All Forum Posts by: Michael Tucker

I have a friend who is from Ghana and she explained that their market is cash based, with minimal financing/mortgages and large down and monthly cash payments. With all the interest in investing in African Nations, Ghana especially I figured there has to be someone establishing a funding presence to funnel outside money and financing to the area. Anyone have some insight they can share? I'd like to help my friend find a partner to fund the cash on the deal to purchase property and maybe refinance her into a rental loan?.

@Elvis Acheampong how are you funding the deal?

@Razak Amadu how are you finding projects there?

Thanks @Connor Anderson It was great because I finally got the first real rehab out of the way and I didn't lose my shirt. Grateful for that and the good Lord for seeing it through!

Investment Info:

Small multi-family (2-4 units) buy & hold investment.

Purchase price: $37,000
Cash invested: $150,000

My first rehab/BRRR deal, 2 Unit, End of Group, went over budget by 20%, and after 2 appraisals, refinanced and recouped most of the cash invested.

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

Wanted to get my first deal done!

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

It was a wholesale deal posted on Zillow. Way overpriced but after months of going back and forth we agreed on price and I stepped out on faith to get it done.

How did you finance this deal?

Hard Money Lender. Found a deal that was within 65% of the ARV and funded acquisition and rehab.

How did you add value to the deal?

Almost a full gut rehab with a great contractor who acted as a quasi-PM for me.

What was the outcome?

Great product, did some things out of order with respect to the City permits/inspections but with grace we made it through!

Lessons learned? Challenges?

Buying is where you make money, have comps for the appraiser ready, get a good contractor, leave extra room in rehab.

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

Yes I worked with an agent to have my rental shown and am happy to recommend my agent and my contractor to others.

Thanks for starting this thread @Kyler Cook! I appreciate all the perspectives. Orginially I was evaluating deals and account for tithes, but after expenses, debt service, and reserves. My wife and I still work full time and we tithe on the gross of our paychecks. So when I showed her my plan, she pushed back since this was outside of our normal household practices. I just completed my first rehab deal, and I still cashflow, but I can't afford property management without basically negating the rest. It also makes evaluating new deals a bit more difficult because with all of the reserves, management, and cashflow points I'm looking for tithes may take out half of the net cash flow or more. I feel bad/selfish for wrestling with this (my pastor had the same comment about if you want a "gross blessing" tithe on the gross, if you want a "net blessing" tithe on the net. 

Anyway I appreciate all the perspectives and its good to see people honoring their faith in their investing. My faith helped me get in the business and I look forward to seeing where it takes me in the future. 

@James Wise you're right but that doesn't mean you can't make profits with a purpose either. Some investors would argue that models that aren't profit driven, even when doing quasi-philanthropic work aren't sustainable. I don't think you necessarily disagree with that sentiment though, but leading with the heart/emotions is a recipe for disaster. That's why I reach out to smart folks like y'all!

@Stephen White appreciate the response and kind words and my business is intended to make money but also help people while doing so where I can. I was approached about this concept from a classmate of mine wo was formerly incarcerated and have given it some serious consideration especially since its fallen within my investing principles/core convictions. But before I make any moves I wanted to be able to make an informed/protected move given the increased perceived risk.

My classmate actually wants to start something similar to the non-profit you mentioned, but I'd rather start a little smaller.

@Stephen White what other criteria should landlords consider when renting to re-entering citizens (former offenders)?

@Rachel H. Do you have any examples? Figuring this out as I go....