All Forum Posts by: Shawn DiMartile

@Zachary Zinn definitely pay off the credit card debt first. The high interest rate would negate the returns you would be making on a property. If you were paying down a debt that had a low interest rate, like say below 5%, then I would say go ahead and save for properties. Paying off the cc is a no brainer in this scenario to me.

I have some reservations about the area. The fact that 70% of residents live below the poverty line and 1 in 4 have been evicted in the last year means that you'll have to deal with low quality tenants for a long time before that neighborhood turned around and you reaped the rewards of your investment. I also don't like the initiatives they're pushing to keep rents controlled in the area. 

I'm buying my first out of state rental property this year and have read David Greene's "Long Distance Real Estate Investing" book several times. He covers most everything I can ask to get started, but one of the questions I'm still a bit fuzzy/uncertain of is paying contractors for work when I'm 2,000 miles away from them. Now, in David's book he recommends getting the contractors bank account information so you can send money directly to them. I feel like I'd have a hard time getting a contractor who's never worked with me to give me that information when I'm on the phone on the other side of the country. I'd probably sound like a Nigerian Prince promising to give him money. I figure I could alternatively give the contractor my credit card information so they could maybe punch the numbers into a "Square" or other CC processing software if they have it. I'm not sure but I keep thinking this is going to be an issue with various stores and contractors I attempt to do business with. 

Have any of you experienced many problems with this? What seems to be the way you typically handle it?

@Tyler Gaebler read this

I'm preparing to start my search for my first off market deal. I plan to use some strategies outlined in Anson Young's book "Finding and Funding Great Deals", including getting a list of target deals utilizing ListSource.com and direct marketing to these properties through both cold calling and direct mail. It appears that most investors that use this strategy tend to offer all cash and not require an inspection. However, I'll be using financing, and since I'm still a new to the game I want an inspection to ensure I'm not buying a total money pit that has cracks in the foundation or other worst case scenarios.  

To those of you out there with experience in direct marketing for off market deals, do you see this as an issue to me achieving success? I was thinking I would pay all closing costs and purchase the property as-is to still make the deal sound sweeter. Either way I plan on giving it a shot.

@Nicole Pettis that makes total sense. Any work where I'm going to need permits pulled (busting down walls to add bedrooms/bathrooms) I'll go seeking a GC.

So when do you guys seek out a general contractor to do all the work on a property you are rehabbing and when do you prefer to contract out each job individually? I'm sure MAJOR rehabs will benefit from having a GC who can go in and complete the demo and sub contract out all the work to be done. But let's say you need flooring ripped up and replaced, cabinets and countertops refinished, new paint throughout, new paint on exterior, new doors and windows, and tile; do many of you go about hiring painter, window/door install, floor install, etc. individually? It seems much easier to find talented laborers to do each task at a decent price than to find that one GC that can get it all done.

Sorry I missed this until today. Let me know of the next meetup in the area and I'll make it a point to attend. Also, if you would be available for a meetup on a weekday other than Friday that would be great. 

Jordan that’s awesome. Louisville is chock full of multi-family homes, at least the immediate area surrounding downtown.