All Forum Posts by: Isaac Guzman

Hi all, 

It's been a while since I have been very active on BP. I have been working tirelessly learning the trade. I was inspired by BP podcast and fortunately found some investors in my area (through BP) who were willing to help me out. They have taken me under their tutelage for the past several months and have now given me some room to work on my own. As a Managing Partner with EAC investments I am looking to start doing deals via cash partnerships in the Birmingham, AL area. I am looking to connect with anyone who is in the area and can help me grow my knowledge and network in that area. Any suggestions on active rehabbers, PMs and contractors?  

@Erica Davis - Welcome to the BP community. This is definitely a place to grow your network and influence. May I ask how long you have been working in that area? I just recently was asked to head our efforts in that area (out of state investor portfolio) and would love to know more about the area and your offerings. 

Thanks!

Welcome Daniel. Glad to see a fellow San Diegan on BP. Feel encouraged to reach out with any questions or comments. 

What are your goals? Any specific niche work well in your area? I'm no mentor/guru but providing this info will be helpful to would-be mentors. I found two great mentors through BP and commend you on your efforts!

The best way to buy for rentals would most likely have to be at a discount, ugly house in nice neighborhood. That being said, in my opinion in a rising market (for buy and hold properties especially) would be not to buy at all (at least not in that market). Look at some of the most successful investors and they know that there are just some times when its smartest not to buy. Maybe consider another market nearby that has the numbers you're comfortable working with. The last thing you'd want to do is play the speculation game and set yourself up to be on the bad end of that bubble when it inevitably bursts. 

I know there are a ton of other variables to consider but that is just my two cents.

Thanks for the update. I was mistaken in my understanding. In that case, your other option is to generate such leads on your own. Using a solid website in combination with facebook and google adwords, you may be able to generate more leads for the same cost. I guess it really boils down to whether or not you are going to be marketing online as well, or just using this company to generate your leads for you. 

If it were me, I would use the leads for a test period (or amount, depending on how the company prices) and see if the conversion rate is high enough to justify the cost. Then you can compare that to running your own online ads. I would add that if your area has little to no competition, you may as well establish your online presence and generate your own leads, as less competition generally means cheaper ads, more visibility and less competition once you reach out to the lead. I say this last part presupposing you have a website which can capture lead information. 

I hope this helps. 

@Jack Rengold

 - Not all list providers are the same. Some have very relevant, up-to-date data and others have older less dependable data. In general, purchasing leads is a great way to grow your marketing and bring in more opportunities for deals. I would recommend buying as small a list as makes sense and test it for accuracy. If they data is solid, it should be worth the $80 investment. Also consider how much in potential deals/leads are you missing out on if you don't buy these leads. How long would it take you to build such a list? How much do you value your time vs your money? Just a few things to consider. 

@Anthony D'Angelo- Welcome. I did what you are looking to do. I got on BP and found a team to connect with and began learning hands on. Truly the best way to learn. Keep posting and reaching out to grow your network. It will pay off. 

Welcome @Gus Guzman

 - It really depends on your goals in Real Estate Investing and the deal itself. Sure, using hard money and your cash to rehab a home may be a good idea. But only if you have a clearly defined and executable exit strategy. To be honest, your question really boils down to, do you want to start rehabbing in San Diego? If so, then yes, hard money is a solid way to go. 

That being said, hard money is typically handled in the following way here in SoCal (and everywhere else in general):

-Hard money lender will provide 70-80% of purchase price and 100% of rehab cost. So in reality your cash will be used for the 20-30% of the purchase that is not covered by the lender (aka gap funding). 

One of the most important parts of using hard money is making sure you are bringing an attractive offer for the lender and not just yourself. Using your own cash to fund the gap (hence the phrase "Gap Funding") will show you have some "skin in the game" and make lenders more comfortable when deciding to work with you. 

I hope this info helps! 

Hi Matthew,

My family comes from the Imperial Valley (the county in which El Centro is located) so I may have a bit of insight. There most definitely is a large amount of owners who own outright. However, that is a great opportunity in the long run. Why? Mainly because the reality of what @Steve Olafson said, it's like living in *ell. The children of those homeowners most likely live somewhere other than the small town in which they grew up. So when those owners pass, move to a rest home/kids...etc. The people who inherit the property (which is in the town they strove their whole life to leave) are eager to sell. I know this from personal experience with my grand parents and parents. 

Additionally, that area is growing, albeit slowly.