All Forum Posts by: Mark Sewell

I see there is one Investment Group that owns about 30% of the complex, and there are a couple other investors that own maybe a half dozen units each.  So it's obviously working for them.

Happy Friday.  Let's talk about something I've been wondering about for some time.

I saw some really inexpensive 1/1 condos down there in that 59 & Bwy 8 area.  The standard 'investor/handyman dream' deal, just needs a little TLC, etc.  850 sq ft roughly.  I figure it would rent for about 800 after some paint and elbow grease.  They are asking $36K for it, but I see that they have been selling recently for $21-$22K.  One unit went for $44K all fixed up with granite and the whole bit. 

Not the first time I see these deals down in that little area, there will be more deals like this one, so not worried AT ALL about losing it.  And that brings me to my question... why?  The numbers work, from a cash flow investment perspective.  Must be some cost I am not taking in to account here? 

Or is it just hard as heck to get a decent tenant down there?  Maybe I'll run down and do a drive-by, just to see how rough it is or isn't.

I kinda like the idea of plunking down $21K on this, cash - no hard money or anything.  Sink another $5-6K getting it fixed up and then rent it out for $800/month.  In fact it probably only needs $2-3K.  Collect 3-4 months of rent and resell it to somebody for $35-$40k.

Or maybe attempt to do a BRRR on it - financing might not make sense for such a small amount, though. Then go get another one - or not.

There are some things to like, and some obvious risks to not like also.  Chief among my concerns would probably be my ability to resell the thing, once improved and rented out.

Thoughts?  Anybody else playing this sandbox?

@James H.

Don't be fooled by the name. Research what they offer, as you clearly are not that familiar with it. They send me several lists of data each work day. The MLS aspect is just a part of their service.

I cannot answer your question beyond that.  Probably they would not show up on any lists.  Until they work their way through the courts, there is likely nothing you can do.

Dropping the website I have now, keeping the domain name and rebuilding a new site elsewhere, using the same domain. Will probably add a second one also. 

People watch the little video, and some even click on the link.  That's all I know.  No lead forms get filled out ever.  So the disconnect is deep and wide.  I've already spent some time on it, over the winter, and I'm done with it.  Just packing up my domain name and starting over with something that is proven.

Good insight Dave.  Thanks for sharing.

Maybe you can work for some other investors in your area?  Drive for them, do some door knocking, appointment setting, some other part-time stuff that they need done.  Start chipping away at it, and learn while you earn.

Please understand I am just starting to make my own way through this journey myself, so I do not wish to come off as some of subject matter expert -- just gleaning what I can get from those that are doing it successfully.  Definitely open to suggestions, as I am trying to create and refine a process as I go.

Not unlike direct mail ads, you get to pick who gets the ad.  Why advertise to people who don't have equity and/or live in areas where you don't want to buy?  Of course, there is no guarantee here that they will 'open' your ad and read it.  So you might still want to call and tough them again later, using other forms of marketing.   They say folks need to see you 7-10 times, something like that, so this is another way to touch them.  Tom C runs mail campaigns, Max does not mail anything ever. 

As I grow I'll build out better, more robust processes, to hit these same folks with RVM and email campaigns, and not just FB ads and direct mail.  I actually don't want to do much direct mail, just letters for probate and maybe some postcards to tired landlords.

Video clips, short ones, are 'probably' a little more effective, at least to start.  Then you create another audience consisting only of those that viewed your short video clips.  Gradually move them from being 'problem aware' to 'solution aware' to making them understand why they ought to work with you.  Show them what you have done, that you aren't just some guy out mailing ads, that you actually do buy houses -- or whatever your message is.

I am running a targeted ad right now.  10 clicks have cost me about $37, that's on 272 video views (as of this writing).  Only been running 3 days or so.  Next will be time to hit them again (based on engagement or video views) to build some credibility, let them know something about me personally, to make them feel comfortable in reaching out.  Working on those ads now.

In the meantime, I am ditching my existing site, as all these leads are just being poured out into nothing currently.  Totally not converting, so I need something better. I might just go with FB lead forms, in fact, as least for the interim while I'm making the transition.

Look up Tom Cafarella in Boston.  He would caution you not to waste any money on FB unless you have a proven performing site to drive it to, with all the funnels/drips and underpinning to nurture and ultimately capture the leads.  Max Maxwell does it also.  Both these guys take a list of names (tax delinquent, etc) and uploads them as a custom audience.  Works like mailers, in a way.

With all the people displaced by floods, and so many houses still being repaired/rehabbed, it is natural to think that supply is short and rents must be high.  And yet, in my part of town, I see vacant houses for rent all over.  

My original theory was that most folks here are just flat struggling to make ends meet, and most cannot afford $1200-$1300 to rent a house. Landlords might drop them a bit, but not that far. So I suspect it is the apartment market that is experiencing the inflated demand, and not the SFR rental market.

Today I tracked down the contact details of one of the big national RE investment funds that operates here.  To my surprise, I got a polite and timely response a regional manager of sorts.

I was told that they 'are currently not acquiring any additional homes within the Houston Market at this time nor the foreseeable future.'

Hmmm.  Are prices finally getting unsustainable for rental properties?  They've had enough with local property taxes in Harris County (nobody would blame them)...?

Interested to hear your thoughts.

Oh wow, didn't know this little tidbit.  Good deal, man!