All Forum Posts by: Zachary Stanley

Quote from @Scott Mac:

Just be yourself.

Be truthful in your words.

Be a man of your words- do what you say you.

Always deal with others in an honest manner.

And all will be well.

Just my 2 cents.

Also, I just want to clarify to everybody I'm not looking to find "it". 

Just a thought provoking question lol. 

Do you ever run across individuals that just have "it"? It's the "it" factor that some people just walk around with, conduct their business with and operate their life with. 

My question is what is "it"? Is that years of development? Are people born with it? 

Lastly, to be a successful investor do you need to have the "it" factor? Can you be a successful investor and not have that swagger and confidence that those people walk around with? 

Quote from @Josh Cissell:

@Zachary Stanley

Congrats. Bentonville and Northwest Arkansas will have growth for years to come.

It seems that you're not calculating any reserves for maintenance, cap x, and management fees. Even if you plan to manage yourself, it's important to calculate the going rate for management fees because you will have to spend time managing the property and this is time that you could be doing something else either for leisure or making money.

Typically when investors refer to a property cash flowing. They're figuring in these costs as well. You don't want to be 20 years down the road and find out that you could have just put your money in the stock market and done better.

Josh

Hey I totally agree with you! I was in the airport when I filled this in and was just giving a baseline public overview of my recent deal. 

This deal has those calculated in and is a little better than breaking even if you take everything into account. The problem with investing in the Bentonville area and looking for great cash flow after you calculate all of those is that you will be on the sidelines waiting on that deal till you are 80 years old here. 

Now I wouldn't do this deal in other markets but for this market specifically I'm willing to break even or better. I also have the approach that I don't need this cash flow now or even in the near future to live. Wife and I are high income earners and I would rather put current cash into assets I think will cover themselves completely and appreciate greatly while rents appreciate at the same time and I also get the tax help.

Totally agree with you though. I represent close to 100 investor clients and we run those numbers all the time. It's the only smart way to run numbers. 

Investment Info:

Single-family residence buy & hold investment.

Purchase price: $313,000
Cash invested: $33,000

Another great new build added to the portfolio. This home payment is around $2000 a month and rent comps are in the $2400-2500 range. The home also appraised for $401k which was great.

What made you interested in investing in this type of deal?

I knew this would be a great buy and hold home. We are cash flowing right off the bat so over a long term period of time this was a no brainer.

How did you find this deal and how did you negotiate it?

Found it off market. My wife works for DR Horton and knew this home was going to be built in a great area so we took advantage and locked it up as soon as possible before it hit the market.

How did you finance this deal?

Conventional 30 year.

How did you add value to the deal?

N/A

What was the outcome?

Cash flow from day one with a great new build in a great neighborhood.

Lessons learned? Challenges?

Keep buying even when others around you are not. If we folded to the trends the media wants us to believe we would still be siting on the sidelines waiting for rates to drop.

Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?

I am a realtor here and a local bigger pockets preferred agent so I used myself.

As all of us know the rates dropping for 2024 have had your average realtor and lender running to facebook to post about how great 2024 is going to be. 

I happen to be in the other boat... if you take the same amount of inventory then drop the rates its a recipe for another real estate frenzy.

If you pair the dropping of the rates and same amount of inventory with letting the population get used to 6-7% rates then drop them back in the 5's the market will be flooded with buyers again. 

The time to get your deals as investors is now not in the spring or summer of 2024. Thats why me and my investors have been buying the last year. If you can make something work now with current rates you can for sure make it work down the road. 

I say all of this knowing that you can find deals in ANY market... But I would love to know what you all are thinking. I would love opposing outlooks that yall may have. What do we think? 

Im a realtor, builder and investor her in my local market of North West Arkansas. I am seeing this area grow and expand rapidly and I am enjoying investing and helping others invest in this current market. 

I wanted everybody's input on podcast topics I should talk about. I have a local podcast called "NWA Investing Podcast" and we posted over 24 episodes in our first year. If you have time give us a listen!

Thanks in advance for the topic ideas we should discus and dive into!

I just went under contract on my wife and I's 5th property! I am a Bigger Pockets preferred agent in Northwest Arkansas and my other  4 investments are here locally but I decided to branch out and take a bigger risk on this 5th investment in Tulsa. 

I bought the AirDnA data for the area, ran my numbers and got the blessing from my wife to purchase this home. Im super excited BUT!! I do not have much knowledge on the Tulsa market and this property would work as a LTR but there is huge upside in STR for this home.

This deals details:

-$389k purchase 

-They furnished this home for showings and I was able to negotiate them leaving $30,000 of furniture. (Praise God)

-Mortgage will be around $2500 a month 

-AirDnA data was showing for homes with similar square footage and sleeping 8 people like mine would it would generate minimum of around $40,000 of income per year and this home BLOWS those other homes out of the water.

My questions are: 

-Is this a deal you would do? 

-I understand the process of Airbnb but are there things you all are seeing I should take into account? 

-Did i score a good spot? 

Thanks in advance! (I will include a pic of the place and some of the furniture they are leaving) 

Would love to hear everybody's insight on what they think we will see in quarter 3 and 4 of this year. Myself and other smart people around me are seeing potential buying opportunities on the horizon. What do y'all think? 

Investment Info:

Single-family residence other investment in Rochester.

Purchase price: $435,000
Cash invested: $10,000

Building this home for $285,000 and will sell for around $430,000. I will use this cash to hopefully be able to buy two other homes this year. I am using capital to exponentially grow my capital to then give me investments.

I make interest only payments on a construction loan for less than a year which will be less than $10,000. Then sell the home for a big profit hopefully around $100,000 or so after closing costs and real estate fees. So this will more than 10X my initial investment.

What made you interested in investing in this type of deal?

Learning how to build and being able to multiply my income.

How did you find this deal and how did you negotiate it?

I know how to build so I found a lot here in Bella vista Arkansas and started building a home.

How did you finance this deal?

1 Year construction loan locked in at a 5.5% interest.

How did you add value to the deal?

Built a home on raw land.

What was the outcome?

Hopefully a big profit.

Lessons learned? Challenges?

It sounds easy on paper but building comes with a lot of challenges and trying to time the market for the selling of the home.

Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?

Im a real estate agent.

Investment Info:

Single-family residence other investment in Rochester.

Purchase price: $435,000
Cash invested: $10,000

I am building this home for $285,000 and will sell for around $430,000. I will use this cash to hopefully be able to buy two other homes this year. I am using capital to exponentially grow my capital to then give me investments.

I make interest only payments on a construction loan for less than a year which will be less than $10,000. Then sell the home for a big profit hopefully around $100,000 or so after closing costs and real estate fees. So this will more than 10X my initial investment.

What made you interested in investing in this type of deal?

Learning how to build and being able to multiply my income.

How did you find this deal and how did you negotiate it?

I know how to build so I found a lot here in Bella vista Arkansas and started building a home.

How did you finance this deal?

1 Year construction loan locked in at a 5.5% interest.

How did you add value to the deal?

Built a home on raw land.

What was the outcome?

Hopefully a big profit.

Lessons learned? Challenges?

It sounds easy on paper but building comes with a lot of challenges and trying to time the market for the selling of the home.

Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?

Im a real estate agent.