All Forum Posts by: Lelith Walker

@Paul Scalcione Jr

Trust is something that has to be developed. I go to the REIA's and look up real estate meetup groups in the cities that I am interested in. I also look at the profiles of people on biggerpockets and facebook. I meet the people in their office or a public space. Then I communicate by email and phone at least once a month. I ask for references or look for testimonials. If they are a builder or contractor or work with these people then I ask to see their work. I look to see if they are on BBB or Consumer Affairs and verify licenses if any are needed. Does all this avoid scams? not necessarily. Its a chance I take. If I feel comfortable and the deal meets my criteria then I look at the numbers and consider my exit strategies. I set things up so that if I do get scammed I can still make money even if I lost some during the process.

@Paul Scalcione Jr

As for http://www.wegolook.com, a friend of mine who lives in NY and invests in Memphis recommended them.  I called them and they seem legitimate.  Since I belong to a real estate group I had someone do the same thing for me plus they went with a contractor who gave me a bid. 

The NY has many submarkets.  On a whole the state is not landlord friendly which is a turnoff for me.  NYC is expensive and competition is rough. LI and Westchester taxes are too damn high.  Some areas near Niagara and Buffalo have very poor soil which means there are going to be foundation problems and I would not be surprised if the people come down with cancer because it was used by the military for disposing hazardous material a long time ago. 

The other option I forgot to mention is to do a joint venture or partner with someone that lives in the area where you want to invest.

http://www.wegolook.com will take video and pictures of property for $58.  You can also get a buyer's broker to assist.  You can also network at the local reias or real estate groups of those areas and find someone to assist like a bird dog or wholesaler.  Bird dogs may be illegal in some states but you can get around that by calling them by another name like location specialist and giving them a quarterly fee.  Also get a credit card that has travel points and charge everything to it so that you can use them towards visiting property if you have to.  You might even save if you join a travel club.

I have the same problem with NY that is why I target landlord friendly states that are multi-industrial, good employment rate, and population growth.  Arizona and Texas is closer to you so you might want to start there first.   Try to network to build a team and know your options.  Both have turnkey, regular properties, flips, rehabs, etc available for you to check out.

I have my money in both a bank and a credit union.  The reason is because 2 of my properties are not in my state and the only credit union that I qualify for only lends money in my state.  I do have mutual funds and etfs.  I am looking to move more of the money in those areas and put them into notes particularly in hardest hit states that are mortgage friendly.  Also some flippers who are in crowd funding are willing to pay a higher percentage yield if you invest with them.

Personally I have better luck finding long term tenants than realtors.  The commission they get do not mean that they will get you good tenants. I post on the internet, hospitals, nursing schools and the colleges that are in walking distance to my home.  It does not take that much time to do it yourself either.   Try to hold like an open house on the weekend between a certain time period.  Interview the people. Print out applications and get authorization from the potential tenant for a credit, criminal, identity and housing court check.  Then submit it to a screening service like http://www.myrental.com.  Make the person pay for it and tell them it is non refundable.  You can call the people on the application.

You should get insurance

then contractors bids

Do the outside of the house first

They might not need utilities turned on until the contractors start working inside the house

You will be paying for utilities until you find tenants to move in

Is the property close by?  If so then you can do it yourself.  If it is out of the state then get a realtor.

You can create a separate bank account and have the tenants place the checks in there.  If it is more than 15 units then its best to get a property manager.

There are websites that have sample leases for each city.  Use those and add what you want as long as it is legal.  For example the one that I live in I put in no pets, no smoking, no sublet, no waterbeds, no inflammatory speech displayed in window,  can't use the roof, decorations must not destroy walls. I let my lawyer look over the lease as well. 

You can buy on the internet at sites like loanmls.com or you can buy from a note seller or by wholesaling from a homeowner that is involved in a lease option or subject to or land contract situation or one of the note schools.  Deals are sometimes presented on Facebook Nationwide Note Buyers or Sellers.  The process varies depending on how you obtain and whether the note is performing or non performing.

1. Location is first for me.  I want properties near hospitals, colleges, military bases, or transportation.  They have to be less than an hour from the main business district is. 

2. 6-10% ROI.

3. More 2 bedroom units than 1 bedroom.

4. parking

5. B & C neighborhoods.

Eventhough you are buying as is, Its good to consult with a lawyer.  Has the contractor inspected the property and given you an estimate?  Did you go to a realtor for a bpo or do you know the arv?