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All Forum Posts by: Jimmy Martz

Jimmy Martz has started 11 posts and replied 41 times.

Post: from newbie to 5 SFR properties in 1 year

Jimmy MartzPosted
  • Investor
  • Yukon, OK
  • Posts 41
  • Votes 48

@Account Closed   I have always established a relationship with the mortgage banker before I go asking for a loan.  After I buy the properties, I rehab them and  get tenants to sign a lease agreement before I go to the bank for a cash-out refinance.  When I visit the bank, I have a packet that includes:

-Before and after pic's  to show my quality of work

-Project Numbers- to show that I can do a rehab on a budget & that I keep accurate records.

-A signed lease agreement- to verify the income that the property is producing

-Application paperwork from the tenants- to show that I am doing my due diligence on the property management side of the business. 

So... to answer your question- it takes about 2 weeks from the time that I stop by with my packet and request an appraisal until the closing date.  Lots of extra information here but I think it all directly relates to the length of time that it takes.  My banker once told me that he likes his loans "boxed up with a pretty little bow", referring to the loans being easier to process when it is super easy to explain the validity of the deal to his underwriters. 

Post: from newbie to 5 SFR properties in 1 year

Jimmy MartzPosted
  • Investor
  • Yukon, OK
  • Posts 41
  • Votes 48

@Lee Haskins  I was doing deal 1 and 2 at roughly the same time. -bought 3 weeks apart.    Same situation with 3 & 4.  I offered on deal 4 the day after I closed on deal 3.  Deal 5 was a few months later.  The funny thing is that after you already have a house under contract, it makes it much easier to put out lower offer prices because there isn't the self-inflicted pressures to find a deal at that point.  

@Tiffany S. I used a HELOC on my primary residence to make cash purchases & financed the rehabs.

@Max Shaw  My end game is to provide income and build something that I can be proud of.  We all play this game called life.  I just want to be good at it.  I'm a teacher(band director) and I love my job.  I'm not necessarily interested in leaving the teaching profession but I am for damn sure not going to sit around and wait for people to vote to give me a raise...  I'll give myself that raise :-)

@DJ Cummins  Long term plans are tough but I plan on continuing to invest.  I would like to enter the multi-family arena when the right opportunity comes along.  In the meantime, if I can buy a house every other month and continue to follow a formula that is working in the meantime, that works too.  

@Rod Joseph  Deal 1- county courtsteps.  Deal 2- a lead through direct marketing(bandit signs) 

Deal 3-MLS, Deal 4- bought through a local auction company, Deal 5- Probate property brought to me by the realtor who sold me deal #3

@James Masotti

1 & 2 -Answered above

3. Deal 1 took about 10 weeks because of 2 things.   

    -I had to learn how to get work done efficiently and manage sub contractors.

    -I was dead set on not failing so I did lots of work myself because I absolutely HAD to make sure my numbers were awesome in order to convince my wife that I wasn't going to bankrupt us.  I'm sure some of you will relate to that one.  

Deal 2 took about 10 weeks as well.  Numerous problems that I had to work through.  When you're new, it seem to take twice as long to trouble shoot problems.  Just part of the learning curve I suppose

Deal 3 took 5 weeks from the closing date until I had a lease agreement signed.  Little higher on the learning curve.  

Deal 4- +- a week but this was our previous residence so there wasn't much that needed to be done.  This issue was trying to find a renter in December which I now realize is a tough time to find good tenants.  

Deal 5  took 6 weeks from closing day to having a lease signed.  

4,5, and 6- We started out doing as much work ourselves as we could which sucks but it taught some good lessons. We use sub contractors for all the skilled work(electrical, plumbing, etc). I have never hired a GC. The further along we went, the less labor we(my wife and I) did ourselves. We didn't do much labor on the last 2 other than some of the make-ready stuff. Hiring sub contractors is tough. I have found some good people through references from other investors that I have met on BP or at the local REIA meetings. I also get references from the contractors themselves. A good plumber is likely to know a good handyman or electrician. You get the idea. I have also hired plenty of bad sub contractors that I will not use again. I now hire out subs to do 1 or 2 small jobs to try them out & see the quality of their work, reliability, etc. before I will give them the opportunity for a big job. I also require my sub contractors to sign a contract that will hold them accountable to a completion date and deduct payment daily if they don't meet the deadlines if it is something that will take more than a day or two.

Post: from newbie to 5 SFR properties in 1 year

Jimmy MartzPosted
  • Investor
  • Yukon, OK
  • Posts 41
  • Votes 48

Hello BP, 

After listening to podcast 167 with Kevin Wood, I am posting of my successes for my first year of investing.  I've been reluctant to post because my family has raised me right which means you don't talk about money and you definitely don't brag about it...  Some of you will relate, I'm sure.  

Deal 1   3/1.5/2, 1152 sq ft. built in 1982 in Mustang OK school district.  pd 61k, put 26k into rehab/closing costs/etc.  All in at 87k.  Appraised at 115k.  did a cash-out refinance for 92k.  Currently rented for $1150/month

Deal 2   3/2/2, 2250 Sq ft, built in 1983 in NW OKC.  pd 85k , put 30k into rebab, etc.  All in at 115k.  Appraised for 160k.  did a cash out refinance for 120k.  Currently rented for 1,300/month.  

Deal 3 3/1.5/2 1087 Sq ft, built in 1972 in Yukon Oklahoma, pd 78k, put 11k into rehab, etc. All in at 89k. Appraised for 100k :-( My CMA would have had it around 110k but this happens sometimes. I did overpay for this one; got a little over-confident... It rents for 1,000/month

Deal 4   4/1.5/2 1700 Sq. ft, built in 1966 in Yukon Ok, pd 82,500.  Put $0 into this one because it was move in ready- moved my family into it.  It appraised for 124k in the same condition that I bought it.  We financed it for the purchase price and put it on a fixed 30 year note for 700/month mortgage for us(escrowed insurance & taxes included).   I put a few grand into our previous house and made it a rental for $925 a month(below market but we were marketing it in December so we dropped it a bit to get a good renter).  At some point, the house we moved into will be a rental as well so that will be even better as we see it through as a long play.  

Deal 5   3/1.5/2 1172 sq ft, built 1966 in Yukon OK. Pd 71,500.  Put in 19k.  All-in at 90k  & It appraised for 107k.  Not great but not awful.  We are leaving about 4k into this deal after everything is said and done.  Rented for $950/month.

With any luck, I can get at least 5 more SFR's this year. I have also been researching the in's and out's of multi-family investing and hope to get into that market as soon at the right opportunity presents itself. I am definitely open for advice if anybody thinks I might need to re-evaluate my strategies or has any wisdom to share.

Lastly, many thanks to the BP community, Josh & Brandon for this great resource!  

Post: oklahoma city accountant and bookeeper

Jimmy MartzPosted
  • Investor
  • Yukon, OK
  • Posts 41
  • Votes 48

I am looking for an accountant in the OKC metro who will also do some bookkeeping. Does anybody have any recommendations? What is a reasonable expectation for bookkeeping costs for a portfolio with 5 SFR properties? Is there any local guys that use virtual assistants for bookkeeping work & what is the consensus regarding that strategy.

Post: Oklahoma City contractor suggestions

Jimmy MartzPosted
  • Investor
  • Yukon, OK
  • Posts 41
  • Votes 48

I had L&L kitchen do a granite install for $25/sq ft which included the product and install.  They  charged $150 to cut the sink.  Best deal I've found for granite and they did a good job with the install.  I use topco for formica jobs but have my handyman do the install because this is cheaper than having topco do the install.

Post: How did you start out?

Jimmy MartzPosted
  • Investor
  • Yukon, OK
  • Posts 41
  • Votes 48

@Chris Hayes

I am a part time investor with a few properties in the okc metro. I started by reading everything I could and educating myself on the basics and then using BP for specific questions and networking along with attending the local REIA meetings. That's where I would suggest you focus your energy. Getting a job in a related field wouldn't hurt but its not necessary.

Post: Mobile Home in El Reno, Oklahoma

Jimmy MartzPosted
  • Investor
  • Yukon, OK
  • Posts 41
  • Votes 48

Angie,

Thanks for sharing.  I will keep this in mind.  I haven't visited the property yet because I am still working on getting familiarized with MH investing but the pictures & seller information leads me to believe that it is away from the city a few miles.  I think it's on it's own septic and is on well water.  What would be best case scenario for a mobile home when talking about septic, water, electricity, etc.?

Post: Mobile Home in El Reno, Oklahoma

Jimmy MartzPosted
  • Investor
  • Yukon, OK
  • Posts 41
  • Votes 48

Hello BP,

I have an off-market double wide mobile home in El Reno that has been offered to me.  I'm trying to decide if this is something I should consider buying as a rental.  Any insights would be appreciated.  

2010 Clayton Double Wide  26ft/53ft on 1 acre of land.  

3 bed, 2 bath, no garage or any other structures on the land.

big wooden decks on the front and back doors.

Seller is willing to sell for 30k cash

Post: Just starting in wholesaling, need help!

Jimmy MartzPosted
  • Investor
  • Yukon, OK
  • Posts 41
  • Votes 48

I would suggest going to meetup.com & signing up for the "real estate wholesalers network" in OKC.  I've been a few times and really enjoyed the education and the like minded people that come.  The next meeting in Jan 26th. 

Post: Real Estate Attorney in OKC

Jimmy MartzPosted
  • Investor
  • Yukon, OK
  • Posts 41
  • Votes 48

Does anyone have any recommendations for a real estate attorney in the OKC area?  Thanks in advance.