All Forum Posts by: Neil Goradia

I'd partner with an existing wholesaler in your area. They have an incentive to help you since you will be bringing them the deals that their buyers are looking for. You may need to spend some money on marketing or just your time driving around. Ask the wholesaler exactly where their buyers are wanting to buy and go there to knock on doors. You can also use websites to get more details on the properties and track down the owners, such as the county assessors website, the property tax website, etc. 

Hey Kevin. I'd find an experienced wholesaler in your area. If you don't know any, drive around until you find a "we buy houses" sign and call the number. If they're cool ask if they'd be willing to partner with you on deals you bring to them. They are your new coach. Maybe spend $500 or $1,000 on direct mail marketing (whatever you're comfortable with) to generate leads. I have small kids and understand what you mean that time is not on your side. One thing I do is stay up late a few nights a week to get stuff done. It's not ideal but it's what you'll need to do I think.  The reason I think you should partner with an existing wholesaler is they will have a buyers list ready to go, whereas you can surely start from scratch but it will take a little longer to find buyers. Good luck.

Funding can come from anywhere, but I wouldn't do it if you aren't experienced. Sounds like you may be starting out, with just a few deals under your belt. If this is the case, I'd suggest going the normal routes until you "know for sure" that you know what you're doing. Good luck.

I'm starting to learn myself. My suggestion is to find a wholesaler in your area and see if they are willing to take you under their wing. Maybe they'll partner with you on deals if you do the marketing for them. If you don't have the $ for direct mail marketing or signs, then you can drive for dollars and knock on doors. Takes more time but can pay off. Ask the wholesaler you partner with which areas are selling the fastest and drive those streets. Look for tall grass, abandoned/deteriorating houses, etc. Then track the owners down and pass the leads to your wholesaler to find a buyer.

Actually we were just attending that event since we had a pro account with them. Lowes does offer installation of certain things you buy there such as windows, doors, trim, etc but from what I understand it's fairly expensive. We did all our work in-house and had a few guys working for us full time. Finding contractors you can trust is one of the hardest things you'll ever do in my opinion. But once you find that person it streamlines everything. I'd recommend trying friend/family referrals first and using people for small jobs at first until you develop a relationship with them. Or craigslist, but I wouldn't recommend that starting out until you've done it a handful of times. Don't pay up front - only pay at intervals as work gets completed. It's a big red flag if the contractor can't afford to buy material without money from you (or doesn't have the right tools, transportation, etc). 

Modular and mobile homes are something I've never learned about so I can't help there. But the land we bought for our neighborhood development has been a gigantic learning curve regarding what the city council, architectural review board, department of environmental management, and other agencies will require you to comply with. Granted, my experience is with land that needed major utility infrastructure added before splitting it up. This required forming a team of people around us that were local (attorney, engineering firm, etc) that understand what it will take to get everything passed the right way. It can be very political and you'll need a lot of patience and the right type of investors to put up the capital. 

Thanks @Alan Wolkov! I will surely try to help wherever I can. What are your goals and what are you trying to accomplish? It may be a bit difficult since I'm out of state (and currently out of country!) but a lot of landlording/flipping/general renovation/development experience should be transferable to most locations unless you need specific information about your local in particular. Just let me know.

Sorry about the poor contractor, can't say that's ever happened to me before.. ;p

Marcus - Thanks, yes I was able to hire a PM and it's made a world of difference! Thank you!

A couple thoughts on your questions. I agree with Kevin, make sure you not only write what maintenance you expect them to do in your lease, but review it with them in detail during the lease signing. Setting expectations up front is a great way to start a good communication history with your tenant.

Regarding the savings account to collect interest, you could but it is probably not worth the hassle. You will eventually have repairs that are needed like when your furnace needs serviced or if anything else goes wrong and you'll need to write checks. I'd recommend starting an LLC and getting an LLC checking account at your local bank. Do not intermingle your personal expenses/accounts with your companies accounts. If you have any other questions, just let me know. Good luck.

That's awesome to have that much equity at 28 years old!

If you're looking for more cashflow I'd rent your first house to someone and take out an HELOC. You can then use the proceeds to buy more (cheaper) rental properties. I don't know the market in Georgia, but here in Indiana you can buy turn-key rental properties for $40k all day long. The only instance I would not take out a HELOC is if the house needs constant repairs and/or good tenants are hard to find in that area. There is nothing more stressful than having a vacant house and a loan payment to make!

Wholesaling is another good option to get into that requires no money, but lots of time investment. If you have any specific questions please send me a PM and I'll try my best to answer. Good luck.

Carlos - Beech Grove is a great rental area, very old-timey feel and great renters in my experience. Congrats on the 60 unit!