All Forum Posts by: William Joel Idleman

Quote from @Marcos Carbi:

Hey guys, 

I'm thinking of going in on a duplex in a great, growing area of Fort Myers, FL. $380k, 2003 build, $30k of CapEx (paint, roof, AC, water heater), $3,300 monthly rent, $500 cash flow, 5% CoC return with a 6.125% rate.

I want to send an offer but my only dilemma is this recession we’re in/heading towards. The market the property is in is hot and has a lot of demand, but I wouldn’t want to get into it just to see the same duplex sell for much lower 6 months from now. What’re your thoughts? Should I go for it?

I’m reading a bunch of different articles on the future of multi-family homes so Im not sure what to think. Should I be waiting for lower prices? A part of me believes multi-family investments won’t be affected too much given they are investors with money, not primary home buyers.

I would tremendously appreciate your advice, thank you!

 I've personally made this same mistake.  The best time to invest is when YOU are ready!  This specific deal sounds like you can hold it long term.  If that's the case then get after it!  Investing as a whole is more about time IN the market, not timING the market.

If you're planning on the buy and hold strategy then the best time to invest is today. If you're planning on flipping or STR then you'll need to pay much closer attention to the market.

Quote from @Jasmine H.:

@Trevor Riley using the funds on existing properties to fund future properties. We did a cash out refi on our primary and one on an investment back in 2020, but we're pretty much stuck for now due to rising rates 🤷‍♀️

 Have you considered using/borrowing against retirement funds?  I help people out with that kind of stuff.

Quote from @Preston Donahue:

Patience, I'm working on continuing to save more capital for small multifamily. The waiting in killer. Of course I'll continue to analyze properties, so I'll just wait and save so I can add to my portfolio.

 I'm not sure if your debt averse or have it available, but you can borrow from retirement accounts to fund your next deal.

Quote from @Nick Moreno:

My biggest challenge right now is figuring out how to earn/borrow more money in order to fund my first real rental property. If I want a smaller down payment requirement, it seems like I need to move, occupy the home, and then I'll go ahead and house hack it. But, the problem is I like my current home (which I'm already hacking) and simply want to start building a portfolio at a distance, but that would require 20% down that I just don't have and would take me a couple of years to achieve. Looking around, it feels like everyone else can just afford to throw down 20% and move on, but I'm hoping that's just because they've been in the game longer than I have. 

 Hey Nicholas, you can borrow from retirement accounts to fund your next deal.  I help people do that all the time.

Quote from @Taylor Kooy:

My wife and I were blessed enough to just start down the path of Real Estate Investing from a friend a few weeks ago. After the conversation, we flipped our upstairs studio apartment into an Airbnb. We are excited about the cash flow and itching for the next adventure! The biggest challenges we face right now are patience and finding direction:

1) Patience - before we get our first property solely for real estate investing, our goal is to have six months of reserves/emergency funds saved up. We listened to an episode that talked about the importance of having this set aside to make more sound decisions. Looking at the calculations, it looks like we'll be able to hit our goal by the end of August!

2) Finding Direction - as we've recently gotten interested in this realm, the last few weeks have been like drinking water from a fire hose. We keep up with the BiggerPockets podcast and spend some time in the evenings digging into different books (any recommendations for starters?). We're trying to figure out what direction makes the most sense for us right now with where we're at in life: another short-term rental? Single-family long-term rental to get our feet wet? Waiting more and saving up for a smaller multi-family?

It was my goal to get my first post or reply on the BP forum today! Excited for taking the small steps in the right direction on this journey!

 I can definitely understand number 2.  My advice to clients is to find one thing and dive deep.  Become and expert in that one thing in that area.  If you like Airbnb, then roll with it.  If you prefer long term rentals then go with that.  Pick one thing and become the best you can be at it, then start looking for other types of rentals.  That's what my most successful advising clients have done whether it's real estate, W2 employee, or business owner.

Quote from @Sharyn Mousseau:

My biggest challenge is finding financing for my next opportunity. Originally we were trying to find someone to finance my portfolio of 5 properties that we paid cash for. Individually they are worth on average of $60K; each netting anywhere from $550-1100/mo. I'm finding it frustrating. I talked to local banks (to the homes) and since I do not live in the state my properties are, they won't lend. Other portfolio lenders I spoke with have a minimum loan of $50K per property at 75% of the value...so I just miss that mark. I'm considering rolling my IRA into a Self Directed IRA (& Learning all the rules to that) and going that route to finance our next purchase. I'd love other suggestions on leveraging the properties I have or other strategies I'm missing....I'm new at this!

Hey Sharon, I would advise not putting property in a self directed IRA as a general rule.  You cannot depreciate property inside a self directed IRA.  As you already know, depreciation is one of the biggest benefits of RE.  I would recommend talking to your advisor and rolling your IRA to a solo 401k.  You can borrow half the value of the account or $50,000 whichever is less.  This strategy allows you to not pay taxes on the retirement money because it's a loan and since your not buying the property inside a self directed IRA, you get depreciation.  If your advisor didn't make this recommendation, I'd consider finding a new one.  If you need help doing this please let me know!  I've done the same thing for several other clients.

Congrats Man!

Hey Anissa,

The first question I have is, why are you looking out of state? I know SATX is hot right now. If it's for affordability then that might make sense but SATX is cooling. If it's for the sake of just doing it, then I'd advise against it. I'll eventually invest out of state, but I buy real estate that has benefits for me personally. My first deal was in west SATX. It cash flowed and the property had decent quality, so I bought it just to get in the game. My next property will be over in Converse by RAF. I'll house hack this one. The next property will be commercial so I have a place to put my tax and financial advising office (a commercial property hack, if you will). Next, I'll be looking to find an STR on the beach because I want a place to vacation for free that might make me some money. After that, I'll rinse and repeat in one of those three types of rentals that present the best deal. Fortunately, I can do all those things right here in TX. The only out of state purchase I might make will be the vacation property. I might look in Florida.

My property in west SATX was technically out of state because I'm in Missouri until October.  Here's what I did;

1.)  Do I personally want to live there?  If I don't want to live there then I don't invest.  The reason I feel this way is because I believe I'm the average joe when it comes to housing.  So if I want to live there then I assume most people would want to live there too.  (I know there are places I wouldn't live and others would.)  Also, if you ever find yourself having to spend time at the property then you wouldn't dread going there if it's an area you like.

2.)  What are the demographics?  Is the population growing or shrinking?  What businesses are going up?  What's the momentum of the market?  Why are people migrating to or away from there?  What's the average income in those zip codes?  What's the crime rate?  How many vacancies are there compared to the national average or other markets in which you're interested?  There are about 100 questions down this path you can ask.  I chose to focus on population growth, jobs, schools, and crime rates.

3.)  What resources are available?  Are contractors a year behind?  How quickly can you build relationships?  Your relationships are what will make you successful when you're looking at out of state investing.

This was the process I used when finding my rental in SATX.  Hope this helps. If you need help with tax/financial planning send me a message!

Joel

He has some great books and he is great at selling.  I start to get a little leery of guys who are flashy.  He spends too much time showing off his jet and helicopter on social media for my liking.  I'm sure those who invest with him do well.  I don't know what style of investment he is offering but if you don't get, amortization, appreciation, and depreciation then I don't think I'd put my money there.  The question is, do you have the time to manage more?  If you do, then I'd keep investing in you.  If you don't, maybe it's time to look at alternative investments.  Even then, I would look elsewhere for the sake of diversification such as oil and gas partnerships etc.