All Forum Posts by: Tyler Kesling

@Steve K. I've got access to some realtor friends that I could probably get some comps from. I don't think they have the drive I'm looking for as I try to build and grow a portfolio so I don't think I'd trust them to build a partnership with but, yes, that's probably a good idea. The sign says $200K OBO and somewhere I read the owner and his wife have moved to Ecuador and just done with being long distance landlords. If income, expenses, and comps look legit, I'm thinking about $160 and hoping I can land it somewhere around $175K. I'm in a very small market where the average house price is only about $140K. Recently sold MF on Zillow are pretty much inline with the asking but I will definitely get a professional opinion. Thanks for advice.

@Justin Moy @Gino Barbaro Thanks for the advice, and the link, guys. I think I will just reach out directly and work with a title company, if it goes that far. I keeping forgetting that I actually had a SFH that I did a LTO and used a title company to close. Apparently it wasn't that big of deal since it didn't make an impression on me enough to remember I did that. There's a story there but anyway...

 From what I've been able to lurk around and find out, apparently the owner has moved to Ecuador and very motivated. 

While I've got you...They've got an asking price and a total monthly rent listed on the sign. I can estimate most of the cost, taxes, insurance, utilities, PM fees, and such and I know that should be provided in the expenses but when it comes to the actual maintenance of the property, what strategy do you normally use? From the looks of the sign, I'm not expecting there to be detailed reports on facility maintenance. Depending on what model I use, I obviously get a different DSCR. My financing strategy would be to HELOC the down payment and repairs then, as quickly as possible, do a DSCR to bring the mortgage together and lock in a lower interest rate. My little calculator tells me I should still be better than 1.25 in any scenario but just thought I'd check with some more experienced folks to have a better idea of what to expect.

@Jay Hurst Thanks Jay. This actually helps me narrow down my search for properties that meet my goals and clears up a lot of noise. I'm not sure how to articulate it but, basically this bit of knowledge saves me a bunch of time and kind of surprised it hasn't come up in any of the books, articles, or videos I've been learning from. Thanks again.  

If you buy a portfolio of properties, can you live in one of the SFH and get a Fannie loan? My example is 3 SFH and 1 Duplex. I guess the question would be something about how portfolios are treated during financing or maybe I'm not seeing it from the correct perspective. Thanks.

How would you approach trying to find "the right" MF agent? Just hit up as many brokers in the area as I can find and have them refer MF agents? I've got plenty of information on questions to ask but how did you interview your first brokers?  

Good morning,

Still a newbie but I've found a four in my area that is "For Sale By Owner" that my initial underwriting, from the info I can find, shows it to be a property that would fit my CoC and CF criteria. I'm not sure if I should reach out to the seller directly or if I should work this through a broker. I'm curious how some of you found your brokers and what the process was like of interviewing? If I call the seller directly, is it taboo to start asking for financials or should I just ask if I can send them an LOI?

@Drew Sygit my strategy for now is to spend the next 6 months or so learning everything I can about real estate markets, properties, underwriting, financing, landlords, property management, construction, legal, insurance, and anything else that comes across my radar, all the while trying to make connections and build relationships within each of these areas to build a network and gain the confidence to sell lenders and investors on the very best deals I can come up with. I believe if I can present a bullet proof opportunity, I can find the funding. I can see a situation where I defer the lead on a deal if thats the route needed but I'm trying my hardest to make my first deal my deal. I may have to start smaller and that's ok too, at least I'll be in the game. I really do appreciate all the advice on this site and can't wait until I'm the one giving it instead of only asking for it. 

Not to drag this thread out indefinitely but if I were to take your advice and start small, is it the dumbest thing to 1) Hire a PM on a single fourplex and 2) Do a HELOC into a DSCR? I've reached out to the gentleman that owns the large PM group in the area to see if he knows of any smaller PM that I can connect with and I also messaged my credit union to find out what my best options would be. Look at me taking charge of my financial future! Goggins and Cardone would be proud. Next I need to start reaching out to brokers and sellers.

@Randall Alan

My hold up is that I usually get a decent influx of cash in late June so I'm expecting that to get me into the best starting point. If for some reason that doesn't roll in or if I find the perfect opportunity before then, I'm jumping with both feet. There's a four a few blocks from my house with a handwritten "For Sale" sign, asking $200k, claiming $3150 per month rent. That one and a duplex off market sitting right next to it are right at the edge of a B neighborhood and going into a B-/C+. I want to wait and go for the white whale but im so tempted to go ahead and make contact to see if i can get real numbers. They look to need some lipstick but pretty solid. I saw some older pics on zillow.

@Randall Alan- Totally valid points. I think you can probably search for anything and with the right key words get the results you're looking for. After all, the Earth is flat in some forums. I've watched several "Webinars" (pretty sure they're just hyped up YouTube videos and not what I would consider a webinar) right here from BP that are really just a push to become a "PRO" and gain access to all the tools. Seems like they usually start with a little info to get your attention and then tell you to just punch the numbers into the Pro Tool and voila, you're now ready to purchase a property and I'm just thinking, "Did I even learn anything?". I've been a fan of Cardone for years for more than just his REI information. He's an acquired taste but I've read many of his books and maybe I'm a fool, but I believe he is genuine in his commitment and drive for success. I 100% know that he's going to spend a decent part of the 2 days trying to get me to invest in Cardone Capitol. I've filled out those little "Enter to Win" cards at the mall for a new car and had timeshare folks blow my phone up for the next 3 months. There was never a chance to actually win a car or the trip but rather enjoy the David Goggins types telling me that I'm being lazy loser, get your act together, become the best version of yourself! Cardone fits that mold. I'm just pulling from everyone and every resource I can access right now. I spend a lot of time reading these forums plus I've read David Lindahl, Ken McElroy, James Randel, Scott Berges, Roger Dawson, and have been watching videos of anyone else from first time to pros with REI information. I really believe that we live in a time where all the information you need to do just about anything is available for free online. Like I said, most of these authors/investors talk about going bigger sooner. You have to learn either way and the only difference in a lot of cases is the numbers are bigger. If you learn to drive a stick, driving an automatic is no big deal. It isn't really any harder to drive a stick, just different, but for people who never learned it seems very challenging. I have no fear of running the numbers, building a team, investing, repositioning, refinancing, selling or holding larger properties. Funding the larger properties to start sounds like it will be my biggest challenge and I'm not convinced, yet, that I can't find the money out of my own pocket or find OPM to get a deal done. I work with a lot of high earners and have a few friends of friends that are doctors and lawyers. I'm going to start reaching out soon to a friend of a family member who owns a local PM group with roughly 1000 doors for lower income, just to pick his brain, but I can envision a scenario where if I needed to partner with someone to get my first deal and gain some creditability and experience, he may be willing to assist. Anyways, again, I really appreciate your insight. I need both, the "GURUs" telling me that I can conquer the world overnight and the real investors to let me know that it might take a little longer to get there.