All Forum Posts by: Jim Kittridge

Go to another lender that is lending and refinance your free and clear property.

You need representation that has a lot of experience to avoid common issues like early terminations, performance of that location for tenant, etc..

Rule #1 is make sure you are happy with market rents for the building (not what current tenant is paying).

For example you buy a hip drive-thru coffee shop based on them paying $50/ft in rent for 10 years. Coffee Shop LLC #181 goes out of business and the market is $25/ft.

You paid 2x what it's worth and now get the honor of helping pay to upfit the old building for a new tenant.

Most investors want a +10% cash on cash return after accounting for all expenses & reserves such as:

Vacancy
Maintenance
Capital Expenses
Property Management
Taxes
Insurance
HOA
Lawn/Pest
Utilities

The sum of those end up being 35-45% of gross rent for most rental properties, but you should adjust for your area, rents, and costs.

RE is a fantastic investment once you know what you're doing. 

More importantly, figure out how to significantly increase active income. That will have the largest return by far.

Also, Charlotte is a great market. You can look at the towns that surround Charlotte and find deals that make sense when the time is right for you. I would not recommend starting out of state since you live in one of the top markets to invest in. 

I'd pay taxes before I put it in a DST where I have zero control.

If you can execute a 1031 on a property that you'd buy anyways, great. If not, pay the taxes and wait for a deal that fits your investment criteria. You can earn 5%+ in a money market fund while you wait or do private lending.

IMO, keep flipping affordable houses that you can knock out in <3 months.

With rates this high, it's near impossible to cash flow in Charlotte metro while avoiding rough areas. 

You can look at Greensboro, Jacksonville, & Fayetteville. 

No. 99% are wholesalers. Also, if it's the flyer you posted, negotiate better deals for buyers and they'll sell.

Hi Lee, BRRRR's are difficult to execute in today's environment, even for experienced investors like myself who have bought 100+ unless you are active and sourcing your own deals.

There are a lot of options, but sub2 and seller finance are attractive right now.

Congrats Clint. Hope the conversion goes well for your team. 

True Homes has a build on your lot division. Their pricing and experience is extremely competitive and they're building a few for a buddy of mine.

I'm happy to connect you via email if you'd like.