All Forum Posts by: Dave DeMarinis

Call a couple of the loan orignators (Hard Money Lenders) in Florida, ideally the area and ask who they recommend as the servicer. I'm sure they will haver referrals. I don't lend in Florida so I'm sorry I can help directly. 

I have used FCI and they are very good at compliance and pricing/value. I haven't used them in a workout and/or high touch situation because they are so big - I don't think they would be great at that. I'm sure they are at least average in that area but I would expect a smaller servicer to be better in this situation.

Do you have an assignment of rents clause in the note? Who drew up the mortgage for the loan? If that wasn't an attorney, they can probably refer you to one. Another idea is to search for a note attorney.

Congratulations Mark. Is this your first rental property or just your first in Dayton? What kind of work are you looking to get done?

Thank you Roni. That looks like a strong surveillance solution. Are you using this? It requires a broadband connection and that is what I’m really asking about. I’m hopeful for a cheap, h/w hotspot using cellular that I can install and move from site to site to provide the WiFi.

We need to secure our job site with more than locks. It is a fairly large complex and I will do alarm system on some units (planning SimpliSafe) and cameras at some. Cameras are mostly to secure materials and equipment. Is anyone using a portable hotspot for wifi for cameras? Simplisafe has its own cellular radio for security but the cameras require wifi. Ideally, we'll need to setup wifi to go about 100 yards from the hotspot or get multiple hot spots depending on the best solution.

1. Is anyone using a cheap hotspot for job sites, no contract, cheap h/w?

2. Anyone have something they prefer over SimpliSafe for security?

3. Anyone using SimpliSafe cameras and happy or not?

4. Anyone happy with another camera solution?

I assume all camera solutions need a wifi hot spot?

Your targets are readily achieved in the sub $100K purchase price for sure, including in Huntsville. For rent comps, you should start by calling some property managers and getting their estimates for the address/street/neighborhood you are considering. You should also go to a couple open houses and see for yourself what properties are asking what rents and see how you will compare to them. It sounds like you are looking at listed properties so ask the agent for a rent comp report on the address. At that point, you’ll have three data points. If they converge, you are probably on the right track. If not, take two aspirin and call in the morning ... :-)

The actual answer is highly neighborhood and rent dependent. In Huntsville, I’ve seen a rehab get $900 where older, outdated homes that are still solid and functional get $800 and there are poor condition homes on the street renting for $650. 

@John Erdei you are probably on the right track then to investigate Tennessee and start investing there.

@Maureen McCann on Huntsville in particular. I invest in California and Ohio because I’ve lived about half my life in each of them so I know them personally. Huntsville is the only market I chose based on the market dynamics alone and then I found some great people there which secured my commitment. Best of luck and time is on your side.

@Coleman Cox some great advice and tools here. I think turnkey is a great place to start. Even if you don’t go turnkey, evaluating them will tell you a lot about areas and if you really want to do your own value add, etc.

I have a slightly contrarian view on picking a market. I think the three most common reasons for new investor failure (other than lack of grit and determination) are as follows - in order.

1. People/team failures - some combination of communication, expectations shortfalls and/or failing to manage contractors and/or property managers

2. Planning is too optimistic and cash reserves are too low (this is catastrophic as it is nearly the only way people lose a property)

3. Picking the wrong neighborhood, block or address - this can happen in EVERY market. I.e. if you spend 10 hours picking a market, you should spend 100 picking the neighborhood/street/block and finally address.

I don’t know anyone who failed because they chose the wrong market. If it is your first investment, the best way you can get to long term success is to avoid failure. Focus on the 3 above in my opinion. Hopefully that helps.

What Turnkey providers are operating in the area? I would check their listings and marketing and see how that compares to yours and what valuation it gives. That is a great start. 

Are you planning to list it? Your agent/broker should be able to give market opinion and when you talk through it with them, should give you a good base line. You can check comp sales on zillow or RedFin pretty quickly as a verification.

Two or three data points should let you see a pattern. If it doesn’t converge, then you need more data points unfortunately.

@steve Rosenberg is spot on - if you are in a heavy appreciation area, probably zero or negative CoC return with 20% downpayment. If you are in a very rough area, 2% rule ($700 rent/mo means $35K sale price) is probably expected.

I became an “accidental” investor in Dayton when I took over some property where I was the lender. I grew up in Ohio so that definitely gave me a lot of comfort to start with. I really like Dayton and the dynamics and the environment there. There is a very positive and active investor community in Dayton. When did you leave there? Did you attend any meetups or do you know any investors there?