All Forum Posts by: Todd Anderson

Kyle,  As you can see in this thread it can be done and can be done in multiple different ways.  I have done it twice in two different ways.  We had a little crash in the middle so I got to start from scratch and figure out another way.

I work with other investors now who are all on the path.  It should not be a sprint, and  certainly can be done today.  The investors that I work with are people who are keeping their jobs or careers, and investing in real estate to grow generational wealth.  Most are happy with slow growth year over year in long term rentals.  I recommend a different strategy for these people.  New construction Build 2 Rent.  Then they can own a property for the best years of the properties life and appreciation is forced through the continued rising construction cost

Real Estate is a long game not get rich quick.  

Richard, welcome to BP. there are so many great resources in this community. There are great ways to learn here and great tools to use. But I agree the connections that you can make at the local REIA is also a great way to build momentum. I am a member of a few and try to make meeting as much as I can.

Best of luck

Irina,

I would agree with Benjamins thoughts. These two investments are very different. The syndication should be more passive, BUT your investment is totally under the control of the Syndicator. There are good and bad syndicators, and right now there are more in trouble than not. I spent some time in this world as a syndicator.

With a SFR you can certainly look for a turnkey provider. This will make the investment more passive, BUT you will still have total control of your investment. Many of the investors I talk with are looking for a turnkey answer that solves for most of the problems in the investment. We prenegotiate with builders to provide new construction investment properties to our investors that offer incentives like free property management, rent guarantees, and rate buy downs that can get conventional rates to 3.75%.

I have talked with investors that use personal property equity to make the downpayment on this type of investment. We advise the investors that we talk with to find an investment that will cashflow day one. This will help cover the cost of the equity pull.

let me know if I can help in any way. Please connect with me 

Best of luck.

Chris,  Welcome to BP this is a great place to learn!

Many of the investors that I work with are looking for the same thing.  They are out there.  

As others have said the house hacking idea is great, I have an investor that will be getting control of a $1m quad for just $75k. With this little amount down it will be hard for him to cash flow right away but when he is ready to fill the last unit it will be cash flowing. Be careful with FHA some loans will keep the PMI for the life of the loan. You can use a Conventional owner occupied and as soon as you bring the equity to 20% through many invested or appreciation you can reappraise and drop the PMI.

We work with Builders to offer Off market, new construction investment properties in a number of markets. we have inventory that includes SFR, Duplex, Three unit, and Quads.

Please connect if I can get you more information.  

Drake,  Welcome to the BP community.  You sound like a very smart young man with a bright future.  Thank your father for teaching you to think this way, I'm sure he would be proud.  

Going forward with a relationship with a local bank is a great idea.  I have worked with a few local banks to build my portfolio and have never regretted it.   Get some experience with this quad and you will be ready to go back for your next deal.  Then you will have a track record, and the annuity can fund the down payment for the next venture.  

Make sure in your diligence that you account for any upcoming maintenance and make sure that there is enough cashflow to cover the payment on your current equity.  

Best of luck to you.

Ben,  I work with investors all the time that are looking for the same thing.  

We have put together a turnkey way to invest in Real Estate that solves for all the problems that normally hinder an investment.  We have an inventory of off market New Construction investment properties in a number of growing markets that will cashflow day one.  We have set up preferred venders with Lenders, Insurance, Property Management and we are Boots On The Ground.  As brought up above in the Forum we have many investors that " just close".  I have Benn investing in Real Estate for 30 years and consult with all the clients that I work with about the property and strategy that best fits their investing goals.  

This is done every day to build wealth for busy business owners and W2 employees.  I am citron you can do it to.  You are in the right place!!

Best of luck and reach please connect if you need any help with any questions.  

Marc,  Quick answer is Yes you can offer anything to anyone.  

Depending on the Investors Investment Strategy,  things may work out. The worst someone will say is it doesn't work for them.  

I have done a few rent to owns over the years, I actually just closed on one the beginning of September.I Converted a long term tenant into a buyer.  It may be a little more challenging with a new investor that has no track record with you.  

The way most lease options work is:  

There is a downpayment this is negotiable, I have seen 5%-30%.  This would normally depend on the condition of the property and the Condition of the tenant.  A bigger risk would warrant a larger Down payment.  This would be used to rehab the property if the tenant did not preform and the owner had to take the property back.

Then you would look at Payment.  Part of your monthly rent would go to principal reduction.   this can vary from 25%-75%.   this would normally depend on the length the owner wants the lease to last.  

Then that leads into the tenth of the lease.  I have seen 2-15 years.  normally there would be a balloon payment set up for some time period.  This would give the tenant the time to create enough equity to be able to finance the purchase.  There would also be an interest rate on the money negotiated.  My guess is this would need to be somewhat close to what the investor is paying.  If the investor is paying cash then it could be more negotiable.

If the investor is a developer this is probably all out the window. 

Best of luck.  hope this helps a little.  

Harish, Welcome to BP.  This is a place that you can get a lot of great information and make great connections.

I work with investors all the time that are from the West coast and are looking for an out of state investment that is turnkey.  Many people above have commented about a few of the pit falls in this strategy.  I believe that we have solved for all of these problems.  We work with builders to offer off market New Construction investment properties to investors at investment pricing.  this way your initial equity bump is built into the deal.  We are able to build in other incentives like Free Property Management and Rate Buy downs to high 3%. We also have preferred venders set up to help with lending, Insurance, as stated property management, and we are boots on the ground.

Most of the investors that I work with buy f 4 or more properties through us .  Let me know if you would like to connect and get any more information.  I have personally been a Real Estate investor since 1995 and have done most strategies and would love to help.

Best of luck.  

Lance, Real Estate has never been quick, easy money.  Only the Gurus will tell you that to sell something.  Real Estate has always and will always be about slow generational growth.  As said above and best said by Jason, there are still great ways to get some cashflow and grow wealth over the long term.  

When I speak with the investors that I work with, we talk about investing for cashflow in growing markets where the appreciation is obvious.  Look for markets where the environment for landlord is good, prices are reasonable and growth is positive.   

For the investors that I work with I recommend New Construction for a number of reasons. The builders that we work with are offering our investors great incentives right now like, free property management and rates below 3.99%.  With these incentives to start with the property you can cashflow day one in the investment.  A buy and hold over 5-10 years can see a great appreciation when you consider that construction prices are not going down.  

Don't be afraid to follow your sisters lead, and feel free to connect if you have any questions or would like our inventory of off market properties.    

I talk with investors all the time who have the same question.  To be clear, to get to the right answer for you I would need more information.

I have done a number of Brrrr's.  It is a good way to get into Real Estate.  BUT.  You need to have time, You are taking on another job.  You need to have experience in renovation,  or know someone who does. And renovation money.  There is also higher risk that comes along with the deal.  There are always things that come up that you don't expect.

With a turnkey investment you have experts in place to help with all items listed.  We work with builders, lenders, insurance, property management, and most importantly, We are boots on the ground.  The turnkey I suggest to the investors that I work with is New construction Investment properties.  As a new first time investor in this strategy you are able to own there property for the best years of its life, when it needs the fewest repairs.  The way we present our OFF MARKET inventory all the builds are with in 1-3 months of completion so the investor also does not fund the construction.  

And lastly all the properties that we recommend cashflow day one, or as soon as the team finds a tenant.  

Let me know if I can help further or you would like to talk about our inventory.  Feel free to connect.