All Forum Posts by: Kyle Coleman

Hello All,

I've got a strategy I want to work on, and I need wholesale deals to look at.  My big question is though, what/where is the best place to find them? I know they are everywhere, but I feel like there might be a secret hideout that they all pay attention to. I would love to see their deals, and more especially, the deals that they may consider tough sales. 

I've only ever bought properties the traditional way, 20-25% down, through a realtor etc.  I'm trying to find other alternatives.

I see all the time the signs "we buy houses for cash" or "we buy hard to sell houses" etc, the bandit signs if you will.  However, these are largely not legal in my areas - so what would be some avenues of advertising that would be good for someone that doesn't want a ton of leads, but something to potentially keep me busy. I've been considering the newspaper, billboard blips (this is like a 10 second flip screen on the popular areas that rotates with everyone else's ads), craigslist, business cards, direct mail etc.  

Any insight would be lovely!

Thanks BP Fam!

Kyle

@Stephen Wiater

Also, the seasoning period also depends on the lender. A lot are 6 months (some are an outrageous 12 months if they do it at all) some of your smaller credit unions etc., can be less.

Excuse my typos, I'm on mobile.

@Stephen Wiater

Hey Stephen, first and foremost, it's not based really on what you buy it for, rather than what it's valued at after the fact. Also, most lenders are going to be around the 75% mark for cash out refi if at all. You should absolutely line up your lending before you buy. Have you checked what rental comps are in the area?

You can work your way back though, if you believe it's going to be worth 225, you would want to get your all in cost to be 70% of that, to be conservative. Just a rule of thumb, you can bend numbers all kinds of ways to make a deal work. The cash out refi on 225,0 at 75% would be around 168,0. You would want to have your all in cost for the property around 157,5 if we're using the general rule of thumb.

I know there are more experienced folks out there that can chime in.

Hope it helps!

numbers.

Being in technology, I would say that; the domain better be a pretty big part of your strategy to generate leads / capital etc.  I would be hard pressed to drop 3k on a name in the beginning stages of investment career. No cheaper alternatives on say, .com, .net, etc? 

For instance, Google was an accident, they misspelled it unknowingly.  I feel like  your campaigns would really need to be directing traffic to your website, which I'm not entirely sure is the right play.  I could be VERY wrong though. 

If you add your rehab cost to the HUD; you can pull out all of your cash. 100% of HUD or 75% LTV, whichever is lower. Careful though, if you want to pull any more than you put in; you have to try to go the LTV route instead. Talk to your title people, they shouldnt care if you add your rehab cost onto it. One of the very recent podcasts talks about this.

It's not a terrible idea at all; just be aware of capex repairs and always have some reserves. 

@Daniel Krantz That is fantastic, really a great write up and inspiration for the rest of us.  I am in a similar situation, I have purchased a few properties that are buy and hold with 20-25% down that are cash flowing nicely; but it takes forever to save the capital back up for the next one. 

I intend to deploy the BRRRR method this year and hopefully snag 2 properties, that's my goal anyway.

Thanks for sharing!

Kyle

Fantastic explanation! I have done a few deals with conventional lending; but I'm starting to lean to wanting to attempt the BRRRR method. You said that cash offers will give a leg up in this type of deal, but it is certainly possible with conventional lending as well, yes?

Thanks,

Kyle