All Forum Posts by: Sam Smith

@Oscar Catalan

Hey Oscar,

I'm also in DFW. It looks like it's been about a month since you posted. I'd be curious to see what you've learned about multifamily properties in our market so far.

Thanks!

@Arthur Toma

By saying "I am a serious buyer" it, ironically, makes them wonder if you are a serious buyer.

By saying "this is not a mass mailer" it, also ironically, makes it feel like a mass mailer.

Only include the appropriate neighborhood for the house you are sending it to and include one specific thing about their property (square footage, number of bedrooms, size of garage, etc.) to let them know you know at least something about their property. Make a spreadsheet if you need to.

Good luck with it! I hope you'll share your success/learnings with me after you've sent these out!

@Heidi-Marie Jones,

Personally, if this was my first investment, I would explain the situation to the sellers about not being able to get a loan because of the insurance issue. Just tell them that you aren't in a position to put the new roof on the house and do all the new wiring needed. Let them know that, unfortunately, you'll have to walk away unless they can repair the home to an insurable state.

There's no harm in walking away. The most important things for you are to learn and to not choose a bad deal. I wouldn't try and go the "creative insurance" route on my first deal.

Good luck either way and I hope you'll let us know how it goes!

@Kristina Nutt

If I can ask, why Fayetteville?

I've looked there a bit and ended up not finding anything that would cash flow where I wanted it. It seems like most large college towns have gone up in value a lot, but rents have stayed relatively low to accommodate student budgets. Not to say that Fayetteville couldn't be a good investment, it just might end up being an appreciation opportunity instead of cash flow.

@Jeremy Holden has some experience in Phoenix and surrounding areas. I'm sure he'd give you his perspective!

Good luck!

@Eric McArthur,

Personally, I like Wix out of all the website builders. I've never tried godaddy, but I bet it would be fine. Start with a template and then customize it. Have fun with it, and then start getting feedback from people, and adjust accordingly.

Good luck!

Hey @Dylan Lowery,

You should start talking to some lenders. You won't know what type of loans an individual property is a candidate for (depends on value and condition), but you'll find out the lay of the land and what kind of loan you can be approved for.

And don't just go with the lender that your realtor recommends. Ask around and talk to a bunch of lenders to see if they've done loans and refinancing for rehabs. You might end up using one lender for the initial purchase and a local bank for the refinance. 

Remember, this is lenders' slow season, so they will have time to answer your questions and help you formulate a plan. And if they don't want to help you figure this out, then find someone who will!

Good luck and please let us know how it goes!

@Jim K.

Solid question. I'm not sure why you're getting some of the strange responses that you are. (I saw someone say "it sounds like you have deeper issues going on"?). Sorry about those. Very inconsiderate on their part.

Personally, I know you don't have to get your hands dirty to get ahead in real estate. If you lay out your contracts clearly so that everyone knows their responsibilities, and you attempt to come to fair (yet firm) compromises when appropriate, you don't have to get your hands dirty. Not overextending yourself is helpful as well, because it's when people feel backed into a corner that they're more likely to act poorly. At least, on the whole.

In the town I grew up there were rentals with dirt floors, which was only discovered and reported when a census agent knocked on the door. There was another landlord who would evict people by throwing all their stuff on the curb, but keep the baby pictures and only give those back when all the fees he charged were paid back. Those landlords got their hands dirty, and I hate to say it but they did get rich. But you don't have to do those things, and you shouldn't.

Anyway, thanks for asking a good question.

@Mark DiPietro

Congrats on what sounds like a great deal!

@Drake Robertson

I don't think it's crazy! But you want to make sure to run, run, run the numbers. If I were you, I would keep saving while you have the co-op, keep looking at potential deals, and talk to your parents openly without pressuring them. Just focus on educating them on the numbers, and ask them why they are uncomfortable with the rental business.

It's okay not to deal while you are in college. When you get your degree in electrical engineering you'll likely move and get paid excellently right out the gate. But you'll still need your parents to co-sign if you want to house-hack when you move to where your first job is (assuming you move). If you spent that time educating them on how the process and numbers work, then they are more likely to co-sign at that time. Plus, if they see you stick with your goal for a few years they'll be more likely to help you "buy your first home and get roommates to pay the mortgage". That's the kind of language I would use. Terms like "house hacking" are fun online, but in person and to older people who are new to investing they can be a little off-putting. Just use plain old english. 

Whether you house hack while in college or after college, you're going to do great! Keep up the research and keep running numbers on deals to get used to the whole thing and to know what a good deal is whenever you are in a position to pounce!