All Forum Posts by: Christopher B.

I don't believe Toro Title operates in Knoxville. I've never heard of them. 

Kevin, Tallent Title, Admiral Title, and Paramount Title are all well-known tile companies here in Knoxville that can do what you need. Congrats on the deal.

Originally posted by @Milind Shastri:

Hello @Doug W., @Brian Rossiter, @Christopher B. and others. I'm working on a flip project in Texas which has a similar issue. The house was built in the 60's. The foundation is a block and base type pier and beam foundation in not the best shape. Here's a picture of what the crawl space looks like:

Would love to hear about what worked best for you all.

Regards,

Mil

Find you a trustworthy engineer that can look at it. Best to be proactive from my experience. 

As Jonah mentioned, professional photos will help. I had a photographer do pictures and a virtual walk-through on a new rental Friday. I am also going to start providing digital floorplans with measurements in my listings. The goal is to be able to rent without the new residents stepping foot on the property and reduce lost rents due to turnovers. It's hard to rent a space until the existing residents have moved out. 

Stick to your guns. A good tenant is worth waiting for and things are slower this time of year. I have a list of qualifications that an applicant must meet to be approved. When I list the property I am transparent in the listing about the requirements to qualify and our process (3x rent,  background checks, no felonies, etc) and let the customers pre screen themselves. I also don't aggressively sell potential residents on my property. I provide them information, answer questions they have, encourage them to drive by the property first, then setup group showings at the property. If they like it at the showing they are then provided an application. This is admittedly not the quickest way to rent a unit and probably not the best. As noted above I am working to improve on it but this method has consistently helped me find quality residents.

Rodrigo, if you BRRRR you can capture nice chunks of equity tax free then 1031 those properties into a larger property. Create consistent active income for yourself via a job, flips, or whatever then increase your savings rate as much as you can by eliminating bad debt and reducing living expenses. Then move towards growing your portfolio.

Go to the BP Business Podcast, they talk a lot about business systems. There is one specifically, sorry I forget what episode, where the guy left real estate and purchased a lawn service business. He turned that one small business into the acquisition of 6-7 more. He talks about his operations, how he has figured out how to reduce his operating expenses, etc.  A lot for your first start but I think it can potentially help shape your mindset from the start, help you see things from a different angle. Also, pick-up a copy of "The E-Myth". 

Basically you want to run a business. Not be a lawn mower. We all have to pay our dues but if you begin your journey with that mindset and work towards that goal you will go further quicker than most your age. Good luck.

Pick a strategy. Keep it simple. Follow it consistently. Start with education. What is the end game look like. Then what provides that result. Any strategy can work. What works with your personality and resources. 

Use your $30k and leave the $300k she has worked for out of the equation. She will need the asset later in life and it's not worth risking her home while you learn the ropes. This business has been my full-time career for 7yrs+ and even with that experience I would NEVER leverage the home of my parents or an elderly family member. 

$30k is enough to get you in the game. Find someone to partner with, bring money and your time in exchange for some profit and the chance to learn. Get some deals under your belt by focusing on your education and not maximizing returns. Then you can get your own financing (private money, HML, banks, CC's). There is a lot of money looking for returns so if you have the skills you won't be held back by capital restrictions.

We don't even look at credit score. We look at credit history. We discount for student and medical debt. We focus on their historical patterns and give weight to recent events. If the applicant has a history of responsible debt management outside of an isolated event we will discuss it with them to find out the cause, a lot of times life happens and people get in tough spots they have to overcome. This has worked well for us to date. 

BRRRR doesn't generate cash. Just monthly cash flows which aren't generally in themselves. It can potentially generate equity that can be theoretically borrowed via a LOC. But you will need to financially qualify to borrow it back. If you need cash you need active income which would be flipping.

You need to keep reserves to protect your investment.  Don't take any personal withdrawals at all. Use cash flow above reserves for reinvestment. Put the cash in a separate account that is earmarked for investment only. Don't consider the cash flow as disposable income until you reach your minimum residual income goals.