All Forum Posts by: Mike Bryant

@J Scott Thank you for helping to clarify this discussion. @Kashana R. 's initial question - you don't seem to be describing what we call "private money" if 20% down is a requirement. That sounds like a traditional lender. When seeking Private money, start with your "warm market"; define what YOUR program is (i.e. how much you will pay, what term length, etc.) The best part about Private Lenders is they typically won't DEMAND what they want, you are in a better position to "call the shots" - if you have a relationship with them and they trust you and like what you are doing, you have a change to get access to funds in a way that will make your business hum! But it HAS to be a Win-Win. I have paid my CPA up to 6 points on a deal, because it was well worth it for me and it enabled him to get the 12% yield he was looking for. As you get rolling and establish more credibility, you can attract more investors who may be interested in what you are doing. Then you'll have even more control over the terms.

Good luck!!

Not much I could add to the excellent advice posted here. I think most of us have learned "the hard way" (this seems to be may favorite way to learn). We all want to think the best of our tenants and none of us want to go through the hassle of eviction. I heard years ago that once someone is 10 days late, they likely will NEVER get back to "on time". Some folks just live their lives this way. One tenant of ours was genuinely baffled when we were "hassling" them because "they weren't even 30 days late" (yes I have an email to prove this). It was all in their perspective. Other people give them 30 days or more (banks, credit cards, car payments, etc.). As landlords we need to train them that on time means on time. Ours now get a 3 day notice on Day 6, unless they have made arrangements with me that I am willing to accept.

Great report @David J. !! We have done direct mail exclusively for the past 3 years. We are just now starting to get into bandit signs and more broad-based marketing. The great thing about direct mail is the targeted list - You said Absentee Owners with (hopefully) some equity. Thats a GREAT LIST. We do the same, looking for retiring landlords. We also mail to a Inherited Property list we are able to get quarterly. We do postcards so the cost is less and they don't have to get opened. And I agree - BP is an excellent place to get ideas and learn!!

Hi @Billy Rowe , good question! Much of this depends on why you are buying the house. Is this a flip or a hold for rental? Are you buying to live in? This affects the math a bit.

For most investors, I'm not sure the price/SF is the best approach. It is certainly an indicator, but you have to know that the comparable properties are indeed that, Comparable. But you DO have to determine the value (most commonly referred to as the ARV = After-Repaired Value) before you can determine what you will pay as an investor. I've never heard of the 10% discount rule, but once we determine the ARV, we use this formula: ARV times 65%, minus repairs = Max Offer. This is a MUCH deeper discount than 10%. But we are buying as cash investors. We would get laughed out of most offers if we weren't marketing to motivated sellers. As one smarter than me once said, "If you aren't embarrassed by your offer, you are probably paying too much". For quick analysis, you only need to determine two things: 1) The ARV, and 2) How much repairs does it need? Then you could pay full retail (ARV) if you wanted to live there, but you will need more than a 10% discount if you are looking to flip, and more than that if you are looking to Wholesale this one. Whoelsale buyers are all at 70% of ARV and sometimes less, in our experience.

congratulations on your action, Antwaun, this is a great community for you to familiarize yourself with the business. Do you have a REIA in Beloit? That's a great place to start, just search online. Also the beginners material here is excellent. Do you know WHY you want to be a RE investor? Do you want to buy and hold rentals, fix and flip houses, or do wholesaling? There are so many ways to "do" this business, so you have to sort of pick a niche and get started. Good luck to you!!!

Wow @Brie Schmidt that is very inspiring story. That would make a great blog article. So many newbies who are trying to figure out what to do / not to do. Your story of self-discipline needs to be seen and heard by the masses!! Well done!!

Hi @Karen Margrave

@Karen Margrave

@Karen Margrave

Hi @Matthew Marshall

@Matthew Marshall

@Matthew Marshall

Hello, BPers. We are new to BiggerPockets and love the community! My company is increasing our marketing in 2014 and we have more leads coming in through our current marketing processes than we can keep in-house. As we enter our 4th year we are looking to work with new cash buyers who are interested in rehabs and turn-key properties in the Greater Kansas City area. Please contact us if you are looking for great investment deals in this excellent market in the Heartland of America.

Happy New Year everyone!

Marry Christmas @Jerry W. , just getting caught back up from the pre-holiday craziness!! Hope you are enjoying the Holiday!

Similar to what @Shawn Holsapple stated, the KC metro has many quality SFH rental areas, but the CAP rates in the more stable areas would be lower. Maybe a multi-unit investment would serve you better? a typical 4plex in a newer area (built 1980's and newer) brings a CAP rates between 15 and 20. We sometimes can achieve this with our marketing on a SFH, it is just more of a rarity. As far as landlord/tenant law, etc, I am not familiar with other states; but MO seems pretty logical in its approach. They aren't wacky on the side of tenants in other words...I will put together some materials and get them to you....