All Forum Posts by: Shane Dreffs

Sounds like a good investment. What is your COC and cash flow?

 Hi Christopher, I live and invest in Birmingham area. 

It really depends on the investors strategy, and finances. I would recommend that you determine the reason you want to invest (why), and what is the end result you are trying to achieve with real estate and work your strategy from there. 

Hello Andrew, Birmingham can be a great place to invest. I suggest, since you live here right now, to really get to know the Birmingham and surrounding areas, drive around neighborhoods and subdivisions (daytime and nighttime), go to meet ups, and ask a lot of questions (real estate agents, investors, property managers). Make a plan for your investment strategy and the more you can learn about the area the better, the market can change by street or blocks in some areas.

 Hi @Alex Saidenstat I live and invest in Birmingham, I am a licensed GC and I also have local contractors to do the work. But be careful with houses in that range in Birmingham, some areas can be pretty bad (C- and D areas) and can change by street or block, also to rehab a house at that price for $25k will be pretty difficult. I would love to connect and get a better idea of your rental strategy and see if I can help!

shanedreffs @ gmail.com

Hey Michael, I am a GC and investor in Alabama. I usually invest / work in Birmingham area, but I have been looking at properties in Baldwin County and plan to invest there also.

@Steven Catudal

I'm in Birmingham and invest in Birmingham, be careful when choosing properties, the house values can change by street sometimes. 

1. We will be investing 50/50. What is the best way to structure the partnership? Should we start LLC? LLC is the best way to structure your business. You don't necessarily have to structure the LLC as a partnership, you can JV on deals together.

2. For financing, would we then want to get a DSCR loan under the LLC or should we start with conventional loans under our name until we hit a certain number and then move them over? I heard that if you move the personal mortgages to an LLC they could get called and we would want to avoid that. Depends on strategy and your cash situation. For a BRRRR if you are using debt most people will use some sort of hard money to purchase and a construction loan to fund rehab (unless you use cash). Then you could use a DSCR product to cash out refinance into a 30-year mortgage.

3. Generally speaking, have any of you invested in this area and been successful? Did you look into renting to Section 8 tenants? Would love to learn from your experiences. No section 8 but I do invest in Birmingham, see first sentence in this reply about the area. 

4. Any advice for out of state investors that would be beneficial? I currently invest in state; I find it is easier to manage. But make sure to build a strong core 4 if you invest out of state (deal finder, your property manager, your lender, and your contractor).

5. Any general advice for someone starting out in a partnership and looking to grow a portfolio? Partnership is like a marriage, be careful who you choose. 

Let me know if I can help out in anyway!

@Lillian Pintaro I am a GC and real estate investor in Birmingham. I usually do not work with New Western; I have found the PP is too high and the ARV's are always inflated. (at least in Birmingham). I see mostly out of state or out of country investors working with New Western in Birmingham because they don't have the knowledge of the city and surrounding areas. But maybe you can prove me wrong!

 @Jaycee Greene I apologize, I read it as financials / proforma. Currently I do the underwriting and discussions with lenders, but I am open to making new connections!

[email protected]

205-913-7997

 @Jaycee Greene currently my wife handles quickbooks to track all of the financials and we have an accountant that provides direction and assists for taxes.