All Forum Posts by: Walt Bassett

My property manager uses TC, so I receive rents directly to my bank acct

each month. It is easy to use and has both computer and mobile APP to

monitor activity. It helps eliminate a trip to the bank each month.

However,

they hold the money in limbo for 10+ days. My PM gets the rents to his

account on the 5th of each month, then it percolates for 10 - 15 days

until it transfers into my bank.

I didn't think the interest

rates were attractive enough to profit from the float. I suppose it is

the "volume" that makes it worth it for TC

My property manager uses TC, so I receive rents directly to my bank acct each month.  It is easy to use and has both computer and mobile APP to monitor activity.  It helps eliminate a trip to the bank each month.

However, they hold the money in limbo for 10+ days.  My PM gets the rents to his account on the 5th of each month, then it percolates for 10 - 15 days until it transfers into my bank.

I didn't think the interest rates were attractive enough to profit from the float.  I suppose it is the "volume" that makes it worth it for TC

I found that as I evaluated deals, the 1% rule was very difficult to achieve.  I have investments in Massachusetts and North Carolina.  In MA my ratio was 0.6 %.  I focused on Raleigh, Durham & Chapel Hill and found several deals greater than 1%.  BUT, you have to look hard and negotiate.  It's almost impossible to find a single family rental with a 1% rent ratio, since sellers are using residential comps to price.  However, I was able to put together a deal in Chapel Hill with a rent ratio of 1.4% by finding a multi-unit rental.  I followed up a year later with a multi-single family deal (off-market) that will yield 1.6% out of the gate , raised to 2.0 once I raise rents to market value.

AND, the only way to achieve these numbers (IMO) you have to plan in the B, C class arena

Walt B 

In a recent REI meeting, there was a discussion regarding activities versus services as they pertain to the Trade or business. The question centered on real estate network meetings (i.e. REI meetings) or other business meeting activities used to help find rental opportunities. It was suggested that Network meetings and some training (i.e. how to analyse a deal) could be considered to support the rental business. On the other hand a $10K fee for a Tony Robbins seminar would not qualify (an be a red flag to boot)

What are your thoughts?

Brandon,  Great story and perseverance.  I just turned 65 and embarking on my Real Estate journey and appreciate inspiration like yours.  I have gone from 1 door in 2017 to 14 doors in 2019 and looking into syndication for my next deal.  Good Luck with your plans (WB)

I didn't see anyone post about the market conditions.  Is the "other side of town" trending up, down or stable?  Obviously if the trend is moving up, you may have a diamond that can cash flow, while waiting for appreciation.  If not, you've got to assess the risk/reward.  Getting a 2% rent ratio is a must for borderline neighborhoods, but if you can show a year + of cash flow, you might be able to flip it to a passive investor as a turn-key.

ALSO - talk to a property manager in the area and find out lease price trends.  If they are flat, you might want to take a pass.

To find deals make sure you are networking with the people who have the deals. I assume that you are attending the local REI group meet-ups. If not, find them on line and get going. ALSO find & talk to realtors who invest themselves. They are more than happy to share info. While the MLS sites can sometimes find a deal, the best way is off market.

Start cultivating the money people as well. If you have good credit, talk to the banks, for flips and wholesale, you'll want to talk to hard money lenders. They hang out at the REI's

Walt B