All Forum Posts by: Tim Greenfield

David, Good Afternoon! I was planning on writing an article regarding my experience as I was in your position last year and finally pulled the trigger on 4 houses in 2017. In 2018 I have purchased 1 in Tampa, waiting to close on a new duplex in Houston soon, and looking back at Tampa for maybe another. I got busy again with moving my family so the article thing dropped off my radar but your question sparked my desire to put this together on the fly. Hope it is not too long. 

Anyway, I travel a lot and have lived overseas for many years so this was the best route for me. I analyzed to death the past 4 years but only took action (thanks to my coach) last year. So I missed out on some opportunities, IMO. In your position I believe you may have more flexibility than TK but I digress. A few things I would like to mention are:

1. Are you married? if yes, get your spouse on board. If she is not on board, offer to bring her along with you which brings me to #2. Go visit the provider and look at the type of properties they have. No matter who they are or how well they are spoken of. Last year I visited Detroit, Cleveland, San Antonio, Jacksonville, Orlando, and finally Tampa. All of them had varying degrees of what they would consider TK and they also have varying degrees of what they would consider Middle class (B) neighborhoods. 3. Once you find a provider and a location you trust, don't think that there will be a plethora of inventory as there isn't. You are competing with everyone else but be patient and run your numbers and keep in touch with them. Especially by phone. Don't trust the vendor cash flow numbers but your should already know that (trust but verify) Trust your instincts, if everything does not meet "YOUR" criteria let the provider know. Don't keep them hanging if they have it on hold for your. Many providers will hold for 24-48 hours. You HAVE to be quick on your decision making and be respectful of their time. A lot of BP quick math like the 2% or 50% rule will help. Then once you find one, crunch the number more, look at who the neighbors will be and also the proximity to things/activities millennial's want. To hold a house requires a non refundable deposit between $500 to $4,000. 4. Have your pre approval in hand. Many of the providers have lenders they prefer and they may even give you some kind of discount if you use their pre approved lender.

Regarding number 1, my wife was NOT on board as RE does not interest her and it quite frankly scares the hell out of her as it is so foreign to her. All she sees is risk. With that said going on a tour with other Real Estate Investors opened her eyes as she saw other couples and singles from all walks of life confidently asking questions and it allowed her to meet other supportive spouses and business people. She is still scared but it gave her the confidence to support me in our endeavor together. Most TK providers will provide tours. I first reached out to RWN and jumped on 2 tours with them in Detroit and Cleveland but later we just went on our own. The last 2 REI I purchased in Texas were purchased without visiting as my confidence grew. This last one is a new duplex in Houston which should close soon.

Regarding #2, a good investment is YOUR good investment. What I mean by that is some people just look at the numbers and buy. I buy where I think I would be comfortable living. IE older established neighborhoods. Some of the TK providers were buying fill lots and then building new construction. What was the problem? zoning! New rental next to a trailer, next to a **** hole, 2 more nice houses.... You get the drift. I wanted to make sure I had an exit 5-10 years down the road just incase and I don't have confidence in areas without zoning. But that is me, don't get me wrong, they are selling. But my wife and I felt more comfortable in the middle class established neighborhoods.

Regarding #3, I tried for an entire year to purchase in Tampa and Cincinnati with no success. Short inventory and High demand. But I did find 3 properties in Cleveland and I am very happy with the performance.

Well I have rambled enough, feel free to reach out if I can be of service and Good Luck!!

V/r

Tim

Larry, Thanks for the response! I have been interested in the Area between San Antonio and Austin (New Braunfels) for along time but I could never make the numbers work for an investment Property. I just read yesterday the the Army is moving their Futures Command to Austin which could be a further boom. Small command of about 800 people but this also includes their families as well. I opted for Houston for investment properties with cash/leverage but with the SDIRA I am more interested in the HML or Note option. I do not think with a "coming recession" as everyone is talking about will necessarily hurt the TX economy but that is just my opinion. Would you be able to share (via PM) your contact? If it is confidential, I understand. V/r Tim

@Bob Malecki and @Chris Seveney Thanks for the advise. Do you have any additional advise for someone who is overseas (Germany). I have read a few books and they all mention the importance of networking. I have tried to do this locally with no luck. Any ideas for someone who lives outside the U.S.? Obviously Bigger pockets is a resource.

@David Halprin Thanks. The PM will be sending people out for quotes. I may incorporate what you say with some other item. IE- I buy the paint and if they paint, I will upgrade something else (vinyl floors in the kitchen) as it does need some work. But I will wait on a priority list from the new PM.

@Dominique Pradel-Lewis- Thanks for the response. As I mentioned in the beginning, I have not been there in a long time as I am living in Germany and before that South Korea. The PM which I had all this time, kept telling me that all was well and also that the rents were stagnant so the property was only breaking even until recently when I fired him and the new PM said that my rents were too low. They were also paying month to month forever and with the new PM last year started with yearly contracts and increases in rent.

@Matty Bee, per the previous PM it didn't need it but I let him go last year. Working with the new PM to get things back up to par.

@Kellen King- Thanks! Appreciate the feedback

@Colleen F.- Thanks I wanted further clarification on the tub and asked the PM to look at the other 1 as well. Also working with the PM on quotes for paint

@Joel Belding- Thanks! How is "Get a Grip" different from standard glazing? Glad you are having success in Albq. My previous PM always gave me gloom and doom stories with how bad the entire economy was since 2008. Glad to see the economy improving. I love that town and really miss the green chiles!

@Amy Beth- Cash flow only started improving since last year with the new PM. I would paint it myself and do so much more but I am in Germany. I am relying on the PM so hopefully she can get someone out there quickly so this is taken care of.

@Thomas S.- Thanks! They have been paying below market and have been below market for awhile at least according to my new PM. My intent is to fix the house up in stages and keep the house rented. They have been amenable to our rent increases and I dont think they would mind the disruption. I will get with the PM so that we can prioritize work. So I am willing to meet them halfway in some areas but I am not up to a full blown renovation until after they leave. The whole house will need it.

@Elio Benincasa Thanks

@Anthony Wick- Per the previous PM, he stated that the market did not warrant rent increases. It really only started cash flowing last year with rent increases. The $3k is from the cash flow since I increased rent last year. The previous PM had them going month to month. I should have gotten rid of him sooner but as I was overseas, I thought I was in good hands. I was wrong.

Thanks to everyone else as well. Good information and insights.

 @John- Thanks for the reglazing idea, I mentioned that to the property manager as they will be sending out people for quotes.

@David- Thanks for the response! I am in Germany so I contacted the PM to get some quotes. I like the idea of purchasing some paint for them. Perhaps I could make a deal where, I buy the paint for them but also throw another bone to them that I replace the flooring or some other deal where we all win.

@Larry - Are you considering doing this? I have been researching this as well or whether to purchase a house. It seems as HML or notes has more upside than purchasing real estate.

Good Evening! Long distance real estate investor here. I am currently living overseas and I have a 3/2 located in Albuquerque, New Mexico. Current tenants have been there for 13 years. They are coming up on their next lease renewal with a $25 increase and are requesting that the interior be painted and a bathtub replaced. I am not arguing that it does not need it but I would prefer to have the whole house refurbished when it is empty. With that said, fresh paint in and out, new carpet and vinyl will only increase my rent to perhaps another $200 a month per my new property manager. The property cash flows $248 a month currently . They have been there along time and at this juncture I would probably prefer appeasing them and painting the interior. Previous PM was adamant that the rents would not sustain an increase so rent was stagnant for most of this time. I fired him last year and we increased rent last year and now are increasing again. They requested to paint the interior last year but as they are not professional painters and I was leery of what kind of paint job they would perform I said no. Have $3000 in cash reserves for maintenance for this house. Has anyone had any success with painting the interior when a long term tenant requests it? Thanks 

Jason, I am in Wiesbaden. I own several properties in OH, TX, NM, FL. By out of country investors do you mean expats investing in Germany or individuals not residing in U.S. but investing there?

I am in the process of having a duplex built in Houston and I may have the option to add some amenities which will increase rent. Has anyone done this before with a site built? For example adding an Amazon box, lighting, or something of that nature? I am already having them put vinyl planking in all the floors including the bedroom and both houses have separate utilities. All appliances stainless steel. Thanks!