All Forum Posts by: Stacie Meeker

Hello Tracey, Did you verify a few other things with the Seller? By doing the following things, it may lead them to realize they are asking too much. 1. Ask for a copy of the existing lease agreement. 2. Find out how long the tenants have been living there AND paying rent on time. In other words, are the tenants seasoned? 3. What is the term of the lease? 6 months? a year? 2 years? 4. Does the tenant have pets? If so what kind? And did they pay a pet deposit? 5. See if there is a rent increase clause in the lease agreement. Some leases go up after 6 months or after a year for longer term leases which could increase your ROI.

By asking the seller these questions, they start to realize that if their answers become a turn off to you, then they are already thinking they should lower the price b/c you are afterall a very sophisticated buyer.

Compile your list and see if there is value in paying less than 1% rent ratio.  And also make sure if after you still find this agreeable, then find out what the appreciation rate is for that actual neighborhood.  

If you have a rule of thumb for buying properties, it is probably wise to stick to it and not make an exception if your only reason is to put your money into something.  Move on to something else if it doesn't feel right.

Great job Kim!! 

You were so detailed in your original post.  Thank you for that!  I've got to say though that you had an extraordinarily difficult 1st deal and not all wholesale deals with be like that.

And I recommend that you try "Click2Mail" instead of Vista Print.  If you use "Click2Mail" and you use their postcard with your copy on it, then you will save money.  A typical postcard will cost about .47 each.  No fancy photos, glossy, etc...just a plain black ink on white or green card stock....they may have yellow too??

Meanwhile, by putting the "assignment" clause in your contract, that covered you.  That attorney friend was a good move for you.  My attorney makes me use something like that too....and in my state of Texas, all contracts are assignable.

Since you only mailed out postcards twice and the first batch was ruined but you rec'd a deal out of the second batch of 376, then you are doing great.  My mail outs are in the 1000 - 1500 range each time and if I'm lucky I'll get 1 - 2% calls.  And then out of that 2 - 3 deals.  So if I were you, I'd keep on doing what you are doing with a few changes to your original plan.

Great post.  

Hi Richards,

I noticed that no one has responded to your post from July 23rd? I too am interested in owning and operating an assisted living facility. I've heard of Gene Guardino before. He came to North Texas and spoke at a local REIA group. He had some sort of training program. It may be worth looking into what he has to offer.

I have a degree in Social Work and I've seen my own Mother in Law be disregarded in so many ways at her existing Assisted Living Facility in Louisiana.  It really irritates me to see how the staff treat them.  And you ought to see the kind of food they serve!  It's so unhealthy.  

But back to no response......maybe the avenue to take would be to go back to some of the existing facilities that you've worked and find the owners?  Maybe start a conversation with them to see if they want to open another location in one of those states you mentioned?  

I'm going to try some different Networking angles and see what I come up with.  I'd like to keep in touch with you if for nothing else than to share our findings with one another.

Best of Luck!!

So true K. marie P.!

I remember my first REIA meeting in Dallas, Texas. It was a Tuesday night back in 2001 and I had a full time job as a Social Worker helping people with Mental Illness. I heard about the REIA group from a friend. I attended that meeting and listened to a female investor from Cinncinati, Ohio (Vena Jones Cox). That woman stood on stage and taught us about Lease Options. I had no clue what that meant. It was totally over my head. But after that night, I still can't get enough Real Estate. It's a fix. I have a passion for doing it. I love being in the thick of things every single day. I was blessed with having been given this road to choose at 37 years old. I owe my lifestyle to Real Estate. I owe my success to other people who helped me along the way. I am still not financially free, but I'm very close. That day will come soon enough. And now, I pay it forward to as many as I can.

Don't say you are frustrated Takeshia. Keep learning. Attend local REIA groups. Ask other successful investors how you may help them. Go look for deals for others who have the money. Find the Tennessee State contract online. Download it. Print it. Read it. Learn it. Then use it to get houses under contract. Read the book that Than Merrill wrote on Wholesaling. It has everything from soup to nuts. I'm not promoting anything here. I read his book for free on my Kindle. It's a good one because it covers everything about wholesaling. But you need to learn what to do in your state. Find a good title company. Make an appointment and ask them if they will help you learn how to fill out the State contract for your first few deals. I know they will. They want your business. And find your courage. You can do this!!

Thank you for the vote GL!  

I meant so say find a mentor who is willing to teach you in exchange for you working for no pay.  The pay is the education you will gain from them.  Ask lots of questions.  Don't worry about asking too many.  They will let you know when to stop.  If one doesn't work out, move on to the next.

Hi Katie,

May I give you some insight to my humble beginnings.  I am an ex-social worker who was earning $24,000.00 annual salary straight out of college in 2000.  Now, I own multiple rental properties, have rehabbed and sold 65 houses and have wholesaled over 500 properties over 15 years time.  How did I do it?  I started attending local Real Estate Investing Groups after work at least 4 per month or as many as possible.  Check out www.meetup.com and search for groups near you.  I highly recommend that you go to all of them as often as possible.  I borrowed money from banks, hard money lenders and other people to get started.  You can too.  Be smart about what you borrow and being able to pay it back.  But you can do this.  If I can, you can.  Learn everything you can and find a mentor.  Offer to work for no pay in exchange for doing work for him/her.  Do this on nights and weekends when you are off.  BP is simpy a social network.  You need to learn from the local investors who have done it.  Now go do it!!!  Best of luck.

Hi GL,

I'm in the Dallas/Fort Worth Market here in Texas.   I am an investor, but not a Realtor.  Recently, my Realtor who lists my houses for me spoke at my Women's Investing Club last month.

She even said to us that night that the OPTION MONEY is going up around here.  Why? Because most "Listing Agents" are protecting their seller from tying up their property for any length of time.  They think down here that due to our current market, the people who are buying can afford a higher OPTION FEE.  Even 7 to 10 days in our market right now is a long time "in their opinion" to hold up the seller from getting their house to closing.

You can certainly do any amount you want to do for the Option Period.  But, if you are really serious about buying that particular property and have the money to buy it, then it's the price of doing business.

Also, there is a place on the TREC where you can put that $200.00 towards the purchase price.

Hope this helps you.  

My hats off to your for trying out a New Market.  I am very interested in doing some of the same.  Not sure where.  I'm thinking Ohio.  The reason which may be similar to your veering off to MS, is that I am from there and I just want to see if I can do it or not.

From my laptop that is......take care!  

One more idea for you.....go on Craigslist in Vicksburg area....look at all the "For Rent" properties.  You have to pick through the property managers and apartments for rent, but find the ones that the actual Landlord is advertising for rent.  Call them all and see if they are interested in your deal.

I went to it to see myself if there were ads from owners.  Here's the link for you:

http://jackson.craigslist.org/apa/5150655033.html

It says Jackson, but the person is advertising a Vicksburg rental property.

Glad we connected!!

Hi Jocelyn,

I saw your name and recognized it so I clicked on your post. My initial thought is the rent rate. Even though you have a great price point on it considering the ARV, the reality "could" be that would be Landlords want a higher rent ratio.

A general rule of thumb that I go by as a Landlord is a minimum of a 1% rent ratio.  So if purchase price is $69,000.00 then I'd want a minimum of $690.00 per month in rent.  But I'm curious about the fact that it is a 4/2.  Here in DFW I'd be able to get $1400.00 per month in rent.  I know nothing about Vicksburg's Market either, so I'm just helping you brainstorm.  

Maybe you should change the focus to the ROI instead of the rental rates.

Say that for $69,000.00 your are getting $60K in equity.  So market it as a HIGH EQUITY opportunity instead?  

Food for thought.

Best of Luck!  Stacie Meeker

P.S.  Please try and come to the Women's Group sometime!  We'd love to have you.