All Forum Posts by: Jefferson Simmons

Hi Drayke! Your felony does not necessarily disqualify you from being able to get your license. As fiduciaries for our clients, integrity is one of the most important parts of being an agent. If you fully disclose your charges, and have demonstrated strong character since then, some states will still consider you for a license. Hope this helps!

Congratulations! Navigated several challenges and still came out on top, nice work!

Private lending is a great resource as it is much simpler than dealing with banks and you cut out a lot of the hidden fees. #1 thing I would recommend is ask for MULTIPLE references from previous clients. Don't just call the first person because it could easily be a family member, friend, etc. Using a private lender is a big commitment and you don't want to get in bed with the wrong one! 

Hi Chase! I am not familiar with South Bend, but if you are looking for an affordable market I could certainly help you out. I live in Manhattan, KS and we are home to ~20,000 students that attend Kansas State University each year. We are also about 15 miles away from Ft. Riley military base so the tenant pool is deep! I have great relationships with property managers and contractors. Average home price is right at $200,000 so it is a great market for people looking to get started. Let's connect!

This would be a great question for your lender. Typically there is a 6-month "seasoning" period but this can vary depending on the type of lender you used. Congrats on the new house!

There are several Kansas City Facebook groups for listings like this. BP Marketplace is also a great option!!

Hayden, so sorry to hear about you losing your job. There are many avenues you can pursue if you are looking to get closer to real estate without taking the risk of riding or dying on commissions. A great place to start would be in a bank. You could learn about loan origination and the ins and outs of the borrowing process. 

Another option if you're considering being an agent down the road would be to get a job as support staff in a top agent's office. You'll gain valuable experience by observing habits of a top producer that you can mimic when you take the plunge into being an agent yourself. 

If you're interested in investing you could look into getting a job with a property management company. You could learn the processes of maintaining rental property without having to go through trial by fire on your own investment. 

Hope this helps, let's connect if you'd want to chat anymore!

Hi Sophie! This is a question I have wrestled with on several deals. After replacing an entire HVAC system on a fixer-upper, I thought I would bundle in utilities to make it easy on my tenants and they would pay the same amount every month. Every time I have done this it has come back to bite me. I may stop by the property to change a filter, and every light in the house is on, the tenants take hour-long showers, and keep the thermostat wherever they please. I had college students living in a house and I found they all had mini fridges in their bedrooms when I inquired how they had run up a $450 electric bill. Sure, sometimes in the spring and fall when the weather is mild I have made a little money on flat utility fees, but in the long run as we expand our portfolios, it's simpler and less risky to have the tenants take care of utilities themselves. They'll be much more conscientious of how they use their resources too which is obviously a bonus. 

Investment Info:

Small multi-family (2-4 units) buy & hold investment in Manhattan.

Purchase price: $105,000

Purchased property via online auction as a bank foreclosure.

What made you interested in investing in this type of deal?

Average home price in the area is ~$200,000. Getting two units bought at $105,000 left a lot of meat on the bone for an extensive renovation that would still cash flow like crazy!

How did you finance this deal?

Partnership

How did you add value to the deal?

Top to bottom rehab on both units.

What was the outcome?

3 1/2 years later still holding it. Never had a vacancy and raised rent every year since I always have a waitlist.

Lessons learned? Challenges?

Spent too much money on the rehab. First major project and tried to make an HGTV home. Getting it bought right saved me in the end, however.