All Forum Posts by: Arianne L.

@Vincent Woodard We have a team in place that help us do all of this. We have 4 full time team members not including subcontractors, title companies, etc. 

@Filbert Archuleta a mastermind at its core is 2 or more people who regularly meet who strive to become better. You can find that in a REIA.

We're part of a different one though. At Flip Hacking Live, most of the speakers are in the mastermind I'm part of called 7 Figure Flipping and 8 Figure Flipping. FHL is an amazing event for real estate business owners if you are thinking of attending.

@Giovanni Luna There is a large military population here. In our current 24-unit, about 20% or so are military. We buy multifamily in Pensacola. We've flipped there too. But most of our business is in the Fort Walton and surrounding areas.

@Josh Benitez you can still find them on the MLS. But most of ours come from our direct marketing efforts, other investor and realtor referrals.

@Kim Rosinski you can join your local REIA and i'm sure there are great people there. We regularly attend ours. As far as other groups, you've got BP which is awesome, there are FB groups too. I'm in a paid mastermind group and it's not for everyone, but I get a lot of value from. A lot more than my investment.

@Sunny D. Most in the this industry doing what we do have LLCs taxed as S-Corps. For some a C-corp makes sense if you intend to leave the profits in the Corp but it's not ideal for us right now. 

@Brenda Sherman all of ours except for the syndication in Texas is in our area. As long as there are people buying houses, you can flip and wholesale. And as long as there are people renting houses, you can buy rentals. I'm a big proponent in starting in your backyard since you know it best and you have a competitive advantage vs someone who doesn't live there. Then, expand from there

@Emily Hinkebein You're already a business owner, embrace it :). Do a little reverse engineering, how much do you make in commission per house? How many listings do you need to close one? How many face to face meetings do you need to get a listing? How many calls do you need to get a face to face meeting? Then work from there. If you want to make 100k, and you make 5k per closing, you need 20 closings. You may need 40 listings, 100 face to face appts, and 1,000 calls to get there. And you need to do this in a year, so 1000/52 = 20. You need to make 20 phone calls this week to hit your goal. Hey, if you want to be extra safe make 40! Just an example

Look into some creative financing. Seller financing, etc. could get you a property faster

@Joey Raquel Ha, I'm sure it does :) Though that's cheating, we can't pick where we're born :P Appreciate it!

@Omid A. I wish I had something more exciting to share. But 95% of our deal flow comes from us mailing 40-100% equity single family homes in our area. We have 2 full time team members on the front end answering calls and going on appointments. We are consistent, and we treat it like a business. 

@Adam Britt To put this into perspective, I used to walk 30-45 minutes to save 10 cents (6 pesos) in the Philippines where I grew up. Back then, my goal in LIFE was to make $5/hour. Crazy right? I don't usually tell this story since most people can't even relate. 

But I just want you to know that I came from absolute nothing. No rich family, no trust funds, I couldn't even mow the lawn for $20 as a kid or set up a lemonade stand (though I did work hrs to format some IDs for 50cents/hr). The journey started much longer than 3 years ago. Being able to save 5k a month was a big achievement in itself, which came from a lot of hard work and focus, coming from someone who used to dream of making $5/hour
 

So if you're coming from nothing like me (i'm not saying you are), that's great! If I could do it. You can too! I'll leave these two quotes here.

"Whether you think you can, or you think you can't, you're right - Henry Ford

Do you want to, or do you choose to? 

@Parker Stiles 

Sorry for the confusion. The numbers I reported were pre-tax company profit. Net profit ultimately flows through to our personal return since we are an LLC taxed as an S-Corp. But, it makes more sense to me to report pre-tax since individual returns tax brackets are different, etc. We plan on utilizing Cost Seg heavily this year but that's irrelevant to the flipping and wholesaling company income.

Our total expenses includes team member compensation, marketing, education expenses, other overhead. Also includes Chris and myself's compensation as CEO and COO so my net profit should be pure net from a business owner's perspective.

It sounds like you have a great bookkeeping/accounting system set up on the profit first model :). That's great! 

We set aside 25% for taxes. My Acq Rep has a comfortable base + 5% of wholesale profit he brings in. Looks like our expense ratios are very similar. We have a lot of expenses that are overhead type expenses that's hard to account for on a per deal basis, but we have monthly and YTD reports. 

Of the 50% expense (about 17% is marketing, 5% is education, 3% is other overhead, and 25% is team member compensation).  Not sure if that answered your question. Feel free to message me and we can discuss more in depth.

@Michael J. We used one the two widely discussed website platforms here on bp: investor carrot and lead propeller. 

As far as mailing, some of the best advice I've seen is "the best mail piece is the one you send out". 

In this business you just have to be consistent. If you show up every day and do the work, you will succeed.

@JP McLeod Apart from starting sooner, I would have joined a mastermind group sooner. It drastically accelerated our growth. 

Being around positive people who share their struggles and successes is what we needed. This business is a marathon, not a sprint. And you need all the help you can get to get through the day to day. Just make sure it's not one of the groups you hear on the radio fishing for newbies and asking them to get into credit card debt to buy a course....

@Vincent Woodard We try to flip everything we can. We wholesale when our team can't handle capacity. So far we've wholesaled 20 or so properties this year

@Richard G. We used conventional loans for our first investment properties. Now it's a combination of our own funds, hard money and passive investors who want a return without the headache. 

Goals for 2019: Hire a Chief Operations Officer, open a secondary market, Acquire 50-100 multifamily units

@Julie Tonioni That's awesome! We all started there. Take it one step at a time and you'll soon look back and realize just how far you've gotten! :)

695 Ridge Lake Rd, Crestview, FL 32536

Click the following link for more pictures:

https://drive.google.com/open?id=1R1jr1kgeiBJ_Drw-...

3 bedroom / 2 bathroom | 1,572 sqft | Built in 1973 | .48 acres

Market rent $950

Asking Price: $49,900 Or Best Offer (Cash or Hard Money)

3/2 in Crestview with a big yard. New Roof. Aluminum Wiring, Leak in AC closet some subfloor repair needed. Great Flip or possible rental partial updates done.

Great for investors looking for good deals on properties around Crestview, Niceville, Fort Walton Beach, Mary Esther, Destin

Come and network with other local real estate investors and real estate professionals who invest in the following areas: Destin Fort Walton Beach Shalimar Niceville Navarre Mary Esther Crestview Miramar Beach

Some of the Topics Covered: Multifamily, Rentals, Rehabbing, Wholesaling, Private lending, Personal growth, BRRR, Delayed financing exemption

We hope that we can share ideas and do deals together.

There is no formal teaching during these meetups, just networking.

WHEN: Tuesday September 25 6:00pm-8:00pm

VENUE: Twisted Grape - 1193 B Eglin Pkwy, Shalimar, FL

Looking forward to seeing you there!

Please RSVP here on BP

@Account Closed Yes I was on show 233

@Brian LeBow awesome looking forward to meeting you there!

@Michael J. Flip Hacking Live is an event that's held in San Diego yearly. You basically have access to 15+ speakers who present on their flipping and wholesaling businesses (I'm the smallest fish out of this year's line up), and other business owners attend as well. 

Here is the biggerpockets marketplace post on it https://www.biggerpockets.com/forums/521/topics/61...

When I say flip or rehab, we buy, do renovate and resell. 

When I say wholesale, we buy, don't renovate, and resell.

I hired one person at a time. I was never in management so it was a steep learning curve (still kind of is) for me. I hired as we made money and therefore could pay someone, and I also saw that I was preventing our business from growing. So I was 10+ positions in the beginning, as I hire them out, I delegate and elevate myself. 

I think if your main goal is truly passive income and getting a return every quarter. Being a limited partner in a syndication is great.

If you want to do the work involved w/ owning multi unit properties, you can. I actually like the thrill of the hunt, I'm a deal junkie. So we are working towards buying more multifamily properties and syndicating ourselves.

@Account Closed made the 6 simultaneous conventional loans happen. I wish I knew the details but I really don't. Surround yourself with a team of experts. I'm not an expert in everything but I do defer to the experts.

@Eric Guerra Ok you need to talk to @Jerry Padilla or another knowledgeable loan officer that listens to your needs. Where are you located? A home equity line of credit (HELOC) is for your primary residence not rental property. That's the main hang up w/ the loan officer you're talking to know. They should've just redirected you to a different loan product that fits your needs not keep talking about a heloc

You can 

1) do cash out refinances on the 3 rental properties w/ conventional loans

2) start calling local community banks and credit unions and speak to their commercial loan officers. They might have some loan products that better fits you. Like a blanket portfolio loan for all the rentals, or they be able to do a line of credit on the rentals.

@Jim Kittridge  @Chris Lemire is leading the charge on our long term holds and multifamily syndication business. I'm still acting as the COO or Operations Manager at the flipping business. Once we hire and train that position out I should be able to focus more on long term holds and join Chris over on that side.