All Forum Posts by: Brian Fouts

I use lock boxes and give the code out as I see fit or feel comfortable.  That being said, the homes are never occupied or have valuables in them.  So, if they are the owner and it is vacant, I wouldn't worry about it.  I've had Owners give me access to homes this way before.  

@Joe Leonti, when I was referring to small business, I was referring to investing in them, not operating them.  We have about 15 currently and most of those we have no involvement in.  When most people hear "small business" they think of it from the Owner/Operator side, which is exactly the opposite of how business investors want to acquire them.  

We have three rehab projects wrapping up locally this month.  They are not my preferred investment model due to the time involved and return on time invested, but they are profitable and can be a good way to get some cash on cash returns quickly.  

Pierce County is a good area to look for rentals and multi units.  Got to find the right area, but I know many investors that are doing very well right now in that County for buy and holds.  

Stock market... bleh.  We have zero money there. 

Our best cash flowing buy and hold real estate has been outside Washington state.  30 units in Memphis has been awesome for cash flow.  

Hey @Joe Leonti

You're only four or five miles from me!  Are you acquiring this locally or somewhere further away?

Yeah, buying a multi unit with traditional financing isn't cheap.  We have acquired a lot of properties using Owner Financing, Owner carry, lease options, etc.  Especially in this area where closing costs and excise tax can make traditional financing expensive.  If putting that kind of money down, I'd want a pretty good return on cash.

A lot of the Low Down, Little Cash, advertisements are just that, ads.  I take all those with a grain of salt as they will always advertise or talk about the best of the best, not reality, which is where most investors will fall, especially starting out. 

When doing cash deals, projects, etc., we typically invest in other assets outside of real estate for a better growth model (think small business purchases).  

We have three investment opportunities coming up in the next two months that we are opening up for equity partners. Prefer accredited investors, but does not have to be, investors have to qualify for this opportunity. IRA funds, cash, etc., acceptable. Minimum $50k, max $2M. 8%-10% preferred return, 5-8% on back end, 2-5 years.

PM to discuss.  

Thanks

One thing to keep in mind... the best strategy now might not be the best strategy in a few years.  The real estate market is cyclical.  

A good idea would be to find a long time real estate investor, someone that has been doing it for more that 10 years successfully, and ask them what their strategies have been, how they've changed through the economic cycles, and what they learned.  

We purchased upwards of 30-50 rental properties over the last 6 years, but haven't purchased any in three years.  We did a lot of owner financing and subject to deals, but mainly did those two years ago.  We did rehabs, mainly in 2010 and a handful in the last year.  And recently have been doing lease options.  

You could say our focus is broad, but never narrow.  And real estate investing is about 20% of the overall investments we do.  

Welcome to the forums, great place to learn!

Welcome aboard, hope to meet you at a local event.

Rules?  What rules?  Who's imposing these rules on you?  ;)

If you run those numbers into your deal analyzer, what profit do you come up with?  I did it in 60 seconds, just using  your numbers, and come up with $44k in profit using hard money had 12% and 2 points.  Holding for 5 months.  

Tell you what, you send me the details and perhaps I'll buy it from you.  Or, I know a dozen others that may be interested.

But what is your backup for the rehab and ARV? What tools are you using to estimate the work and run comps on current value and repaired value?

Welcome to BP!  I was in commercial construction for over 12 years and the experience tends to help with real estate investing. 

We have a couple "contractors" that are constantly looking for deals to partner with us on.  They try to find potential leads or properties and then bring them to us.  We analyze them, run the numbers, etc., then procure the financing.  They do the rehab and we split profits.  You could look for something like this.  Just make sure you know the value everyone is bringing to the arrangement.  

Good luck and take action!

Welcome to BP, look up some local meet ups and attend,  A lot of great investors in the area!