All Forum Posts by: Dane Hamilton

Hey BP, I’m a new investor in the Central Florida area and I’m really interested in acquiring properties through Auction.com, REO, HUD, Sheriff Sales, etc. I may be in over my head, but I find the process fascinating. My biggest concern is the due diligence process. Major structural issues and unforeseen liens are the two issues I fear the most. (1) How do you seasoned investors go through the due diligence process when you’re vetting a property prior to auction? How do you manage the risk? Where do you get your information and what specifically do you look for? (2) Are there any local investors in the Orlando, Florida area who have experience with the auction process in Orange, Lake, and Seminole counties? Your input would be especially appreciated. Thanks as always, Dane

Recommended lender in Orlando, Florida? I’m a buy-and-hold investor. I’d really like to establish a relationship with a local bank/credit union early on. Short-term looking to get pre-approved for an FHA loan to get into my first property. Long-term looking for a portfolio lender and easy refinancing for BRRRR projects. Recommendations before I start cold-calling? Thank you in advance!

Originally posted by @David Wright:

I agree you definitely do not want to start with the Auctions.

Regarding Direct Mail Google "Direct Mail for Real Estate Investors"  and search right here in Bigger Pockets for reviews on direct mail vendors.  There are many to choose from.

Regarding the list, what are you trying to do?  Fix and flips, buy and holds, etc...this will determine your list selection.  Good lists are vacant homes, distressed properties, divorcee's, and homes with a lot of equity.  But again, the list decision is based on the real estate strategy you want to work on in my opinion.

I hope this makes sense.  Let me know.

How about SFR BRRRRs? If you were looking for an off-market SFR BRRRR deal, where would you start?

@David Wright thanks for your reply! There’s a lot of good stuff in there.

Auctions seem pretty daunting for a new investor... so I’m thinking that might not be the best place for me right now.

I’ve heard similar things about direct mail. The big question then is where does the list come from, and how big should be scope be? I could be wrong, but targeted marketing seems to be much more cost-effective. Driving for dollars is an excellent way to build a direct mail list. Do you know of other lists have proven to be consistently productive?

Regarding direct mail, what should my letter look like? Handwritten or typed? Long or short? What should the content be? Everyone has a different opinion because everyone has a different market. What is proven to work in Orlando? I’d love to hear some thoughts.

EXPERIENCED INVESTORS IN ORLANDO, FLORIDA: How have you guys been finding your deals? I‘ve read all the books, I’ve read all the blogs... I’m tired of the theory! What has ACTUALLY been working in Orlando? Listsource? Is direct mail really dead? Is there anything good on the MLS anymore? Unconventional media? Tell me about your projects! I’d love to hear the wisdom of experienced investors! I’m new to the game and striving to put an effective marketing strategy together. Thank you in advance!

@Jeffrey Hayes Hey Jeffrey, Based on conversations I’ve had with wholesalers and investors recently, I know the 32805, 32808, and 32811 areas have experienced HUGE appreciation rates over the past year (25%+ increase in median sales price since 2017). That being said, I personally don’t like those areas of town. Pine Hills and Orlovista are traditionally the rougher areas of Orlando. It all depends on what your priorities are though and who you plan on selling to. Personally, I really really like what the Winter Garden and Ocoee areas have going on right now (34787 and 34761). Those areas are growing like crazy and they’re pretty nice. I’m new to the Real Estate Investing game, but I’ve lived in Orlando my whole life. And, I’m actually really interested in SFR flipping and BRRRR. So, if you need a guy to drive by some properties and take pictures, I’d be happy to help out and maybe exchange my efforts for gaining experience alongside a seasoned flipper. Feel free to reach out! Thanks again.

Gotcha. That makes complete sense. I’ve also heard of taking the sub2 deal and then selling to a buyer using seller financing. What happens then?

Hey guys, one of my buddies recently introduced me to an interesting deal structure. Here's my example for discussion:

There's a SFR with a seller with a mortgage who's interested in a Subject 2 deal. Let's say the home is worth $450k and the monthly payment is $2500. I do the deal, take ownership, and I start paying the seller's mortgage payment. At this point, I've acquired the property for just a $2500 monthly payment (awesome).

Then, I decide to turn around and sell the property to a cash and/or conventional mortgage buyer for $450k. IF the due on sale clause is not called, then I walk away with $450k in cash, and I'm still obligated to a $2500/month payment. 

Did I just create $450k in cash out of thin air? Is this possible/legal? How can this go wrong? What happens to the note collateral after I sell the property to the new buyer? Am I doomed because of the Due on Sale clause?

Help me out guys, I'm still new to the game. Thanks in advance for your responses!