All Forum Posts by: David Sugg

@Josh Wade

Sorry to be a Debbie Downer, but if I had 2 more hands I would give this deal 4 thumbs down. Forget about all the "scope of work" mumbo jumbo! The numbers are non starters. Live where you want to live and invest where the numbers make sense.

@Avee-Ashanti Shabazz Step 1 Pick your area of interest. It will need to be concentrated enough to attract other future buyers and create its own energy. Step 2 Get your team. Wholesalers and agents will be needed to find the incoming inventory. Find private lenders that believe in your model and would like to earn 12% on their money without dealing with tenants, and taxes. Get contractors lined up to the repairs. Step 3 Market for buyers. Advertise "Affordable Seller Financing" in your area of choice. Let people know what kind of homes you will have available and what sort of terms and down payment will be required. DO NOT Take APPLICATIONS. Find 10 buyers that would like to buy in the area and will have a down payment of 3 to 6k. Step 4 Buy houses that may need work but not total guts or burn jobs. You need to be all in to the house at 50 to 60% of what it could reasonably appraise for. It should not be to hard if you have good agents and wholesalers. The investors will fund the deal and take title in land trust. You as rainmaker will take 15% of said trust. Step 5 Get home ready for buyer. It is critical here that you do not over do it. We want roofs and mechanical systems to be in solid order. They don't need to be new, but need to have 5 years life in them. The idea is the get the houses fit and safe. We only repair or replace things if they have obviously reached functional obsolescence. Fit and safe. We will leave carpet and paint as their opportunity to add sweat equity. Step 6 Get your first potential buyers in to view home. You may want to refer them to a mortgage loan originator to be Dodd Frank compliant, but if these people have been able to pay $750 in rent and keep current on other bills they will be able to pay a $500 mortgage . If they want the house and have proof of down payment, sign a purchase agreement for 60k with 5k down. Step 7 Close deal. You found a deal in an area where the nice homes in good order were 60-70k. You bought the house that needed a roof and HVAC but all other systems looked good. The house was bought for 28k and you put 8k in roof , AC, and curb appeal. Buyer will bring 5k to closing and sign deed of trust to land trust for the remaining 55k @10% for 240 payments. That is $494.85 for 20 years. Buyer will need to have selling land trust listed as co-insured on insurance policy. Give 2k of down payment back to investors to give them a 36k basis in deal. Split payments 15/85. Investor receives $405.77 giving them a 12.37% return with no toilets or taxes and you as rainmaker 240 payments of $74.22. Take 1k of remaining down payment and buy an option buy back at 5% the amortized value of note for 20 years in combination with first right of refusal. Have option and FOR filed with DT. This 1k will be useful to your new buyer for paint and such and will keep you in the deal years down the road if buyer passes away and the kids don't know what to do with the house. I hope this helps. As a creative real estate investor I know how frustrating it can be to hear "it cant be done". It can all be done. It is being done. You can do it. APPLICATIONS . This is not an approval process as much as it is an interview to see if you will be able to work together in the future.

Call Ryals at Southern Bancorp in Madison. He has done a few for me. 15yr am. 75%LTV.@ 5% He is a Riggster, you will probably know him.

Xavier , welcome! I am in JXN as well. I'm an active investor that was just like you 4 years ago. I would be happy to get coffee and chit-chat. The Jackson market is one of a kind. A little Detroit. There are a ton of opportunities if you are willing to do the work. You DO NOT need a guru. The market has way to much variance for it to be understood or explained by any one perspective . I will be happy to take you to the REIA I attended and introduce you to some good people.

You can PM me for info. talk soon

Holly, I am a wholesaler and agent in the Metro area. I have a couple that have done great work for me. 

Welcome to BP! I'm down the road from you in Jackson.  I am an agent for Neighbor House,  and we have an office in Oxford.  Holler if you need comps pulled or want to make offers.  We are all investors and are investor friendly. 

Good luck!

Hey Ashleigh, I'm an investor and agent in Jackson. I work for JXN Housing,  a property management company that manages over 300 properties. We manage all over Jackson,  South, Midtown, Belhaven,  Fondren. We don't do much in west Jackson.   To answer  your first questions, yes, we are using several reliable contractors that can handle any thing from 300k flips to 30k rentals. There are some pockets of new construction in select areas. I would be happy to answer questions and pull comps for you if you need to zero in on actuals. Best of luck,

David Sugg 

welcome to BP! 

Hey Shelia,  I am an agent for JXN Housing,  we manage 400 properties in the metro area.  We manage class A-C areas. We have 2 full time contractors and 50 subs. We also have a huge buyers list if you decide to sell your property. 

Welcome to BP! I'm in Jackson doing Buy and Hold, Wholesaling, and a licensed real estate agent.  Let's get coffee or shoot a game and talk shop.