a discount you need (as long as it still cash flows). For example, if you find someone that will only do 65% LTV, your formula for offers has to be 65% ARV-repair costs, which is a steep discount. 70-75% LTV is easily attainable.

Good luck! I love small multifamily!

@Johann Jells, I'm not sure it is that, I think it more that many of us don't live in appreciation markets. Mine is very stable, but if I were banking on appreciate I would be in trouble. Therefore, I invest for cashflow and any appreciation is a bonus. I count on building equity, but then will extract it once my return on equity becomes poor, since there isn't much point having hundreds of thousands of dollars tied up in an asset that might increase in value. 

My situation is not necessarily the same as @Manco Snead , but if I were Jesse, I would have to consider a couple things. 

#1: Do I have the time and energy to build a team and learn a new area to roll the proceeds into a property that cashflows better?

#2: If yes, how long should it take to sell the property after you identify another to 1031 into? 

#3: If no, are there more passive investments that can increase your return on equity?

#4: (Should probably be number 1) What is your risk tolerance? 

#5: Depending on your risk tolerance and future investing plans, you could get creative with your loans and still take money out while keeping the asset and not impacting your mortgage payment with a secured loan of some sort, but I don't have much expertise in that. Don't do a cash out refi because you will torch your cash flow, but you can still do a lot while keeping it as collateral.

@Braden Smith I have noticed that and am actually off the calling because I had a much better ROI from Direct mail. I've been hitting the SEO hard too. Interesting times we are living in.

Thanks for the update and the info though.

@Courtney Fricke number 18 is very good, 25 with Chris Clothier is great for the building a business side, and 84 with Chad Carson helped me get started. I get different things from the episodes now compared to before I had done any deals though.

@Courtney Fricke Great advice, I'm on 142 and have listened to them all. Even if it is something you don't think you are interested in at this time, you can pick up some great tips and understand how different parts of RE connect. The production quality improves a lot over the first 10 episodes but the content is always good!

Hi @Chase Yokoyama, I started with wholesaling. Specifically, I created a website, did a direct mail campaign, learned a ton, and got a couple deals under contract. My first one I got under contract for what I thought was 10k above what my numbers said would work, and sure enough, I wasn't able to sell it, but was up front with the seller about my intentions and told him it was 10k too much but we could try it. The next one I got under contract was a deal and I sold it in two days making 5K on the assignment. 

A day before closing that wholesale deal, I actually got a great deal on a fourplex and purchased that for myself using private money, which we eventually BRRRRed. Generating off market leads is huge to your success, so wholesale is good because it will force you to create those systems. Cherry pick the best ones for your portfolio, sell the rest. 

Good luck! 

@Emily Lord great plan! Start planning early. Get pre-approval for a loan if you are going that route, the market is very competitive right now. Or you can look for off market deals, find a place you think would work and look up the owner. There are lots of options if you are serious.

Happy to get coffee and chat real estate!

@Emily Lord hi Emily! Welcome to biggerpockets and investing! I am in Baton Rouge too and would love to connect. I have a fourplex and a single family that I have BRRRRed and love talking real estate!

What are your goals?