All Forum Posts by: Marcus LaGrone

Sasa,
I think the other members made some very valid points so I won't keep beating a dead dog.

Have you considered purchasing outside of your local area in order to reach the goals that you have set?

It always amazes me how "investors" will stay local and try to force a mediocre deal as opposed to finding an area that they can familiarize themselves with that will reap the benefits they are looking for.

Exactly. All must be connected and functional.

Donna,
Get involved with your local R.E. Investment Association. I believe your post stated that you were in North Carolina....If so, this is probably the best association in the area. http://www.creianc.org/

Associations are the best places to network with other like minded investors locally. You can bounce ideas off them, learn different techniques in a Focus Group setting, and find out which forms you need at what times.

On another note:
Just about everyone that can get publishing (or decides to self publish) claims to be an expert in investing. What most of these so called gurus don't tell you is that in order to be successful in investing, the number 1 rule is you have to know your sub market.

Each small area is different and different techniques work in different areas. Please do not get caught up with the technique before you get caught up with the area (sub market).
1) Study your market 1st, when you are done studying your market…..study it even more.
2) Narrow your investment footprint to a very small area (according to what you have researched)
3) Determine which techniques work in this area. Contrary to what people teach, you will only have a couple of techniques that work in a given area.

Example:
A local investor that I have worked with for quite some time, started his business with wholesaling property in the Atlanta area. Until the market crashed he was moving 20-30 houses per month (wholesale). When the market changed, he had to change also. There is no longer a market for wholesale properties in the Atlanta area, so he moved to the suburbs and began buying, renovating, and renting or selling at retail(depending on the situation).

The above example is a real investor. He has continued to be successful because he knows his market and what will work in each sub market.

You spoke about a step missing in all the “Guru†books….this is the step. Master your market and network locally.

The technique doesn’t sell many books, but it sure does work!

The above post was for Johnny not Curt.

Sorry guys

Curt your mandatory repair list depends on which loan you are getting.
FHA 203k loans normally require more mandatory repairs than a convention rehab loan.

Conventional Rehab
-All systems must be in working order
-All structural repairs must be completed
-Roof repairs must be completed
-Small cracks in windows are normally ok, but windows with major damaged should be repaired.
-If the property has central A/C, the A/C unit must be in place and fully functional
-All items governed by a county, city, or state code must be resolved
-Termite treatments

FHA 203k (all of the above plus)
-All windows must be repaired and in working order.
-The property must have flooring or concrete floors must be sealed and treated (loft style homes, etc)
-All socket covers and doors should be in place
-Must have a stove and dishwasher (if the kitchen was designed to accommodate a dishwasher)

There are other things here and there, but I'm sure you get the general idea.

If you are looking for a complete list, contact your lender and they should be able to give you the specifics.

Jack,
You definitely want an agent, but you are not necessarily looking for just a buyer's agent. You are looking for an agent that can contribute to and increase your knowledge of a particular sub market.

You also want an agent that is investment savvy enough to learn your strategies and duplicate them so you don’t have to work as hard. Lazy agents will throw 30 houses at you and ask which one you want. The type of agent that you can’t live without will find 30 houses, evaluate all 30 according to your criteria, and hand you a list of five houses that fall in line with your goals. These agents come few and far between, but when you find them they become your biggest asset.
So yes….get an agent, but understand that you may have to go through 5 of them before you find one that really understands their role.