All Forum Posts by: Kyle Chadwick

@Tracy Opoku  Yes, it was great to find a awesome community for our family (and a great property too).  And all 4 units are cashflowing nicely (I love the 1st of the month lol).  The moving was hard but, as you said, necessary which is why I was on board when my wife wanted us to live in the "flip" instead of selling.  I think the next step for me is to increase my marketing and find a couple of properties that I can use the brrrr method on.  I'm thinking of direct mailings, if you have any tips on that feel free to share :)

The 3 family sounds exciting!!  We have done some work on the MF properties and found contractors by asking for recommendations on Facebook.  In fact, one of the recommendations worked out great and we were able to develop a good relationship with them and use them for our flip property.  It's tough to find great contractors which is why I would try them out on a smallish project first before trying to work with them on larger projects. 

I wouldn't let the landlord thing scare you.  It can seem overwhelming at first but it's not bad when you have good and responsible tenants.  My 1st MF property did have renters but the 2nd one didn't.  However, I've never had a problem with finding renters.  I used to use Craigslist to advertise the available units but now I use Facebook marketplace.  However, if you end up not liking managing the properties yourself you can always get a property managing company to do it for you.  

@Jason N.  Thanks for the tips!!

I'll definitely check out listsource and propstream!!

Texting seems like a great idea to ease into talking with the owners to see if they're interested.  Do you find that you get better results with texting vs. calling??

Thanks again!!

@Jason Hopkins Thanks for the tips!! 

I've been involved with my local REA club but the wholesalers are overpriced and leave too little room. 

Bandit signs are illegal here and I was worried about spending the time and money on them and then getting calls from the police asking me to take them down...although I do see them around a lot so maybe that wouldn't be an issue after all. 

I've been thinking about doing direct mail, how successful has this been for you??  Do you target a specific type of lead (bankruptcy, foreclosure, divorce, etc.)?? Any other tips for direct mail?? 

Thanks again!!

@Nicholas Monroe I would love to connect and pick your brain on this.  DM me and we can find a time that works.

Thanks!!

Kyle

@Adam Lendi  Thanks for the tips!!

Old listings seems like it would be difficult.  If they were listed and didn't sell then it's most likely that they're over priced so getting them to accept below market might be a stretch.

FSBO might be a good idea especially coupled with the door knocking you mentioned.

Networking with these people is a great idea.  And networking is definitely something I'm trying to work on (especially hard with Covid going on).

Kyle

@Cody Neumann thanks for the tips!! 

Unfortunately wholesalers seem to be over priced and leave little to no room to make money.

I've considered doing the direct mail postcards or letters.  What source do you recommend to get lists for properties??  Also, what company do you recommend for purchasing the postcards??  What have your numbers looked like for using this method??

I haven't heard of that book but I'll definitely check out!!

Kyle

Hi everyone!!

I'm from upstate NY (Saratoga area) and not completely new to REI. I have 2 rental properties with a total of 4 units that are cashflowing nicely and I "flipped" a property. The property that I flipped was a HUD foreclosure that I completely renovated but decided to keep and live in instead of selling it. Now I'm looking for my next deal and after listening to pod casts and reading on BP it seems that the greatest deals come from off market properties.

However all the properties that I've done have been on market deals. I set up a website through Carrot with SEO that ranks on the 1st page of google about a year ago but I've only received 1 lead which didn't work out. There's also at least 2 other investors in my area using Carrot and 1 is a biggest investor in the area. I'm wondering what you all are doing to find off market leads and which strategies work best and are the most cost effective...or should I continue to find on market deals??

Thanks for your time and thoughts!!

Kyle

Hi everyone!!

I'm from upstate NY (Saratoga area) and not completely new to REI. I have 2 rental properties with a total of 4 units that are cashflowing nicely and I "flipped" a property. The property that I flipped was a HUD foreclosure that I completely renovated but decided to keep and live in instead of selling it. Now I'm looking for my next deal and after listening to pod casts and reading on BP it seems that the greatest deals come from off market properties.

However all the properties that I've done have been on market deals.  I set up a website through Carrot with SEO that ranks on the 1st page of google about a year ago but I've only received 1 lead which didn't work out.  There's also at least 2 other investors in my area using Carrot and 1 is a biggest investor in the area.  I'm wondering what you all are doing to find off market leads and which strategies work best and are the most cost effective...or should I continue to find on market deals?? 

Thanks for your time and thoughts!!  

Kyle

Hi @Erin Onsager!! 

Congrats on all of your success!!  I haven't had any experience on partnerships yet but I have incorporated family members in another way.  I have had people that seemed to want to "try" real estate too but I have found that these people are mostly talk.  They want to make money but don't really put in any effort to learn what to do or too scared to take the steps.  Like you said it's a lot of extra work and effort on our part with little benefit.  I have kinda stayed away from partnerships because of that.  It would be even more difficult when you factor in that they're family and/or friends and you don't want to end up jeopardizing the relationship.

The way that I've felt comfortable with talking about this with these people is to have them be a financial partner and let them invest in your company as a lender.  This will allow them to get better returns on their investment than a bank will pay them and you can get better terms than a bank will give you so it's a win-win.  Also, you keep all of the ownership of the property and they get to invest in real estate without doing the work.

Hope this helps!! 

I also have a question for you. Netting $1,000+ on SFH rentals is awesome!! Are you finding these deals on market or off market?? Are returns like this are normal in your market area?? Any tips are greatly appreciated!!

Kyle

@Tracy Opoku You're welcome!!  Happy to help.  I completely understand what your saying, it is hard to find someone just ahead that can give tips.  It seems like everyone is either completely new or a huge success lol. 

We moved out of the first MF property into the second MF property.  However, the second MF property was much smaller with 1 bedrooms in each unit and we are a family of 4 so I couldn't house hack that one.  We occupied both units knowing that someday we would move out and rent them and that they would cashflow.  Luckily it was in a good school district and we ended up really liking the community and decided we wanted to stay in that community. 

We started looking for flips and it just happened that the first flip property we found was in our community and school district, which is why we decided to live in it and not sell it.  Well...that and my wife fell in love with how beautiful it was compared to the other properties we were living in lol. 

As far as the seller concessions go, it doesn't necessarily make your offer less competitive.  We ended up going above asking price so when the seller concession was factored in they ended up getting their asking price.  It may not work in every case but in our case since they got their asking price and we were able to get it with less out of pocket we were both happy.

Please keep in touch I can't wait to hear how your crushing it!!  Feel free to reach out any time if there's anything I can do to help!!

Kyle