TegridyFarms

I do this on the side. Recommend mortgage educators for your pre-licensing and then you’re gonna need a really good mentor to show you the ropes of the shop you work at.

It’s never a bad time in the mortgage biz. The last couple of years it’s been refi central. Now it’s high $$$ purchases with even higher rates. Next will come short sales and foreclosures dealing directly with banks. Cycle is never ending. The industry is full of scum, so if you’re honest and professional with people you will see great success. All it takes is a loan or two, and your referral business will keep bringing them in. Also, it’s very helpful if you know or can get to know some realtors. Tons of strategies to be successful doing it.

My only caution to you: if you think red tape in this industry is bad. The mortgage industry is FAAx100.

Scooter432

Thank you for the great info. Mind if I pm you?

TegridyFarms

No problem man!

OhNoMrBill

Does Delta allow their pilots to do contract flying for a previous Part 91 employer?

Forgotmyhat

In response to iaflyer's question in the "It Passed" thread:

Personally I searched mainly in the town I live in. I peeked at other cities, but realized that I had no idea what I was looking at. I didn't know the neighborhoods. It wouldn't necessarily be bad to look outside of your local area, but it does require a lot more work just to understand what that market is like.

As far as purchasing a property with or without tenants, it depends. If you are looking for immediate cash flow, you would need tenants in place. However, you may be interested in redevelopment, in which case you would want a completely vacant property. In the case of my current property, I bought it 65% occupied because I got it for a lower price, hoping that someday I would be able to fill it up (which I did) and sell it for a massive profit:

Property value=NOI/Cap Rate

Maybe you find an apartment building that you want to renovate so you can attract higher quality tenants and raise the rent thus increasing NOI. You can do that over time as tenants move out.

It all depends on what your game plan is. Remember, you make your money when you buy the property. So make sure the property you buy aligns with your exit strategy.

Gunfighter

Self managed properties have all been within an hour. Syndications are nationwide, which creates tax return obligations in multiple states. My NNN property is within an hour, but that was not a requirement.

I know single family investors from non desirable rental states like CA who buy in other states where investments make sense such as TX.They bought using vetted single family investment brokers, then used referrals to find a GC to do the rehab work and leasing agent to show the property. Some also hired a property manager, others self manage via cell phone and an online portal like Rently or tenant.cloud.

As your knowledge and experience grow, out of area investing becomes less risky. Doing so with a network of other investors also helps. In my case out of state syndications were part of a diversification plan that also reduced my role.in the success of the business. I've considered some out of area direct owned real estate, but have found enough within my area to work with.

A single family with a tenant in place is risky if the previous landlord didn't screen them properly. A multi tenant property comes with some risk as well. In the case of my first storage facility, there was enough in place income to cover the expenses and debt service with about $1000 of monthly cash flow.

Immediate cash flow was a requirement on my houses and first commercial property because I had limited resources. As investment cash flow grows and wealth compounds vacant or low occupancy isn't as risky IF it's due to poor management or property condition. Knowing the submarket is essential for value add or development

Investing in your knowledge and networking will save money and speed up the process. I'd recommend attending a couple local meetups or RIA meetings. Also look at Lifestyles Unlimited, bigger pockets and some Jason Hartman podcasts. Local, state and national apartment associations are also good even for single family rentals. In TX, membership grants access to a solid lease agreement and a network of trades and other investors.

Forgotmyhat

I will say one more thing about my ongoing experience with CRE. I just listed my office building this week and already have showings. I have offered owner financing…which as of today I know absolutely nothing about. But believe me when I say I will know it inside and out by the time it comes to negotiations. The point is that I’m not scared by things I have no experience in. But I don’t leave it to chance. I do my homework and and take very calculated risks when I need to. There is nothing mysterious about CRE investing. The information is out there. You just have to be willing to take the time to get educated and maybe take a little bit of a leap of faith in yourself. It’s worth it.

iaflyer

Great - thanks to both of you for the info.

I can see why working locally is more straightforward until you're confident and have your ducks in a row. Also, more profitable as you're outsourcing more when the property isn't local.

Gunfighter

Outsourcing can be viewed as "expanding the team". When the amount of capital grows, identify which areas you add the most value and which areas are better left to the team. Some items may be decided based on personal preference. Call me strange, but I don't mind the monthly bookkeeping. It can be done on short call or over a long layover and keeps me more aware of the finances. My attention span for daily tasks is limited and my availability is not guaranteed so as the number of tenants has grown, most of the tenant contact comes from someone else. When we had just three houses, my wife took all the calls. When we grew into storage and NNN employees and brokers began handling most tenant contact.
​​
​​While I've enjoyed many of my own home improvement projects, a skilled trade can get the work done sooner. When dealing with investment property, expediting repairs and rehabs that create cash flow makes sense. The key is treating repairs and improvements like a business not a home remodel project.

​​​​​​Syndications are an example of extreme outsourcing where everything from acquisition and financing to repairs and management are handled by someone else. You evaluate the team the syndicator has assembled, the underlying asset and the business plan. In some cases it's better to give up 20% of the profits in exchange for someone else taking on the majority if risk and responsibility.

Gunfighter

Has anyone tried an Amazon store as a side hustle? I'm curious what the real results are as compared to FBA blue sky promises on Facebook ads.

I haven't been to Vegas in a forever, so I'm tempted to just put my gambling money into an FBA store. Fire away!