All Forum Posts by: Brent T.

Brent, I am also new at REI. I am currently taking my RE courses now to obtain my license in RE. I started out earlier this year and started with Buy and Hold. I did my delegence and liked the concepted of turnkey properties. I currently purchased my 1st two investment properties out of state in Memphis, TN. I am partnered with Memphis Invest, who absolutely has the best team to work with and I highly recommend you look into them if you are looking into a turnkey company! This is not a get rich quick business, and it takes spending money to get get money. As far a wanting to quit you 9-5 job, if your wanting to quit soon, it prob not going to happen. It definitely going to take time to build your portfolio and also depends which route you want to take in REI. I like getting the cash flow and I put those in reserves towards my next investment properties. I did the conventional financing for my 1st two homes 25% down. I got lucky with my 1st home and I have an 18% return, and my 2ed a 13%return. I have not delt with hard money lending yet. But I am looking into. Do your delegence and if you are looking into hard money, be sure to have several exit strategies.

BP community is the best place to learn from others! I'm learning so much more here than anywhere else. Continue reading forums and just connect with other investors and build relations. You in the right place! 

Rhea 

I got started when I bought my first single family home in 2007 and essentially fixed it up myself so that I could learn how difficult or not difficult each individual task would be. That way down the road, if someone was going to charge me expensive rates for simple repairs, I would know how to negotiate.  I did this for my first 3 houses and out of my portfolio of 15 homes, they look the worst, but at least I learned something. I  also learned that I am terrible at doing repairs and my skill set is delegation and price negotiation.  Lending was much easier in 2007 to 2010.  If you can get hard money and make the #'s work, then go for it.  If you are searching for lenders, I would advise looking locally and knowing your deal inside and out.  I would also bring a very good deal with facts behind it to your lender.  Such info as:

• Estimated appraised value using MLS comps, not Zillow.
• Rehab estimate. If you are hiring contractor, get as many as you need until you feel you are getting a good contractor with good prices.  Often times they do not go hand in hand.  Lowest price is not always best. 
• Have time lines on how long you will be in the deal supported with data of how you came to that. If long term, you want to make sure the HML is on board with that
• Exit strategy. A hard money lender will want to know how you plan on getting out of the deal that does not include selling the property. Essentially, how is he going to get paid back. The HML will not want to assume all the risk. The higher the risk, the higer his rate should be and lower LTV he may be willing to loan

You may want to partner with people first instead of going hard money so that you can build a track record of success. Maybe you approach a HML with "I have this great deal and I am willing to make you a partner 50/50. I do all the work, you cash the check. I am doing this to prove that I know what I am doing and ultimately looking for a lender, not a partner. If this is something you would be willing to do, then I would be happy to share the profits this first time and then become a HM borrower moving forward at a rate that works for both of us." I would be more then ok if someone truly brought a slam dunk deal to me.

Ho Brent Welocme to BP. Happy to network.

Welcome to BP @Brent T.