All Forum Posts by: Travis Main

Hey Austin, 

This is a recurring challenge observed in certain multifamily markets, typically those with 5 or more units. In these cases, interest rates tend to surpass cap rates, compounded by rapid appreciation. Consequently, sellers often overestimate their property's value, failing to recognize its actual performance.

Moreover, if the property requires significant repairs such as foundation work or a new roof, it may not qualify for long-term financing. In such situations, a bridge loan to rehabilitate the property followed by refinancing becomes necessary. However, if the property is tenant-occupied, accessing it for renovations might prove difficult.

If your intention is to purchase a distressed property for value addition, I would caution against acquiring properties with existing tenants, as this can pose challenges in the renovation process.

Hey David,

I'm a bit puzzled why the conversation shifted to new construction when that wasn't initially mentioned. Others have adeptly highlighted the potential challenges in this scenario. However, I'm intrigued by the strategy of having your girlfriend pay you rent, and I'd like to understand it better. Are you both planning to reside in the same unit or separate ones? If it's the former, is the property serving as a form of financing? If the other three units cover the mortgage, why the need for your girlfriend to pay rent? Is the intention to accelerate property repayment? While I grasp the strategy, it's essential to assess whether the surplus funds she contributes monthly could generate a higher return if invested elsewhere. While paying down the mortgage sooner has its merits, it's crucial to weigh this against alternative investment opportunities.

Regarding upgrading to a property with better cash flow/appreciation potential, it's challenging to surpass the cash flow of a quadruplex unless venturing into commercial assets. While a better-appreciating property might be feasible, ensure it aligns with your investment objectives. Remember not to overpay simply because it's a multifamily property; ensure it aligns with your investment goals.

Hey Emmanuel, 

Determining your ROI isn't about conforming to a standard "norm" because each deal you encounter will possess its own distinct characteristics. Instead, it's about identifying the ROI that aligns with your investment strategy and risk tolerance. Once you've established this benchmark, you can use it as a yardstick to evaluate potential deals. If a deal meets or exceeds your predetermined ROI threshold, it may be worth pursuing. Conversely, if a deal falls short of this threshold, it's prudent to pass on it and wait for opportunities that better align with your investment criteria. Ultimately, your ROI criteria serve as a guiding principle, helping you make informed and strategic investment decisions tailored to your financial objectives and preferences.

Hey Ally, 

Be yourself. When attending local meetups as a rookie investor, authenticity is your greatest asset. Embrace your status as a newcomer and don't shy away from expressing your level of experience. Remember, everyone starts somewhere, and acknowledging your beginner status can foster genuine connections with seasoned investors who are often more than willing to offer guidance and share their experiences.

Local meetups serve as invaluable hubs of knowledge, bringing together like-minded individuals who are active in the same market you aim to enter or are already operating in. These gatherings provide a platform for exchanging experiential wisdom, offering insights that textbooks and online resources often can't replicate. By engaging with fellow investors, you gain access to a wealth of practical advice and real-world lessons that can help you navigate the complexities of real estate investing more effectively.

Don't hesitate to ask questions, regardless of how basic they may seem. Every inquiry is an opportunity to deepen your understanding and expand your knowledge base. Moreover, asking questions demonstrates your commitment to learning and your proactive approach to growth within the investment community.

A crucial tip for maximizing your learning experience is to come prepared with a notepad and pen. While it may be tempting to rely solely on memory, I would try to jot down as much information as you can. This practice empowers you to revisit and reinforce your learning.

If you ever want to connect, I'd be more than happy to help. 

Hey TJ, 

We all start somewhere in our real estate journey, and where that beginning point lies is entirely up to you. However, before diving into real estate investment, it's crucial to be focused and set clear goals. Your goals should follow the SMART criteria: specific, measurable, attainable, relevant, and time-bound. Being specific helps eliminate confusion and keeps you on track. Measurable goals allow for tracking progress and reevaluation. Ensure your goals are realistic yet challenging and serve a relevant purpose. Lastly, set deadlines to monitor progress.

Once you've established your achievable goals, the next step is to assemble a reliable team in your target market to support your success. This includes working with a knowledgeable agent familiar with your investment area, finding trustworthy local contractors for your projects, securing responsive insurance agents, partnering with investor-friendly title companies, and connecting with lenders offering suitable financing for your strategy.

With your goals set and team in place, you should feel more confident in your approach. Comfort with your decisions is essential for moving beyond analysis paralysis and taking action. Stay focused on your goals and avoid straying too far from your path to achievement. While risks are inevitable, it's crucial to become comfortable with them by continuing to educate yourself on potential challenges. Remember, the greatest risk in life is not taking any risks at all, so approach risks with calculated consideration.

Hey Gavin, 

It sounds like you're incredibly driven at a young age, which is commendable. The real estate industry, especially wholesaling, can be challenging. You'll encounter setbacks and face numerous rejections and criticisms. However, I agree with Gregory's advice. At your age, securing a W2 job to build capital and savings is a wise move. Meanwhile, don't give up on wholesaling. The experience you gain now will benefit you in the long run. Make the most of learning from your friend's dad and consider joining a local REIA if your parents are supportive. Attending these meetings will help you network and establish relationships with others in the industry. These connections will prove invaluable when you secure your first deal and need to market the property.

Hey Matthew, 

I agree with Melanie. Begin by engaging at the local level, attending the REIA meetings in your area. Similar to the resources available in the BiggerPockets community, these meetings offer valuable insights and connections to jumpstart your journey. While masterminds can be beneficial, they can also be expensive and vary greatly in quality. Your local REIA can often provide similar information at a fraction of the cost, allowing you to allocate your saved capital towards your first deal.

Quote from @Allen Parker:

i dont know why people are bashing you for writing multiple paragraphs, that was hands down the best thing i read today. So many zingers in one post. 

I have nothing useful to add unfortunately, just wanted to compliment your writing. best of luck sir.

 I absolutely agree with you. Engaging in these forums and taking the time to complain about the length of a post, especially without actually reading it, reflects a lack of etiquette and ignorance. If a post seems too lengthy, it's simple: don't read it and refrain from responding. This makes it easy to identify individuals you'd prefer to collaborate with and those you'd rather avoid.

@Andrew Sullivan 

There's a lot of great resources available to you on bigger pockets, and a lot of great feedback can be given on these forums. Unfortunately, sometimes you have to navigate through the crap to get there. Don't let anyone discourage on this journey. 

Quote from @Corazon B.:

Quote from @Travis Main:

@Corazon B.

Considering that the average realtor typically completes only 3-4 deals per year, it's unlikely that many are poised to seize those opportunities. While MLS remains the primary platform for on-market deals, the majority of deals I encounter originate from off-market sources, often through wholesale channels.

When you say wholesale, someone(wholesaler) finds a homeowner who is in need of cash quickly or cannot go through traditional process of selling their house for some reason, and then the wholesaler finds an investor to buy the house who will pay in cash? Where exactly do you find wholesalers? 

Yes, that's the concept. There can be various reasons why a seller needs to sell a property quickly and might be willing to accept a discounted sale price. Often, financial distress, sometimes triggered by medical issues, is a common cause.

To find wholesalers, there are several approaches you can take. One convenient method is to visit investorlift.com, where you'll likely find numerous wholesalers listed on a single platform. Additionally, attending local real estate investor associations can be fruitful, as wholesalers often attend these events to connect with potential buyers.

Another method is to keep an eye out for bandit signs in your local area that advertise messages like "we buy houses" or "cash for homes." These signs often indicate the presence of wholesalers, and reaching out to them directly can lead to potential opportunities.

@Thomas McNally

Welcome to Bigger Pockets community. I'm sorry to hear about the closure of your job, but perhaps this could be the blessing in disguise you've been waiting for. It's clear you have a specific goal in mind (achieving $5k cash flow) and a well-defined strategy to reach it (BRRRR). However, it's important to exercise patience when pursuing the BRRRR method, especially given the current market conditions. Factors such as higher interest rates, taxes, and insurance can significantly impact potential returns for investors.

Remember, success in real estate investment often hinges on buying properties at the right price rather than selling them. Therefore, it's crucial to ensure that the numbers align before rushing into any deal. Don't hesitate to take your time and carefully evaluate each opportunity to ensure it meets your investment criteria. Rest assured, there are plenty of opportunities out there waiting for you.

Should you ever wish to discuss financing options for your future real estate endeavors, please don't hesitate to reach out. I'm here to help.