All Forum Posts by: Brian Boyd

@Bryan Lyde there is no meat left on the bone here because it’s a developer’s feeding frenzy. Rents don’t keep pace with property values so we invest in other markets.

@Bryan Lyde excellent!!! My wife and are are looking at Indy now for investments. Do you recommend anyone that we should work with?

Great Job!!!

I have seen a lot of great reasons both ways on this post. Ultimately, it depends.... I know that is the typical lawyer answer but it really does depend; it depends on what your long term goals are, what your tax situation is, what your immediate need is, etc. So, let the numbers speak to you. Is there greater benefit over an 18 month time horizon than now than there is in a longer hold time horizon? 

Maybe consider refinancing to reduce payments, increase your equity position in the short term?

Maybe a cash out refi? Maybe a HELOC?

What is your goal? Can the property cash flow even with a little money taken out? How do you deploy that money? 

There are so many variables here that I think you come back to the genesis of your question, what is your goal? 

Remember, Goals are different than Options.

@KennethMooney We live in Franklin, TN but are from Chattanooga. We chose Chattanooga because we grew up there and know where and where not to go. But, we also have an interest in seeing our hometown prosper and benefit from our investment

Investment Info:

Single-family residence buy & hold investment.

Purchase price: $550,000
Cash invested: $120,000

Bought 13 properties in East Chattanooga just outside of the gentrification zones and have all properties rented or about to be rented.

What made you interested in investing in this type of deal?

The ROI on the investments were too good to pass up with a 2% a month on many of the properties and at least 1% on the others.

How did you find this deal and how did you negotiate it?

We started calling real estate agents to see if they represented any investors looking to offload their properties in tranches. After a parsing through some hot air and overly inflated numbers, we started finding some good gems in a growing market.

How did you finance this deal?

A commercial loan with cross collateralization of the properties on a 5 year note with a 15 year amortization schedule.

How did you add value to the deal?

Structured the entity to hold it and did a lot of bird dogging, including viewing properties, drafting agreements, and representing the company in eviction proceedings.

What was the outcome?

Still have the properties and getting them stabilized.

Lessons learned? Challenges?

There are a lot of liars out there about their rent rolls, repairs made, and investments into the properties. Lesson learned was walk from a deal when you get a hint of something is not quite right. There are too many properties out there to buy, don't get bogged down on finding one property you think is perfect. Let the numbers do the talking.

Investment Info:

Single-family residence buy & hold investment.

Purchase price: $255,000
Cash invested: $60,000

Single Family Residence that is a long term hold to take advantage of the appreciation seen in the local market

What made you interested in investing in this type of deal?

Wanted a long term hold that would appreciate rapidly with the market we live in.

How did you find this deal and how did you negotiate it?

Personal friend and client

How did you finance this deal?

Conventional

What was the outcome?

Still own the investment and it is cash flowing well

Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?

Yes, I worked with Real Estate Agent Darin Cunningham