All Forum Posts by: Blair Colsey

@Caleb Jordan can you please PM me the contact info of the wholesaler? I'm also looking for contacts in the OKC area. I'm primarily looking for multifamily deals and would appreciate if anyone can put me in touch with a reputable broker and/or management company. 

Thanks!

@Kiera Underwood where in OKC? I have family in the area so I had done a little research but the rents looked too low. 

@Jason D. @Russell Brazil thank you both for your responses. That makes sense to me. So basically the advice is "don't worry about it"? I was aware that multiple hits within a given time frame would be counted as one but even with that in mind, some of the people on here are buying 20+ properties a year so they must have close to 100 hits to their credit assuming they shop around for lenders before purchasing each one. I guess the credit inquiry part of their score is not weighted as heavily as other factors so it doesn't matter?

Thanks to everyone for your responses. For anyone who is interested, here is a consolidated list of 1% markets that have been suggested.

• Baltimore
• KC
• Indy
• Warner Robins, NC
• Detroit 
• Memphis
• Cleveland
• Milwaukee 
• Hartford, CT
• Springfield, MA
• Jacksonville, FL
• Birmingham
• Atlanta
• Little Rock
• Fayetteville, NC
• Nashville

@Derek Stewart sounds like you found a good one! I'd definitely take .84% in this market and I agree that the appreciation should more than offset. Can I ask where you found it? MLS? Wholesaler? Your own research?

@Russell Brazil sounds like you're talking risk vs reward. If higher risk means worse market than I agree but your reward should also be higher. There is inherent risk in all investments and our job as investors is to seek the highest returns while mitigating the risk as much as possible through due diligence. 

@Russell Brazil how so? We always talk about the 1% rule or even the elusive 2% as the benchmark in buy and hold investing. 

@Derek Stewart I'm taking about gross rents greater than or equal to 1% of the total purchase price. This would mean that your duplex would have to have a purchase price less than $520k. If you're talking about net income compared to purchase price, I believe that would be your cap rate. The reason you look at the gross rents compared to purchase price is because it takes your financing out of the equation. Anyone can make a property cash flow if you put enough down ;) 

Either way, $1200/mo in net income sounds great! Good work!!

Hi All,

I'm currently listening to @David Greene's book Long Distance Real Estate Investing on Audible (which is a great way to learn I might add) and I'm getting excited about buying some properties out of state. I currently live outside of Denver and I'm finding that although the increase in housing prices has been great for building equity on the properties I already own, its not so great for finding deals that meet the 1% rule requirement. I realize that the 1% rule isn't a "hard and fast" rule that needs to be met on all acquisitions but the point is, the market I'm in is not longer as hospitable to finding deals as it once was so I'm looking to expand into other markets. 

My question is this: What are the other markets where we're seeing the 1% rule being more attainable? Are there any resources anyone can recommend that help guide an investor through detailed market analysis?  I'd love to get to a point where I have 5-10 socioeconomic factors that I can easily calculate to identify market opportunities. 

Thanks in advance for your thoughts!!

Blair

Hi All,

Perhaps a silly question for the group but I wanted to get everyone's take on the impact of having your credit run. Obviously a big part of investing is working with different lenders and each one needs to run your credit (sometimes multiple time) in order to approve you for loans. Historically, I've always been cautious about who I let run my credit because I know having a ton of hard hits will negatively affect your score. I usually try to get as much info from each institution as possible before I let them run it so I am 99% sure I'll be approved before I give them the green light but this creates a bunch of extra work on my end. If this isn't as much of a concern as I'm making it out to be, I could just apply for loans at a bunch of different places and just see what offers come back. Does anyone else have this concern? Does everyone else just have hundreds of credit checks on their profile so it doesn't matter anymore? Any thoughts would be appreciated.

Thanks,

Blair

@Collin Schwartz great post! Very motivational!

Perhaps you've already done this in another response (I haven't read through them all) but is it possible for you to elaborate on the negotiation process on those first 6 deals? I'm curious how those phone call's went. How low did you make the initial offer? % off of market value? Did you ask them to throw out a the first number? After you agreed on a price, what happened next? Did you get a realtor and/or lawyer involved? 

Thanks in advance and keep up the good work!