All Forum Posts by: Jim Young

I agree with what's been said already regarding it being a personal question with no universal "right" answer.  Rather than asking yourself "am I ready?", I recommend you separate yourself from the equation and answer the question as if you were advising a colleague or younger sibling: What would you tell an imaginary advisee to have in place before they go all in (imagine they have the same business plan as you): 

• Savings account size (measured in # months expenses it will cover)
• Emergency fund size
• Working capital to fund the business plan
• Knowledge level, in which areas of REI
• Support system, network (or "tribe")
• Lender or investor relationships

Then turn the lens back on yourself.  Do you meet those criteria?  If so, go for it!  If not, make an action plan to close any gaps, THEN go for it!   

Welcome to BP Josh!  My rentals are in Kennesaw but a friend of mine just bought two rentals in Cartersville.  I think it's a great area, the 75 corridor is in "the path of progress" as they say.  If you're new to landlording I recommend Brandon and Heather Turners Book on Managing Rental Properties.  And if you'd like to join a weekly Mastermind call with myself and a couple of other new investors we're looking for two new members, just drop me a line.  Good luck with the new property!

Investment Info:

Single-family residence fix & flip investment in Atlanta.

Purchase price: $40,000
Cash invested: $90,000
Sale price: $186,000

The house had been severely vandalized. The wiring and most of the plumbing had been stolen along with all of the fixtures, appliances, HVAC, hot water heater, etc. Basically everything that could be removed, had been. In addition the drywall was destroyed throughout the house, and most of the windows were broken. But the plus side was that the house was built in 2007, was a good sized 4/3, the roof was great, the framing was all there, and it was on a slab with no foundation issues.

How did you find this deal and how did you negotiate it?

I happened to be with a wholesaler and contractor inspecting another property when the wholesaler got a text about this one. We drove over together and looked at at, I did the analysis on my laptop and made my offer on the spot.

How did you finance this deal?

All cash.

How did you add value to the deal?

This was really a perfect rehab, the bones of the house were in great condition, everything that was destroyed was basically cosmetic or easy to rebuild.

What was the outcome?

Because this was our first flip I had modest profit expectations, and would have been happy getting the experience and not losing money. As it turned out we were helped by an appreciating market and made a very good profit.

Lessons learned? Challenges?

Contractor communications!

Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?

The wholesaler was Sam Elliott who was with New Western at the time. He was really great to work with and stayed engaged throughout the project as he was genuinely interested in seeing it succeed. He's self employed as an agent and investor now.

I agree with all the posts that say the stock market is not the real estate market, etc.  I think a more serious threat is a sharp rise in interest rates.  What do you all think about the likelihood of that, how do you think that will impact our markets and what are you doing to prepare for it?

I'm in the cash out refi camp as well.  I also like the idea of a longer mortgage term because it shields you from interest rate and inflation risk for a longer time, and of course you can always pay down your principal faster if you'd like, so I'd look for a 30-yr fixed.  

Hi, is this the meet-up that used to be run by Eli Rose in Woodstock, then Jerod Sturm at the Ravinia?  I haven't attended for too long, but that was always an excellent meet-up and I'd love to attend.  I can't find it on Meet-Up or BP though.  Can someone please confirm the date is Aug 29 and provide more detail on the location?  Thank you!

Hi All,

I'd like to hear your thoughts on marketing and renting a townhouse to college students.  On one hand I want to target my advertising, lease, tenant acceptance criteria, policies etc. to students and their parents.  After all, what is good marketing, what is product positioning if not "discrimination"?  On the other hand I don't want to do anything illegal or unethical.  Those of you that rent to students, how do you approach that issue?  Thanks for your advice!

Jim

Hey Bridget, I was there the other night but I didn't get a chance to meet you.  Maybe next month.  Anyway, did you hear Jered mention there's a Facebook site for the meet-up?  If you don't get any responses on this post maybe you can try there.  Also you could try posting this to BP marketplace. Not as good as getting a reference, but still a good resource.

Good luck, sounds like you have a great plan!

There are so many facets to real estate; the numbers, the money, the legal, the construction, the team, the homes, the decorating, the buyers and their families, etc.   I try to pay attention to which things my wife gets excited about and which she doesn't.  Then I focus our conversations mostly on those areas she cares about. I've stopped trying to force her to hear about some part of it that she's not interested in.  Just find that common ground.

As far as the change in mindset, I get that. I think a lot of us do.  My best advice is to keep it to yourself and rock on.  John Maxwell said "growth inside fuels growth outside".  If people notice the change in your results.  No need to overshare what you're experiencing especially if it's freaking her out!

Great conversation.  Thanks to everyone on this thread for taking the time to share your knowledge and opinions.