New to wholesaling in Lexington, KY

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New to wholesaling in Lexington, KY

Austin Crouch
Lexington, KY · Member since 2016 · 10 posts · 1 vote

My name is Austin and I just moved to Lexington KY for my job. I love it here! 

I went to a real estate investing 3 day class (than Merrill) last year and was hooked!!!

So now here I am in Lexington and I want to meet people in this area to network with and learn from. 

I hear of a bluegrass REIA club, anyone here in that? Hopefully some meeting coming up?

I want to get started with wholesaling then invest my profits. Would that be the best bet for a beginner? Anyone here already expierienced with wholesaling in Lexington? 

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Brandon Stevens
Investor · Lexington, KY · Member since 2015 · 139 posts · 100 votes
9y

I know Jim well, you'll need a little more experience before he'll work with you or have a partner with experience but there are plenty of local banks that will give you a shot if the numbers work. I wouldnt worry too much about how risky it is,  from a deal standpoint, your realtor should understand what your lookin for and whoever your lender is will likely underwrite the deal. Then if your family member can write a scope and an estimate. Between all of you....and J Scotts book...and the BP community....Go for it, its the only way to really learn....pick a price point your comfortable with and  have a backup plan for the property. I never thought of it as risky :)

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  • James WilcoxBusiness Member
    Real Estate Agent · Bowling Green KY ~ Lexington, KY · Member since 2015 · 1k+ posts · 603 votes
    9y

    @Austin Crouch welcome to Lexington and the BP community! Yes there is a "Bluegrass Real Estate Investors Group" on Facebook that meets at a local place in Lexington once a month. There is no meeting currently scheduled for January but will likely have that planned out come early January. We just finished the holiday party and with the end of the craziness there just hasn't been a lot of time to post the meeting time for January. At the REIA there are other wholesalers so you can likely hook up with them and learn as well as all the resources on BP about wholesaling.

    REI James w/ eXp Realty54 Reviews
    WebsiteView Page
    0Reply
  • Austin Crouch
    OP
    Lexington, KY · Member since 2016 · 10 posts · 1 vote
    9y

    @James Wilcox thanks for the reply! Great! Can't wait to join and meet up with everyone. I just went and asked to join the Facebook group. I'll keep an eye out for a meeting, I'll defiantly be there! 

    0Reply
  • James WilcoxBusiness Member
    Real Estate Agent · Bowling Green KY ~ Lexington, KY · Member since 2015 · 1k+ posts · 603 votes
    9y

    @Austin Crouch sounds good. Hopefully they can get you added quickly but with the end of the year rush it may take a bit. Come say hi at the meeting and look forward to having you there come 2017!

    REI James w/ eXp Realty54 Reviews
    WebsiteView Page
    0Reply
  • Austin Crouch
    OP
    Lexington, KY · Member since 2016 · 10 posts · 1 vote
    9y

    @James Wilcox thanks Jim! Looks like it lands on a Tuesday at 6. Unfortunatly I'll be working that day :(

    If I can not get off that day then I'd love to build a network of home flippers in Lexington to offer wholesale deals to when I do get my first. I'm about to order 100 bandit signs and work with a realtor I'm friends with to learn Lexington area and neighborhoods and which ones to target. Are bandit signs okay to use in lexington? And where can I get a contract? Thanks!

    0Reply
  • Mark Nolan
    Professional · Carlsbad, CA · Member since 2012 · 12k+ posts · 1k+ votes
    9y

    @Austin Crouch

    You have come to the right place to connect with the wide array of real estate professionals and investors. Make sure to view the Bigger Pockets book store: https://www.biggerpockets.com/store

    0Reply
  • George Faulkner
    Investor · Nicholasville, KY · Member since 2016 · 10 posts · 6 votes
    9y

    Welcome to bigger pockets. I'm also an investor in the Lexington area, it is a great market to get into.

    0Reply
  • James WilcoxBusiness Member
    Real Estate Agent · Bowling Green KY ~ Lexington, KY · Member since 2015 · 1k+ posts · 603 votes
    9y

    @Austin Crouch oh no! Most REIAs are on Tuesday or Thursday. I don't know the exact rules on bandit signs with the city but I do see several around. I would look into the wholesaling resources on BP for contracts or ask other wholesalers in the area. I would say Lexington is a tough market to wholesale in because of all the competition, but I do not know for sure since I do not wholesale. Just ask on the REIA group for flippers and I am sure you will find several as well. I would look more into targeted direct mail marketing if you have not already. Keep in mind that wholesaling can be tough and it may take a good amount of money before you ever wholesale your first deal. However BP should have the resources you need to put you on the right path to success.

    REI James w/ eXp Realty54 Reviews
    WebsiteView Page
    1Reply
  • Brandon Stevens
    Investor · Lexington, KY · Member since 2015 · 139 posts · 100 votes
    9y

    GL. Like @Jim Wilcox said Lexington is a tough market. Its small enough and there are plenty of educated investors all looking for deal. I believe we own a rental or a flip in progress in every neighborhood in the city which you would be looking and I bet I get no less than 10-15 direct mail flyers a week. I cant say that ive seen an abundance of bandit signs lately so maybe the city is cracking down on them.  My personal opinion is that the city is probably not quite big enough to be a full time wholesaler, could you get a dew deals a year? Maybe, but youd probably bw better off having your realtor find you a flip to do yourself. Jmo

    1Reply
  • Steve Moore
    Investor · Lexington, KY · Member since 2013 · 7 posts · 0 votes
    9y

    Hey Austin,

    I am an investor in Lexington and would be glad to talk REI, network, etc. Please feel free to contact me.

    Steve

    0Reply
  • James WilcoxBusiness Member
    Real Estate Agent · Bowling Green KY ~ Lexington, KY · Member since 2015 · 1k+ posts · 603 votes
    9y

    @Brandon Stevens Yeah don't see as many bandit signs atm because it has been several months since a guru has been in Lexington. lol. 

    @Austin Crouch yeah all jokes aside, Brandon confirms what I suspected in that the market is saturated by wholesalers ATM. Thanks for the info Brandon! You are going to need to set yourself apart from these others, especially if you are new. Get your direct mail list extremely detailed and targeted, find a niche, and be prepared to try to solve some difficult real estate problems. I also agree with Brandon that for Lexington you might be better of finding a flip or just a good cash flowing rental. 

    @Steve Moore come to the local REIA and network with us!

    REI James w/ eXp Realty54 Reviews
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    1Reply
  • Jason Blondin
    Investor · Pooler, GA · Member since 2014 · 27 posts · 7 votes
    9y

    Im moving to lexington hopefully in a few months as well. Im buying, SFR, MFR, etc. Im also looking for a nice owner occupier live in flip. Please sent me PM if you have deals. I also added myself to the facebook request, waiting on acceptance.

    0Reply
  • Austin Crouch
    OP
    Lexington, KY · Member since 2016 · 10 posts · 1 vote
    9y

    thank you all for the replies! I appreciate each and everyone's time and help! I am open to getting into flipping as well but I do understand that is a lot bigger risk then wholesaling it seems like. I do have some contacts here locally for work, I got someone for paint work, got someone landscaping and any outdoor yard work, I know a handful of realtors, know someone for flooring. My stepdad is also a very skilled handyman with expierience from complete renovations to roofing.. But that's only one man. I know for a fact he will tackle the work. I work a very busy schedule so it will be hard for me to help on a regular basis. I know there's a HML Here in Lexington named Jim. So how risky will it be for me to locate a good deal and profit from it while working a busy schedule with no expierience?

    0Reply
  • Austin Crouch
    OP
    Lexington, KY · Member since 2016 · 10 posts · 1 vote
    9y

    As long as I have a mentor to over see my first deal I would love to get into flipping. The last thing I want to do is get into a big mess haha 

    0Reply
  • Brandon Stevens
    Investor · Lexington, KY · Member since 2015 · 139 posts · 100 votes
    9y

    I know Jim well, you'll need a little more experience before he'll work with you or have a partner with experience but there are plenty of local banks that will give you a shot if the numbers work. I wouldnt worry too much about how risky it is,  from a deal standpoint, your realtor should understand what your lookin for and whoever your lender is will likely underwrite the deal. Then if your family member can write a scope and an estimate. Between all of you....and J Scotts book...and the BP community....Go for it, its the only way to really learn....pick a price point your comfortable with and  have a backup plan for the property. I never thought of it as risky :)

    2Reply
  • Austin Crouch
    OP
    Lexington, KY · Member since 2016 · 10 posts · 1 vote
    9y

    Thanks Brandon! I'm going to contact the realtors today and talk to them about it. As far as finding a lender.. You mentioned bank. Right now I don't have good enough established credit :( , I am only 20. But working on it. I hope that would not hold me back as long as the spreed is good on the project. My mother is also a certified interior decorator so she is going to help me as far as colors and interior goes. I really would love to get into this. Real estate investing has been my dream. Thank you all for the help! 

    0Reply
  • James WilcoxBusiness Member
    Real Estate Agent · Bowling Green KY ~ Lexington, KY · Member since 2015 · 1k+ posts · 603 votes
    9y

    @Austin Crouch if you are serious about flipping both of J Scotts book are a must. @Brandon Stevens is very on point with all his above statements. If you define your buying criteria, are confident in your numbers, and have exit strategies in place is it really that risky? 

    Not having good/prior credit history will pose a problem in getting lending from local banks. Obviously they would see you as a high risk candidate and will likely not say yes. However, finding a good deal will definitely help. Start working on building your credit now and learning/networking. That way when a deal does come up, you will be ready. Finding a good deal will take time anyway and you need to learn the market first. Also keep in mind many loose money on their first flip. I did lol. However, my exit strategy was to turn it into a rental and it has worked out alright since. 

    REI James w/ eXp Realty54 Reviews
    WebsiteView Page
    1Reply
  • Brandon Stevens
    Investor · Lexington, KY · Member since 2015 · 139 posts · 100 votes
    9y

    Not having established credit is one thing, bad credit is another, the good thing is both can be fixed. That number is an important figure in our line of work especially starting out so take it as seriously as you do anything else. I lived off PBJ and cereal for a good while starting out :) You are starting early thats also a big plus for you, not that you can't start later in life, but if you start building a portfolio now, house hacking now, your going to be in a fantastic position sooner than you think. I bought my first flip when I was 21 and used the profits from it (25k off a little house off clays mill) to buy my first 2 rentals. I was able to leave the 9-5 and live off my rentals 12 years later. Had the market not fell out in Lexington when I was new and not smart enough to know that was when I was supposed to be buying, it would have been sooner :)  

    Nonetheless its worked out pretty well, Your likely going to need a co-signer on any deal you do it sounds like at this point. I'd talk to family first, explain what you want to do, then if you think they are on board, find a deal bring it to them show them the numbers, show them how its a safe investment and offer them a ridiculous amount of the profit on the first one. Would it be nice to keep it all yourself? Sure but remember its just your first one and your paying for the education and the "prove it factor" with your family member so next time they'll be happy to co-sign or invest. 

    As for credit, one of the best/fastest thing I tell people they can do is to be added as an authorized user on a family members card (only if they always pay their bill of course, and if they have a good size credit limit on that card) What this does is immediately raise your debt to available credit margin which will raise your score. Tell them you don't physically want a card, don't want the number, and thus you would never be able to used it, you just want to be added on the account to help your credit numbers. If not apply for some low limit cards and pay off down to 3% every month. 

    0Reply
  • Austin Crouch
    OP
    Lexington, KY · Member since 2016 · 10 posts · 1 vote
    9y

    @James Wilcox @Brandon Stevens I agree! As I work to build up credit I will network and get to know the area and build my knowledge of flipping/ investing. You both have been such a huge help! Thank you both. Using a PML may be the way to go starting out or maybe a HML if the deal is a great deal?

    @Brandon Stevens that is my goal. work in car sales and invest invest invest until one day I can live off of my rental income.

    By the way for anyone reading this, my days off are Thursdays and sunday, I would be willing to do free work on those days in return of one on one mentoring/training.. Or even just to see a deal from start to end. Thank you all!

    1Reply
  • Austin Crouch
    OP
    Lexington, KY · Member since 2016 · 10 posts · 1 vote
    9y

    @Jim Wilcox where can I find those books?

    0Reply
  • James WilcoxBusiness Member
    Real Estate Agent · Bowling Green KY ~ Lexington, KY · Member since 2015 · 1k+ posts · 603 votes
    9y

    @Austin Crouch on BP of course lol.

    Link below:

    BP Book Store >>

    REI James w/ eXp Realty54 Reviews
    WebsiteView Page
    0Reply
  • Jamie DeRossett
    Investor, Contractor, Appraiser for Real Estate Appraiser · Lexington, KY · Member since 2015 · 70 posts · 35 votes
    9y

    LFUCG did pass a sign ordnance. I do not know exactly what it is because I don't use bandit signs. 3 days Than Merrill class you should do great. Good luck!

    0Reply
  • Neil Bedwell
    Lexington, KY · Member since 2017 · 3 posts · 1 vote
    9y

    Resurrecting an old thread here.  I, too, am interested in buying and holding rental properties in the Lexington/Nicholasville/Versailles area.  I already own a home in Lexington in the Monticello neighborhood.  The wife and I work in Hazard KY during the week and stay in our Lexington house on the weekends.  So, we currently own two homes and neither are rented.  

    My goal is to buy and hold 20 rental units over the next 10 years. I'm fine with single family OR multi family. Wife and I both have credit scores over 800 and are accountants by trade. I am working on a business plan and would be interested in feedback on what banks in the Lexington area are friendly to investors. I saw the website for the HML named Jim. Not sure what it would take for him to work with us but would like input on that as well.

    I've been looking at houses all summer and I'll say, Lexington is a TOUGH market.  

    Thanks in advance for any input!!!!

    Neil  

    0Reply
  • James WilcoxBusiness Member
    Real Estate Agent · Bowling Green KY ~ Lexington, KY · Member since 2015 · 1k+ posts · 603 votes
    8y

    @Neil Bedwell you should come to the local REIA and discuss what your HML needs with Jim (different person) personally. Those are great goals and seems you are ready to start your business plan. Maybe you could try Airbnb in the home you are not currently staying in. Good luck in all your future REI ventures!

    REI James w/ eXp Realty54 Reviews
    WebsiteView Page
    0Reply
  • Neil Bedwell
    Lexington, KY · Member since 2017 · 3 posts · 1 vote
    8y

    @James Wilcox Thank you so much! When and where does the local REIA meet? I'd LOVE to attend.

    The wife and I have been researching Airbnb and that might just be something we do in the near future.  Thanks again!

    0Reply
  • James WilcoxBusiness Member
    Real Estate Agent · Bowling Green KY ~ Lexington, KY · Member since 2015 · 1k+ posts · 603 votes
    8y

    @Neil Bedwell well lucky for you there is a meeting tonight. It meets once a month usually on a Tuesday. Location varies so you got to pay attention to BP events tab to see where it will be. 

    Event page:

    https://www.biggerpockets.com/forums/521/topics/502567-appfolio-rep-at-november-bluegrass-real-estate-investors-meet-up

    REI James w/ eXp Realty54 Reviews
    WebsiteView Page
    1Reply
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