All Forum Posts by: Account Closed

@Eugene Beard

Good luck with your purchase! At least you're getting started and making it happen! Even if you don't have great cash flow, you will still have someone else paying down your mortgage. 

I like your idea of purchasing other properties near the one you are buying now. I plan to do the same thing. You should contact the owners of the properties you are interested in by phone or by letter when you're ready for another one. You could probably get a better deal straight from the owner, rather than buying it off the MLS.

@James Petry

I'm focused on finding a duplex now. My single family rental has always cash flowed around $125 - $200 per month. That seems pretty good until it's vacant for 2 months or you have a major repair. My mortgage is $800+/- each month depending taxes. Vacancies and repairs eat up cash flow quick. I want a duplex where 1 side pays for everything. If the other side is vacant, I might not have any cash flow, but at least I won't have to cover any expenses. 

@Kevin Jackson

A $30K duplex would probably have more cash flow, but also have more vacancies, repairs, and evictions.

I've been looking for a lower priced duplex, under $100K. There are a lot of them on Redfin and Zillow in Georgia. When I go look at the neighborhoods, I usually get disappointed. I don't want to invest in a bad area. 

I wouldn't spend $175k for the neighborhood you're describing. I'm looking for a duplex also. I have found many duplexes for under $100k in the type of neighborhoods you're describing. The rent is lower at $600 + per side. 

@Christian Chavez

Have you mailed them a letter or knocked on their door? 

@Erick Arauza

Have you thought about investing in other states? There are several duplexes for sale around me in Georgia for $100K or less that would rent for around $750 - $800 each side.  That's a much better deal than $250K. I would be buying these myself but I don't have the down payment cash. 

I don't feel bad about advertising to buy someone's property. My yellow letters are just advertising my business. I hope that I can help them and get a great deal in the process. Sometimes, I won't be able to. 

Credit card offers are sent to people all the time offering big limits and low rates. When those people actually apply for the card, many will find out that due to their bad credit or low income they can't qualify for the amazing deal that was advertised to them. 

I just try to be honest and straightforward with people in the phone. If I can't help with their situation, then maybe I know another investor who can. 

@Art G.

Thank you for the advice! I have been learning about sub2 and lease option deals. I think using sub2 and lease option strategies will help me get into rentals and flips with less cash upfront. Like most new investors, one speed bump I have now is lack of cash. I see it as a speed bump, not a road block. 

I wish I could find a local mentor to walk me through my first couple deals. I'm gonna keep going to local investor meetups and I'm sure I will find one eventually. 

@Trent Kruessel

I am still a beginner myself. I have only received a few phone calls. I think it gets easier with every phone call, and I also get smarter with every call. Sometimes people ask questions that I don't know the answer to. I either have to guess or tell them I will get back to them. Then I go to the BP forums and find out the answer. The next time someone asks me the same question I will know exactly what to say. 

An example of this is a lady wanting $20K cash to short sale her home to me. I didn't think this was legal. I told her I might could do it and that I would let her know. After asking on the BP forums I forums I found out that some people do get up to $10K in relocation expenses, but it has to come from the bank or mortgage company. It is up to them to give the money or not. So, the next time someone tells me they want cash to short sale their home I will tell them that it's possible, but it's not up to me. They will have to work that out with their lender. 

@Aaron Zadrozny

I was never able to get in touch with this owner again. That's okay though. I don't think I could've bought her house cheap enough to be a good deal anyway. 

I have mailed about 40 letters so far and received 3 phone calls. I haven't mailed any letters in a couple weeks because I've been distracted by looking at a potential rental property and a potential flip property. I have very little free time away from my day job. I will start writing my letters again soon!

1 of those phone calls was from another investor. I didn't end up getting his property, but he did invite me to a monthly real estate investor meet up that he runs near me. I went a couple weeks ago. It was awesome! There were a lot of successful and knowledgable investors there. I'm gonna start going every month that I'm able to. You never know where these letters will lead you.