All Forum Posts by: Julius L Evans

Hello BP experts. I am BRAND new to this industry and I like it so far. I have watched hours of videos and webinars and I am continuing to learn. Isn't it funny how you can hear something or watch it on YouTube and think you have it all figured out. Well, that was me, but I know now that I must ask pointed questions before I proceed. That's what brings me here.   

My wife asked isn't it better to get the money lined up before getting together a contracting/rehab team? I told her that everything I have heard says get the team together first. That way, when I have a deal, the team is ready to go. I don't think we will have a problem with financing. I have money and I have solid credit, so I think we will go to banks for smaller loans and to hard money lenders for larger deals - (which I intend to stay away from for now because we are so new), but I did see a six unit that is fully occupied and I'm going to run an analysis as soon as I finish typing this question. 

My question to you is, in your opinion, which comes first, the team or lining up the money? I figure you have to have a property or a deal on which the lenders can make a decision before you line up any money. Second, what are your reservations, if you have any, about using hard money lenders? Is that a risk we should stay away from or is it the only way to get bigger deals - and remember, we are in Hagerstown, MD. 

Thank you for entertaining my question.

UPDATE: I just got off the phone with my realtor and I am on the right track. As it turns out, this property will not work out, but we are on the case of three others already. Thank you to everyone who replied: @Evan Polaski, @Kimberly Kesterke, @Bjorn Ahlblad, @Aaron K. and @stephanie simmons. Your guidance and patience is invaluable. 

@Evan Polaski Thank you for your sage advice. I have a much more clear path. After I posted my comments, I hoped to receive the type of advice everyone has provided. They say no the only question not asked is, well, you know. I'm super happy I asked because this could have turned out disastrous - and this is my first potential deal!

Again, thanks for taking time to reply. You guys are showing me that the time I have spent in this forum and on this website was definitely 'value add.' 

By the way, I wasn't represented by an agent. I found this deal on Realtor.com. But I do know two agents and one is in my area. So I will reach out to her and we will get things cracking. 

I guess my next biggest concern is putting together the team of people to renovate this building. I've got more research to conduct, but I am going to schedule to see the place this Saturday. Thanks again to all the professionals who gave me some valuable advice.

I am taking heed.

Julius

Hello and thank you everyone who has chimed in already. This is a learning experience and I have a new direction. I WAS just going to the owner because (silly me), I thought that was the way to go. But now I see that I SHOULD and I will go through the agent. In fact, I'm going to contact her right now.

Thanks Y'all!

Well, thank you for replying. Ok, so I shouldn't think of avoiding the agent. But if there is a property that isn't listed or is a listing expires, then I can go direct to the agent! Ok, good deal. I certainly don't want to piss people off in my effort to do good things. I am offering to buy the place, fix it up and then make it available for rent to the general public. So, in my mind, I'm providing a service to the community. 

But I will go through an agent. And, your assumption is correct. I am not an agent.

More importantly, I want to thank you for your direction, your suggestion and your recommendation. 

You are a kind person!

My wife and I are starting our new real estate investment business and we found our first potential deal. We want to make an offer directly to the owner and don't know how to approach him. I've listened to Brandon Turner and Ross Hamilton. Seems like going to the owner instead of the listing and other real estate agents is the way to go. But I don't know if there are certain phrases I should say. 

The duplex is vacant. Repairs are required and I'm getting my team together. I don't think financing will be a problem however, I do not intend to use my own money. It's my first deal (well, I have bought four single family homes), but this is my first RE investment deal. The analysis shows that I should net a CoC ROI of 33.94%.

We are proceeding cautiously because this is our first foray into this arena. I am open to any and all suggestions on what I should say, what I shouldn't say and if I actually have to bring a realtor into the deal. I intend to buy and hold this property.

Sorry if I am a bit scattered and also, please let me know if I have put too much information out there. I don't think there is much interest in the property because it has been listed for 92 days.  

I am open to all suggestions. That CoC ROI comes from the Bigger Pockets tools!

Thank you.

My wife and I are starting our new real estate investment business and we found our first potential deal. We want to make an offer directly to the owner and don't know how to approach him. I've listened to Brandon Turner and Ross Hamilton. Seems like going to the owner instead of the listing and other real estate agents is the way to go. But I don't know if there are certain phrases I should say. I want to prevent him from saying 'go through the realtor.'

The duplex is vacant and is for sale for $52,000. Repairs are required and I'm getting my team together. I don't think financing will be a problem but I do not intend to use my own money. It's my first deal (well, I have bought four single family homes), but this is my first RE investment deal. I estimate that renovations will be around $20K, I intend to offer $40K for the property, and both units should bring about $870. The analysis shows that I should net a CoC ROI of 33.94%.

But I'm shaking in my boots because this is our first foray into this arena. I am open to any and all suggestions on what I should say, what I shouldn't say and if I actually have to bring a realtor into the deal. I intend to apply for $70K and I intend to buy and hold this property. 

Sorry if I am a bit scattered and also, please let me know if I have put too much information out there. I don't think there is much interest in the property because it has been listed for 92 days. The area is - well, it's a $50K house. 

I am open to all suggestions. That CoC ROI comes from the Bigger Pockets tools!

Thank you.