All Forum Posts by: Rod Smith

@Chris K. I agree that is a great way to go.

@Jassem A. , I could be wrong, but it seems like you are overstating how easy it is to find a $10k property, rent it, and start cash flowing. I have bought houses in Alabama, Georgia, and SC, which are all states with tons of low price houses, and I have never seen a $10k house that did not need some kind of rehad. Are there a few diamonds in the rough? Probably so. But you and I know, those deals are few and far between, so I wouldn't give @Account Closed the impression that finding a turn-key property for $10k will be easily accomplished. I do not ever want to say that someone is flat out wrong, but I respectfully disagree.

Just to add to the conversation.@Joe Villeneuve  I totally understand and agree with what you are saying about buying and refi. I actually kind of backed into that method because of the condition of some of the properties I was interested in. Maybe in explaining to @Account Closed

I have bought HUD properties in the past, and the listing agent can usually have the utilities turned on at HUD's expense for you to have a home inspection done. You should not have to incur that expense until you close.

Full Disclosure: I haven't bought a HUD home since the recession, so they may have begun playing hardball to save money. I would ask anyway though.

Thanks @Dell Schlabach ! I actually have a relationship with the local credit union, but they are saying 6 mos also. I will continue to try and find a good local back that may do it. I am sending you a friend request, I would like to talk more about flipping.

Thanks Ann....I will.

@Ann Bellamy 

I have a question. I used a hard money lender on 3 different occassions back in the early 2000's and I was able to refinance out of the hard money loan as soon as the rehad was done (usually 45-60 days). These were buy and hold projects that fell into the category you mentioned earlier of being in too bad of shape to get conventional financing. So the extra money I paid in hard money was worthwhile because the equity I could build with the rehab.

Now I am looking at hard money option, but  can't pull the trigger because, from conversations I have had with loan officers at banks and mortgage companies, everyone is requiring me to wait 6 months before I refi. Can you give me an idea on how to get around this or point me towards a lender that does not require this 180 day seasoning. FYI: This is also the case for a property I bought cash.

@David Boykin

You are right about growth in Virginia, but it depends on your strategy and/or position. Eventhough Augusta is not growing by leaps and bounds, it isn't a gold rush town that is drying up. There are a lot of manufacturers opening plants and distribution centers in the area that will keep the middle class employed. Those are my tenants. Plus that area has a higher renter population. A lot of people just do not buy houses. The numbers are probably scued for the past couple years because people who never thought about buying saw an opportunity to buy foreclosures for much less than they were paying in rent. But it is returning to normal.

As for my financial position, it would be more of a strain for me to purchase a property here due to the much higher price point. I am able to purchase distressed properties there for cash, renovate, and do a cash out refi later, if I choose. There are some people that say it is better to buy the more expensive house here because your rents are higher, however when I crunch the numbers it is about the same percentage wise (if not better down there) because of the increase cash outlay necessary to purchase here.

Also, on a personal note, I am originally from the south and plan to make my money here and eventually return there where the cost of living is much lower. Therefore, I want my rentals (aka retirement plan) to be down there so I can manage them later on in life. Won't have to worry about paying a property manager up when I leave.

One more thing to keep in mind. All properties on the Homepath website are not automatically eligible for purchase with 10% down. The property must be one that is identified as eligible for a Homepath mortgage or a Homepath renovation mortgage(I think these require 15% down).

@Kay H.

I would start with my local board of realtors (call or go online). They usually have a standard residential contract available to the public.

I can't help with the rest as I have not began my mail campaign yet. I will be just as interested in the methods and strategies shared via any responses. I commend you for jumping in with both feet! Best of luck to you.

Oh, one more thing. If you haven't already, you may want to review past podcasts and listen to any that cover mail campaigns. I have found a lot of the information shared in these podcasts by other successful investors to be very helpful.

Hi @Sue T.

Try Mike & Wendy Walton at [email protected]

I have not actually used this company before, but I have spoken with Mike and he is very knowledgeable and came highly recommended from realtors in the area. He is also a HUD contractor, so he has first had knowledge of some of the foreclosures for sale in the area and offered to help me analyze deals based on his opinion of the property and repairs needed.

Sorry I do not have his phone number with me, but if you email him and introduce yourself he will definitely respond with his phone number. Good luck!