All Forum Posts by: Hunter Reed

Hello BP,

The time is coming near for me to seal the deal on my first investment property. I have been due diligently studying markets, books, education, podcasts, and mentors for almost 3 years now. I have come across many different theories into investing in the beginning. The market as of now are very unpredictable although I have a feeling that prices will begin to fall in the begging of 2024 through the spring and in the summer months. In the next 8-10 months is when I will be pulling the trigger. Based on the assumption that prices will fall which strategy should I invest in.

Working capital: $22,500.00

Private money lenders: 3 individuals

Strategy options: House Hack (FHA), Fix and Flip, Hard Money Lender?

Based on the information I provided above how would you attack your first investment? I have experience flipping and keen knowledge under writing deals. I will be investing in Fort Worth, TX while I attend Ranch Management at TCU for one year. 

Vinyl Plank flooring.

 @Lee Bailey Once the title is in your name you can start the eviction process. Work with the Seller stating that you will evict the scandalous tenants for a discount. I bet he would defiantly work with you on that! 

Triston, I would read all the bigger pockets books for real estate investing purposes. I would also advise investing in government bonds because of the high yield returns and very low risk. Set up a Roth IRA and invest $100 a month. I've done this for a year now and have already seen amazing returns. Good Luck!

Lee, file eviction get the tenants removed and then go back to the drawing board with the seller. The seller will be pleased that you evicted the tenants and he/she will be more than likely to give you a sweet deal. Go to a hard money lender to get the rehab done in 3-4 months. The hard money lender will probably charge you 12-14% on the loan. Once the rehab is completed go to a bank with proof of title and structure a new loan. Once the new loan is obtained pay off the hard money lender and the seller. I would even explain to the seller this plan assuming that he may not charge you any interest on financing. Good Luck!

Duane, why have you not terminated the tenants the first time they were 7 + days late on rent?

Michael, read "long distance real estate investing" by David Greene.

Thomas, Section 8 housing is a great avenue for consistent cash flow. A wise investor once told me that tenants who qualify for section 8 housing are the best tenants. Here's why, people qualify for section 8 housing due to their low income stream and clean records. Section 8 housing can be stripped away from the tenant if the tenant deals damage to another property, or is subject to breaking state laws. Thus, Section 8 housing is a royalty gifted by the government for people in need. Section 8 housing tenants understand these laws and will not let free money disappear into thin air. 

My biggest concern regarding a perfect investment would have to be a bad appraisal. If I conducted a concise rehab over a 3 month bridge loan, and at the end of the 3 months I had an appraisal done and it came back 50k under my ARV. I would feel like a loose kite in a hurricane!

Emma, Once you have found the property start by quoting contractors. Be aware of zoning laws and building permits for these variables could cost your investment unnecessary time and resources. Before you decide on a contractor or flipper, create a contract that states when and how the rehab will be done. In your contract include clauses that state if the work is done by this specific date then... Or if the work is completed before the deadline then there will be an extra incentive. If the work is not completed by this date then there will be no pay... (Worst case scenario it will be decided by the judaical system) Hope this helps. Good luck!