All Forum Posts by: Joan Brown

Hi Kevin,

happy to chat or meet up when you're here. 

Thanks for the kind words, Erin! Hope everything is going well!

I have had good experiences with local Lubbock banks: Aim bank, First Bank and Trust, and Alliance CU. Aaron Chapman and Rocket Mortgage are remote and do longer term mortgages with fixed rates. Aaron Chapman was really awesome to work with.

I have also worked with Prime Lending and City Bank as the general contractor for other investors. No complaints about them.

So far what the other contributors say is in line with my experience in Lubbock. Solid rental market, steadily growing economy, minimal, but steady appreciation.

I have about 13 rental properties, am a realtor, do rehabs, and am building new construction duplexes and townhomes. I am finishing a set of four townhomes on the ever expanding north west side of town that are in the 150 to 160k range. Buying lots now for small multifamily construction. We build our properties with rentals in mind -meaning solid construction with hard surface flooring, tile backsplashes and shower surrounds, wood window casement, and everything we know from experience that helps with maintenance down the road.

New construction duplexes may be an option for you. They are turnkey and will be low maintenance for at least 10 years. Rehab properties are an option if you have a trusted contractor and can check in on the project periodically. I have talked with investors who have never set foot in their rehabs and only saw pictures of work that had be an done. That's a recipe for disaster, and almost always is a disaster.

Personally I wouldn't want to BRRRR with a partner because you are tied to them for the life of the property. A flip is shorter term and y'all could decide to separate after a couple flips without any heartache.

I don't blame him for not wanting to BRRRR the home. It's a long term game and won't give you quick cash. There are managerial issues if you have a rental in a location where you don't live and maybe he is apprehensive about that too. You may want to save up your part of the profit on a few flips and then do your own BRRRR.

I tend to put central heat and air in all the houses I buy in Lubbock regardless of the area of town. I factor in the cost for the rehab. They are more fuel efficient and more comfortable for the eventual tenant or owner. That means your tenant can afford your rent along with the utility bills and is happier in the home and will stay longer. Interestingly,  have noticed that I have to teach most tenants in lower rent homes how to use the thermostat and what to expect from the unit. That indicates to me that most lower rent tenants are more familiar with the window units and wall heaters. But it can get up to 110 degrees in the summer and down to 10 degrees in the winter. The wall heaters leave a lot of cold areas and the window units leave a lot of hot areas.

@Stephen Robertson is also a thoughtful investor in the area, so there you have an argument each way!

We do have many reputable HVAC installers in the area, so do your due diligence and check with a few for prices. You should expect to pay $5000 to $7000 for a 1000 to 1500 square foot house.

I am an investor and realtor In Lubbock.

In Lubbock, people with out great credit look for homes on Zillow or homes that can be owner-financed. They are also willing to pay a bit more in the long run in order to get into a home. Not always what you are looking for. Serious and qualified buyers tend to use a Buyers Agent and serious Buyers Agents tend to search the MLS and a couple private Facebook groups. If your home is not selling privately, you probably need to widen your net by getting the home on the MLS. Your listing agent should do a CMA and give you very good advice about where your price should be. They should also arrange for or take professional photos and suggest or arrange staging or minor fixes to appeal to more buyers. They should also do occasional property checks and make sure the lawn is being mowed and maintenance is being done.

Lubbock houses sell in 30 to 90 days unless there are pricing or finish issues. DM me if you would like my help getting them sold!

I also use Brwnt Noble at Service Title. He is very knowledgeable and investor friendly!

@Sam Griebenow, welcome! I think you can do all of the above, except houses in the $125k price range typically rent for .75 to 1% of the value. You can get 1.5 to 2.0% in the lower end housing, but that comes with its own issues.

Joan 

Since money is an issue, I would skip Podio for now and use Google Sheets to keep track of addresses and contacts.

VistaPrint is excellent for inexpensive business cards, but maybe wait until you have a broker to show on your card.

I'm not a lawyer, but personally I would get an LLC if I was purchasing the real estate before reselling. I am not sure you gain much with an LLC if you don't own assets.