All Forum Posts by: Jeremy Bourgeois

Hey Andrew,

Is the property that you are looking at a fixer-upper? If not, have you considered traditional financing?

In my experience lately, most HMLs I have talked to are looking for a lot of experience and capitol. Down payments vary from lender to lender, but some of the common ones I have heard are 18-25%. Private money is a great option, since the terms are more fluid, but most private lenders I know are waiting until COVID is gone to continue lending. What is your end goal for this property?

Hey Dave,

It sounds like he wasn't a great tenant before COVID. Do you have a good property management company? It seems that your tenant needs to be "trained" for lack of a better term, on how to be a good tenant. Have you been charging late fees in the past? Or have you let it slide if he was late on the rent?

Hey Joey,

On one of my first projects, I tried to DIY everything with a few friends. We thought this project was going to take a few weeks of 8-10 hour days. It ended up taking just over a month, with many days where we were staying up till 3 am. We spent a lot of time going back over the work we had already messed up, but still learned quite a bit in the process.

My advice would be to focus on the things that you could see yourself doing long term in other projects. However, if you can afford to hire out the work, and just watch what the contractor does, that might be your best option, from a learning perspective.

Hope this helps

Hey Sean,

There are many different kinds of debt. Personally, I am willing to take on a lot more debt, as long as it is properly leveraged and I am still making money. Alternatively, you can buy properties cash, but to do that you need a large amount of cash saved up, and you wouldn't be able to buy as much property as you would if you had leverage. But once again, everyone has a different take on it, so really it depends on your strategy and situation.

Hope this helps

Hey Jim,

I'm a little confused on what it is that you're asking. So you are trying to purchase this property for 1 mil? Just as a rough number you would need about 200-250k to start. How much exactly do you need? Have you reached out to several different lenders?

Hey Edward,

that sounds like a pretty good deal you have there. Everyone's strategies are different, but if it were me, I would first look for a private lender (possibly family or friends), and if not that, then a hard money lender. While I haven't used it, I have hear the 203k loan is very tricky and time and labor intensive. Have you talked to several different lenders about it? Maybe after seeing what each lender has to offer, you will have a better idea of what the best option for you is. My advice- get on the phone with as many lenders as you can and see which program will work the best for you and your situation

@Andrew Menkes

That's a great goal man! 100 doors would be quite the achievement. If I were to start with building a team and building a list I would break that down even further. Planning is a huge part of the process. Just an example:

Step 1: Build a team

• First pick the area that you will be investing and then search for and reach out to 5 top performing realtors and wholesalers
• Once you have narrowed down your team to one or two deal finders, have them update you on properties and give you a breakdown on the current market conditions in that area. Build a great relationship with these individuals, as well as anyone else on your team and just anyone you come into contact with in general. (There are some great books on this specifically. It is an art as well as a science, one that I am still working on)
• Find a great lender who will run through walls to get your financing (I would use the same process as used for finding realtors and wholesalers)
• Get preapproved

Now you're ready for a deal

To find this deal, you can either use a wholesaler or agent, or you can put in the grunt work yourself. A few ways to do this:

• Use a software such as list source, batch leads, deal machine, or lead sherpa to find homeowners contact info.
• I'm not sure which is best to use for cold calling, but I'm sure a small amount of additional research will bring you to your answer.
• After you reach out to these people, keep in mind that you will still need to make offers on their property, meaning you need to be able to estimate rehab costs as well as after repair value accurately.

Hope this helps, and good luck

It all depends on your situation!

If you have a high income job, do you think it would be more profitable to spend your time fixing up a property? Or would it make more sense to buy turnkey?

What I look for are motivated sellers and some kind of rehab work to find a great deal. Now, you can't just walk into a property like this and rent it out immediately. It also will not qualify for traditional financing. These are the kinds of deals I look for, but it isn't best for everyone, nor the easiest. So, not to sidestep the question, but I think the answer is in your personal situation and your end goal.

Hope this helps!

Hey Michael,

The real question is... What do you think? Is this a good ROI for you? If you searched for a little while longer or in a different way, would you find something that is even better? Doesn't seem too bad, but numbers at face value are different than the actual numbers. Is there a chance that the $100 per month could actually be -$100 a month? Not trying to discourage, but if you've already considered all scenarios then none of these should be a problem.

Hope this helps!

Congrats Scott! Job well done