All Forum Posts by: Henry J.

@Account Closed

First of all, congratulate on your success on a business.  It's not easy to start / run / let along a profitable small business.  Most people can't start a business, let along run and get a business in the black.  :)

I saved my post for a few days and wasn't able to find it so some of the info might already be covered by others...

I think some of previous posts already pointed a few things you should be aware before you jump in.  The main point - do you have financing ready?  do you know any banks / credit unions / private parties / hard money lenders which will loan you the money while you work / rehab the house(s)?  Without a day job, how do you plan to qualify for financing because they want to see your W2 or previous tax returns?  Do you have enough deals to qualify for those loans, and what are their terms?  Most people stick with Fannie Mae / Freddie Mac financing for their 1st 10 deals as these provide the best term (interest and down payment requirements).  Once they pass their 10 deals they will work with banks / credit unions on commercial / portfolio loans, which will usually be higher interest rate and down payment requirement.

In terms of capital needed, it all depends on the area you want to invest in.  Where I live I will be luck if I can find $300-$400k houses to work with.  So if the average selling price is $100k, you probably want to have at least that much to start with, depending on what you can get and how much you need to rehab the house.  Even if you use hard money lenders, you will still have some skin in the game because they won't give you 100% loan.  You can always find money partners to learn the ropes, but you will have to find your partners from your existing contacts who know you, or establish new relationship while you prove yourself.

Good luck going down the path.  Wish you success!

Henry

I just got kicked out of the app when I was reading the posts in the trending threads. Using iPhone 6s with iOS 10.2. Trying to replicate it and will post if I'm successful.

@Steven Mitchell

vent your PM's...  talk to them, meet them, find out their process and their fee structures then decide which one you want to go with.  Depending on the area of your rentals, some of them may not take you on as a client.

Crestcore, Memphis Turnkey (CB Properties), Reedy, Premier which is part of Memphis Invest, MidSouth Home buyer.

@Romar Lagamo

How fast do you want to ramp up?  Do you have enough $ to move fast?  Are you familiar with all those markets already?  Do you have supports in all those markets?  If not, it maybe easier to start with one market first, and build it up and monitor it a little before you start your next market.  I'm currently in 2 markets and soon to be in 3, and I can tell you that like @Alex Craig said, I got confused of the payment date and it took me a little to get used to the different statement formats.  I am not an expert in both markets but I monitor via Zillow to see what's listed around the neighborhood to have a feel of current market.  

Good luck!

Henry

@Jerome Daughtrey

Hi Jerome,

What are your short/medium/long term goals?  Why did you decide to go turnkey route?  By buying out-of-state turnkey, you are looking at longer term buy-and-hold because you will likely be paying retail prices so you can't turn around and sell your rentals to make any profit.  You are also committing 20-25% down payment if you are getting a typical mortgage loan.

That said, if you are still into turnkey, definitely research a market first then providers.  Also make sure you have your finances in order so you don't become one of those tire kickers.  :)  If you have a mortgage broker already, get pre-approval so you know what price range you're qualified for.  

You can find some turnkey provider info on //turnkey-reviews.com/.

Reach out if you want to chat.

Good luck.

Henry

@Jack Beach

Just tossing ideas - 

Is it big enough for a gas station and a convenience store?  Not certain if it will be in conflict with your non-compete and all the local requirement on gas station.

I'm not the tech support so I'm just sharing my experience... You may want to contact support and give them your device info and OS version. Sometimes older iOS version isn't compatible with the app so you may need to upgrade the OS then reinstall the app. I had to upgrade my iOS to use the app on my iPad. Also, if you are not a pro user and press the pro user forum, it will just crash the app / kick you out of the app. Just some thoughts.. Henry

Omar Diaz What is your plan? Do you plan on BRRRR on your 1st few properties? Or do you plan on rehab a few properties on the side while working your 9-5 day job? I haven't used portfolio lenders yet because we haven't maxed out our Fannie loans. Between my wife and I we can get up to 10 conventional loans each, total 20 loans, with 20-25% down payment. When we get there then we will either consider portfolio, or local bank commercial loans. If you have steady income and qualify for FHA 3.5-5% down payment loan, why not use FHA or 203k rehab loan to start, and rehab while you live in it? Good luck! Henry

Tas S. I think it all depends on the lender. I had one which kept the extra amount in the escrow account until I had enough to apply to a full payment. I had to call them to change the default setting so they apply all extra amount to the principle. Like others said, give your lender a call and set it up to your preference so there isn't any misunderstanding. Henry

Thomas Lorini Not sure about your relationship with your friend, and if either of you have a 'significant' other, bear in mind that you are on the title and mortgage. If anything happens to you, your friend, or the property, how will you guys resolve the ownership issue? If you do work out the selling price, your friend should probably be on the title of the property so when you sell, you both share the profit and tax hit. Can't help you on the price. I personally like the $180kx20% which will give you all your invested capital back. However, you are still on the mortgage so if it goes under, it's your credit that will get affected. Henry