All Forum Posts by: Sam Valme

Hey @Nick Weiss! Getting started early is always a great decision. But the hardest part as I'm sure you're seeing is "How can I add value?". At the end of the day, you'll have to answer that question before you can get started. I'm going to make some assumptions here and say that being a capital investor might not be possible for you at this point. Here are a couple of things to consider that tend to involve less money up front:

#1 Find Deals- Scout Zillow, Realtor.com, and Redfin. Drive for Dollars. Make phone calls. Send Letters. Then use tools like the BP calculator (biggerpockers.com/analysis) to determine if they're actually a good deal. The pre-made calcs are good, but you can really make a similar calc in excel if you don't want to front the money for the pro membership. I'd recommend it if possible! Then find an investor and present them with the deal. Talk with them before hand to get their requirements so you can narrow your search.

#2 Get Your License (Assuming you're 18)- This does take a bit of money up front and time. It can assist with Tip #1 because you'll have full access to the MLS. Even more, now you can become an asset to other investors because you can set up even more specific searches on the MLS and have them send directly to investors. If they're interested you can get access to the home and do a walk through on their behalf prior to the purchase. If they buy, you get commission.

After working with a couple investors, maybe you find one who does more deals then the others. See if perhaps you could enter a partnership with that person where you forgo a larger commission and take a percentage of the deal. 10% of a 100,000 home's equity and 25% of the rental income beats a $2,000 one time check. You'd have to work with your broker to make sure that commission piece is kosher. But it can be done. This may also be a good part time job while in school!

#3 Save and Partner - I'm hesitant to recommend this because you clearly said you're in school. But assuming you do have a job and can lower monthly expenses to build up some capital. Even if you could collect 5-10K (I know thats a lot :(  ) you could advertise you're interesting in partnering with an experienced investors who is willing to take on a co-investor. See if they'd be willing to sit down with you in the afternoons or weekends and explain their business processes as well. 

Hey Aisha, I did quite a bit of research in my area (Northern VA) and found that it depends on the size of the bank and their internal policies. Some smaller places will do a 6 month refi on ARV. Larger banks I spoke to required 12 months before considering ARV. So as stated above, you'll have to shop lenders. But one thing I did notice. Everyone I talked to said "this is the national/state/FMFM standard" I found this incorrect in most cases and they were just saying that to encourage me to stop inquiring from others. FNFM do of course have standards for their loans. But at the end of the day, a portfolio loan from a smaller bank can be distributed at their discretion. It starts to go into that grey "who you know/what have you done for me lately" area after that. Hope this helps! Don't give up!

Hey @Diante Lawrence, you might look into getting a pro account to take full advantage of the BP Marketplace. Good Luck!

Hey @Derek Petersen, I think you and I are in a very similar place. My wife and I are working now to better define the roles that we play in our company. As of now here is what we've come up with. Essentially what we did was think about each "job" that we do. Then segment the roles into a "sub-job" the goal is to eventually be able to hire someone else to take on most or all of the responsibilities of each job. 

Sam - Director of Business Development

• Asset Acquisition Manager
• Definition: The Asset Acquisition Manager's primary role will be to build a pipeline and business network to deliver sustainable assets to the White House Rentals Portfolio. They will assist in developing accurate criteria based off market analysis and procure properties leveraging sources such as the MLS, Wholesaling Partners, Direct Mail, and Referral Business.
• Prospect Analysis
• Capital build up
• Finance strategy
• Rehab strategy
• Business Analyst
• Definition: A Business Analyst for White House Rentals is responsible for envisioning the future of the company. They should have a core understanding of current business trends and set accurate expectations for objectives to grow revenue year over year.
• Long term planning
• Competition Analysis
• Joint Venture Strategy
• Partner Management
• Corporate Structure
• Project Manager
• Definition: White House Rentals Project Managers will oversee rehab projects in the companies portfolio. These projects may range from Flips or future Buy and Holds. Analysis of prospective whole sailing deals may also be done for resale potential.
• Oversee Rehab Projects
• Coordinate Contractors
• Ensure Timeline and Budget are Maintained

Jeanne - Director of Operations

• Accounting Manager
• Definition: The Accounting Manager will act as an extension of the Third Party CPA team currently hired by White House Rentals. They should work with our CPA team to ensure statements are up to date, budgets are set, and all invoices are paid in a timely manner.
• Budgeting
• Tenant statements
• Late reminders
• Rent collection
• Capital expenditures
• Mortgage payment
• Tax Preperation
• Property Manager
• Definition: Properties held in the White House Rentals Rental portfolio will be managed by the Property Manager. They should work to maintain a high level of tenant satisfaction and minimize turnover when possible. They will also work to place new tenants when turnover does occur. As well as schedule contractors to work on repairs and maintenance issues.
• Tenant turnover
• Tenant satisfaction
• Repair
• Maintenance
• Walk through
• Scheduling
• Marketing Manager
• Definition: The Marketing Manager will be responsible for the branding of White House Rentals LLC. This will include, online and physical media. As well as managing and coordinating social and networking events in the REI community.
• Website design
• Branding Strategy
• Company mission statement
• Create collateral
• Manage networking events 

hey @Cynthia Hartley, I'm never against building the network! I'll send you a PM, thanks!

Hey @Elizabeth Blauwiekel, I've actually worked with quite a few vendors since this post. As of right now, i found a good electrician, appliance repair guy, and exterminator (wasn't looking for him but you know how things come up lol). Now I'm on to gutters and soffits and am gathering bids. If you need any of the above I can PM you their contact info.

Thanks!

This is what I expected. Thanks to BP I get to avoid myself the conversation haha. I appreciate the assistance!

Hey @Steve Vaughan, I actually never ended up calling. But thanks for the advice!

I think that there are some situational reasons renting would make sense over buying. @Dawn Anastasi mentioned, professionals who haven't settled down yet. Coming from a military family I can say the constant re-stationing is another reason. 

One of the biggest reasons I feel my peers (22-26 year olds) rent is because they haven't been taught the value of owning real estate. Also, in northern VA with real estate as expensive as it is. The idea of saving up 5% (let alone 20%) for a down payment is a daunting task.

Couple that with not being settled into a career or having a family. The argument to just rent gets easier and easier in those scenarios. 

@Account Closed, I definitely appreciate the input! This was briefly mentioned by my wife as a concern for us renting out the house. But after talking about it more and the added costs. We've deemed it a minor issue in comparison to some of the other changes of the home.