All Forum Posts by: Curtis Rouse Jr

@Garrett Hawk

Ok and are those typical cap rates in that area and how is the population and job growth there? Also do you see the market on the rise over the next 3 years you guys plan on holding

@Bryan L.

Welcome to BP!!! So it's my understanding that you are basically looking for off-market deals to flip yourself and keep in your rental portfolio. Sending out direct mail is great (can be costly if not done correctly and most importantly you need to be consistent), but I would also recommend that you do some driving for dollars and buying list from listsource and cold calling the owners to see if you can start the conversation from there. Not necessary to do an inspection, but I would highly recommend getting a couple quotes (really as many as you can) from contractors on the potential rehab needed on these deals you are pursuing. They will give you some great insight, just not to the detail of an appraiser who will do a full report. As others have mentioned, I would not put in LLC as amortization would be less yrs and int rate a bit higher. You simply need to get an umbrella policy for liability purposes (same protetion as LLC) depending on you running the risk of getting sued and if you have a lot of personal assets. Also plan on a 6 - 12 month seasoning on the property before most banks will refi your cash out. I hope this helps and Best of Luck!!!

@Alexander Ritchie

Welcome to BP!!!! I see you mentioned waiting to possibly 2020 ro as soon as 20109 to do your first deal, but I would say if you come across a good deal whether SFR or MFR I would recommend reaching out to your inner circle (family, friends, colleageus) and raise the money via private money. I personally had some money saved up (only a few thousand) on my first deal and ended up getting a bank loan and some money from parents to do the deal. In real estate you only need 1 of these 3 (capital, education or time/hustle) to succeed in this business and once you know this and partner with other investors your business will begin to take off.

I know you mentioned finding recommendations for realtors and I would say search some local right here on BP and take them out for coffee to see if they are a right fit. You really want someone who invests themselves, but if not make sure they have worked with investors in the past and ask to see some of their deal. Also attend your local reia and if there is not one, then start your own

Also if you ever need help underwriting deals, I built a financial model (example on my website) that I help investors with all the time look at smaller SFR's to multi million dollar apartment communities, so please let me know if I can be of any assistance.

I hope this helps and Best of Luck!

@Pete Stone

I would agree with @Wayne Brooks on this because putting in a LLC would definitely be less amortization and possbily higher rate depending on your lender. If you're worried about the liability issue, there is no need for an LLC, just get an umbrella insurance policy that will cover you (basically same thing as LLC). Most lenders require 6 - 12 month seasoning period so this will be hard to work around and find. What kind of ARV are you looking at on this deal and have you already talked with some banks/local appraisers about the valuation once renovated?

@Mack Bailey

Personally I think the best way of researching a target area if putting boots on the ground as the term is coined or if you know someone who you trust that has familiarity in this area take a look and see what's going on. Local reia's are great for asking questions to determine and of course like you have mentioned with sites like Zillow, Trulia, Hotpads, Redfin, etc this has become even easier. My criteria now that I have been investing for a while now is that im looking for growth in jobs, population, job diversification, landlord friendly, business friendly, rising market and familiarity in that location. I would also recommend following those multi billion dollar companies (Whole Foods, Starbucks, Home Depot, etc) that have already done the market research for you and as I like to call it "follow the money." I hope this helps and Best of Luck!

@Alana Coke

What kind of rehab budget will be needed for this project and have you seen a lot of developement whether it be other flippers or new commercial development in the area?

@Garrett Hawk

Congrats on the apartment complex purchase!!! So I do have a few questions in regards to the deal. The first is what city is this located that you're achieving a 9 cap and what is your current and projected future ROI/IRR on this deal. With this being a value add deal, what's your timeline on the exit for a refi or sale (3, 5, 10 or hold forever). The reason I'm asking is because I'm currently looking mainly in the southeast for an apartment community in the 50 - 100 unit range to syndicate prior to the end of 2019 and want to make sure I'm taking into account all possible markets if the financials, location and the exit makes sense. Also I don't know how long you have been in this deal, but were there any surprises that came along with this deal after closing that you wish you would have known?

@Cheryl Bennett as Patrick mentioned, your best bet is going down the the courthouse and inquiring specifically on where to research because they aren't necessarily going to look into it for you. With the registered agent not responding and if this is a deal you are really wanting to pursue you should go to the address listed on the state website. Have done this many times when I have exhausted my ideas and it works, but don't be surprised if they aren't let's say cordial about your visit :). I hope this helps and Best of Luck!

@Uneeq Khan

If you search for HM Lender on BP there will be a long list near your location that you can reach out to and inquire information about terms. What I did when first starting in the MFR space looking for lending was googling all the local banks/credit unions and basically asked if they lend on apartments then presented my deal. Took me over 25 calls until I found the bank I still use today. I hope this helps and Best of Luck!

@Cheryl Bennett

As Patrick mentioned, the best way would be to go to the county courthouse and look into the records. This of course is county specific, but I know in Gwinnett they have an office designated for researching the estate owners information as it is all public or they have a subscription you have to pay where you can get access from home at anytime.

In regards to your question about finding out about the owner, if listed on the tax assessors office as an LLC then go to the state website (sos.ga.gov) and look up that business, which would give you the registered agent as you mentioned. Then you would simply google or skip trace this person and cold call them. This has worked for me when searching for off market deals, but of course sometimes you won't find a relevant contact number. Another strategy I have used is door knocking the neighbors to find information about the property.

I hope this helps and Best of Luck!!!