All Forum Posts by: Warren Helmer

Hello @Elex Price

This is exciting Elex. I hope that you share your successes that you have in the Jackson MS area. I am also trying to grow while continuously learning. I am always looking for like minded motivated people to discuss real estate.

I was a Trainer at a call center in Mobile AL that took calls for AT&T. I am still in the Corporate Training world, but I dream of the day that my real estate business reaches that goal that will make us financially free. It's happening at a steady pace.

I am focusing on Madison and Rankin counties, and am trying to get a minimum of 2 properties per year. I really want to get into multi-family. Please share how you are doing in Mississippi. It's exciting to meet the people who are changing lives.

Hello Jackson

I bought my first Mississippi property in Brandon in Bellgrove, and I am focusing on the areas that you mentioned, plus Madison and Ridgeland. I can give you an update in June as to how it is going. The rental rates are great, but the foundation issues are a pain.  Find a realtor that you trust, and let them know what you are looking for. Find a property manager or 2, or 3, and find out what they offer and how they work, research the markets, do lots of drive-bys, and dive in.

I am very interested in meeting people in this area and teaming up if possible. I know that I have a lot to learn, but I am not afraid to pull the trigger and get things done. So if you ever want to bounce questions off of each other, or discuss any real estate issues, reach out to me. 

This current property has been a great learning experience for me. I've been working there every night after my "real job", and I've learned that I am capable of doing so much more than I've been doing. These are exciting times, so I encourage you to get investing. As the Real Estate Guys say, "Go make equity happen".

I just bought an SFH investment property in Brandon MS, and Chad Seabrook was very quick and courteous. He was a referral from my insurance guy in Alabama. I hope he is as helpful to you as he's been for me. Of course, my 1377 sq ft investment is MUCH different than your 235,000 sq ft industrial building. I hope this helps.

Chad Seabrook
6955 Old Canton Rd, Ste A
Ridgeland, MS 39157

Hello Joseph

If you know a lot about e-commerce, then we can trade information. I do not call myself a guru about real estate, but I've done enough that may help you get started, and we can discuss what areas you may be looking into. I am half-way through our little SFH that should be ready by April, and we have hit some major snags that we've never hit before. So I can share all of that info.

I agree with starting now while you're young and do not have a family dependent on you. If I would have done back then what I am doing now, I would be SO much better off. So learn all you can (you'll never stop learning), find an area you like, find a mentor if possible, and jump in. My current investment is in Brandon. Let me know if you're ever traveling through there and you can stop by and see the work in progress.

@Alice R. Hill

Origin Bank does refinance and portfolio loans.

Origin Bank in Madison and Ridgeland do portfolio loans. They have the standard rules...showing that the rental made money for 2 years, your history, etc. They may do a portfolio loan after one full year based on an incredible credit score, and if your debt to income ratio isn't horrible. I do not work for them, so I am not representing them.

You can also ask the banks if they do construction loans. If they do, then they are more likely to deal friendlier with your investment properties. But you will need to have a history or they won't really talk to you. Meaning they will not call you back, and avoid you when you repeatedly call them. This is just personal experience and opinion.

If you are investing in the dreaded yazoo clay belt (South of Pearl to north of Madison), it is difficult to use banks that are not from this area. I am in the middle of jumping through hoops because I am using a bank on the coast for an investment property in Brandon. I have/had a great history with them until now. They don't understand that a house that is 9 inches higher on one side is a very common thing here, and they are demanding a soil report, a safety report from a structural engineer, and some type of chemical something-or-another report. All cost me money, and all are slowing things down. I have since talked to a lot of local investors, who all laughed at my predicament, and then told me that local banks won't make me do that next time. So I have established a relationship with Origin, and will use them for my next buy and hold. When I went there, they took a lot of time to explain a lot to me. I hope this helps with your success.

This is a great question, and I can tell you from experience. I use debt leverage. I started because in 2006, a "friend" of mine gave me the saddest story of his life about how he needed to sell his house to stay alive and save his marriage, and all of the humanity! Since, at the time, I was into saving lives, I bought this house at full market value, paid all closing costs (remember, he and all of humanity was at deaths door), and purchased a mold infested one bedroom one bath in a shady neighborhood. For 5 years I could not sell it, and I was always upside down on rental income/mortgage. I went through a lot of tenants. A LOT! For 5 years I suffered a loss every single month. So in 2011 I just dumped my savings into it, got rid of the mortgage, made it as nice as possible, and found an awesome college student who loved the house. She stayed for 3.5 years and was never late on rent. When she moved out, I owner financed it and sold it at a "break even" point. That house was a very expensive lesson, but I think it was worth it. It taught me that I want to deal with a specific type of tenant, and own specific types of houses. Side note: I traveled a lot for business, so the house did not get the attention it deserved.

So onto the financing. I finance all houses with 20% down, in very nice neighborhoods, and make sure that they cash flow. Yes there's a risk, but I cut that risk substantially by getting extremely nice houses in a great school district and I do not make a decision without my property manager. We cruise neighborhoods often. With her there, she won't let me buy a house because "I can make this work". The house must fit our formula that we have created. If it doesn't fit, we move on to the next one. Obviously, this process is painfully slow. But I know the neighborhoods, and always make offers as soon as houses foreclose, or go for sale.

I am financing 3 properties over the last 3 years, and all of them have been amazing experiences. All of them cashflow, they are great write-offs for taxes, and our tenants pay on time and have made the houses their homes. I love debt leverage, because other peoples money is helping my wife and I accomplish our goals.

Since I have moved, I am creating a new formula to follow and trying new and creative ways to finance houses, and looking to build relationships with investors, property managers, and realtors in this area. I am not claiming to know enough to mentor, but I know what works for my wife and me. If you ever want to discuss opportunities, I'm up for it.

Never stop learning!

Hey Jay

Mobile, AL, in my opinion, is ruled by school districts. I went to Murphy, so I can say this...the public schools in Mobile are horrible, with the exception of Baker. My entire focus in Mobile is in the Baker school district, or the more expensive neighborhoods in the Davidson-Murphy area where parents buy to send their kids to one of the private schools. I actually went house shopping this past weekend and spent most of Saturday roaming around West Mobile with my realtor/property manager looking at houses, so I am still very interested in the area. But I am looking in the north Jackson Mississippi area now because I live here, and rental rates are about $1 sq foot on single family houses. I am also forcing myself to get away from the MLS, which is hard to do because that's how I got started, and I don't really understand how to find motivated sellers before they contact a realtor. So, I'm diving in and trying to fail faster to succeed...thank you Rober Kiyosaki.

I travel to Mobile at least once a month because my family is there, and I have two houses down there. If we can ever cross paths, I would be interested in sharing ideas. You can always come for Mardi Gras!

Jay Helms

Jay Helms

Hello Duncan

I moved to Ridgeland in 2013 and have recently started aggressively searching for houses in this area. My wife and I actually cruised neighborhoods in Madison "the city" yesterday after work. I developed a formula that works really well in west Mobile, AL and I am going to see if it works here. I have found a local realtor and property manager that I am beginning with, and now all that I need is a house.  My suggestion to you is to dive into bigger pockets, and all of the real estate videos that you can find on youtube to learn a lot, and then you simply have to jump in . Even the mistakes that you make are very helpful. I know I'm telling you things that you already know. I'm telling myself as much as I am telling you because I have been on BP for only a little over a week now. Because of Susan Maneck's post, I am now going to look into south Jackson too. I hope our paths cross and we can share our ideas soon. Good luck!

Hello Andrew. Thank you so much for referring the Condo Owner Magazine site. That page is packed with information. I was looking for multi-units in the Mobile/Saraland AL area. Saraland is hot right now, but the rental market is very odd. Since I have moved, I am now trying to find out as much as possible about the Jackson/Ridgeland/Madison area. Because of Marc Sanders post, I am also looking into Fondren/Bellhaven area. Thank you for the information.