All Forum Posts by: Landon Whitt

what is the property currently rented for?

well said, this is the exact reason when investing in a town you must know the affordability index. An easy way to get an idea what an investors should purchase is 3 times the median family income or less. 

We must remember that rental homes are little businesses, you wouldn't open up a new business without researching the customer demand in that market. Always start the search looking at what rentals are already available and at what price and how long they have been on the market at that price before you look at opening your rental business in that neighborhood. Basic stuff but often overlooked.  

90 day lease back is not an answer thats your solution to gaining the asset. Whats the long term solution?

well said, bro investors are part of the reason for tenant landlord laws. They forget about taking care of the person actually living in their home. Most professional property managers will not even accept management from tenants that don't cashflow enough to cover the expenses. 

Can we talk about all the home owners in Oklahoma city that cant afford to repair their own home.. whats the answer for them? We try to buy their home from them and the answer is "where am i going to go?" whats the answer for that?

Yes, unfortunately 1% metric ends up slowly bleeding to death. We are really looking for 1.3 to have a healthy business and proper debt coverage. Me and the accountant from lion-share talked about this on episode 64. Ive also had investors with 30 plus units telling me the 1% rule is just for basic math and had no practical use when leveraging. Believe me it stinks.. specially when getting one over 1% is tough in todays market. Thanks for liking the podcast not this week but next week i have a guest that bought 20 houses in one year at the okc sheriff sales. That one will be one not to miss for sure

first off unless your paying cash we have proven the hard way the 1% metric does not work in okc. 

Well first go through my podcast and see the pros ive interviewed. There is also a show coming out in two weeks with a guy that built a 50 unit portfolio in okc and hes gonna tell his story. There is investors meetups ect.. as far as the auction, its at the courthouse in the large court room. Just bring your drivers liscense and print the list of homes off on the link i sent and they start from top to bottom. You can see how people are bidding and who they are. Last time i was there it was prob 150 people

Cole, glad your looking to plant some seed in OKC. Would love to help. The first thing to know is VA loans are the strictest requirements for property condition of any loan. So most likely you will be limited to turn key duplexes if you wihs to use the VA loan. Is that a problem? Heck no! the VA loan is essentially a BRRR home because there is no down payment and you will have almost zero cash in the home so basically you will acquire a rental property with zero cash down. Thats a great deal!! iM PUMPED! When can we go shopping??

Pro tip: A great first excise before you dedicate time and energy learning this new craft is to go to the sheriff auction at the court house in oklahoma city. Its every other Thursday and you will get a great idea of who what and how your competition is.   https://docs.oklahomacounty.or...

Thanks Robby, the podcast came about from me searching for the info and not finding it. Ive been in real estate long enough now to feel the burn of past advice thats hurt clients and it stinks. Too many times realtors get caught in living the lifestlye of our  clients we want to sell too and before long our payments pile up and it clouds our ability to give accurate advice when our kids, cars and spouses are waiting for closing day. Sellers of investment property know this. They have had them for a while and figure the market nationally is spicy right now and its time to unload. These properties are listed at ridiculous prices with returns that make zero business sense. Yet they are selling every day in our current flurry of market activity. Why? 1. Because its cool to buy. 2. Because they assume appreciation will continue so they are “storing” money in the house. 3. The realtor wants a paycheck and just looks at the comps from the other idiots that bought.

Moral of the story? Investment in real estate is a business, not a casino. Run your numbers off today and you will be fine. When the numbers show not to invest today than dont other wise your better off buying lottery tickets. Less headache and no closing costs.