All Forum Posts by: TJ Sayers

@Clayton Mobley, Spartan Invest. 

I live and invest in Alabama, and not all the houses are nearly 100 years old. Even if they are, a good rehab will take care of any problems. There are some very good turn key companies in Birmingham who buy older distressed properties and bring them back to life, and sell them to investors like yourself. I do not know how much of  a downpayment you would need to invest with one of these companies. Just be careful and make sure that you are investing with a reputable company. I would recommend that you read over some of @Clayton Mobley's posts about the Birmingham market. His company, Spartan Invest, has a very nice product and they are honest people who are easy to work with. 

I have not bought properties from Spartan, but I am an investor (mostly wholesaler, but have done a few rehabs and hold some rentals of my own) in the area and deal with Spartan's team on a regular basis. I think you'd have a hard time finding a better turn key company in Birmingham than Spartan. Their owner Clayton Mobley posts on here quite often and you can look over the data that he's provided in several posts and see that he is very knowledgable about Birmingham's rental areas. Even though I am from the area and feel like I know the neighborhoods quite well, I have used some of his data here on BP when purchasing rentals for myself to hold. I have walked through a few of their properties after rehab and their craftsmanship and willingness to go beyond the "typical" rehab is impressive. Everyone I have worked with in their company has been a pleasure to work with and I have heard great reviews from people who have worked with them. 

If I were investing from another state I wouldn't hesitate to invest with Spartan. 

@Jeremiah Nolen Thanks for your response. My permanent financing on the property will be a home equity loan (not line of credit) rather than a mortgage. As it relates to credit, would a mortgage make more sense?

Also, what effect will using the HELOC and paying it off over and over have?

Thank you again for your response on this.

Over the past few months I have began to acquire more rental properties (outside of another partnership I have). I took a HELOC out on my personal residence to purchase and rehab the first property and and am in the process of getting permanent financing on the property. I want to be able to buy 3-4 properties per year for the next few years. The problem is that the inquiries on my credit have drastically reduced my credit score over the last 30 days. Having my credit pulled for the HELOC and long term financing within a few weeks of each other has caused my credit to drop 80 points (Equifax) and 62 points (TU) over this time. I've talked to a couple of other investors and turn key providers in my area and it sounds like this is just part of the game. Does anyone know of a funding company who won't pull my credit for each new house I buy, or any advice for preserving my credit while purchasing these properties? I'm buying properties in Birmingham, Alabama but would like to know if clients of large turn key providers (like Memphis Invest) have had the same issues. Any feedback or advice will be very much appreciated.

@J Benoit hosts a monthly meetup. There is usually a speaker for 15-20 minutes, a Q&A with the speaker, and networking before and after. You will meet some good contacts there.

This is a completely remodeled 3 bedroom 2 bathroom home in Hueytown. This home has a beautifully remodeled kitchen and 2 bathrooms, which include stainless appliances, new tile, and granite countertops. The house also features new interior and exterior paint as well as a new metal roof. Come check out this house today, it won't last long!

FACTS

• Lot: 0.35 acres
• Single Family
• Built in 1961
• 90 days on Zillow
• Views since listing: 408

• All time views: 457
• 16 shoppers saved this home
• Cooling: Central
• Heating: Heat pump
• Last sold: Sep 2015 for $16,500

• Last sale price/sqft: $17
• MLS #: 735468
• View Virtual Tour

FEATURES

• Attic
• Cable Ready
• Flooring: Hardwood

• Lawn
• Parking: Off street
• Unfinished basement

• Wired

Saying Hoover is expensive is true, but it's less expensive than Vestavia, and about the same as Trussville.

A good rental depends on what you are looking for. If you are looking for cash flow I'd suggest areas like Hueytown, Center Point, Roebuck, Adamsville. These are all considered B areas, but they vary street to street. 

I would consider Pelham a better area than the ones mentioned above, but the acquisition cost will be much more and the CAP Rate will be less.

If you are more concerned with appreciation and less about cash flow, I'd suggest that you look at Hoover, Vestavia, Trussville, etc. 

For more detailed area info, check out what @Clayton Mobley wrote a few months ago on another thread:

https://www.biggerpockets.com/forums/311/topics/221342-seeking-birmingham-alabama-turnkey-advice-investors-only?page=3

These are 2 Apartment Buildings, 1 4plex and 1 6plex. 10 units total.

Total Rent- $3435/month, $41,220/year

Total Taxes- $ 1753/year

Insurance- $3062/year

Management Fee- 10%

Total Sales Price- $199,000

Most of these units have very long term tenants. The rents are below market, but could be increased over time. The apartments have been very well taken care of and most units are relatively clean and tidy. All units are 2 bedrooms, 1 bathroom.

Interior and Exterior photos of each unit available upon request.

For more info call TJ at (205)260-7007

I am sorry to hear about your unfortunate bad experience in Birmingham. I do not know what company "burnt" you, but there are several good turn key companies here in the Birmingham area. I would encourage you not to dismiss Birmingham because of one bad experience. There are several out of town investors on here who will give you some good references for good companies in the area. If you are looking for B+ properties, you should check out Spartan Value Investors and Alliance Wealth Builders.