All Forum Posts by: Account Closed

ok mentors & guru's here is my question to EVERYONE i just aquired 5 brand new homes in summerville SC (cane bay plantation) from lennar . 1 will be my home & the 4 others will be for investment. all 5 are sfh 4br 3.5 ba. the prices are a avg of $203,0000.00 i am puting down 25% on all of them my credit is good & income also. my question is once i settle in after lets say 3-6 months how can i aquire more homes? most of my $ are going to these 5 homes. programs, tips & tricks , Leverage, etc i want to continue to aquire as many homes as i can get. please advise :)

It looks like your rent figures are innacurate.

Rentometer shows the median rent you could expect to be $1,323 in Cane Bay Plantation for a 4bd. That said, to be conservative with my estimates and have a positive surprise, I predict your actual rent will be about $1,250 (see my original post).

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Originally posted by @Thomas Haskell:

Can you break out the expenses on your APOD?

Do you include an expense for property management? If not, how will you manage that?

I concur with what others have said. Taxes are extremely high in SC. What have you budgeted for taxes on each property?

Were did you get your rent comps?

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Originally posted by @Justen Ashcraft:

I'll try to make this as short as I can.

I had a tenant sign a 1 year lease, but in the lease it requires a 60 day notification. the lease was to end October 31 of this year. 6 days prior to that she said that I may be getting a call from a prospective landlord. I told her about the clause in the lease and that she would be forfeiting her deposit etc. The prospective landlord calls me, and I tell her about the 60 day clause that my tenant was about to break etc. She decide.s to rent to her anyway. she moved out on the 1st of November, but the carpet was destroyed among other things in the property. She also owes money for the electric bill that I kept in my name. This was a verbal agreement, because she wasn't able to qualify for electricity there due to owing the company. Which was a red flag I know.

I'm obviously keeping the deposit. which is $650. The carpet that needs to be replaced is $1084, and the electric bill is $200.

Should I eat the extra costs and let it go, being thankful she moved out? Or, should I make a claim somewhere and try to recoup some of the funds.

Thanks in advance.

I would not pursue them as it's going to cost you more in money and time than you'll get out of them. Next time do not rent to tenants that can't get electricity. If you are forced to, you're investing in the wrong property in the wrong neighborhood.

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@Thomas Haskell

So after expenses and mortgage, I would imagine your cash flow is going to be about $200 a month?

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@Thomas Haskell

Also, you're asking the wrong question. Quality of investments is more important than quantity. Would you rather own 10 non-cash flowing properties or 1 that cash flows $1,000 a month?

I'd take the second. I do not invest for appreciation alone. That's speculative.

Cash flow is usually more assured.

4 Votes

Originally posted by @Thomas Haskell:

Do they cash flow? At a purchase price of $203k, I'd bet not because they're likely renting for around $1,200 to $1,300 a month. FYI: I buy properties at ~$100k that rent for $1,200+ per month.

Assuming I'm wrong and they do cash flow, you're going to have to wait a bit to build equity then do some cash-out refis to acquire more property.

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@Elizabeth Colegrove

Your comment "it isn't much work" is based on many variables... and it's a system you've built (likely Class A/B in good locations). I do not think you can generalize that to other types of property and locations. I know because I self manage my rentals nationally in several markets.

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@Jeremy Collins

I agree with @Sibbir Noman , in fact his model seems similar to mine. That said, his recommendations are built on HIS model not YOURS. Any property management model you employ NEEDS to be based on the particular type and location of property you're planning to invest in.

Based on your questioning, you do not yet seem ready. How long have you researched real estate investing? How many books have you read? Do you have a strong network of other investors? What are your investment goals? Where are you investing and why?

If you don't have much time, I would suggest AVOIDING class C properties and instead focusing on Class B and A. Also, property management is critical and, although there are decent ones out there, there are many that cannot be trusted.

In re to agents... You are the one that needs to bring knowledge to the relationship. Since you do not have the requisite knowledge, make sure you do your due diligence on anyone you decide to work with. I invest nationally in several markets and FYI: I use agents for the eyes and ears on the ground. That's pretty much it. There's a reason they are AGENTS and usually not INVESTORS.

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Originally posted by @Michael Linquist:

I'm really torn between working with real estate coach tim taylor or not. I need to learn how to make offer and deals and get started wholesaling properties. I really need a coach to show and walk me through the basics. I was totally on board after talking to Tim Taylor on the phone today but then I decided to google his program and now I have mixed feelings about the whole thing.....here is the article I read.

http://activerain.trulia.com/blogsview/1601220/tim...

He offered me the following:

He gets:

12,500 cash upfront for course

20% of all my deals go to him for one year

I get:

Tim Taylor as my personal coach and his personal number to ask questions (he only takes on 20 students at a time now)

His program and methods of how to get house and flip and make money

The fact that I'm willing to pay this tells you how much I want to learn real estate lol. And please let me know if you've had a good experience with Tim Taylor. I already have had one of his previous students only say great things about him. And I definitely don't need to hear I can learn it all from podcast, and bigger pockets forum, and books. lol. I need hands on coaching and someone that will guide me as I am DOING them.

Also, other coaches I'm thinking about getting coaching from are Michael Quarles and Jerry Puckett.

My suggestion would be as follows.

(1) Save all your money. That is your investment nest egg and will go toward your first investment property.

(2) Ask every investor you meet for a recommendation real estate book to read.

(3) Read all of these real estate books for 12 months.

(4) Surround yourself with as many people who are actual real estate investors as possible (go to REI clubs, meetups, etc.)

(5) Develop your real estate investment strategy and find a mentor who has had a great amount of success implementing this strategy (he is a millionaire).

(6) When you feel ready emotionally, take action!

This will be the cheapest education. All you need is available at the library, Amazon, BP, or your local real estate investor group.

Best of luck!

-jon.

2 Votes

@Steve Candor

Why is the sellers selling? and I'm not asking about what he told you. I'm asking about the real reason that he's selling based on all of the information you gathered.

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All Forum Posts by: Account Closed

Account Closed has started 40 posts and replied 518 times.

Post: HOW CAN I BUY MORE HOMES ?

Post: HOW CAN I BUY MORE HOMES ?

Post: Tenant broke lease agreement, what are my options?

Post: HOW CAN I BUY MORE HOMES ?

Post: HOW CAN I BUY MORE HOMES ?

Post: HOW CAN I BUY MORE HOMES ?

Post: Renting out properties have questions

Post: Renting out properties have questions

Post: Should I work with this mentor?

Post: 4 family asking 145k