All Forum Posts by: Luke Holcomb

@Brent Coombs You have to work for the 12%. You have to write a check and cash a check for the 8%... that would be the appeal. Risk cost money. You are exposed to far less risk with passive investing... 

Also, if you are getting better returns, than that is fine. There are a number of people who have cash sitting around that needs to work for them. If you are a full time landlord, then the 12% is better for you. If you are a lawyer, high level executive, or something else that pays well but takes most of your time/concentration, then I think passive investing is a great deal. 

-Luke 

@Brent Coombs I'll give you 8% on 240k (actually need 350k) and you can hold the note on title for a property that you are at closer to 2.5% on... 

2%  Cost to rent ratio is a 12% return on investment if you assume you will have 50% expenses. If you want a different return or feel like you can run different expenses you can back out a different cost to rent ratio that can help you quickly analyze deals. 

By comparison many apartment complexes are going for a 6% return on investment... also referred to as a '6 cap' 

I can give you deals that I am turning down at 1.5% and you can get a property manager if you like. 

-Luke

Finding flippable deals in Chattanooga is tricky. The wholesalers seem to concentrate on rentals. Volkswagen is a big question mark. I would personally tend to believe that it will all work out. It has been the big boost that our area needed to get from economic recovery to economically thriving. 

Great place! 

Edwin is great too, worth meeting up with if you get to town. 

-Luke

I am in Chattanooga, if you are interested in any further info on properties around here feel free to reach out. We can generally get 'B properties' in the 1.5% (cost to rent ratio) range. and C properties in the 2% range. There are also plenty of opportunities for passive investing with rates of return starting at 8%. 

Good luck and enjoy!

thanks,

-Luke

 @Jon Mason I sent you a PM. The Mailers work... I use a mix. so far I'm about 1 to 5 for returns... Please give me a buzz I would love to talk more!

Hey Jacob, 

Welcome to BP and REI. I feel like you were saying that you live in Chattanooga, but I couldn't quite figure it out. I am in Chattanooga, and we have a fun and robust REI community here. There is a local REIA that I would recommend checking out. If you want to grab a coffee and shoot the breeze just PM or call!

take care,

   -Luke 

Thank you so much for your response. I appreciate the link to the blog. I have started. My budget is 1k/ month. It is going swimmingly! I appreciate the info. 

please feel free to reach out! 

take care, 

 -Luke 

I have a property in Ringgold, Ga outside of Chattanooga, tn. It is a 2/1 recently and well remodeled. It should be emptied by Jan 16. You should be able to get somewhere around $700. (Zillow says $787) Looking at $47,000 with around $4,000 in repairs to get it in premium shape. It has a garage and a bonus area downstairs, corner lot, hardwoods, metal roof. It was remodeled in the last year or year-half. We have photos and whatnot. If you are at all interested please call to discuss, I would be glad to tell your more.

Thanks,

  -Luke

706-218-6958

I have been targeting people that have started the foreclosure process. To determine if they are eligible I run their loan amount and loan date through an amortization schedule. This weeds out 90% ish... I have put one under contract and it didn't go through due to the timing...

   Finding them is another huge problem. These people don't have phones and most of them have abandoned the property at this point.

   long story short there are better things to spend your time on. I am doing this mostly because I am waiting on my direct mail marketing to bring in leads... Driving for dollars is probably more effective.

I feel like I've learned a lot since starting that strategy

let's connect via Skype if you're interested in talking more!

-Luke