All Forum Posts by: Kevin Scott

 We do mostly postcards when we are doing large mailings.  Rarely do we send letters.  A long time ago we did letters fulfilled by a mail house.

@Charles Bailey We have had success with all of those.  We aren't actually driving 4 dollars (although have for fun years ago) but we mail and call the same houses that would be on a driving 4 dollars list.  Calling then mailing the ones you can't get ahold of helps keep the costs down when doing large amounts of marketing.

@Scott Bidwell  I'm glad to see this thread got better with time and people actually started giving options instead of telling you it can't be done.

The reality is 1.5 million liquid is a lot of money even now.  This isn't that difficult and if you were extremely motivated all of what you wanted could be done in 1 year or less (not even 3 years).  I'm not saying you should approach it that way but it is very possible to buy 10 rentals and your own 450k home when you have that kind of cash regardless of having another real income. 

Buying 10 rentals with 500k is not that difficult (for experienced investors) using the right lenders which there are several.  Buying one decent deal a month isn't that difficult and getting it fixed then rented to pull the even 1/3 of your down payment back out will get you to 7 or 8 houses.  Once you get the system down the last 5 months you could buy more than one and you would have more than 10 even if your lender needed a renter in there for 4 months in order to refi.  You have 1.5M and you said in 3 years so this becomes a walk in the park.  If people are saying it is difficult or giving you lectures then I question whether they are really investing or they are just saving.  Nothing wrong with saving but it is a very slow way to get to independent money.  

I'm not even considering owner finance solutions to get you to these numbers which others rightfully stated above can help.

Structuring things to get to your goals is not the hard part because of your low capital restraints.  Great deals that get you back most of your money on each deal is the hardest thing. But you don't need to get most of the money back on each deal since you will be able to use 10 to 20 percent hard money bridge loans then get some of that back.  Your money will go a very long way.

As for getting you the home you wanted you really could pay cash and have enough left over to reach the goals you put out. But I can think of plenty of ways you can show income without actually having to do any kind of difficult work.  

If your existing lender can use investment income for your loan then loaning money per project to a flipper should be able to get you plenty of income to show.  As an example we have gap fund investors that make can make 5k to 20k on a 50k loan in 2 months worse case they make a min of interest and points but we add equity so when a deal does well the numbers go up dramatically.  If you ran that scenario with 1 million (keeping 500k for your brrrs) and we used 5k per deal profit. Then your income is  50k per month (not realistic that would assume every dollar was always active and turned exactly every 2 months but its a start).  So let's cut that down to saying half the money was actively invested and each deal averaged 3 months time and still only the 5k per deal which is low.  This puts your income at 16,666 per month.  This is the low-end IMO for this kind of deal structure.  That is more than enough for the 450k loan to go through and leave you 500k for brrrr investments, and the flips you are funding (with risk of course) are making you 200k per year in income through equity and interest (talk to a tax expert of course).

If you need actual income from a job to get the loan its possibly too.  I'm sure if you are loaning that kind of money someone would give you a "job" that paid you something and then lowered your investment return on the money.  Probably want to be careful with how this goes down but I'm just trying to give you ideas that might spark or lead to more ideas.

I'll stop rambling now but I  think you should go for it.  Start out with a deal or two to get your feet wet.  Probably need to stay in some markets under 400k preferably 300k or less really but its totally doable.  Look up the lender types mentioned above, bridge lenders etc.  They will help you recapture some of you capital making it go further.

Get ahold of the owner and just talk with them.  If they aren't willing to sell then it doesn't matter.  Simply say "I have lived in the neighborhood for 10 years and have always wondered about the house and I am looking to buy a home in the area (if you are renting) or another home in the area if you own the one you are in.  Have you considered selling the home."

If you get an idea that the owner might be willing to sell then just see what they would want.  At that point it is worth your time to go through all the motions.  The owner obviously isn't in a rush.  

@Jesse Rodriguez  There are a bunch of things to consider, laws, budget, available time.  But finding discounted properties can be done with a low budget if you have the time.  Or if you don't you will need to spend some money or partner with someone that has the time.

Money will help speed things up, but if you have a budget of a couple of hundred bucks per month you will be able to get leads each week.  More budget will help you get more leads.  If you are spending a little more than that (500 plus per month) you should be able to get leads each day. This doesn't mean you will get a deal just leads.  Your ability to sell or get lucky and find someone willing to take your offer will vary on the number of leads and experience.  

You will want some money to put down as earnest money of some sort but it doesn't have to be substantial, at least in most locations.  It also will depend on the seller and as always your ability to negotiate.

If you want more detail or just some general guidance you can message me.  But that is what is possible.  Your main costs are the data.  The rest is your effort. (all the extras like website, software etc etc can be done later and isn't necessary)  Find out if you like it before you invest in that stuff.

@JD Mims  I think there is some confusion in the term license.  There is no specialty license needed for a General Contractor which is common in many states. Typically mechanical (plumbing, HVAC, etc) and electrical require specialty licensing.  But that doesn't mean no license is required for other contractors.

As @Terrell Garren mentioned there are other requirements that need to be met.  At a minimum a business license for the state and to actually do work in a municipality they probably require insurance and or bonding (if the state doesn't or labor and industry).  When a contractor says they don't need a license they are usually pulling something or they might be legit but are referring to a state specialty license.  

To answer your question though.  You can probably get a permit after the fact (the names are different for different areas). Sometimes you will have to expose studs and electrical sometimes it's nothing. It's likely going to be a little more money also for the permit but it isn't likely going to be that much money. You will likely need a licensed electrician to check everything out and put his name on it for electrical. Which some might and some might not.

Are you calling community development, the building department, permit center.  Each area has different names for this stuff so try a few different numbers. Hopefully it works out for ya and the Contractor is actually licensed. If maybe they will fix the work if any exposure is needed. (maybe)

Is The mark from the collection company or the Dr's office. It makes a difference. You definitely paid the Dr's office and not the collection right?

The Dr's office can fix this. Sometimes they say they can't but they can.  

Start there.   If you paid the collection company that will be an issue and a little more challenging. 

Start with the Dr's office. Message me if that doesn't go well.  I can send u some forms. Or tell u some companies that are pretty good at removing these marks but its never a sure thing.

@Greg Banheh  Feel free to message me or if you want to jump on a call sometime let me know.  There is a lot to think about and much will depend on your financial status, credit etc etc.  I don't mind the call, I figure at some point if you start doing deals I might buy or sell you some in the market you choose.

@Alexcis Dominguez Im not a wholesaler but I buy from several and some of them use fidelity which I believe is National so you might give them a shot.