All Forum Posts by: David Barnett

In that scenario, you'd get the $70k less any closing cost fees. Your down payment is in essence the forced appreciation in the property, after rehabbed. Not a banker, and the 70% LTV that the bank would loan on in the above scenario, the 30% would be the "down payment" without the need for an additional 20%.

@Tyler Santos You're welcome and wanted to be transparent and honest in my thoughts and how your messages read.  By the way, this is coming from someone that's an integrator (executor, #2, etc.).  One of my skills is taking a vision from a visionary, poking holes in it (if applicable) and working to execute on the agreed upon plan.  

Fair enough.  This detail brings you back into commercial financing or portfolio lending (i.e. more than likely non 30 year mortgages).  My spidey senses are up and if I were you, I'd be very careful.  

@Tyler Santos For what it is worth, I think you are moving a bit fast on this.  In my mind (and just my thoughts), in order to work with an integrator (and assuming that this integrator does not have a lot of wholesale experience), you're going to need to explain the nuts and bolts of the whole process to create a process/systematize it.  I would say that you'd need at least 10 deals under your belt before you can work with someone that may be new, that has detail and integrator skills to become a vision+integrator team.

I really don't think borrowing the down payment at this point in the market cycle is a good idea...

 I strongly disagree with this advice.  I wouldn't recommend buying right now with inflated prices on the coasts given where we are in the real estate cycle.  Don't get me wrong, if we were in a recessionary period, it might make sense to buy a property and ride the wave up (I did this in 2008 and was the best investment that I made).  

Lifted from a previous thread, here are my recommendations for out of state investing.

(1) Narrow down your search to a few specific neighborhoods/zip codes.

(2) Fly out to the market and walk the streets in the neighborhood (don't drive, walk). It's important to know which streets are where, how they *feel*, the cars that are on the street/in the driveway, and where the invisible lines are (other side of the track stuff). You won't know this from Google Maps.

(3) Meet your team in person. Pay for lunch, coffee, etc. This helps build the relationship and shows that you are serious and not a tire kicker.

(4) Depending on the quality of the tax assessors website where you want to invest, get to know it. If it is online, there is usually a TON of information on it.

(5) Check the MLS/listings fairly regularly to get a sense of pricing, etc.

Good luck.

@Luke Nafrada What attracted you to Tennessee?

I went straight to out of state investing and would echo some of the thoughts above.  For some more actionable steps here are a few things that I've found that have proven somewhat successful.

(1) Narrow down your search to a few specific neighborhoods/zip codes.

(2) Fly out to the market and walk the streets in the neighborhood (don't drive, walk).  It's important to know which streets are where, how they *feel*, the cars that are on the street/in the driveway, and where the invisible lines are (other side of the track stuff).  You won't know this from Google Maps.

(3) Meet your team in person.  Pay for lunch, coffee, etc.  This helps build the relationship and shows that you are serious and not a tire kicker.  

(4) Depending on the quality of the tax assessors website where you want to invest, get to know it.  If it is online, there is usually a TON of information on it.  

(5) Check the MLS/listings fairly regularly to get a sense of pricing, etc.

Good luck.

@Tyler Santos I don't mean to be disrespectful when I ask this question, have you successfully gotten a lead under contract and wholesaled it out?  If you haven't, I think you might be putting the cart before the horse.  My impression from your message is that you haven't completed the process yet, and I think you need to do it a few times all the way through to then figure out the process.  You can't run before you walk.  If I'm off base, please ignore my message and comment. 

@Janel Y. I know a good property management group, too that I would be happy to recommend.  Please pm me if you'd like to chat with them to see if there is a fit.

Welcome, Nancy!