All Forum Posts by: Josh Braun

Welcome, Gerald.  Key things to look at when investing in areas you aren't familiar with are: population growth rates, employment data, school ratings, access to living conveniences (grocery, retail, etc.) and rental vs. ownership demand.

As Mike mentioned, don't throw in the towel on Nashville. I'd highly encourage finding something in your local area, versus spending time in another city.  If you want to invest in multi units, then: 1) find out how many multi-units are in the town/zip code you want to invest in 2) then market to every single one of those owners 3) find the ones that want to sell 4) then make offers that fits your numbers.

I love Franklin Synergy. As with any bank financing, make sure to have your ducks in a row before initiating with them. Don't go in asking lots of questions other than rates/terms. 

If you have a well documented plan that shows you know what you are doing, it will build trust and make it easier on the lenders part. Trust and minimum amount of effort required goes a long way when building banking relationships.

Here are a few ways to make it happen:

• Put your deal on a one page flyer and print off multiple copies.  Bring to the next local REIN group in Nashville and if it is a deal, someone will bite.
• Post in the BP marketplace
• Send to me, @Luka Milicevic and @Devan Mcclish and if its a deal, we will help you brainstorm some options

I'm in a pinch and looking for a licensed CPA (at a licensed firm) that can prepare a reviewed financial statement by this weekend.  Needs to be licensed in Tennessee or able to provide service through mobility.  Financial statement is very simple and includes cash, 1 building and a few pieces of equipment.  Please contact me asap with a price to prepare.

Plenty of 1%+ rule deals out there in or around Nashville, you just need to look hard for them.  As @Luka Milicevic mentioned, they are not on the MLS. Pound the pavement and you will find one.

Regarding your first question - I've found it completely acceptable to meet new bankers and ask for pre-approval. The key here is to make sure you aren't wasting their time with a lot of questions.  Do your research before hand and present your situation fully informed prior to the conversation. Google "what bankers look for to pre-approve". Come prepared with a personal income statement, balance sheet and proof of income. Over prepare and be organized. And yes, if you are going to go the bank route, get preapproved before your have a deal lined up.  When you have your deal lined up, present it to the bank in a full business plan (property description, proforma, line item rehab budget, multiple exit strategies, etc).

Your second question - do your research before buying anything through auctions.  I always recommend folks to not waste their time there and go direct to seller. Much easier to find title issues before hand and less competition.

Regarding deals - you mentioned "as a newbie I don't always know if I'm looking at a deal".  If you don't know if it is a deal, you are going to have a hard time persuading an investor to know it is a deal.  If you find a true deal, investors will bite. Make sure it is a deal though. Present your deal with comps, rehab budget and multiple exit strategies for the investor.  There is no secret formula.  Here is how you do it and it takes work: 

• Systematically analyze 100 properties in the zip code you are marketing (run .25mile, .5mile, same subdivision comps for similar houses; determine repairs needed, find out average days on market, determine your proforma, identify what purchase price you would have to get it at to make a profit using the 70% ARV formula, determine your profit after all costs incurred)
• Determine 70% ARV purchase price, rehab budget, ARV, and at least 2 exit strategies for all 100 properties
• View the inside and prepare a detailed rehab budget for at least 10 of them
• Post your best 3 properties on BP and ask for folks to give you their feedback on how you analyzed

If you do EXACTLY what I mentioned above, I guarantee you will then know what a deal looks like and your confidence will increase.  I'll be candid with you though, most people don't want to do the above, because it takes work and they are looking for a secret formula.  If you want it bad enough, you will roll up your sleeves and do it though.  That approach worked for me and worked for others I gave the same advice. However, most folks don't take the advice because they want to watch TV on the weekends instead of working the extra side hustle. 

Always have more than one strategy before purchasing.  I would not bank on house hacking as the primary strategy either.  Three initial strategies would be: 1) think about how much you could sell it for if you had to ditch it, 2) how much you could rent it for as a 12 month rental and 3) how much you could rent it for as a short term rental.  I just ran the comps and that property.  You would be paying retail price for it.  Find something .70-.80 cents on the dollar and make some money on the buy side. 

Welcome, @Luke Carl.  Don't let your limiting beliefs keep you from achieving your goal.  If you have free time as mentioned, there are plenty of additional ways to come up with $25k.  Time is your currency, so put it to work.  Bias for action is key.  In addition to your options and those mentioned by others, here are some more:

• Wake up at 5:00 a.m. on Fridays/Saturdays and go garage selling. Buy stuff and sell it on eBay.  You can easily make a few hundred in a weekend.
• Find a part-time job doing handyman stuff for other investors ($25+ an hour)
• Go through stuff you own and sell it on Craigslist
• Drive for Uber
• TaskRabbit
• Mow some lawns
• Get a higher paying full-time job

If you are wanting to make this real estate thing your life, you need to eat, sleep and breath it.  Let everything else fall to the side and you will find your $25k.

P.S. Join REINTN it is worth the ~$150 for membership.

Welcome, @Drew Prawel! One of the best ways to network is to attend the local REIN group.  

In Nashville, I'm finding $105-$120 sq ft, not including lot cost.