All Forum Posts by: Brian Teeter

Good place to start...One of the most important things you can do is find a vet a good contractor (or subs).  Referrals are the best way to get started. But second, I suggest going to Home Depot and go the the Pro Desk.  Ask one of the reps there for a referral. They usually work with a lot of smaller contractors and know who has been in business the longest, their volume, etc and can generally direct you to someone worthy.  Another way is to simply drive around the area you are investing and actually look for remodeling/construction projects that are underway. Stop and talk with the contractor or get their contact info. Often times you will even be able to see their work while you are visiting with them on-site. This strategy has worked very well for me. In fact, my bets and most long time used contractor is one I found by simply stoping and inquiring.  Thanks and good luck. 

We dont offer profit sharing but rather offer incentives. For example, we offer incentives to our leasing staff for new leases, renewal leases.  Also offer incentives for our maintenance team to bring project in on budget and on time. This works well for us!

You can always try to find some better comps than the appraiser used and bring them to appraisers attention.  I have had decent success challenging appraisals and getting improved results.  If that doesnt work, then you could request a second appraisal.  There is a gamble there that the second appraisal comes in at or below the first. BUT, there is also the chance that it comes in at or near your target.  Basically, you're gambling on the second appraisal and at most you will lose the $1000.  

NOTE: There are likely better finance options out there as well.  Before I order a second appraisal, I would investigate an alternative lender.  

NWA is rapidly expanding, it's mind-blowing. Some say it could be the next Austin, TX. Im a longtime investor in Little Rock, Arkansas. But have been looking at NWA for awhile. It's very difficult to find "a deal."  I think you almost have to buy retail. BUT, it's an appreciation play. 

IMO: Rogers and Bella Vista may still have some opportunities.  

Unfortunately, you may have a hard time enforcing anything about "guests" unless policy/procedures are outlined in your lease.  Further, may be difficult to compel the tenant to comply with your wishes if you are currently in a MTM situation with them. 

At this point, the best path forward to compel them to cooperate is to give them notice to vacate and simultaneously give them an option to renew, with a new lease agreement. The new lease agreement should outline terms for guest stays,etc. 

I repeatedly hear from wholesalers that direct mail still works and is one of their strongest tools. Given the technological world we live in today, it surprising to me that it still works.  But my understanding is that it's a numbers game. Be ready to send a campaign of 4-6 postcards (etc) per potential lead before you get a response. 

I agree above with the Micromarketing strategy. Get really intimate and familiar with an area, personalize your approach. This has worked for me numerous times over the years.  I bought a home from a seller once who I had sent a handwritten letter to 9 years earlier to his mother. After his mother's passing, the seller (son) found the letter in a drawer in her home and called me.  So it works!

Lastly, there are great tools like DealMachine etc that allow you to "drive for dollars." This makes prospecting much easier, as you will have all the owner contact information at your fingertips.  You can even send a postcard immediately from the App.  BTW: I have zero affiliation with Deal Machine... just saying it's an app thats worked for me. There may be better/different ones out there. 

Good ideas mentioned above with local Reia and Facebook groups.  Also, I have had success finding wholesalers on sites like Inverstorlift. Usually once you interact with a wholesaler once, they will add you to their ongoing deal list. One thing to be mindful of is that they usually want you to make a decision and close quickly. Generally no time for a certified inspector or to line up financing. Thats being said, be ready when you make deal with a wholesaler to act fast and be able to close. Otherwise, they start ignoring / discounting you as a buyer. 

Great looking product! I am seeing a lot of interest in BTR product from investors I network with.   

My recommendation is start by looking for a market that is well below the US median price of $405K. For example, here in Little Rock, Arkansas, the average is $245K.  Look for a market where a higher percentage of the population rents than national average. For example, 35% percent US population rents. But in Little Rock, 45% rents.  Then, within that market, study areas where it is actually less expensive to own than it is to rent.  For example, You might study an area and find that you can buy $125K home and average rents in the area for comparable homes are $1100-$1200.  I have had success making numbers work in Little Rock with over 700 rental properties over the last 25 years. Happy to help if you want to know more about investing in Little Rock. 

I am a long time Little Rock investor and resident. Happy to help if you need a resource!