All Forum Posts by: Orlundo Hubbard

When I was wholesaling, the hardest thing to do was to find reliable contractors who could get the job done and not leave the house a total mess.

I always knew this was a common problem in the real estate space and I was always curious as to what was the underlying issue. So, for those who frequently hire contractors (good ones), how do you find good contractors?

And for those who have a hard time finding good contractors, what would you say is the number one reason it's hard to find a good contractor and what would you suggest as a good fix for the issue?

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Hey y'all! I'm in the Austin, Texas area and I'm looking to connect with other lenders in the area!
If you have someone or know someone who is actively lending.

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Austin, Texas

Quote from @Chris Seveney:

Quote from @Orlundo Hubbard:

How popular are REO properties? It seems that I don't see them talked about as much as potential investments.

What are the drawbacks of these properties? What are some of the best ways to invest in them?

I see them as huge opportunities but not talked about a lot.

Well REO's have gone down to to lower foreclosure rates. drawbacks are banks are very low and non responsive, unless its not a traditional bank and a private lender then you could possibly get a better deal. Some do not allow access or inspections, and some will not have utilities turned on so its tough to determine what is and is not working. That is just some of the items, there are plenty more.

But are they worth it?

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Austin, Texas

How popular are REO properties? It seems that I don't see them talked about as much as potential investments.

What are the drawbacks of these properties? What are some of the best ways to invest in them?

I see them as huge opportunities but not talked about a lot.

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Austin, Texas

Hey everyone!

What's going on in Columbia, SC? It seems like there is a very strong real estate market out there.

I was searching through some of the data and noticed that there are people from New York and more expensive cities moving there (which I would assume will drive up market prices).

Is there anyone investing in this market? If so, how strong is the market growing out there?

I know that it is a strong college town with the University of South Carolina.

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Quote from @Tony Sherman:

I can send it via email. May I have your email address?

Can you send it to me as well? [email protected]

I also sent you an email request.

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Quote from @Bob Stevens:

Quote from @Orlundo Hubbard:

Why is it so hard to raise capital these days?

I have been talking to investors and discussing my interest in raising capital and I get the same response "Capital is tight", "no one's lending right now", and "Why would someone lend to a new investor?".

So, I'm here to ask those who either have capital to deploy or have raised capital, what are the common fears when it comes to deploying capital?

Why is everyone so afraid to deploy capital? What are the common fears of investors who write checks to capital raisers?

Is it just this market that is bringing fear or has it always been this way?

The ONLY reason its difficult to raise funds is if the deals is not good. Money will ALWAYS find the deal,

Are you funding anything right now?

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Austin, Texas

Quote from @Jay Hinrichs:

Quote from @Shawn Bhatti:

Quote from @Orlundo Hubbard:

Quote from @Shawn Bhatti:

Capital has been tight because 10 year treasuries have been hovering around 4% the past few years. Note that they were sub-1% during the COVID era, which is what allowed many delusional syndicators and funds to raise money for properties that were doomed to underperform.

So ask yourself this as if you are in their shoes: you could invest in T-bills to get a guaranteed 4% return, then what is the premium I would require to invest in this person and their commensurate deal? Of course when the risk free rate is sub zero, those with capital are urged to deploy it (allow known as quantitative easing).

Of course there are many other factors like operator experience, specific market, specific deal etc, but generally this is one of the largest factors.

So, are you saying investors are seeing t-bills as better-performing passive assets than a syndication deal?

Also, what caused syndicators to become delusional? The main driver? And how can this objection be overcome for someone skeptical because of the delusional syndication deals that have taken place?

Not necessarily that it is a better return, but rather a better risk adjusted return.

These potential investors know that you are offering a better return, but at what risk? They could get a risk free return by investing in T-bills, so the delta between that RFR and what you're offering needs to be rewarding enough for them to pursue it.

As for the 2nd part of your question, that really is a mystery :)

The low interest rate environment always leads to these folks misleading people and mismatching deal operations, and sometimes even defaulting on the property and losing it altogether.

Probably because a bunch of these syndicators want to be cool Instagram/TikTok influencers and throw up their arms and talk about how many doors they own, but what do I know lol.

when most of these syndications that are having issues were formed and funded rates were not anywhere near where they are now..

I see what you're saying. This is a great take thank you for your input!

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Austin, Texas

Quote from @Henry Clark:

General questions like this, are more about you than other people who respond. I like to look back at a posters previous posts to understand how to respond. You’re basically asking the same question.

The first question no matter what is asked will always what are you bringing to the table?

Keep in mind even if you’re self funding you are bringing everyone else along for the ride. Agents, contractors, investors, lenders, family, sellers, etc. You are exposing them to risk for your benefit.

So. What are you bringing to the table?

Looks like you are in Texas? To build up cash. I would recommend you look at OffList property tax sales. Do only land and not houses. You can take ownership in 6 months versus 2 years in houses. Don't do the auctions. Just the offlist properties. BRRRR and flip the land properties.

Interesting take. I like the tax sale idea. But, why not houses? It’s where I’m more comfortable at.

Also, is bringing the deal to the table not enough anymore?

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Austin, Texas

Quote from @Chris Seveney:

@Orlundo Hubbard

Raising capital and deploying capital are two different things in my mind

When you are raising capital, you are having investors provide you the funds so they can be passive. Many who have invested passively in real estate the past few years are in deals not going well and they are much more risk averse and are doing a lot more due diligence (unfortunately from lessons learned from not doing it previously)

Plus as mentioned risk free return vs risk adjusted return does not make it very enticing for investors

When it gets to deploying capital we have more deals than we know what to do with.

To your point about deals not doing well, what was the issue for the deals not doing well? What portion of the deal did those managing funds get wrong?

Also, how would a GP overcome this objection (or fear from an LP) of being burned by another "passive investment"?

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Austin, Texas

All Forum Posts by: Orlundo Hubbard

Orlundo Hubbard has started 8 posts and replied 30 times.

Post: Finding Good Contractors

Post: Any Lenders ACTIVELY Lending In The Austin, Texas Area

Post: What's Up With REO Investments?

Post: What's Up With REO Investments?

Post: Who's Doing Deals In Columbia, SC?

Post: Are you a real estate investor in need of funding for your next big project? Look no

Post: What's Holding Private Money Back From Deploying Capital?

Post: What's Holding Private Money Back From Deploying Capital?

Post: What's Holding Private Money Back From Deploying Capital?

Post: What's Holding Private Money Back From Deploying Capital?