All Forum Posts by: Aaron Rowzee

 @Andrew Caldieraro, he uses laminate....boooooo Sam! Boooooo! ;)

Has anyone tried John Martinez's sales academy training? I saw an interview with him on another investment site and apparently he's doing some very successful things with cold calling. I know quality content costs, but just wanted to get a feel for his content before pulling the trigger on his $2,000 digital video training. 

He also is offering cold calling services which I'd love to get feedback on if any of the community has used it. I was looking into CallPorter, but John's site has actual pricing which I like.

Laura, welcome to BP and hello fellow SETX resident! I would say you've already completed your first step by being on the forums, learning all you can and having the deal analyzer handy. Step two will be to get the lending in order. And then step 3 find a deal. 

There are actually a few banks that will lend on flips, or will lend on buy and holds that need rehab with little to no money out of pocket. MCT credit union will do a 90/10 loan on a flip and both Education First and 5Point credit unions will do 80% LTV of buy and holds even if they need extensive rehab. That means, if you buy it right, they'll cut you a check at closing. Ask me how I know!

Assuming you can't secure funding for a flip, you could always buy a GREAT rental deal, make some money at closing, rent it out for 1.5-2 yrs and sell it for a "slow flip". That way the bank won't get mad at you and you can rock and roll from there. You also have an unfair advantage with your husband being a contractor!

Check this little creative method out: let's say person A and person B approach your rehab/construction business needing rehab. Let's assume all things are equal in this hypothetical: both A and B own a 1600 sqft 3/2 brick home in a nice local town that starts with an L, both need the same amount of rehab, and both need to sell fairly quickly, but neither really has the money to afford the rehab. 

Person A owns the house outright and may be okay with a joint-venture in which they bring the home, you bring the labor and materials and you both split the profits according to the JV agreement filed with the county. Both you and them walk away with cash in their pockets and no more problem house.

Person B owes 40k on the home, is tired of it and wants it sold outright. Person B allows you to get it under contract for 50k, you then wholesale it to one of the local investors for 60k and hand them a quote to do all the rehab using your company. Boom! You just made a 10k assignment fee, plus the profits from the rehab.

Just thinking out of the box here before you go losing a ton on Hard Money fees.

@Caroline C.

Thanks for the in-depth look at your experiences. It's ashame there are so many stories that backup the stereotype of turnkeys being garbage.

What I was also really wanting to drill down on is the numbers you are looking for with a turnkey. Obviously, the purchase price is higher and the cash flow lower due to the convenience of TKs, but what would be a realistic expectation on rent to value percentage, purchase price to value percentage, and cash flow per month after PITI? Or do you buy TKs all cash for the tax shelter benefits?

The local credit union, Education First, loans 80% LTV on commercial properties with no money down. As long as the deal is good enough they'll even cash out refi you at purchase. The caveat is you as a person must have a DSCR of 1.25% or higher, and the deal itself has to look great on paper.

Investment Info:

Single-family residence buy & hold investment.

Purchase price: $90,000

Probate property purchased at $80k but financed at $90k to cover all closing and repair costs. Property ARV $135k, all in at $90k with $45k in equity, and renting at around $1,500 which makes this a 1.6% deal. Rehab was completed end of Nov 2018 and is currently on the market to be rented. It is also being managed professionally. Its listed at $1,500/mo and I'm hoping to get it rented by the end of January once we're passed the holiday slump.

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

While I love wholesales and flips, my end goal is to have enough doors to sustain my household without any additional income.

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

I great investor-friendly broker I work with sourced this deal for me

How did you finance this deal?

Local credit union

How did you add value to the deal?

Basic rental rehab

What was the outcome?

Great property for a great price and no money out of pocket.

Lessons learned? Challenges?

Even in deals where there is no money out of pocket, you still need money in reserve to handle dead seasons, problems found behind walls, etc.

While I don't purchase turnkey out of my area, much less state, I'm curious about those who do. I'd love to better understand your criteria and strategy. What do you look for in a company, what do you look for in an area, and what do you look for in a property that makes you feel comfortable purchasing a particular turnkey property?

What would you say has been a peeve of yours that drove you away from a purchase or a company, and conversely what have been some things that stood out for you and made you commit to a purchase and be comfortable with a particular turnkey provider?

Can any of you speak on the pricing for Call Porter? What are they charging for a 500 letter campaign?

 Love this chart! Gives me comparables lol.

Yes and its worth it. Even though a tenant can't really sue you for a fire and the loss of all their stuff (or any manner of situations) it prevents them from trying, and it forces them to be able to recover after the fact. Renters is as low as $15/mo in my state and I require it for my tenants. Its a no-brainer.