All Forum Posts by: Christopher Campbell

Hey John,

You may be getting ahead of yourself. Estimating costs without doing a thorough inspection is pretty risky. Budgeting $30k for a 1250 sqft 1935 build seems off although I haven't seen the deal either. Rick poses a good point about the wiring and potential plumbing issues that can be costly. You haven't inspected the foundation, what if there are a ton of leaks throughout the house, mold, what condition the HVAC is in etc etc. I think this would be the best first step to get a more accurate sense of what you're actually potentially in it for. 

I think it would be best to consult the finance pros on methods of achieving your financial goals with the property. I'm not sure you'd want to fly blind with this part. Wouldn't you feel more confident going into it with a stronger sense of what your exit strategy or potential exit strategies are going to be?

I worked with a lady that had been flipping homes for a while that got into a groove with her teams and material suppliers that told me her way of going about it. Not saying this will apply right away since you're new and everyone is going to have a different way of going about it but I found it interesting and wanted to share.

We were looking at a house that she wanted to flip and I asked her, "The property needs a good amount of work. How long do you think it'll take to fix up and put on the market to sell?" 

She replied, "The way I estimate my project time is by allocating $10k per week. For every $10k I spend on the rehab, barring any acts of God I should have that portion of the work done within a week. If I have my materials on site and on time my guys know it needs to get done." ($30k rehab budget = 3 weeks project time)

Again, I'm not saying this is going to fit everyone. She's very experienced and has all her ducks in a row. There are a ton of variables that come into play during a rehab, a lot of moving parts to keep track of, and a detailed schedule to stick to is a must. This was her method of estimating time and with as many projects as she's taken on, I didn't feel like arguing/questioning her logic. 

In this business, the quicker the project the better since time is money. That doesn't mean projects should be rushed by any means. Quality work will go a long way.

To give an example, an investor I know just bought a house that needed a layout restructure (basically redoing the layout of the house to make it more functional and attractive), installing central HVAC, building out a washer/dryer room, plumbing (new bathroom and kitchen location | rough in + top out), full electrical rewire (after full demo to studs), new sheetrock, paint, flooring, kitchen/bath finish out, and exterior restoration. Him and his GC estimate they are going to get the project done in about 4-5 weeks. 

I hope this helps and any other feedback is appreciated!

Cheers!

Welcome Mr. Cooper! Your experience should take you a long way! I can't wait to see some of your project before/after pictures hit the social media sites and your properties hit the MLS! Best of luck!

@Thomas Baylor

I think it'd help to work backwards and then start determining which areas of town support your ultimate goal. 

Do you want to buy a duplex that is in turn-key move in ready condition or are looking to potential invest in something that may need some repairs but you could capture a large stake of equity in? The ways of sourcing and funding for these types of deals will be different. 

If you're looking for the turn-key deal, talking to a local pro about the living condition elements you find most important will allow them to have a better shot of matching you to a clean and ready duplex for sale. There's a lot of competition in this space, you'll need to be as ready to move as you can be when the right opportunity comes up. 

If you want to go the Equity-Capture rout and buy something below market value (preferably off-market) that's in need of repairs to bring up to market value you'll need a team in place to handle the rehab that you can trust, that can deliver in a timely and cost effective manner, and that understands your vision for the property. You'll want to consult a professional money lender (hard, private, traditional, etc) about the different methods of financing this if you aren't a cash buyer. If your all-in expenses on the property can be a good percentage less than what the property is potentially worth once fixed up you could capitalize on a potentially sizable amount of unrealized gain in the deal. Not to mention all of the other short-term, mid-term, and long-term advantages of owning a property like this. (consult a licensed accounting professional to learn more about this)

Based on your goals for the property, the condition you'd like the property to be in at purchase, your budget/purchasing method, living condition parameters, and any other factors that are important to you, a local pro can then take that information and narrow the scope of the search to have a better chance of locating the best opportunity for you.

Contacting a local pro could be in your best interest to at least hammer down the details so they know what to look for and which opportunities to present to you and which to avoid sending you. 

I hope this helps!

Cheers!

Hey Cameron!

Good on ya for wanting to mobilize your money and using a vehicle like Real Estate to do so. You're ahead of the class at your age for wanting to get started!

The San Antonio market is big and with your military status and SA being a military town I think you'd really like the opportunities it can provide for you. The rental market is strong here and some areas near the bases have become strong holding spots. 

Beyond the reading and the researching networking with local pros is a great way to gain a deeper insight into the market here. A lot of the best opportunities tend to come off the beaten path. Having a local pro or a team of local pros as your eyes and ears in the market can help bring these opportunities to the surface. Otherwise, SABOR is doing a podcast now and they provide a lot of helpful info, the forums/podcasts/webinars on this platform are helpful, and networking with other active/inactive military members that are doing or have done what you plan to do in this city should help a lot as well!

Best of luck and thank you for your service!

Cheers!

Finding good deals with tremendous cash flow potential in San Antonio isn't hard. Networking with local pros with knowledge of the market, access to MLS data, and resources for finding the great off-market deals in advance is a great step forward for the longer-term hold investor that wants the best bang for their buck.

The competition here is pretty stiff, especially if you're surfing the MLS looking for leads. Having traditional bird dogs or relying on wholesalers to bring deals to the table is a method many use. Some pay a lot of money to market to sellers and have to narrow a lot of leads down to the right candidates. All viable options, it'll shake down to what makes the most sense for you as far as getting access to a good inventory of below market value deals.

As far as the multi-family market in San Antonio goes, the market is very strong in some areas vs others like all major cities. Do you like to stick as close to turn-key as possible when analyzing a deal or do you not mind having to put a little elbow grease into something? I like to keep the map open since a lot of the great opportunities in San Antonio will come where the masses aren't looking. Beating the 1% rule(and some times CRUSHING IT) in San Antonio is very achievable with the right resources. Finding great deals off the beaten path keeps competition and initial cash outlays low. Having a good set of eyes on the market and a heads up on the great off-market deals in always preferred. See if you can network with some local pros to get some good insights!

Cheers!

@CO Yilmaz

Although the school districts can give a slight insight into the quality of the rental market for the area, I'm not sure it should be weighted as high as some might claim. San Antonio as a whole offers a lot of opportunity to the Buy and Hold Investor outside of the proximity to relatively good high schools. For example, the rental markets are strong near the military bases, near universities, and near major business districts or local attractions. 

I have no objection to the above mentioned areas of San Antonio but you'd be limiting yourself if those are the only areas you're willing to explore. You may be wary of that area of town because the soil houses there are built on is notorious for causing foundation issues over time. Acquisition costs in these areas can also be higher on average than other areas of town where you could potentially be able to accomplish the same goals.

The investors that narrow their sights on a single part of town can miss out on a lot of opportunity. Local pros can definitely help you see a little deeper into the market versus online research. Getting in contact with one is a great first step!

Cheers!

Does the area of town mean more to you for the value of the asset or for the neighborhood conditions? The neighborhood conditions will affect the market value of the asset obviously but I'm not sure if that's what you're getting at. 

Having a price point or price range parameter you're working with should help local pro's narrow the options from an affordability point of view. From there I think it'll get easier to break down what areas of town best suit the living conditions you're looking for. The local pro will likely need to work it backwards from your end goal for the property. Is it serving you more as a long-term investment or more as a "cheaper" short-term living situation?

If it serves more as an investment opportunity and you aren't so much worried about the living conditions you may be able to explore lower priced or potentially better deals numbers wise.

If it'll serve more as a short-term living situation and you're less worried about the numbers then the deals you look at may not be as good.

There shouldn't be any reason why you can't accomplish a relatively high degree of both but the more information the local pro has, the better he/she can help you accomplish your goals. 

Cheers!

Hey Roshan!

San Antonio is a great market for these types of investments. As with all major cities that are growing fast there are certain areas that'll make more sense to you as an individual than others. Talking to a local professional would likely be the first best step. Once you're able to bring them up to speed on your strategy, must-haves, and no-no's, they'll have a better shot at presenting the type of opportunities that you're looking for. Most investors I work with are after the distressed off-market deals that need a little work. If that's something you wanted to explore the next best step would be to build a team. (Contractors, Finance guys, Property Managers, etc) Things get a lot simpler and you can approach opportunities with much more confidence after accomplishing these things. 

I'd like to know what it's in like in the Seattle market! Let's link up!

Are you an active Real Estate Investor in the San Antonio area? Are you needing to find your next deal but don't have the resources, time, or know-how to get in front of the right ones? 

I'm a Licensed Real Estate Investment Consultant that specializes in connecting Real Estate Investors to the right deals and helping them along the way by providing outside resources through my network of local connections.

Investors like working with me because I make the process simple and straightforward. All my deals are priced WELL BELOW market value and I provide detailed CMA reports and access to my investors and their teams to do diligence. Investors have the ability to leverage my established book of business to their advantage to help their businesses either get off the ground or expand to new levels. Best of all, it's COMPLETELY FREE to work with me! I don't get paid unless I find you the right deal!

I'm wanting to continue connecting with HUNGRY INVESTORS looking to continue CRUSHING IT in fix & flip projects, build their net worth and cash flow through rentals and other hold strategies, or investors that like to capitalize with the BRRRR method.

Connect with me here or give me a call directly! Even if I can't provide you the right deals, I'd still be glad to bring any value to your operation that I can!

Talk to you soon!

Chris Campbell | Licensed Real Estate Investment Consultant | LREA: 732989