All Forum Posts by: Colby Fryar

@Whitney Hutten Thank you!

@Gary B.  In my personal opinion, I think you need to evaluate the deal separately from the what the market is doing.  A good deal is a good deal and if you are buying for value you can't go wrong.  That means you need to be buying at a higher cap rate than market value.  Of course you need to also be investing where people want to live, good neighborhoods, close to jobs, etc but I think this is all part of the value.  Warren Buffett buys companies for value whether the stock market is going up or down and that is why he gets richer and richer.  I think it is the same in real estate-  you are basically hedging your bets during a down turn by buying low.

@Kendal West I think you are offering on properties that you may not be ready for yet and you may not understand all the costs involved.  Your lender is not obviously not comfortable lending on these type of properties that require a lot of work.  So you have two options:

1. Find a property that requires minimal rehab and pay more for it.

2. Find a lender that will lend on fixer-uppers. These will be  non-conventional lenders and will mean higher interest and possibly shorter duration.  

I agree with @Account Closed.  You should start with a property in better condition until you get your feet wet. Once you have one or two under your belt, then proceed to the more difficult rehabs.  As you are probably seeing, these properties are harder to get because you need cash or a quick close.

@Whitney Hutten do you have any concerns going forward using hard money with respect to recent stock market declines and potential weakening of the economy. My question is how will someone be able to refi out of a hard money loan if the market values start dropping?  Will the banks begin to slow or even cease refinances?  If you could, please share your experience with this.

@Harsha G.@Gorden Lopes Thank you both.  $23K on the rehab and I went through my agent.  I would be glad to refer him to you.  

Harsha-  Wow- 2 properties! Good luck and please provide the details.

@Harsha G. It's going fairly well- thank you for reminding me. I have been thinking I need to update the post. 

Just to back up a bit-  the closing was extended a third time but it finally went through.  For all of you out there thinking about closing on a deal.  Keep in mind that once you have a signed offer, it is yours unless you decide to back out or can't fund the deal.  No one can come in and take it from you. That is why it is so important to lock the property up. In any event, the closing went through and the house is mine.

Renovation is approximately 95% complete. I will end up spending about $5,000 more to get it done so I will have a bit more in the deal than I wanted to. My contractor is very busy with other jobs and it has been raining non-stop in Huntsville so that has been a challenge.  We expect to have everything ready for pictures this week and then my pm will advertise it to rent out.

The biggest challenge on this one so far has been keeping the contractor going.  He has been bouncing between 2 to  3 different jobs, which was frustrating since I would put down a very large deposit and he would go to another job for one to two weeks.  The lesson for me is to definitely incorporate a contract with timelines to hold them accountable to the job.  All in all, finishing in a little more than a month is not so bad though.

I am hopeful to get a good, quality renter.  This is a good neighborhood and rents are on the order of $1,200 for this size of house.  

Harsha G. are investing here as well?

@Ashish Mike Angelo

Awesome look forward to meeting you. I will the get the map to you.

Please email me at [email protected] and I will send the map for the location.

Thank you all for coming to the last event at Serial Grillers. I will be posting another meetup event shortly. We hold it at the UofA Tech Park off of Rita Road. Please message me and I will forward on the address. Local entrepreneur and investor Jim Garrett will be speaking at the next event. He has a couple of multifamily properties under his belt, has been very successful with the BRRR strategy and will also talk about hi experience with BRBO where he is currently getting unbelievable rents for one his properties.

Sam not sure if you are coming. I’m in the back of the restaurant. Have a couple of tables reserved.