All Forum Posts by: Jeff Campbell

Nic,

I love it, and it's awesome that you had the ability to pay cash and the foresight to know you could refinance when the rates begin to normalize.  I believe you definitely have to make some kind of pivot to keep things rolling. Glad to hear you are still making things happen. If you hear of any in Memphis you aren't interested in I’d love to hear about them and maybe they will work for me. 

Taz,

I invest in Heber Springs and pretty much all of Central Arkansas. With the majority in the Little Rock area. I have two of these I just did in Little Rock and closed on my third deal in Heber Springs. Next time you are in the area let me know if I'm not trying to buy a house I'm probably playing Pickleball or fishing. 

 I also have several other family members in line for when the next great deal comes available so I won't have to pass because I don’t have money available. Finding the money was the most challenging part for me, but now that they see that I am performing well with my private money lender other family members are ready to get in the game as well. 

Those are two very valid points and as I said this will not work for a lot of investors, but for those that have reserves set back already for repairs and don’t need the cash flow it works great. 

I've got a great job that pays well and have reserves in the bank for unexpected expenses so it works well for me and will work well for others in the same position financially as me. 

The current high-interest rates have made it a lot more challenging for the average or new investor. To be honest I completely stopped buying for a few months when the low rates I was getting approved for more than doubled. 

Currently, I am using private money (friends and family) that offered to help and I am paying them off over a five-year period with a great rate for them which is much higher than they are getting in their current investments. These deals do not cash-flow for the the first five years, but after the fifth year the property is paid and I am cash-flowing for the remainder of the time that I own the property. I really like the idea of having my properties paid for after five years and keeping out of having to use balloon-type and long-term loans. 

This will not work in a lot of markets because of the price point for the investments are too high but a lot of the markets that have lower price points it will. It will also not work for you if you have to have cash flow the first five years. 

What are you doing to not sit on the sidelines and keep moving forward with your investing even when is as high as those rates your mom and dad told you about when they were growing up? 

Investment Info:

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

Purchase price: $60,000

This is a triplex that I use the middle unit as an office and rent out both sides. It's been a significant investment that gives me cash flow and allows me to have an office for free where I do wholesale deals and run my rental portfolio out.

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

It had a great location on one of the busiest streets in my hometown that I could rent out two of the units and use the other as an office.

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

The seller has a for sale by owner sign out front of the building. I called him and met him the next morning and got it under contract.

How did you finance this deal?

I used a local bank

How did you add value to the deal?

I went in and remodeled two of the units that were empty and got good paying tenants to rent the units

What was the outcome?

I now have a triplex that has increased in value that cash flows and allows me to use the middle unit as my office. It's been a great deal!

Lessons learned? Challenges?

I would have checked my contractor, who did my remodel more thoroughly. I had to redo some things from them, taking shortcuts to cut costs for more profit.

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

I used Central Bank in Little Rock and did the loan with zero money down.

If you concentrate on the pain that the property is presenting to the owner and paint a picture of what it will be like without that pain it is a lot more likely you will be able to buy at a discount. I have wholesaled a lot of properties over the last five years if you have any questions. I would be glad to let you know what works for me. 

I have used Arkansas Federal Credit Union with great success. I also have several other banks I have used if you need bank recommendations as well. Feel free to reach out any time.