All Forum Posts by: Amy Raye Rogers

Another question to ask... what is there plan to market the property??? Just throwing it up on the MLS and waiting for the phone to ring is all most agents will do. You want as much exposure as possible to drive showings and produce multiple offers... Also, most flippers in my market price their houses too high. You can't make up timeline/cost errors by over pricing the house. You're compounding your problem if you do. Sometimes the best move is to price slightly under market and illicit a bidding war. Also, "investor friendly" agents many times are not high volume producers. Good luck!

@Tanner Sherman I'm getting $550 for 3 years plus $850 set up fee.  The location is right by the major military base in my area.  It is very prominent, but since it's considered a rural location the cost is less than half of what it would be in town.  I've done some polling of military members and more than half respondents were able to tell me what the current featured advertiser is at that location.  Also, there are no other visual distractions nearby.  I noticed in town, that the concentration of advertising is overwhelming. I think this spot's an opportunity. I'm going to go for it!

@Sam Romain I know you're right. I'm going to start with this one and add on more locations along the same path.  When driving into Minneapolis, I noticed Kris Lindahl had dozens of billboards on the interstate I was traveling on. It caught my attention!

I'm close to signing a contract for a billboard location I've been coveting for my agent business.  Anyone have any experience with billboards for marketing? Any suggestions on how to maximize the value?  I also run Facebook ads continuously that import into my CRM.  I'd love to hear about any other suggestions that are working! Feel free to DM me if uncomfortable sharing trade secrets on the open forums.  I'm also happy to share my experiences.

Great insight @Account Closed.  I appreciate it!

Which REI's on here have been served a civil suit?? Any lessons learned? We may be getting one... I don't want to get into the details here... *sigh*. We didn't do anything wrong. I suppose it was inevitable as our holdings and interactions grow, so does our bullseye.

Just to clarify...

All of our doors are POSITIVE cash flow---post renovation.  The point is when you are rehabbing you're going to be spitting out a lot of cash early on.  I would never advocate long term negative cash flow as a safe strategy.

Here is a quote from David Greene "I never expect to make positive cash flow (on a single family home) in year one"... I'm reaffirming that message.

@Joe Villeneuve

When you buy a property using 0 of your own liquid cash what's the ratio then? A line of credit allows you to do that. I'll give you an example... we purchased a property for 130k that appraised at 215k immediately at close. The ONLY reason why our offer was accepted was because we were able to close quickly using the LOC. There is value in using equity this way. I'd consider that a reasonable strategy. Also, we are able to refinance before paying a cent of interest.

Don't get me wrong... I've read a lot of your posts.  You are a FAR more sophisticated investor than I am.  I'll concede to your judgment the vast majority of the time and we've learned a lot from you.  Thanks for engaging my post!

@Randall Alan

You summed it up well. Almost all those "costs" were to get the properties rent ready... Isn't that how the BRRRR method works? Next year's books will look dramatically different. I'm mostly just making a point for new investors. You don't make money day one if you are trying to scale.

@Joe Villeneuve

People under sell the value of equity... We cross collateralize into a line of credit. Therefore, the equity is gainfully employed. That's how we were able to buy several of these properties for $0 out of pocket.  Sounds like a pretty good use of equity to me!

The numbers are in for 2021... 

6 doors acquired in 2021... 8 total doors owned (all SFR)

54k in rents, 24k expenses, 30k cap ex, and 30,500k in PITI...

For a grand total of -31k net cash flow!!!

but...

400k equity growth! I'd call that a win.

Know what you're getting into folks!! It's a long term game for buy & holders.

Cheers!!

@Christopher Drinkwine DM me and I'll give you some recommendations.