All Forum Posts by: Edwin Epperson

@Nick C. Haha interesting conclusion.  @Natalie Mendoza I am also interested in this "double dipping" method.  What is its definition according to Mr. Norton?

@Adam Anderson I have been to the TBREIA, but not the Tampa REIA. I'll keep it in mind. I also believe the SUREIA (Suncoast REIA) just met today, and the Tampa KREWE I think has started meeting. I have had a lot of investors reaching out letting me know that they were operational again

@Chris Diaz If your finding $60,000 deals in Kissimmee, just beware the neighborhood that those properties are in.  Also when you say you don't have much capital, if your an OOS investor then it is even more highly recommended that you reach out to a local property manager to inquire about the area your looking into and how they manage their properties.  I have several capital investors from CA that tried to invest in rentals in Jacksonville, because the prices were like what you described... they almost lost their shirt because the area was rampant with crime.  Had their condenser stolen three times, (twice during renovation, and once AFTER a tenant moved in LOL), windows broken through the renovation and appliances stolen.  And at the end of the day while they were in a neighborhood that showed avg rentals within .5 mile radius their house was only two blocks on the wrong side of a major highway... and rents on THAT side were about $300 less.  Needless to say they firesold that property to a local investor barely able to cover their expenses.  Now they just invest with me, haha.  But to each his own and pain is an excellent teacher.

Dont mean to throw shade on your plans just do a much better job of due diligence, and listen to the local experts, your not smarter than they are, and they know their market.  Best wishes

Kobe I'm in Tampa.  Would appreciate being able to connect

@Dale Manning and @Steve Morris if either of you would like we can discuss.  I'm not sure what I can and cannot say here on a public forum.  I don't want to get banned! ;)

So @Michael Kinsella is correct... mostly. If I know an investor is using the POF to make an offer to then be able to wholesale the property via a Double Close, then I will work with them to get a POF prepared. He is correct that there is a "Pre-Qualification" I require but it has nothing to do with money in the bank. That's why you need one right? It does have to do with #1: What state are you investing in? (Some states require a brokers lic. for me to lend in, even transactional funding) #2: What entity are you purchasing the property with (I ALWAYS require an entity to be listed on the Purchase and Sale Agreement). #3: A little about your background and experience. Now my POF are property specific so I do not give out "blanket" POF's. There is some leg work that you have to do to provide the information I need to generate a POF but its pretty simple. If you re interested lets grab a phone call or PM each other. Best wishes guys and much success!

@Chris Diaz welcome neighbor!  I live in Tampa FL.  I work all over the state, so I am happy to help just like @Gaby Abreu.

@Trysh Wahlig & @Alejandro Escalante this is definitely something you should consult a real estate attorney about as far as structuring your entity. You will want your operating agreement (LLC) or Bylaws (Corp) to clearly and plainly define the roles and responsibilities of each party so that you nor your partner feel that the other is not carrying the weight of the operations in the company.
Your second question is about the loan.  This is important based on your acquisition AND disposition stratgey.  Are you looking to utilize short term investing only (F&F, Bridge Loans, Wholesaling) with a clear exit of saling the asset, or is your goal to build a portfolio?  I ask because if your plan is to eventually use long-term capital, even if its not on the initial acquisition but even with the refinance then your access to capital should be considered.  Hard Money, Private Money and Personal cash in most cases you/ your partner's credit score are not an issue and it really depends on the underlying qualifications of the asset.  HOWEVER, if you plan on refinancing with a long-term loan whether from a traditional financial institution or with an investment lender they will definitely consider both your credit reports and score.  If your hope is that you will bring a partner in with great credit to boost yours you may find that the end lender will deny your refinance request based on the lowest credit score for everyone in the entity.
Hope this helps.  If you have questions please let me know, I'll be more than happy to wargame some scenarios with you.

@Tim Nicholas there are many lenders that offer loans to investors like yourself. These loans are structured specifically for investors using their entities to purchase properties. These lenders DO NOT care about personal income verification or personal DTI, nor tax records. They DO look at credit score's however they are not overly strict in that regard. These options make a lot of sense for several reasons.
#1:  Asset Protection stays in place.  There is no need for you to transfer title out of your entity, into your personal name just to qualify for the loan, and then transferring title back into your entity.  Though I have never heard of it, if a lender wanted to they could intact the "Due on Sale" clause because of the transfer of title back into your entity.  Again I have never heard of a lender doing this but they could, therefore its a risk
#2: By taking out an investment loan through an investment lender, they will not report this loan to the Berueas. Of course, this is a double-edged sword. If you pay on time, you get no benefit. However, these loans will not affect you getting primary, secondary home loans, nor other loans such as LOC, HELOCs, credit cards, and car loans.
#3: NO seasoning Requirements! This is HUGE and probably the one issue that many BRRRR strategist struggle with. Most of your banks/ CU require some sort of seasoning. With many of the investment lenders today they offer no seasoning loans and even will refi you before you have a tenant in place! This means you could get a short-term loan, purchase, renovate and actively list the property for rent while simultaneously seeking a R/T or Cash-Out refi. You could easily and quickly recycle your capital every three to four months.
#4:  These investment lenders offer several "Rental" loan programs which include Purchase and Refi (Rate and Term and Cash-Out). Most will allow up to 80% leverage.  If your strategy is focused on BRRRR these lenders are a fantastic way to pull locked up capital in your property immediately out to continue your track on building your portfolio.

Hope that helps and I hope you're able to find a solution for your need!

@Kim Tucker thank you.  I have been connecting online of course, again it was really about ways I can leverage my time.  All excellent suggestions thank you.

Hey BP family, I'm an investor in Tampa Florida, and I looking for "unique" ways to find RE investors who are ACTUALLY closing deals. First the most "recommended" ways...
#1: Local REIA Clubs = While this may have worked 12 month+ ago, now with many clubs being shuttered or very limited meetings I'm looking for more remote ways to connect... which leads me to #2...

#2:  Social Media Platforms (Bigger Pockets Included) = While the ability to get in front of THOUSANDS of RE Investors is easily recognizable, you have to filter through just as many to find real RE Investors who are actually closing deals, not just talking about it.
    #2a. Personalized outreach = I have found much more success in this, simply reaching out to individuals on a one-on-one basis, yet you can clearly see the disadvantage to time constraints.  I have a limited amount of time each day to engage in conversation, looking to maximize leverage of time... also...
    #2b. Group engagement = While most SM platforms have groups that can provide more specialization, the number of infiltrated scammers and poser seems to be overwhelming.  This can lead back to the problem of 2a, specifically the time constraints... which leads me to #3...

#3: Hire a "VA" service = While this may on the surface seem like a great way to leverage time, it is CLEARLY evident when you are engaging with a VA, not the actual person you think you are speaking with. Obviously, there is the benefit of leveraging someone else's time, but it seems to me that past experiences most real RE Investors don't engage with VA's because of the fact they are not dealing with the actual decision maker.

Different "Unique" methods. This is really where I want to hear some feedback. The target audience is not the homeowners or wholesalers. The target audience are the investors who are actually making the purchases, whether F&F, Bridge, BRRRR or turnkey rentals. So here are some thoughts....

#1:  Searching County Clerk of Court records = This is a method I personally have implemented and seems to do very well.  Clearly there is no better way to identify investors who are actually closing deals than to see who has bought what properties and where.  However the leveraging of time REALLY applies here because the number of records can be exhaustive, and as more and more investors become savvy and are purchasing properties in entities created in states with anonymity laws in place.  It takes twice as long if not longer to reach out to these investors, yet the percentage of success is pretty high.  Say out of 100 contacts made I may actually communicate with between 20 and 30.  Out of those 20 -30, I have a close rate of between 20 -25% which is pretty good.  Yet again it's the amount of time dedicated to this method that I simply cannot continue to commit.

#2:  Drive for "Dollars" = While this is a technique used for wholesalers I find it could generate pretty solid results with the fact you are able to meet the investor at the project as work is being done.  But the glaring fact in this method is it is a HUGE time suck.  You could spend hours driving neighborhoods you wan to invest in and only find three or four rehabs happening, and even then its a hit and miss if the investor is even there and if the contractors on site even know how the investor is.

What are some of your recommended techniques to find ACTUAL RE INvestors closing on deals?