All Forum Posts by: Curtis Rouse Jr

@Mike Rojas

Welcome to BP!!!! That's a very vague question, so what are you specifically looking to invest in (SFR or MFR). Also have you already started educating yourself and speaking with local investors? If you are not apart of a REIA, I would recommend GA REIA where I'm a member that has some really good sub groups and general meeting from getting started to advanced topics.

@Marisa R.

I believe that the market is still very strong for both rental and housing as population and job growth has continued to steadily rise along with great diversification of employment. Althouth inventory is tight, the constant development (i.e Beltline) going on around the metro Atlanta area, I still think we have a good 2 - 5 year run before you see any real correction here. I invest purposely in rural areas because I cannot find the desired returns with compressing cap rates in the apartment community space. At the end of the day, there are deals in every market it's just in these times you have to get a lot more creative and make a deal. How do you see the market up there in Detroit?

@Steven Michael Thomas

Welcome to BP!!! Nice 10 months paternity leave, can't beat that :)

Congrats on working toward purchasing your first multi family unit. I'm in the space owning apartment communities down in the metro Atlanta area so if you need help analyzing any deals I've built a financial model (example on my website) that I help investors underwrite deals all the time for free if you ever need any help. The BP calculators are great as well and where I started analyzing as many deals as possible when getting started. If you haven't already, check on the podcast, they are amazing and provide so much "real world" insight. Let me know if I can be of any assistance and Best of Luck!!!

@Skye Payne

Welcome to BP!!!! As others mentioned, if listed by an agent this probably isn't the best method if you are trying to wholesale. Depending on your budget I would start buying lists and marketing to those sellers or start driving for dollars if you are working on limited capital. Don't get me wrong, agents are a great resource, but not for purchasing deals with substantial equity up front. I hope this helps and Best of Luck!!!

@Mack Bailey

I personally prefer Zillow, but I would definitley cross check the data with other sources as it can be a little outdated especially in your rural areas from what I have experienced

@Huey Fontenot

Of course assignment is the most convenient method because you don't have to pay for 2 closing costs leaving you with better profit on the back end. On the other hand, if you are making a significant amount on a commission it might make sense to double close so your buyer/seller doesn't see your fee on the HUD. Every situation is different, but the ultimate goal is to get a good enough buyers list so you can assign and they understand that you spent a lot of money/time finding this deal and whatever you make is fair as long as it works financially on the back end for them

@Amnra Quincy bernard Sellassie

Welcome to BP!!!! Great topic and yes I currently invest in Macon, Ga that is somewhat a rural area and achieving greater returns than I would be in let's say Atlanta. Keep in mind that usually your higher cap properties bring on their own problems and require greater attention, but it depends on your investing strategy/style and what you are comfortable with. In regards to your questions about how do you market and find leads, are you talking about trying to wholesale? Very vague question so can you be more specific on what you are actually trying to achieve and we could better assist you.

@Patrick Garrett

As @Stephanie P. mentioned so are soooo many variables that come into play and my recommendation would be to get on the phone and start calling every bank/credit union in town. When I first started, this is how I found my first loan, pulled a list of over 100 lenders and went down the list until I found the lender I still use today after 25 calls. Like anything in life, it takes persistence and it's important to have some dialogue prior to calling these lenders about the deal or they won't give you the time of day. I hope this helps and Best of Luck!

@Account Closed

Welcome to BP!!!! To answer your question, yes I would walk away from this one because some of the main factors you need when wholesaling is motivation and equity. You can make some money off the market value properties if you have some turnkey investors looking for less of a return on a stabalized asset (hedge funds are good buyers of these type of deals). Stick to your numbers and if it doesn't make sense walk away because trust me, there are plenty of deals out there you just have to put in extra work in this sellers market. Let me know if you have any other questions and Best of Luck!!!

@Mikhail Katz

Welcome to BP!!! So I did a quick analysis for you through my financial model and NO, this wouldn't be a good deal at $90k. A more appropriate offer price would be $60k  (or 33% below what they are asking; don't worry I have been seeing these ridiculous prices all year when analyzing deals)

Assumptions:

Downpayment - 25%

Closing Cost - 2%

Amortization - 30 yrs

Int Rate - 5%

Materials - 8% (of gross rents)

Maintenance - 8% (of gross rents)

Management - 8% (of gross rents)

Capex - 5% (of gross rents)

Reno Budget - $5k

I hope this helps and make sense. If you ever need any help analyzing anything from smaller Single Family Homes or larger apartment communites, please let me know and I would gladly help out. I have a more in depth metrics on my website if you would like to check them out. I try to aim for a least a double digit ROI, but have yet to find one worthwhile my time

How is the market up there in Indianapolis, is it hot like everywhere else? I invest down in the Macon/Middle Ga area, and have started to venture out to more Southeastern markets to get market comparison.