All Forum Posts by: Chris Tarpey

Wholesalers are probably your biggest and best bet to get lead generation. Foreclosures and courthouse listings are good as well, although like you mentioned may take some additional research to see how the process works in your area.

If you haven't already done so, connecting with more wholesalers through local REI meetups and FB groups is a great way to get leads.

In NC I would travel to areas that I wanted to invest in and network with the locals, get yourself a few bird dogs. if you find one that is hungry they will convince everyone on their block to sell.

Something I'm looking at myself right now because leads are tight or expensive, is doing my own marketing and lead generation. May take more time to get the systems up and running, but in the long term you cut out the middle man and get your name out there!

Best of luck!

Congrats! sounds like you learned a lot from this deal, and are ready to make bigger profit on the next!

To unpack this a bit>

-You do not need an agent to make an offer, see below. With that said it is easier!

https://www.zillow.com/home-bu...

-You can still learn the process by reading books, listening to podcasts and networking with agents in your local area or on BP that can answer your questions.

-I am not a RE agent so I won't dive into the specifics but an agent needs to work for a broker when they get their license, but you can buy and sell YOUR OWN homes as long as you disclose ownership or invested interest in the property.

-Regarding your last question, the answer can be quite lengthy, so I will leave this here:

https://homeguides.sfgate.com/...

MY 2 cents would be to work with an agent until you are comfortable enough to buy homes on your own or until you become a licensed agent. Sure they charge a fee, but provide a great service and do most of the leg work so you can focus on working with the lender to wrap up the deal.

When it comes to hard money lenders, there is a TON of options. My biggest advice would be to compare quotes from a variety of lenders. Most will fluctuate between 10-25% as a down payment 10-14% interest, and 1-4 points. All of this can factor in to make what seems like a good deal, a money pit. Build your property report off the hard money lender you choose to work with so you can get the actual numbers (most lenders will give you a term sheet).

Hard money is great if you need it quick, but it is expense and comes with a lot of misc fees to include appraisals, up front points, closing costs, attorney fees, and rehab withdraw fees. Make sure to get all of this upfront so you know exactly what you have to factor into your numbers.

As far as documents, they usually have a folder worth of documents to fill out depending on the lender you go with, anything from credit authorization forms, to business and LLC disclosures, rehab estimates, rehab draw/fee disclosures and all the closing documents of course.

The bottom line is to get all the numbers/fees/terms up front so you can plug and chug the numbers to see if it will work out!

Depending how much equity you have in your house, you could refinance or take out a HELOC which may help you with a DP. Otherwise, you can use private money from a trusted friend or family member, JV with a partner at a local meetup/FB group or BP. There are a lot of options to start and just because you don't have the money doesn't mean you cant get the deal, just have to get creative.

Look into seller/owning financing and subject to as well...they are more creative ways to grow your portfolio for little to no money down.

Hey Ben!

I think there is pros and cons to each option. The best way to answer your questions is by asking another...are you a flipper looking to buy and sell or a long term investor looking to grow a portfolio of rental properties?

That may raise more questions than it answers but it brings up the most important question as to where you see yourself heading, identifying your strategy and taking action.

Im sure you will get A and B answers here, but my personal 2 cents is to BRRRR the property. Start growing your portfolio, cash flow every month and still pull out enough capital to start another project. Sure there is a RISK for a crazy, non paying tenant who blasts loud music and calls you at 2am for a broken toilet, but doing your due diligence when placing a tenant will mitigate that. Im going to also assume that the person renting a $1M home has a decent and secure enough job to rent it (TikTok'r LOL), but be sure to verify!

Best of luck!

Im sorry to hear that, I bet that is frustrating! I think you are doing all the right things, standing your ground when you need to, but recording all the conversations and maintenance requests.

On the plus side, you know when their lease is up so you definitely don't have to rent to them for another year.

Worst case scenario, if it comes to it, you have a cash for keys option. You may be able to get them out early and avoid court, while saving money and your sanity!

Is this property on the MLS or off market?

1)YES! inspection is completely necessary, and as long as the property management company is reputable, you can use them. just do your research and compare between a few companies. You can do the same if off market, but have to work with the seller/wholesaler to see their terms.

2) You can make an offer to make the property contingent. If it is on the MLS you have a due diligence period, which gives you time to complete the inspections. If off market, usually they require a large deposit $1-$5k, so you really have to do your due diligence before making an offer.

3) After the inspection, depending on the results, I like to have a contractor walk through to provide a cost for the needed repairs from the report. Many times you can negotiate the price down for needed repairs, or ask that repairs be completed prior to closing. If on the MLS, you will also order an appraisal during this time, which is a professional company that tells you how much the home is worth, providing you comparables.

4) If the deal is on the MLS, you will need an agent to work the deal, and you will want one too, to help you work through the process. If off market, you can work with an agent if you so choose, but it may be best to partner with someone that can teach you the ins and outs.

Best of luck!

Hard money may be possible, however some lenders have a minimum loan amount for the purchase and rehab of a property, you would just have to make sure you are above that minimum amount. Besides that, it depends on the numbers, specifically rehab costs and ARV. Hard money is expensive, but using the BP calculators you can plug and chug to see if the deal is workable.

You can also look at using private money from a friend or family member, bank financing if the property meets their criteria, or even look into JVing. When starting out, some people can find the deal, run the numbers and then present it to a potential partner at an REI group, FB forum or even BP!

Best of luck!!

Awesome! Getting started at a young age can put you light years ahead.

I recommend starting out my acquiring knowledge. Before collecting properties you should be collecting books. Read everything you can get your hands on, listen to podcasts, scroll websites learning the ins and outs of REI.

This will be your SEED... you first step in growth!

While you are learning, SAVE!!!

Put your money away in a CD or account where you can temporarily park it and earn a decent return. REI can make you rich, but it is not an overnight success. Those who achieve success in this field, spent many hours reading books and acquiring the skills to make them successful.

Best of luck!