All Forum Posts by: Michael Newman

Quote from @Natalie Stanley:

Hi Everyone! My husband and I have been investing in real estate in the East Texas/Longview area for about 8 years. We would love to meet other people who have investment properties in East Texas. We are wanting to branch out into some of the smaller towns surrounding Longview and would love to meet investors with experience in the smaller more rural areas. 

Hi Mrs. Stanley.

My wife and I live in Kilgore and we are also looking for likeminded investors in the area. I work in IT at a local boat manufacture and my wife works in the office of a flooring company in Longview.  

We recently sold our one rental, but we are looking for our next deal/project in the area. We lack the experience of you and your husband, but there are a couple of groups that meet regularly in the area.

Impact Lindale is run by Roger Paschal, he is also a member of Bigger Pockets. They have monthly meetings in Tyler as wells as meetings in Lindale and live streams. I am not sure of the dates and time at the moment. IMPACT Lindale East Texas Real Estate Investors | Facebook

There is also the Impact Longview group that meets out near the airport. I think it is somewhere on FM 349, but we have never attended. Impact Longview Texas Real Estate Investor Page | Facebook

Hopefully this is helpful. I have a bit of anxiety when it comes to meet ups/networking, so I have a difficult time convincing myself to go, but I am working on overcoming this weakness. 

Jy - I am also watching the Tyler area but for MTRs for nurses. For the properties that are listed for a longer time, It seems that a lot of them are over priced for the neighborhoods they are in.

I live close to Tyler and my wife is an agent for the Longview area. Unfortunately she doesn't have access to the GTAR MLS, but we are constantly driving the area searching for possible investments.

btw there is a local REI group that meets monthly. A lot of knowledgeable locals in there. No fees or any of that junk, just people meeting for coffee and showing off their projects. It's under "IMPACT Lindale" on Facebook, I think.

Quote from @Josh Dickson:

I've always been interested in real estate but I never had the capital to even think about it until recently. Some of the information I've read seems to indicate that the market is very competitive at this moment. Also, interest rates are higher than they have been for the last decade or so. My primary intention is to slowly accumulate rental properties to supplement my income and maybe, some day, be able to retire early. I've started educating myself but I wanted to ask people who have actually taken action and gotten into it, is it worth it at this time?

Its seems like there is always "something" on the horizon to make us uncertain, but at some point we have to take action. This isn't isolated to RE either, and there is always something "bad" about to happen. In 2020 everyone was doom and gloom when I would mention anything related to the sock market, but that ended up being one of my best years even with the pandemic and lockdowns. 

Start analyzing properties in an area that interests you. Let the numbers tell you if its a good deal, and avoid letting the talking head on TV, or elsewhere, sway your plans. If things go south and get bad, then look at it as tuition to the learning process. I think the saying is "Hope for the best, but plan for the worst". If you apply that and start slowly accumulating properties I think you will do just fine. Its your goals and plans that determine where you go in life. 

I like to ask myself "Would I want to live here", if you would pass by the offer then expect others to do the same. 

Spend some money on the landscaping, fix the fence, definitely get professional photos, and re-write your listing description on Avail. Example below. 

Avail Description Example: 

"Exquisite five-bedroom, one-bathroom haven in the vibrant Lee Miles neighborhood of Cleveland. Experience a luxurious lifestyle with an array of enticing amenities, including central air and heat, stunning hardwood floors, sleek stainless steel appliances, a fully updated kitchen, and the convenience of a washer dryer. Step outside to discover a beautiful yard, perfect for relaxation and outdoor activities. This property is available immediately, providing you with a seamless move-in process.

Monthly rent for this remarkable home is just $1,350, offering incredible value for the space and features it offers. A security deposit of $1,350 is required. Unfortunately, we are unable to accommodate pets at this time. Please take a moment to fill out the form on this page or reach out to Shane Kelly at 216-767-3953 for more details and to schedule a viewing.

Don't miss this opportunity to elevate your lifestyle and make this stunning property your own. Contact us today to embark on an unforgettable living experience!"

I am a newbie, but Mike Hern's advice is solid. Find someone that knows what they are doing and tag along with them for a few deals. You don't have to be in the deal, but at least be there to see the process in person. Ask them how they have structured partnerships and get their advice. Example, I have a guy that I have known for a few years that flips houses and storage units. I help him out with security camera installations and this gives me the ability to ask tons of questions. I have been able to learn a lot through casual conversations and texting with this one person. This has put me in a position to ask questions that I might have felt uncomfortable asking when I first met him.

In the end, you always need to ensure that you are protecting yourself and your assets. It doesnt matter if it is family, friends or a stranger. This may be in the form of an LLC or an LP. Either way, you could always reach out to a local attorney that has experience with real estate. Cough up a small fee to have an hour of their time and experience. Write out the details of the deal ahead of time along with a list of questions you might have. This way you are not stumbling around trying to think up questions on the spot and wasting time/money.

Quote from @Eric Mcginn:

Congrats! 
So tenants are planning on purchasing? For how much? Seller finance?

 A recent appraisal was $213k, and we originally talked about a price of around 210K.

No seller finance for this one since the tenants are eligible for a VA Loan, and we lived in the home for 2 of the last 5 years. From my understanding I would not have to pay the capital gains tax on the sell if i sell before the end of 2025.

I am aware of the hassles of a VA Loan, but I am fine with the wait since they are always on time with their rent.

Investment Info:

Single-family residence buy & hold investment.

Purchase price: $125,000
Cash invested: $15,000

Single Family Home in Kilgore, TX

Purchase price: $125,000
Cash invested: $15,000
Monthly cashflow: $529

First House turned into a Rental Property

What made you interested in investing in this type of deal?

Cash flow

How did you find this deal and how did you negotiate it?

Originally purchased the property as our primary residence. It was listed for $145K, and I offered $120K, The seller countered with $125K and we took it provided that the owner left the two safes and a portable generator.

How did you finance this deal?

Conventional 30-yr with 3.5% down

How did you add value to the deal?

Updated the interion by removing wood panels and dirty carpet.
Installed laminate flooring.
Repainted the interior completely.
Minor landscaping

What was the outcome?

Rented with the tenants planning to purchase in the last half of 2023.

Lessons learned? Challenges?

Dont try to do everything yourself even if you are very handy. Outsource the work and value my time more.

Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?

My wife is my agent and is currently with East Texas Preferred Properties. The broker she works for has always been very helpful.