All Forum Posts by: KT Burkholder

 Thank you. I do believe we will see a drop in demand with interest rates and other economic factors, but it won't be enough to necessarily slow the market, because even if we drop from 100% to 80% of the demand we have it will barely be a speed bump. Especially not in Columbus, which is why we are looking to move into your market. 

I am actually a little more concerned with real estate being affected by the outside forces that we are seeing materialize. Where Amazon goes so goes the nation IMO.

Yes, it is a possibility, and one that you should calculate for. However, I won't let it hold me out of the market and I wouldn't let it for you either. It will however cause fewer deals to be good deals. One of the things that I am doing with all of my new acquisitions is adding in a 6 month longer window - supply lags - and calculating all my DD using 80% of the current market value with the same monthly expenses. 

The reason for the later is that what people are paying for a home is what they can afford monthly, not the price of the home. As the fed raises rates the same monthly payment will buy a cheaper house and my calculations put that at about 80% of the current cost within 18 months conservatively. Since I am in it for the long haul as long as after repairs I am not paying more than 80% of the current ARV I will protect against the downturn and therefore our investors money.

Do you have a deck and projections for introducing your investors to your product (short term rentals)? I have found a decent amount of OPM just being prepared and having something to guide them to yes. Hit me up if you want help getting to that. 

The issue isn't that wholesaling doesn't work, it is that it is done backwards and wrong. This is like saying being a real estate agent doesn't work because most agents suck at what they do. I have bought 4 deals from wholesalers so far this year and I have also wholesaled 6. To many people are trying to wholesale the same property and to few have relationships with their buyers. All of my deals have come because someone knew that a property they contracted was already in my buy box, and same in return. It is about referring not about hunting IMO.  

The thing I have learned in the last 15 years is that every problem comes with a new opportunity. So whatever the problem is I am sure we will be able to shift strategies to capture the new opportunities. The things that are currently giving us issues and that we are working to resolve are 

1. lead times
2. interest rates
3. political pressures in the wrong direction

So we are constantly entertaining new strategies there, and so many of you are helping to inform that. So thank you. 

Thanks, we have one more that we bought and 6 more under contract. Looking to catch up with you all over at stewardship in the next couple of years. ;) 

Investment Info:

Single-family residence buy & hold investment in Birmingham.

Purchase price: $25,000
Cash invested: $65,000

Purchase of $25,000
Rehab is $40,000
ARV $160,000+

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

We are actively looking for abandoned and vacant properties that can be brought back to life. This one had been vacant for over 4 years and bought at Tax auction. After title was cleared we bought it for $25k and are in the process of turning it into a great home for a new tenants.

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

Craigslist

How did you finance this deal?

Cash on hand

How did you add value to the deal?

Renovation

What was the outcome?

In process

Lessons learned? Challenges?

When you are building an airplane (team) on the way down it always takes more time and more stress than you expected. However, pulling the team together for the first time before the process starts will show you who is a chicken (interested) and not a pig (commited).

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

Evernest and the entire teams has been amazing. Great to have not only boots on the ground, but eyes and hands in the mix.

If you are looking for property management with experience in Section 8, let me know. My property management is really solid and I highly recommend them, and very familiar with section 8 and the entire process. 

I own a property in East Lake, Birmingham and am looking for a GC to do a full reno. The budget for the project is $30k +/- $5k and is ready to be started immediately. If you have anyone you recommend, or have interest in this project please reach out and we can set up a time for you to see the property and submit a bid. I also have 4 other properties under contract and will be renovating those as well. 

My vision is larger than my fund, and revolves around ensuring that those who live in marginalized communities have access to the social determinents of health (education, economic opportunity, healthcare, and homes) and are able to get themselves on a pathway to generational wealth through home ownership.

What I always tell people is that somewhere there is a little girl who could be the next Albert Einstein, but without our help she is more concerned with where her next meal is coming from or if she will have a roof over her head to be able to focus on life's mysteries. I see what we do as an opportunity to remove those worries so that she can focus on changing the world.