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All Forum Posts by: Scott Johnson

Scott Johnson has started 47 posts and replied 618 times.

Post: To BRRRR or go more turnkey for first OOS deal

Scott Johnson
Posted
  • Specialist
  • Greenville, NC
  • Posts 629
  • Votes 390
Quote from @Craig Cecin:
Quote from @Scott Johnson:
Quote from @Craig Cecin:

Hi everyone,

I am new to REI and have been doing as much studying and research as I can before diving in. I am looking to invest out of state because I am in the military and move around making any market eventually long distance, also live in southern CA which is expensive. I am looking at markets like San Antonio or Columbus at the moment.

My questions are, should I look to really nail down my core 4 team members and go for a BRRRR deal utilizing hard money for the purchase or should I look for something more or less rent ready (and less risky) and use my own money and a conventional loan right off the bat? As a new investor a BRRRR seems like a significant undertaking but also a terrific way to get my money back and reinvest it in a more efficient manner than saving up again for a 20% down payment for a more traditional buy.

Thanks in advanced!


 You're asking the right questions, but you're a bit ahead of the game with them. Glad to hear you're putting together your team, though!

What I'd ask myself first is, which market should I invest in and why? Then you identify the property you want to invest in, and finally figure out the strategy. 

A lot of people attempt to use the strategy as their guide when in fact it's the market, property & circumstance that guide you to which strategy is best. 

That said, what markets have you identified and what indicators are enticing you to invest there?

Thanks for the reply Scott! So I think I've narrowed down the markets to between San Antonio and Columbus. Both seem to have good indicators of population/job growth and rental indicators. My goals are to buy SFH or small multifamily and hold long term. One benefit of San Antonio over Columbus is that I know someone already in that area who could keep and eye on my rehab/properties. I understand BRRRR is inherently more risky but it seems like the best and quickest way to keep my money moving and aquire more properties. Any tips for finding and interviewing team members? 

 I'd still retain my recommendation to choose the strategy based on the property. Find the property first and run the numbers to see which strategy will work best. 

On the team building, you'll want to go to the city you're going to invest in. Schedule meetings with 3 property managers, 3 brokers (preferably BP members 😉) & City Zoning/Planning. The PM can help you find contractors when you need them, and lenders/insurance brokers can be inter-state.

Hope this helps!

Post: Selling Land in South Carolina

Scott Johnson
Posted
  • Specialist
  • Greenville, NC
  • Posts 629
  • Votes 390
Quote from @James McGovern:

@Scott Johnson The seller was a distant cousin to the person that died. She believes the deceased did not have any living relatives and did not leave a will. The attorneys won't be helpful in this scenario because this is about family members not filing wills that went through probate. 

I am hoping a lawyer from Pennsylvania will come along with a solution.


 Actually, only an attorney can be helpful in this situation. Have them run a title search to confirm that the chain of title ended with that cousin.

A PI could help, but since they can't legally do a title search, it's not worth it to use on imo. Just roll with a title search.

Post: Ramsey or Kyosaky

Scott Johnson
Posted
  • Specialist
  • Greenville, NC
  • Posts 629
  • Votes 390
Quote from @Nick Camizzi:

So I make $65,000-$70,000 a year. I owe $80,000 on my home which is now worth $460,000. My question is should I sell my home & by 2 with 1 small mortgage or use equity & buy one. I can get around $2,000 in rent on my primary home now. My mortgage would be high due to rates. I’m very nervous about renters either not paying or trashing the place & not really leaving me enough financial leverage to pay. i think i know what I’m going to do probably sell my house. BUT IM CURIOUS OF WHAT OTHERS WOULD DO. Every opinion is welcome.


 Let's say you sell your house to rent it out for $2,000/m. Where will you live?

Post: Which strategy to implement?

Scott Johnson
Posted
  • Specialist
  • Greenville, NC
  • Posts 629
  • Votes 390
Quote from @Joshua Jones:

So I’m jumping into real estate investing. 

Have access to about $300,000 (not planning on using it all at once.)

There are so many different strategies, LTR, STR, MTR, BRRRR, tax lien foreclosure etc.

Is there a book or course I can buy that goes over all the different strategies?

Maybe a personality assessment test I can take that will match me up with the right strategy for me personally?


I know this about myself, I love learning, building systems, and the joy of completing the project…

But then I want to be on to the next thing. 

Quick communications is my love language, but I know I don’t want to personally be taking calls from angry tenants to deal with issues. (I know that’s where a good PM comes in.)

I’ve read half the Rich Dad series and took their course.

But still feel like the only strategy recommendation for a newbie is 2-4 Plex’s, which every other investor seems to be doing as well. 

Like the idea of BRRRR and MTR, but know little to nothing. I also have no rehab knowledge personally.

Any specific guidance on books, courses, masterminds, mentors etc for strategies and implementation?


I’d rather follow a proven system. 




 I could be wrong, but I'd say 'proven system' is relative to the person who's selling the system. Sure people can 'copy and paste' a strategy and rock it out, but it's my opinion that ultimately you have to figure out what works best for you. It sounds like you're a Fast Starter (Kolbe Index) like me, so a 'proven system' may not work for you, as it hasn't for me. 

I've been learning and implementing systems over the last 5 years and it all culminated into my two recent burn outs this year. Yea... both happened in one year. That got me re-evaluating myself and what I've been doing. I found that I've been trying to shove a square block into a circular hole, trying to be a 'professional home buyer' using sales systems I've learned over the years. Doing this depresses me, so I've slowed down. 

I'm kinda in a state of 'self discovery' right now. I know that I'm great at making simple automations to make my life easier, but I tend to overthink them. My superpower is relating to people and meeting the where they're at, which makes me popular with sellers and new investors who're looking for deals. I'm also good at analyzing Long Term Rentals purchased with either Cash or a Loan. I'm developing my analysis of mid-term rentals so that can be a thing too. 

All that is to say that it's about trial and error. Do stuff, burn out, get punched in the freaking face, get back up and roll on. That's where you're going to find what works best for you. 

As for books, read Rich Dad Poor Dad again (it's the foundational principles that are important in this book), The Richest Man in Babylon & Think and Grow Rich. Keep up on the forums, post your questions and you'll learn a ton!

Happy to have you on BP, brother!

Post: I am new here

Scott Johnson
Posted
  • Specialist
  • Greenville, NC
  • Posts 629
  • Votes 390
Quote from @Terry Gross:

Recently Completed real estate course, getting ready to take my tests. Driving trucks right now, drive away work. Ready to get out of it and do real estate. I travel a lot and see a lot if distressed properties tbat coukd easily be flipped for mega profit, all over the lower 48! Looking for investors to help me make some dreams co.e true; mine, tbeirs and new homeowner hopefuls. 


 Welcome to BP! Glad to have you!

Congrats on completing the Real Estate course! Study the hell out of your Real Estate Commission's Rules & Regulations and you'll do fine on the test. 

Definitely stay active in this community and post whatever questions you may have. You make your dreams come true, so get to work! Don't sacrifice your income just to 'do real estate'. Keep your day job and invest in assets. 

Post: To BRRRR or go more turnkey for first OOS deal

Scott Johnson
Posted
  • Specialist
  • Greenville, NC
  • Posts 629
  • Votes 390
Quote from @Craig Cecin:

Hi everyone,

I am new to REI and have been doing as much studying and research as I can before diving in. I am looking to invest out of state because I am in the military and move around making any market eventually long distance, also live in southern CA which is expensive. I am looking at markets like San Antonio or Columbus at the moment.

My questions are, should I look to really nail down my core 4 team members and go for a BRRRR deal utilizing hard money for the purchase or should I look for something more or less rent ready (and less risky) and use my own money and a conventional loan right off the bat? As a new investor a BRRRR seems like a significant undertaking but also a terrific way to get my money back and reinvest it in a more efficient manner than saving up again for a 20% down payment for a more traditional buy.

Thanks in advanced!


 You're asking the right questions, but you're a bit ahead of the game with them. Glad to hear you're putting together your team, though!

What I'd ask myself first is, which market should I invest in and why? Then you identify the property you want to invest in, and finally figure out the strategy. 

A lot of people attempt to use the strategy as their guide when in fact it's the market, property & circumstance that guide you to which strategy is best. 

That said, what markets have you identified and what indicators are enticing you to invest there?

Post: 1st Lien HELOC

Scott Johnson
Posted
  • Specialist
  • Greenville, NC
  • Posts 629
  • Votes 390
Quote from @Lorenzo King:

I would like to request your assistance for suggestion on which bank offers 1st lien heloc account.    Thank you in advance


 I have a feeling any bank would love to have their HELOC in the first position.

What prompted you to ask this question? I need to know a bit more about the situation before I can help. 

Post: Converting Basement unit to legal third unit

Scott Johnson
Posted
  • Specialist
  • Greenville, NC
  • Posts 629
  • Votes 390
Quote from @Shawn Adderly:

I recently bought a multi-family property in Chicago. I am looking to have the basement be made into a legal third unit. I would like to have the basement redone to have a separate heating system from the 1st floor unit, re-do the basement kitchen, install a washer and dryer and install a separate electric system. I would also like to explore sub-metering for water in the property as well. The property is in Belmont Cragin in Chicago and I'm looking for a reputable contractor to help me with the conversion. 


 I like how you said, 'legal' but you're not eluding to how you're going to make it legal. You're just going for the throat and asking for a contractor. 

Tell me about the Zoning on the property and the allowed uses for Chicago. How do you know this will be legal once it's completed?

Post: Should I make this offer

Scott Johnson
Posted
  • Specialist
  • Greenville, NC
  • Posts 629
  • Votes 390
Quote from @Jonathan Goldenberg:

Turn key 3/1 SFH

Asking price: $172,000

My offer: $150,000

Monthly Rent: $1,400 or $1,500

Property Tax: $2,500/yr

Insurance: $1,000/yr

Maintenance/Repairs/Capex: $2,000/yr

Do you like this offer? Would you go any higher? Thanks


 What's your interest rate, or are you buying this cash?

Post: Is Subject to fraud?

Scott Johnson
Posted
  • Specialist
  • Greenville, NC
  • Posts 629
  • Votes 390
Quote from @Johnathan Cummings:
Quote from @Scott Johnson:
Quote from @Johnathan Cummings:

I have a subject to deal that I can pursue, but my broker tells me that subject to is mortgage fraud. Basically if the current owners die, go into bankruptcy, or something else, I would lose the property and it’s not worth the risk. Curious what the BP community thinks.


 1) Your broker doesn't understand Sub-To deals (most of them don't)

2) Read the PA state laws from your General Assembly regarding Sub-To deals. The secretary of the Legislature can help you find them or just search them on their web site

3) Those are real challenges with Sub-To so educate yourself on them before pursuing a Sub-To deal

4) Your state law will outline whether it's considered 'fraud' or not. In NC it's not fraud, it's just 'not considered good business' and 'sus' by our legislature. Totally allowed, we just have to put a disclaimer on our contracts that they approved. 


 Thank you for the response, I’ll definitely take a look. I appreciate it!


 No probs! Let us know how it goes!