All Forum Posts by: Jeromy Jordan

Would you overpay for a deal?  Most offers I put in for a deal(on market and off market) does not get accepted and that is ok with me.  The first thing an Agent or wholesaler tells me is "You don't know the market" "its a sellers market" "the 75% rule or 80% rule for BRRRRs don't work anymore" My answer to that is "so what". I understand its a sellers market and there are bidding wars on everything and things are "not like they used to be". And I also know that insurance premiums are steadily going up, property taxes are high, and the cost for goods and services(contractors/materials/specialty techs etc) have gone up as well...The numbers are the numbers and if they don't work out, why would I overpay for something. I can afford to wait and be patient to find the right property with the right circumstances. For example, in the market I invest in, I found a deal for 30k less than what the avg fixer upper is selling for.  I was in the right place right time, in the right situation with a motivated seller and got the deal. It obviously was a little luck involved in finding/getting this deal as well. I feel like if you be patient and continue to hunt for deals something will come along. Also I am still young in my investing career(only 4 properties so far) so my risk tolerance may be different than a more experienced investor. But I feel like some agents/wholesalers are reluctant to work with me or insult me by saying "I don't know the market" just because I'm not offering what everyone else is offering. 

I would really like to hear experienced investors and beginner investors opinion on this. Am I doing something wrong? Running my numbers too conservatively? Should I pay what the current market is demanding? 

Hello BP!

Does anyone have any tips/steps to take with buying land and building properties to sale or hold as rentals?  Anyone have any experience with going through the process that is willing to share their experience on the risk/rewards of this type of investing.  I have friends of the family that brought me some off market land lots they are willing to sell me. I've never done this type of investing and unsure of how to seize this opportunity and take down these deals. I know the location is primed for building and their has to be profit to be made with it because there are other investors in the area building new construction properties all around the lots that I am looking at. 

I'm having trouble with analyzing the deal and deciding what a good offer price should be for the lots.  I'm trying to reverse engineer the process and back into my numbers. 

Should I start with finding an architect first, or perhaps a homebuilder? Do I just get it under contract first then go from there. 

It's a 10,000sqft lot in Houston, TX. Seller is asking for 100K.  I believe I can fit at least 3 houses on the lot. New construction homes all around it ranging from 1600sqft sold for 280K to 2000sqft homes sold for 400K. Also an investor is currently building 6 homes on an adjacent lot to the lot I'm interested in. The other seller which is a family member has 2 lots about 6,000sqft total they are willing to sell me. 

If anyone has any experience, advice, and recommendations with this type of investing I would really appreciate it. Thanks!

Hello BP,

I have a property that I would like to purchase as a second home in Houston with hopefully 10% down max.  Does anyone have any recommendations of lenders on the northside of Houston that are used to providing these type of loan products for out of state investors?  Caveat, my dad would be occupying the home as well for a significant amount of time throughout the year. 

Hey BP,

We have decided to do our next RE investment out-of-state! We chose the Shreveport/Bossier area since we were stationed there for about 7 yrs so I am familiar with the area.

I'm reaching out to my BP family to see if anyone is currently investing in that market or have in the past, and if anyone have any recommendations/speak on experience working with the property management companies in the area. Also if anyone knows any areas I should absolutely stay away from, that would be helpful. A few areas look good on paper number wise, but I know actual performance will not always be as good. I prefer to invest around the base or hospitals/colleges.

I've already started taking action! I've done as much research as I can on my own and already started making offers. I'm doing my best to avoid analysis paralysis! I figure the best way to learn is to just do it, make mistakes and don't make the same mistake twice.  

Thanks in advance for the support!

@Robert Haney  I appreciate your frankness and I agree the cards are stacked.  You make very good points.  I have family and friends in Houston that know what I am doing, see my vision and are on board with helping.  

Do you have any ideas on how I could minimize the risk of getting ripped off by contractors, becoming second thoughts to agents, and managing the PMs?

off topic a little bit but any tips on how you found soo many off market deals?  Maybe I can apply some of those techniques in my local market here. Right now I've been just looking on market at REOs, going to Auctions, and driving for dollars and cold calling. 

Hey BP,

I've decided to look outside my local market for buy and hold investment properties due to the small expensive/competitive market here in Anchorage, AK. I'm from Houston, TX so I chose to invest there since I am familiar with the city. My plan is to use the BRRRR strategy with SFRs and small MFRs

I know I need to build my core four and I know one team member will usually give recommendations to the next member of the core four.  

My question is what team member of the core four would you recommend finding first? I've read a lot that say you should find a good investor friendly agent(one who works with out of state investors) first but I've also been watching some bigger pockets podcast that makes me think I should look for a good property management team first. Companies such as Mynd, and then build the rest of my team from their. Makes sense to me because I would think a good PM would have good contacts for GCs that would be very important for the BRRRR strategy to work.

Any guidance or advice would be greatly appreciated! Thanks!

Hey BP,

I have a sub2 deal and I'm bringing in private money to fund the rehab.  I plan to keep the property as a buy and hold. I just cant figure out how to structure a deal with the private money lenders to repay their money.  If I were flipping the property, I could easily pay them from the profit but how would I pay them back if I plan to keep the property with the existing mortgage in place from the seller.  Any recommendations?

Hi BP Community,

I think I found a good duplex to purchase for house hacking that works number wise. This will be my first investment so I am trying to make sure it goes well to set me up for future investments. I discovered that the current owner has numerous complaints filed against him from tenants and it paints a vivid picture of him being a slumlord(numerous of post are saying don't do business with this guy!). One of the units appear to be in decent shape but the other unit needs some work. I don't want to purchase something and find out months down the rode that it has a ton of problems that were never disclosed and covered up.

Would you buy a property from a previous bad owner?

Hi BP Community,

I think I found a good duplex to purchase for house hacking that works number wise.  This will be my first investment so I am trying to make sure it goes well to set me up for future investments.  I discovered that the current owner has numerous complaints filed against him from tenants and it paints a vivid picture of him being a slumlord(numerous of post are saying don't do business with this guy!). One of the units appear to be in decent shape but the other unit needs some work. I don't want to purchase something and find out months down the rode that it has a ton of problems that were never disclosed and covered up.  

Would you buy a property from a previous bad owner?

@Chris S. no I just need one vacant unit of the fourplex preferably a 4bd for my family and I to say in.  I plan to rent out the other units unless they are occupied already which would be ok to. No common entry area, the wife may not like that idea especially with our little kids around.  Prefer individual exterior entrance/exits.  Side by sides or top/bottom with separate entrances would work

I'm looking for a good agent with investing experience to help me out.  I am a newbie and this would be my first purchase. Its pretty expensive up here but if I can find one that the numbers makes sense then I'm ready to take the leap of faith. 

I would openly accept any agent recommendations and greatly appreciate it!