All Forum Posts by: Account Closed

My partner and I are considering a move 1.5 years from now to Georgia to be closer to family. 

We currently are focused on buy and hold properties SFRs and apartments. We plan to transition strictly into 5+ unit apartment buildings eventually.  

Our family is in both Marietta & Carrollton. we would like to land somewhere in between the two. 

we are ok investing in c-class areas for our SFRs but need B-A class for our appartments

We are used to the the suburbs of Cincinnati Ohio so do not want to go as rural as Carrollton Ga.

Any North Georgia Investors care to shed some light on areas We may want to explore further?

Thank you in advance

My partner and I have decided to explore handing our units off to a professional property management company. 

We own 9 SFRs 2 duplexes and a 5 unit apartment in c class areas. The buildings underwent massive rehabs so they are easier to manage than the average c-class property. 

I am turning to this great community for recommendations on what to begin my interviews with. 

Thank you for your help. 

My creative financing deal is sweet and simple. The best kind there is. 

I did drive for dollars in my farm area. I cold called all the landlords of registered rentals on my spreadsheet. After lots of hang ups I had one very motivated seller that threw out a great price ($75,000). His friend currently held the mortgage. I sat down with the sellers friend he agreed to let me assume the mortgage. I ended up I having to bring $5,500 to closing to buy a 5 family that has monthly gross rents of $2500.00. 

Im not sure how "creative" this deal was but the point is just asking the right questions I found a motivated seller, and a lender. 

Sam Tidwell So I read this whole forum then realized it was you who asked the question. Welcome to the forums. I know I have helped you a little in person but the people on this site know 1000 x what I do. For all of you who do not know him Sam Tidwell is a very smart, driven young investor. He is jumping into this with both feet, and I believe he will come through the other side successful. To answer your question: This purchasing strategy seems possible, but highly unlikely. A bank will only loan 70 maybe 80% of the value on a cash out refi. This means you would need 20% down or the seller would be willing selling to you for 70% of it's value. EVEN if you convinced the seller to do this I don't think you are going to get the bank to agree. You have to put yourself in the seller/lenders shoes. Why would they ever choose you over the big company's that can write a check and close that day and have years and years of experience. You have to have a real reason for this question or you will never get anyone to lend to you. I will admit I never figured it out. I started The hard way. I Saved my money and invested it back in. I have had several deals presented to me that I could Have owned with 0% down. The problem is they were far from a deal. DONT CHASE NO MONEY DOWN DEALS ONLY BASED ON NO MONEY DOWN. For your situation they MUST cash flow. How much is up to you. In my experience you pay for 0% down in so many other ways that it Never seemed worth it. My suggestion is to look into land contracts. If you can't make that work. Try convincing someone close to you to lend you money. Or how I ended up doing it, do anything you can to make money until you have enough to buy. I hope this helps. Good luck! If I can help any other way let me know.

@Tim G. Nice! I look forward to reading about the millions you made!

@Jason James I average roughly $9,000 in rehab for a total of $40,812. This Does not count my labor. 

@Mark S.  I did some as I went through college. I didnt really I know anything about evaluating stocks/companies I just had lucky timing and invested in companies I thought would do well financially. I put a bunch in chipotle, and anheuser busch. It worked out well I now live in my primary residence free and clear because of it. I have a little left in ETFs but not much. 

Why do you ask?

@Mark S. Thank you! 

I did things the hard slow way. I worked much, spent little, and invested lots. I didn't need to pay them off because I didn't get mortgages on them. I was/am young, and self employed no one would give me money so my only option was to earn money though working on other peoples homes and use that money to invest. Almost 3 years into REI and I just now am starting to get any lenders to pay attention to me, now that I have proven my self. It still is a struggle due to my extremely frugal lifestyle, the income I payed my self is very low. I don't plan to stay that way I just am doing what is necessary to build a solid foundation now to utilize time and exponential growth for the next 40 years.

I am a local investor. I currently do all my own management and maintenance so I stay with in 10 miles of home. My average purchase price is $31,812.00 My average monthly Rent per unit(home) is currently $930. This number may seem exceptionally good and it is. However keep in mind I buy highly distressed properties to leverage my skills in the trades. I hire out no work on these homes, and rehab them to a nice durable yet desirable style. I take care of all the potential problems as soon as I purchase to reduce unexpected maintenance expense in the future.  

Sorry I kinda started to ramble there. I hope I answered your questions.  

@Joe Fornasiero I think this strategy is a good way to get into REI. I am also 24 and in the process of closing a 5 family now (non owner occupied). Defiantly get familiar with REI basics. You can do this though BP's ultimate beginners guide

http://www.biggerpockets.com/real-estate-investing

I think you may have cash-flow confused with monthly gross rents. 

A rule of thumb is that 50% of gross rents will go to expenses (does not include your mortgage payment). THIS IS ONLY A RULE OF THUMB you should dig deep into your numbers on a 4 family you may be responsible for all utilities which can put you well over the 50% rule. 

@Taylor Reichert 

I think this is really up to you. If you are renting 1 singe family home I think you can take your cash-flow and use it to how ever it suits you. If you plan to scale and grow a business I would define your cash-flow, and allocate it to certain uses. I personally build up a reserve with cash-flow  and once my reserve requirement is meet I then use it to reinvest.