All Forum Posts by: Jody Sims

@James Wilcox Yes, I spoke to a VA lender this afternoon. I can only get the loan if it's for a primary residence, which does not preclude, as you mentioned, getting a 4-plex, tri-plex or duplex. And... it has to be move-in ready, with VA inspectors being a lot pickier than conventional mortgage inspectors. And, again yes, I'd have to live in it for a minimum of 1 year. But... the idea of having 4 doors right off the bat does sound appealing, even if I'm hacking one. Suggestions on what area I should concentrate on here in Lex?

@Samuel Watts Thanks for the tip. If I can locate a decent MFR, I will certainly give Eric a call.

You think like I do. I would like to establish a relationship with an investor who will at least entertain a deal before I go out and get a seller on contract. I don't like leaving anyone hanging, neither of us knowing for sure whether I can do what I said I would.

I'm not going to get into a deal that doesn't have a GOOD chance of delivering the profit I seek. I know much of the profit is going to depend on 1.) buying price, 2.) getting ALL the work done at or under budget and on time or before (whether foreseen or unforeseen), 3.) holding costs (homeowners insurance, interest on loans, property taxes) and 4.) selling it for the ARV I estimated, or as close as possible. Practically all I've learned has come from BP, though some is just plain common sense, which, yeah, I know isn't as common as we'd like it to be.

But... in spite of knowing all this, getting an investor to believe I know all this and can follow through... that's the trick.

*Goes back to reading "Ultimate Beginner's Guide" *

Hello.

This would be my first purchase for the sake of investing, so for those who would not lend to me based on my experience in REI, that's a non-starter. That's going to rule out a big chunk of investors, obviously, not only private money lenders, but also HMLs. I'm beginning to consider a buy/fix/hold and live in the property, which would, at least in the beginning, satisfy VA's requirements, which I have the option to utilize, being a Nam Era vet. I hate having to go that path, but it might be the only one available to me. I don't have money to contribute toward a downpayment. All I really have is a burning desire to find a way to get into REI and get out of the rat race. I'll keep my monthly payment low enough that my current rent payments would be equivalent to the mortgage total payment (or less).

My question is, if I go that route, how long would I have to actually live in the house to avoid issues with the VA? I'd like to get it fixed and then rent it out in as short a time frame as possible. I think I can find a place that will give me a positive cash flow after I am out of it. At least at the end of that, I can say I have a little experience and open up more financing possibilities.

I note with some dismay that @Jim Wilcox has not yet responded concerning the Bluegrass REI Group meeting details. It may be defunct. :(

I would like to ask about funding a deal and the order in which it's been said you should approach it.

This is what I heard from one source: FIND, FUND, FIX, EXIT. Seems to me if you go find the property first, that's no different from saying "Let's jump out of this perfectly good airplane without a parachute. We can find one on the way down." If you don't know without a doubt you have someone willing to work with you to fund at least a portion of your deal, aren't you setting yourself up to lose the deal? Why scramble around after you've gotten a house under contract, trying to finance the purchase and rehab? Why wouldn't it be better to find a private money investor first?

In the interest of being fair, there are some people out there who aren't entirely committed to the idea of "risking it all" to get started in REI. They're a little timid and need their hands held. REI is a bit overwhelming. There's so many paths to choose and each has its pitfalls and, yes, it can bankrupt you if you're not paying close attention or don't have the knowledge before starting out. So, I can see where programs like FortuneBuilders have their place in the grand scheme of things. My co-worker who went to FB (and got me started thinking of REI as something more solid than a pie-in-the-sky idea) told me his motivation for going to the mastery program was he didn't want to reinvent the wheel. Well... I guess that has the possibility of being true, except... the real question is, when you're starting out, do you really need the wheels? From my perspective, the answer's No. When you first start out,  you need to get a house under contract that has the possibility of providing a profit, plus a private investor that can provide the necessary funding. Then, you need to keep an eye on cost overruns and blowing deadlines for having the work completed. If you can keep those things in line, you're on track to make profit.

FB has a network of insiders to provide potential deals from places other investors haven't already crawled all over. That's helpful. They have a rehab estimator that I haven't been able to find anything comparable to outside their "system" that allows you to estimate costs based on whether you're 1.) flipping in an upscale, medium, or lower scale neighborhood, or 2.) rehab/hold/renting. Based on your choices and your area of the country, you get a decent ballpark figure for your rehab costs and you don't have to waste time getting contractors to give you estimates before making a reasonably confident offer. Time is sometimes a critical factor in whether you'll be the one that gets the deal. From what my buddy told me, it even gives him the SKU's in a list (for Lowe's, I think). This, too, is very helpful. [Note: I have not seen this tool in action. I can only report it as he described, and he IS, after all, a Republican, so trustworthiness may be an issue.]    ?8^)

I recently heard the complaints students of Trump "University" are putting forth. From what I heard, I think they're going to lose the case. Many of them are using arguments found in this thread. I think they'll lose, not because Trump is president-elect, but because their arguments simply won't stand up to close scrutiny. I am not saying the information they got wasn't readily available on the internet, but if they were too lazy, or in too big of a hurry, to seek out that information on their own, then Trump is not to blame for their laziness. Was it smart of them to fall for the sales pitch? Well.... for most of us that answer is No, but for some... MAYBE.

From my experience there, zip codes along the north side of the I-285 loop, around Sandy Springs, are the best areas of town. But, you need to get the perspective of an Atlanta (or nearby) resident. You could try putting the address of any prospect into one of the map sites that offers 360-degree view and get a fair idea of whether the neighborhood is run down or not.

Outstanding job! Congratulations on discovering REI and taking the leap.

Austin, you decided to take part in the FB way. I decided not to. In the final analysis, there's only one thing that makes any difference whatsoever: achieving success. I wish you success, and myself, too. I think I will be holding off and studying the market in my region, learning price points, how long it takes to move properties in given neighborhoods, etc... By the time people are getting the idea to move into a new place, I'll be ready with a couple of houses and hopefully my work will pay off.

[Edit: Seems there's always time for regret, but it's better to cherish the lessons learned and turn the regrets loose.]