All Forum Posts by: Account Closed

@Anthony Z.

What podcast episode was it?

Was he talking about wholesaling? Some people wholesale a house without rehabbing anything and they say they flipped it to someone.

You should start looking at properties and learning property values in the areas that you are interested in.

I love Zillow and Redfin! I use those apps every day! I think they are a good place to start. They can help you learn property values. I NEVER look at Zestimates! I spend a lot of time looking at properties that are for sale and properties that have sold. I'm looking for a duplex in Georgia. I've seen fixer-uppers and turn keys on there. It has taught me a lot about property values in the areas I focus on.

People can list a property for sale for any price they want. It's the SOLD prices that I pay more attention to when using Zillow or Redfin. That's the same way a realtor would pull comps for a property, by looking at other similar SOLD properties. I see some multi-families sit for sale for a long time. I assume they are priced too high or they need a lot of repairs. 

You can set up Redfin to email you when properties are listed for sale, pending, or sold in different areas that you choose. It can help you learn your target area without having to search the apps or websites everyday. 

First, pick a search area. It can be a state, county, zip code, etc. Where do you want to invest? For me, it is the county I live in and the 4 or 5 surrounding counties. Next, what kind of property are you looking for? Single family, multifamily, vacant land? For me it's multifamily. Set up all the details you want. I get emails almost every day for properties in my search areas that are listed, changed to pending, or sold. Every time I see a new listing, I will analyze it to practice. I'm looking for cashflow. If I find one that I can afford, and that will cash flow good, I will make an offer on it.

@Adam Juodis

I never use the app. It's terrible to me. On my iphone I go thru Safari and just go to the mobile site. It always works great.

For meetups, go to "Community" at top left of page. Then networking events. Then search by state, city, or zip code.

If you don't already know about meetup.com, go check it out! Search for real estate meetups, or real estate investing meetups. Here in Atlanta, GA there are meetups almost every single day in Atlanta and the surrounding areas. Some are free and some are not. 

@Tzvi Balsam

I'm still pretty new to sending yellow letters but I can already see that it gets easier with every call. You have to go through some bad phone calls to get better at them. 

I use a Google voice number. One thing I like is that I can have calls go straight to voice mail if I'm not going to be able to answer the phone, like while I'm at work. Then, when I have some time where I'm able to answer the phone, I will have the calls forwarded to my cell phone. I return every call, even if they don't leave a message. Well, almost every call. If they leave me an angry voice mail, I don't call them back.

I am always very kind and honest on the phone. If they say that they want top dollar, or tell me an amount that I can't come close to, I tell them something like, " Sir, I am not a retail buyer. I am looking for properties that I can buy at a discounted price. I think you would have a better chance at getting the price you want by listing your house with a real estate agent. I'm happy to give you the names of some great agents if you'd like." Some people will still get angry or tell me I'm wasting their time. It's just going to happen sometimes. I just keep smiling through the phone and stay calm.

I always keep a few of my "call sheets" or "scripts" with me. I don't read it word for word, but it helps me get the conversation flowing in the right direction. It keeps me on point, and keeps me from forgetting anything.

If I'm driving when I get a call, I'm just honest with the people. Talk to them to give yourself a few minutes to pull over and grab your call sheet. Say something like, "Hi! I'm so glad you called me. How are you doing today? I'm doing well. I'm driving right now. Please give me just a minute or two to pull my car over to a safe place so I can focus all of my attention on you." 

@Account Closed

Sometimes, I think it's more about timing, rather than what the letter looks like. 

I have been mailing yellow letters to owners of 2 - 4 units. I just received a text message from a guy that has 6 duplexes next door to each other. He built them in the 80s. He wants to sell all of them together. He owns all but 1 free and clear.  It's too big of a deal for me so I am trying to find partners or private lenders to help me. 

He told me that he has received letters before and always ignored them. The last few months he has been thinking about selling, and my letter just happened to hit his mailbox at the right time. 

My letters are very simple. Yellow notepad with lines. Red pen. Simple invitation envelope. Everything is handwritten. 

Dear Bob Smith

My name is Russ. I'd like to buy your duplex at 123 Main Street. If you're interested in selling, please call or text me at xxx-xxx-xxxx. 

Thanks!

Russ

If I'm not sure what kind of multi-family it is, I will write "multi-family property" instead of duplex. 

@John Thedford

Thanks for the advice. I go to several real estate investor meetings locally, and have talked to some private lenders. I'm sure that I will meet the right person eventually. Most lenders seem to be hard money lenders. They want to be in and out. I'd like to find someone that wants to park their money for a couple years at least. I would eventually get a conventional mortgage and pay them off. Then, I'd like to use the money again to snatch up another good deal. I'm fine paying whatever interest rate that will still allow the property cash flow well. I'd rather have a little less cash flow than no deal at all.

@John Thedford

When you borrow private money for a buy and hold, what do the terms look like? I know this will vary for every lender and situation. I'm just curious what other peoples terms are. I'm looking for private financing for some duplexes and the info will help me talk to lenders.

I see that 6 - 7% is reasonable. I'm fine with that. Do you normally pay points or closing costs? What kind of loan to value are private lenders usually comfortable with? Mortgage lenders only want to lend 75 - 80% LTV. Is it the same for private lenders? What about the length of the loan? Do you usually have a balloon in 5 years or so?

@Jay Grabbe

$333 per month sounds good except......

What about your vacancy rate, capex, and repairs? Did the agent include those in their numbers?

Who pays for utilities?

This looks like a 1% deal to me. Personally, I wouldn't buy it. My rental cash flows about $150 per month. Vacancies and repairs take all of my cash flow and then some. I'm looking for a duplex now with much greater cashflow. 

@Aryelle Collins

I love Zillow and Redfin! I use those apps every day!  They can help you learn property values. I spend a lot of time looking at properties that are for sale and properties that have sold. I'm looking for a duplex in Georgia. I've seen fixer-uppers and turn keys on there. It has taught me a lot about property values. 

People can list a property for sale for any price they want. It's the SOLD prices that I pay more attention to when using Zillow or Redfin. I see some multi-families sit for sale for a long time. I assume they are priced too high or they need a lot of repairs. 

Also, you can set up Redfin to email you when multi-families are for sale, pending, or sold in different areas that you choose. It can help you learn your target area without having to search the apps or websites everyday. 

@Angela DeBorja

You could have the owner agree to pay for any repairs over a certain amount, like $500. I have met some investors that do this. That won't help you with covering for vacancies though.