Nicheole Amundsen - Real Estate Investor & Educator

03/06/2023

ALERT:

Don’t forget tomorrow starts the new Facebook rule where they can use your photos. Don't forget the Deadline today!!! It can be used in court cases in litigation against you. Everything you've ever posted becomes public from today Even messages that have been deleted or photos not allowed. It costs nothing for a simple copy and paste, better safe than sorry. Channel 13 News talked about the change in Facebook's privacy policy. NOTE: Facebook is now a public entity. All members must post a notice like this. If you prefer, you can copy and paste this version. If you do not publish a statement at least once, it will be tacitly allowing the use of your photos, as well as the information contained in the profile status updates. DO NOT SHARE. Copy and paste.
Their new algorithm chooses the same few people - about 25 - who will read your posts. Therefore,
Hold your finger down anywhere in this post and "copy" will pop up. Click "copy". Then go to your page, start a new post, and put your finger anywhere in the blank field. "Paste" will pop up and click paste... This will bypass the system.
I DO NOT GIVE FACEBOOK PERMISSION TO SHARE ANYTHING OF MINE, THAT I HAVE PUT ON THEIR SITE, PICTURES, CURRENT OR PAST POSTS, PHONE NUMBERS, OR EMAILS... ABSOLUTELY NOTHING CAN YOU USE IN ANY DESIRED MANNER WITHOUT MY WRITTEN PERMISSION OR VERBAL CONSENT. Just in case

09/26/2022

Top 8 Reasons to Invest in Three to Twenty Units to Get Started in Real Estate Investing

1. MORE COMFORTABLE FOR MANY TO START SMALL (https://bit.ly/3Dz0fMS)

2. SAME ADVANTAGES AS WITH LARGER PROPERTIES
(https://bit.ly/3Bx0VQn)

3. LOANS ARE GENERALLY EASIER TO COME BY AND THERE MAY NOT BE A NEED FOR A SPONSOR
(https://bit.ly/3fa104X)

4. LESS EXPERIENCE, LESS RISK, RISK SPREAD OUT
(https://bit.ly/3LMhM6w)

5. MANY RESIDENTS PREFER SMALLER BUILDINGS
(https://bit.ly/3r6fuWn)

6. THERE ARE MORE SMALL BUILDINGS IN MOST MARKETS THAN ANYTHING ELSE
As mentioned above a number of renters prefer small buildings, it also turns on that there are more small buildings for sale in most markets at any one time. Small buildings make up the largest segment of the market. There are considerably more two and three-family multifamily units in most communities than buildings with ten or more units.

This is particularly true in small and rural markets. That is good news for new multifamily investors as there is not the same level of competition for small properties as there are for larger ones. As we mentioned earlier, most of the time small properties are not going to require a sponsor, are easier to finance most of the time and tend to sell for higher capitalization rates (they are cheaper).

It should be noted that in a number of small and rural markets these properties will not be listed or offered for sale by commercial brokers. Many of these properties are listed by residential realtors and are listed on the multiple residential listing service (MLS). When trying to find realtors and brokers to help you find these smaller propertied, you might want to reach out to an investor friendly residential realtor.

09/24/2022

Top 8 Reasons to Invest in Three to Twenty Units to Get Started in Real Estate Investing

1. MORE COMFORTABLE FOR MANY TO START SMALL (https://bit.ly/3Dz0fMS)

2. SAME ADVANTAGES AS WITH LARGER PROPERTIES
(https://bit.ly/3Bx0VQn)

3. LOANS ARE GENERALLY EASIER TO COME BY AND THERE MAY NOT BE A NEED FOR A SPONSOR
(https://bit.ly/3fa104X)

4. LESS EXPERIENCE, LESS RISK, RISK SPREAD OUT
(https://bit.ly/3LMhM6w)

5. MANY RESIDENTS PREFER SMALLER BUILDINGS
While a lot of millennials prefer larger properties with lots of amenities close to where all the action is happening, there are many others (particularly those with family) that prefer smaller properties that have more of a family feel. They look for two to ten-unit properties where there is some green space or are in older more residential neighborhoods.

In general, fewer people and fewer rules can make for a more home-like environment for some people. These also tend to come with more variety in the lay out of the unit, its size and what is included in the rental.

09/21/2022

Top 8 Reasons to Invest in Three to Twenty Units to Get Started in Real Estate Investing

1. MORE COMFORTABLE FOR MANY TO START SMALL (https://bit.ly/3Dz0fMS)

2. SAME ADVANTAGES AS WITH LARGER PROPERTIES
(https://bit.ly/3Bx0VQn)

3. LOANS ARE GENERALLY EASIER TO COME BY AND THERE MAY NOT BE A NEED FOR A SPONSOR
(https://bit.ly/3fa104X)

4. LESS EXPERIENCE, LESS RISK, RISK SPREAD OUT
The key point in this section is to understand that less experience frequently translates into starting with smaller numbers of units which means less money at risk from both you and your investors. Smaller properties, because of their smaller numbers, also tend to be easier and faster to turn around. Most properties 30 units and less can be rehabbed and/or re-tenanted in one year or less. Contrast that to 100- or 200-unit properties that will usually take two to four years to totally turn around.

Another reason to start with smaller properties is a less talked about benefit. One of the hallmarks that most wealth managers focus on is the need to diversify your risk. Most often that is discussed in relation to stocks or a mix of asset classes, but it can also be true of real estate investing. Buying more than one small property is another type of strategy for spreading your risk. Diversifying your portfolio mean you are spreading your risk among many buildings instead of a few.

While you can invest in more than one small buildings in the market you have chosen, you probably don’t want to begin by investing in more than one market particularly when buying small properties. So, it needs to be a good market that will be a good investment for years to come. However, to maximize the ability to manage these properties and to build some economies of scale, you should consider having at least 80-100 units in one market area that can be managed by one property management company and maybe one onsite manager. Buying several properties in several different markets makes management and other aspects of ownership more difficult. When we move into a new market, we make it a goal to own at least 250 units or more in that market in 2-3 year.

Want to know more about how to find the best markets to invest in, e-mail [email protected] or long onto www.PassiveCashFlowForLife.com for free information about how to get started. To lean more about how you can buy duplexes, triplexes, or more than one house at a time using this information, please e-mail Kathy at [email protected] or log onto www.VirtualREIAAcademy.com for more information

09/20/2022

Top 8 Reasons to Invest in Three to Twenty Units to Get Started in Real Estate Investing

1. MORE COMFORTABLE FOR MANY TO START SMALL (https://bit.ly/3Dz0fMS)

2. SAME ADVANTAGES AS WITH LARGER PROPERTIES
(https://bit.ly/3Bx0VQn)

3. LOANS ARE GENERALLY EASIER TO COME BY AND THERE MAY NOT BE A NEED FOR A SPONSOR
If you are fairly new to multifamily investing, a small loan may be easier to obtain. In general, it is less risky for both you and the lender, and there are more institutions that make small loans than larger. Institutions like Savings and Loan institutions, credit unions and small banks in your local area make commercial loans on small properties. You may also want to look for portfolio lenders in your area that loan on small apartment buildings. A portfolio lender is one that keeps at least some of their loans in house; meaning they don’t sell them off to Wall Street.

Frequently the underwriting standards for four-unit and smaller buildings are less stringent. One reason is that four units and less are considered residential real estate so are generally underwritten in a different department than five units or more. The downside to that is that you may not be able to get all the benefits from true multifamily properties.

If you don’t already have a number of properties and you are wanting to buy a property 30-40units or more, you are likely to need someone to ‘sponsor’ your purchase. A sponsor is someone who basically co-signs for the loan and is basically guaranteeing your loan. When lenders underwrite a larger loan they look at your qualifications to buy and this entails some or all of the following factors; 1) your overall net worth, 2) the debt coverage ratio of all of your properties combined (termed your global DCR), 3) that you already have similar properties in your portfolio and 4) that you have experience managing properties like these (a good property management company can also serve this purpose).

If you don’t meet most of these criteria, it is likely that you will need a sponsor and to sponsor a deal most experienced investors are going to want a percentage of the deal. Remember, they are co-signing for your loan because you either don’t have the experience, similar properties and/or the new worth to support the deal yourself. The good news is that after a couple of deals, you won’t need a sponsor anymore.

Let’s turn for a minute to the financing of manufactured housing properties. These types of properties are typically much more difficult to finance. Mobile home parks are not most lenders favorite asset class, mainly because they are perceived by many to be ‘trailer parks’, and they have a higher-than-average default rate. The good news is that there are lenders who lend on these asset classes and because of the difficulty in getting financing, they are much easier to obtain ‘seller financing’ for a few years.

Want to know more about buying manufactured housing and how to get these financed, e-mail us at [email protected]

09/16/2022

Top 8 Reasons to Invest in Three to Twenty Units to Get Started in Real Estate Investing

1. MORE COMFORTABLE FOR MANY TO START SMALL (https://bit.ly/3Dz0fMS)

2. SAME ADVANTAGES AS WITH LARGER PROPERTIES
Smaller properties that are deemed to be commercial or houses that are used to generated income have the same benefits as investing in larger apartment buildings or manufactured housing communities. Any property with five or more units is considered commercial and has the same tax advantages, ability to force appreciation and uses the income approach to determine value. All of these are significant advantages of investing in multifamily real estate. Duplexes to a four-plex if used as an income producing property also have the same tax benefits BUT, many times you will not be able to buy it using an income approach. These properties are sold using the comparable method, which, in expensive markets, can make them too expensive to cash flow.

We recently wrote another article on the advantages of investing in multifamily real estate. That article covers much more ground than this paper and also identifies benefits either not mentioned here or only lightly touched on, such as forced appreciation and tax advantages.

To find out more about multifamily or residential real estate investing e-mail [email protected] or long onto www.PassiveCashFlowForLife.com for free information about how to get started. To lean more about how you can buy duplexes, triplexes, or more than one house at a time using this information, please e-mail Kathy at [email protected] or log onto www.VirtualREIAAcademy.com for more information

In general, the return-on-investment gains are higher in smaller buildings. The primary reason for this is that smaller buildings generally sell at a somewhat higher capitalization rate, and, with the exception of management, expenses tend to be somewhat less. At times, in quite small properties (5 to 10 units) loans can be obtained from savings and loans or from credit unions and their financing terms are frequently better.

As with larger properties if you have more tenants, it is easier to cover mortgage and expenses as there are more residents. And having a move-out doesn’t have the same impact on cash flow as does a single family or a duplex unit lose a tenant. Over time, the cash flow trend line is smoother as there are just more residents to cover expenses and the mortgage.

Finally, as with larger properties, the value of the property is based on its Net Operating Income (NOI). This is the income a property produces minus its expenses except the mortgage and the interest on the mortgage. This is termed the “Income Approach” to determining value. Using the income approach as opposed to the comparable approach deems the value of the property to be based on what the property can make after all expenses are paid and not on what the house next door sold for. The comparison method is used for one to four-unit properties. When using a comparable approach, the value of a property is based on other similar properties in the same neighborhood and in many markets these days the value of a single-family property would not allow an investor to make any money on it as a rental since the mortgage is frequently more then what one can get as rent.

09/15/2022

"Top 8 Reasons to Invest in Three to Twenty Units to Get Started in Real Estate Investing"

There are a number of factors that may make it a better decision for some to begin their investing career in multifamily properties with smaller properties. Some of these reasons include your earning capacity, your location in the country, what your local market is doing, your net worth, total debt, your comfort level and many other factors. They all play a role in decisions of that magnitude. What is important in all of this is that you START and START NOW!

There are many benefits in creating your portfolio with smaller buildings. Here is a list of some of them which is followed below this list with a brief discussion of each:
1. MORE COMFORTABLE FOR MANY TO START SMALL
2. SAME ADVANTAGES AS WITH LARGER PROPERTIES
3. LOANS ARE GENERALLY EASIER TO COME BY AND THERE MAY NOT BE A NEED FOR A SPONSOR
4. LESS EXPERIENCE, LESS RISK, RISK SPREAD OUT
5. MANY RESIDENTS PREFER SMALLER BUILDINGS
6. THERE ARE MORE SMALL BUILDINGS IN MOST MARKETS THAN ANYTHING ELSE
7. MANY OPPORTUNITIES TO ADD VALUE
8. LIVE IN ONE, RENT THE REST

To find out more about multifamily or residential real estate investing e-mail [email protected] or long onto www.PassiveCashFlowForLife.com for free information about how to get started. To lean more about how you can buy duplexes, triplexes, or more than one house at a time using this information, please e-mail Kathy at [email protected] or log onto www.VirtualREIAcademy.com for more information.

1. MORE COMFORTABLE FOR MANY NEW INVESTORS TO START SMALL

When people are just getting started on their path to buying multifamily properties the thought of starting with 50 to 100 units is frequently overwhelming. The cost of these larger properties scares a lot of people. Many who are starting the journey of buying multifamily properties already have some experience with single family homes or other types of real estate experience. So, jumping to duplexes, triplexes or a five-unit up to a thirty-unit property is not as overwhelming.

It is frequently less overwhelming and there are somewhat less requirements to complete due diligence on a smaller property than on a large one. Smaller properties are generally closer to home for investors so they tend to know and understand the market better, which can also increase confidence and comfort level.

Many investors that are new to multifamily investing don’t have the capital to buy larger properties and they may not have a cadre of others who would like to invest with them. One of the first questions potential investors ask is: “What is your experience with these kinds of properties” and if someone doesn’t already have a portfolio, potential investors may be scared off.

Another advantage is that generally the competition is not a strong with smaller properties. The big investors with larger pockets generally want larger properties. Often, when there is less competition and the price is better, new investors can find better deals.

09/14/2022

Thanks for continuing to read these posts. This is the 4th and final post about our upcoming live class in Baltimore on Sept 30 and Oct 1 and 2. It is only $149 for you and a friend and you can choose to come either in person or attend the class via live stream. Today, I want to talk about the last four full-time investors who are going to present. Valerie Scott is a friend of many years, and, in Maryland, no one knows more that she about short sales and bank owned properties and that is what she is going to be teaching. The day is coming shortly, I do believe, when we are going to be seeming more and more short sales and foreclosures, so now would be the time to come and learn these strategies. Mike Ruscica is another friend and fellow non-performing note investor. He buys non-performing seconds for literally 5 to 10 cents on the dollar and is making a killing, so much so that he and his wife spend the winters somewhere warmer than their New Jersey residence. He will teach you how to buy non-performing second mortgages and he will also let you work with him if you choose. Brian Martinez is from NuView IRA and he is going to be discussing some lesser known things about self-directed IRAs and how you can grow generational wealth using IRAs. Finally, but certainly not least, is my partner of more than 15 years, Maranda Bolin. Maranda is a long-time investor. She bought her first mobile home park at the age of 18 and there has been no stopping her since. She is also a real estate broker and owns one of the largest property management companies in West Virginia as well as a tax accounting firm with two offices. She is going to be doing two presentations, one on what property management companies can and should provide and what they look for in clients and the second on how to work with investor friendly realtors. Please come and learn. If you have read the last four posts, you know how much we are offering and for only $149.00 To come in person, go to www.VirtualREILive.com and to sign up for the streaming class go to WWW.VirtualREILiveOnline.com. Hope to see you there.

09/12/2022

Welcome back and, again today, I would like to tell you more about our upcoming 3-day event in Baltimore Maryland on Sept 30 and Oct 1 and 2. Come and learn. You get 3 days of classes for only $149.00 and you can bring someone with you for free. To come in person, go to www.VirtualREILive.com and to sign up for the streaming class go to WWW.VirtualREILiveOnline.com Hope to see you there. I’d like to tell you a little more about who will be teaching at this class. All of our instructors are full-time investors/experts in their field and I would like to tell you a bit more about what four of them are going to be talking about. Dave Wandel owns one of the largest roofing companies in Maryland. He is also a successful rehabber AND he successfully invests in properties in very challenging neighborhoods and that is what he is going to talk about at this meeting. Come and learn. Minuen May III is one of my partners in this endeavor and he is going to provide a presentation on Leasing properties and providing an option to buy them. Minuen is a successful entrepreneur who rehabs, buys mobile homes, has rentals and sometimes partners with other investors. He also owns a boxing gym and coaches others in health and well-being. Finally, today meet Kathy and Isaac. Kathy is also a partner in this endeavor and a full-time investor with lots of experience in rehabbing. She is also a licensed realtor and a buy and hold investor. Isaac is a hard money lender. Together in one presentation, they are going to be talking about how you know how to assess how much it will cost to rehab a house that you have just purchased, called “Know Your Numbers”. Isaac Sandoval is going another presentation on hard money lending and what he looks for in someone he is potentially going to lend to.

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09/10/2022

Greetings, Nicheole here. I’d like to invite you to attend an intense three-day real estate investing class on September 30, October 1 and 2 in Baltimore, MD or via live stream if you can’t attend in person. Let me tell you about three or four of our speakers over the weekend. Kathy Corley and Minuen May are going to be talking about how you can craft a deal that works for almost any seller who NEEDS to sell, from those who own a tear-down to someone who has virtually no equity in their property. It all really depends on what strategy you use, and they will be introducing you to at least 10 different strategies. Jane Irwin and Sharon McKenzie (retired Baltimore police officers) are now full-time investors who live in Florida and invest remotely in about eight different markets. Would you like to know how to do this too? Come and learn. And finally, please meet Ned Carey. I have known Ned for over 10 years, and he is an expert in buying tax liens and buying properties at tax sales. Want to earn 18% interest in your IRA, then tax liens may be for you. Want to buy a house or land for little more that the back taxes owed, then tax sales may be for you. Come and learn. You get 3 days of classes for only $149.00 and you can bring someone with you for free. To come in person, go to www.VirtualREILive.com and to sign up for the streaming class go to WWW.VirtualREILiveOnline.com Hope to see you there.

09/08/2022

Hey folks, Nicheole here. As you probably know, we have a class coming up on September 30, October 1 and October 2 in Baltimore, MD. The cost is only $149.00 and you get to bring someone of your choosing for free. Please go to www.VirtualREILive.com to sign up. If you can’t make it in person, please join us through live stream at www.VirtualREILiveOnline.com. One of the great people who will be presenting is Charles Blair (know as the Mad Scientist), is a very well know national speaker and marketer, who runs the third largest meetup in the USA. He is going to be talking about building a great way to market to find both sellers and buyers that won’t cost you an arm and a leg. As if you didn’t already know, you are really in the marketing business and not the real estate business. You must be able to market to be successful in this business. I will be there too and am going to be talking about buying small multifamily properties, which I have been doing for 25 years and currently have a large portfolio in 11 states.

09/06/2022

Over the years, I have purchased a number of single family homes and I have had a lot of success in buying properties from landlords. We generally start out asking for a long-term lease of five years or so, telling them that we are looking for properties that we can sublease to others and that we will be responsible for all bills, repairs and maintenance. If they are open to the rental, we tell them that we are interested in an option to buy the house at the end of the lease. The first part of the attached document sets out the process we use and the second half of the document suggests a couple of e-mails we can send out to your favorite site where you see properties for rent listed.

E-Mails to Landlords This message is for landlords to but here you are asking them for a long-term lease. In the first message you send, you are only asking about a long-term lease and we are not going to say anything about an option or a purchase. You are going to find landlords on Craig’s ...