All Forum Posts by: Joshua Martin

I'd use it as my contribution to a down payment on a multifamily, and try to raise another 80k or so. 13% or better annual return to investors. I think a little could go a long way. (I have 11k, so I'm not too far off ;) Best, JTM

As a newbie investor, I'd say no for me, but I see what you're talking about. Been working as an agent for about six months, sold several houses (and most importantly learned it's not really what I want to be doing), but still haven't found a deal. Frustrating, but it's part of the grind. I'd chalk it up to inconsistent marketing on my own part, so I need to correct that. Everyone says it's a numbers game, but I honestly didn't realize how many leads one had to burn through to find something going after. And I don't think I have unrealistic expectations about the profit margin from a deal, to be fair. People outside of BP are much worse though as they have no background. I encounter people and everyone wants to flip houses thanks to HGTV but doesn't realize the amount of work I involved in not only flipping the house,but finding the deal. Good topic. Best, JTM

Hey gang,

  I'm going to meet with a seller today (to be fair, he doesn't know I'm coming), but I have word from different sources he wants to sell his four family and the two family beside it. He also wants 300k for the pair, which, assuming the interiors are not a total crap shoot, is pretty darn fair.

  In any case, just off of the public records I see that one was bought in 92 and the other in 04. I assumed the four family from 92 is either paid off or has a very small lien left on it, but I'm guessing the two family in 04 may still have an existing mortgage. So, I'm brainstorming what I might be able to put together should he actually want to unload both.

On the four, I could finance the purchase with FHA, although there might be certain issues with the exterior. It would be impossible for me to not only originate two mortgages at the same time, but I probably wouldn't qualify for the duplex either. Not a ton of cash as well.

  So, if he's a tired landlord and tired of dealing with tenants, I thought proposing seller financing would be solid given this situation. If he wants to sell the four family outright I suppose I could finance with a small repair escrow or a 203k or something, but I want both.

  I could look for an equity partner for down payment funds on the duplex, sure, but would a master lease option or seller financing be possible if he doesn't own the property outright? That's the main question.

  The price for both is where I'd capture some equity, as he wants 300k, with approximately 200k for the four family and the other 100k for the duplex. The duplex is definitely worth something more, while the four family is close to market at 200k, so I'll be trying to see if he'll move a bit given there's no commissions and needed repairs, etc.

  In any case, thanks in advance. We'll see what happens. A good place to brainstorm a few additional strategies either way.

Best,

  JTM

http://city.milwaukee.gov/HomePropertyInformation.htm  -- > click the my milwaukee home tab, and then enter address. I just tried it, seems to be working.

Hey James, 

  I'd be happy to help you out. Let's get on the phone soon and see if we'd work well together. I'll PM you.

Best,

  JTM

@Steven Zabronsky Welcome to Milwaukee!

As in many markets, solid appreciation and strong cash flow are mostly going to be at odds with one another. 1% in A to B+ areas is surprisingly difficult to achieve, and everything still sells right now! That said, there are some opportunities that come up, but they move within a day or two. 

For example, (and I'm kicking myself for not scrolling the BP Marketplace two months ago and seeing this there before it went on the MLS): I'm working with a buyer that was coming up on a Sunday to see a mixed use building (3 two-beds and retail space) that went live on Saturday. He was ready to write and could buy cash - low and behold, one showing on Saturday and that baby was under contract. Rent ratio at about 1.4% with GSI at 3150 and PP at 225k. She said she got an offer that she couldn't refuse...

As a general indication, that's how it's going. I'm working with another investor couple that's having good luck with SFRs on the eastside and gets over 1%, and can also count on solid appreciation given that it's an A area. The duplexes and multi-families are crazy right now, though, and don't seem to make a whole lot of sense if someone actually knows how to run numbers...

Best of luck!

  JTM

Ahh I see. Better get creative ;)

How do you have lots of cash but no income? A lender might be willing to consider income even if it's not W-2. I'm having the same problem to some degree, but I have just enough W2 and low enough debt that I could get to about 100k. Not a ton of property where I'm all in at 75k. Talking to a commercial broker might help as they might have non-traditional products that could be used for investment properties given a particular situation. Best of luck, JTM

Honestly, from what I found most vendors were comparable. EDD doesn't really make sense given your that you've already purchased a list, and doesn't really make sense for investors generally because it is so untargeted.

yellow letters.com I used previously and was happy with them. The software is a little weird first time through but you can upload your list, customize their postcards (or whatever you want to send), and then have them mail for you either first class or second (depending on what you want to pay).

If you start reading different posts on the topic you'll find there are a wide variety of mail pieces that people use. Yellow letters, professional letters, post cards, zip cards, etc. The consensus is that different types will generate different response rates and differing quality of leads.

For example, apparently yellow letters generate a large volume of phone calls, but low quality leads. Postcards might have a 1-2% response rate after several mailings, but those leads might be higher and more motivated.

You have to try different things. If I were to do it again, best bang for my buck would be to pay up front for a 6-8 month mailer on the same list and commit to it right up front. With the majority of deals coming after several touches, one mailing won't be any bang for your buck.

I hope that helps, best of luck!

JTM

@Julia Shevchenko Milwaukee is a good area to invest, depending on style and what you're looking for. I wonder, how are you planning to acquire these properties? If you're under the impression that we have a great distressed property market here (REOs) that you can buy off the MLS with a margin for flipping, that's not exactly realistic. The offers I've written on several REOs aren't even enough at list price, and I see many of them sell for several thousand dollars over list price (I have one out right now where I'm $5,500 over, and I hardly think I'll get it - fingers crossed).

However, if you can acquire these properties in some other fashion you may be competitive and have multiple options in the marketplace here. I talked to one gentleman the other day who buys notes in Milwaukee (also from Cali), and is looking to expand here and put something similar together. He's buying notes for pennies on the dollar, however, and his options will vary by the margin he buys them at.

A 'class type map' of Milwaukee doesn't exactly exist, and I think they were outlawed altogether when fair housing laws were passed ;) You could, however, look up an old HUD or FHA redlining map and the damage that those housing practices accomplished is still reflected today in many areas of the city. Trulia crimes maps are approximately the same thing and reflect many of the same boundaries. Although, no sweeping generalizations can be made as you have pockets all over Milwaukee where owner occupants post up and take great care of the neighborhood, sometimes in very surprising places.

Glad to help any way I can, let me know if you need anything.

Best,

  JTM