All Forum Posts by: Stephen Schott

Hey Justin! The BRRRR Strategy is going to begin with you finding a lender that you can work with really well. I got started by raising money for my first deal all in private money. Then used that money to buy and rehab the first deal all cash. Then went to a bank after owning it for 6 months (kind of a cut off point for portfolio lenders, they prefer you own it a year) and opened a line of credit on that house. That line of credit is now used to purchase and rehab all our deals, then we finance the house to pay off the line of credit rinse and repeat. As long as the bank shows you making over 1.35 DCR (debt coverage ratio) they will be more thna happy to lend you money on buy and hold investments.

Hey Guys. I am an established investor in Cape Girardeau/Jackson area. I know David has reached out to me, but Quentin feel free to pm me on here we can get together.

First let me say It seems very few people here really understand how Whole Life Insurance works. Aside from that i highly advise against ever EVER getting rid of medical insurance. What happens if next year your kids or yourself are diagnosed with a illness, even something as simple as bronchitis? Or, worse, someone is in a car accident and requires multiple surgeries. I had brain surgery when i was 18 from a car accident and after rehab, and a months stay in the hospital the total bill was 1.8million. You know what we paid? 5k. 

Now with whole life insurance i think EVERY INVESTOR HERE SHOULD HAVE IT. Here's why. CASH VALUE. This is the only financial vehicle that a person can use dollar for dollar as collateral for a loan. Now, i get saving cash is attractive in the short term, but in the long term you should be doing both. Not just for the practical reason like, only 1-2% of term policies pay out...where is the wasted money now? But also you can use yourself as a bank as you can borrow from your whole life policy, STILL receive the 6% back on cash value, AND use that money to invest. It's a double whammy. Find a good financial advisor, i recommend Northwestern Mutual or Mass Mutual as they have the best returns in cash value in the market, and ask them how you can use life insurance to invest in real estate 

@Bleau Deckerd yes. We actually opened a line of credit on this property based on 75% of its appraised value. The house next door we bought with this line of credit and will finish the renovations. Then mortgage the house to pay off the line of credit because we will be well below 75-80% costs.

I have one rule when finding properties in the area, it's that I will never go into a property for more that 65 cents on the dollar. Which means if I know the property appraises for 100k finished, and I know there are 20k in renovations, I doing everything I can to purchase that property for 45k or less. You don't find those deals on turn key investments, they do require more work. And most of the time they aren't listed, they are found through networking and sleuthing neighborhoods haha..but this strategy would keep you under leveraged, keep your net, worth high, and will always create the necessary cash flow given you are doing all the other things to rent your peppery to good tenants.

@Bleau Decker the biggest thing about Cape Girardeau is finding your demographic and setting your own price point. Also if houses are continusly rented and are grandfathered in past Missouri state law for some tenancy regulation you can, add some bedrooms to most properties here and rent to college students. Also it depends on what you are basing your 1% on. Is it the appraised value of the property or the amount of money YOU have invested? For example I have a property that, cost me 38k and it took 22k in renovations. So 60k total. It appraised for 106k and I rent it for 1,800 a month to the baseball team at semo. We are about to finish an identical property next door to this one and rent it to more baseball players. In these examples I make 3% a month on my cost. But make 1.7% on appraisal value.

Hey! Welcome To BP! I'm an investor in Cape. Minsch Property Group, LLC. we would love to connect with you. Message me for contact info!

Chris I am an active investor in Cape GIrardeau. There are MANY investors/managers in Cape, barely any of which use this website. PM me for more info, i'd love to get connected and see if i can help out!

Welcome Ronnie,

My company currently invests in Cape Girardeau region along with many, many, other landlords here in the area. We have a landlord association meeting the 3rd Wednesday of every month at the public library. PM me and I can get you some more information on that if you would like to meet other investors in the area! 

Cape is an awesome town to be in right now with what the market is doing whether it is rentals or fix n flips there is plenty of room to learn the only tough thing is the competition. You have guys here in cape that own 200-300 properties and run a lot of the market. These are the guys i learned from. If there is anything else i can do to help let me know!

@James Dickens This chart is awesome! I currently live and invest in Cape Girardeau. The market here is moving so fast man. With a record number of college students each year, and plans for further downtown development, AND ATT bringing 1200 new jobs here soon this trend will only continue. A good and a bad thing about Cape when it comes to investors is how over saturated it is with landlords. There are ways to make good money here, but the competition is stiff. Which may contribute to the rising median value. If anyone is interested in this area shoot me a PM!

I'm still having difficulty with this too. And it isn't that i have no money of my own. My company holds a 100k line of credit and we have another 200k in cash. There area  few great deals that require around 500k cash, and even if we split profits and equity with someone then the work doesn't seem to justify the profit. Maybe i'm just not finding the right deals?