Getting started but not gaining any traction

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Getting started but not gaining any traction

Charles Tucker Kimbrough
Investor · San Diego, CA · Member since 2020 · 21 posts · 16 votes

Greetings Bigger Pockets,

My Name is Charles T. Kimbrough I recently moved to Big Sky Montana and have been trying to get a property under contract.  I was able to start a real estate partnership with the owner of a property management company in town and I have read so many success stories in real estate where the investor talked about how the first deal was life altering and propelled them into more and more deals.  But in my case reality hit and in 4 months of submitting offers I still don't have a lead.  But in my case I remain optimistic and have continued to read and learn about how I can create a pattern of success in real estate.  I will not lie I have spent several sleepless nights recently analyzing deals in different states to try and get something going it has been taxing physically and emotionally with lack of sleep and nothing really going my way.  But every morning I wake up and keep trying hoping that eventually my efforts bear fruit. 

About Charles T. Kimbrough:

In May of 2020 I graduated from Auburn University with a degree in Industrial and Systems Engineering. I am a U.S. Marine Corps Officer under contract as a student naval aviator. I commissioned as a 2nd Lieutenant in August, but my next officer training and flight school has been delayed until June 2021 due to COVID-19. Given the unexpected gap in my Marine Corp training, I work at Big Sky Resort a as a ski and snowboard instructor at the Madison Base. When I moved up to Big Sky a few months ago I was struck by the raw natural beauty of this place and I want a piece of Big Sky to call mine forever. I have placed several offers on properties in Big Sky but none have gone through yet. I hope  that my fortune changes soon.  I have a goal to replace my military income before I start to put me on the path to financial freedom early and I am confident I can achieve that goal. 

The reason for this post is I am encouraging others to share their current or previous struggles in real estate and how they either have or plan to overcome them.

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Erik W.
Real Estate Investor · Springfield, MO · Member since 2017 · 1k+ posts · 2k+ votes
5y

Let's break this down a bit....

4 months of submitting offers.  What does that mean?  How many offers are you submitting per month or how many offers have you submitted in total?  Are you getting any feedback from Sellers at all (i.e. counter offers) and if so what about your offers aren't appealing to them?  How many deals are you looking at vs. how many offers are you submitting?  How are you structuring your offers (all cash, some owner finance needed, 100% owner finance needed, bank financing needed?)  Are you submitting the necessary documentation with your offers to show that the deal can and will be done if the Seller accepts?  Things like "purchasing as is with no contingencies", etc?

Also, what kinds of properties?  SFHs?  Duplex-Fourplex?  100+ unit apartment complexes?  The TYPE or property can make a big difference.  I wouldn't expect to land 10 deals a month if you're after big fish.  But smaller ones shouldn't take too long to get a hit.

Details needed!

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  • Joshua McMillion
    Rental Property Investor · Madison, AL · Member since 2019 · 487 posts · 658 votes
    5y

    @Charles Tucker Kimbrough



    We share similar backgrounds, both academically with system engineering and professionally. The market is crazy right now, and it is causing several people to make poor decisions ranging from waving home inspections or paying well over fair market value. Just be patient, my friend, and try to view real estate investing through an abundance, not scarcity mindset. Deals will always come and go, but that is the beauty of real estate. There are countless strategies to employ across all markets. Eventually, with crystal clear criteria in place, a deal will come that meets your requirements. A quote I heard from David Green or Brandon Turner sums it up nicely, " learn to say no, so you can say yes when it matters." Stick to your guns, purchase for cash flow, not appreciation, build a team, and have fun!

    Sincerely, 

    Josh  

    1Reply
  • Dmitriy Fomichenko
    Solo 401k Expert · Anaheim Hills, CA · Member since 2012 · 18k+ posts · 6k+ votes
    5y

    @Charles Tucker Kimbrough good luck with your REI journey!

    0Reply
  • Davartay Miller
    Architect · Memphis, TN · Member since 2020 · 259 posts · 144 votes
    5y

    @Charles Tucker Kimbrough I would be remise if I did not say thank you for serving this country! Your service is greatly appreciated it, sir! I hope all is well with you and your family during these unusual times in the world today. It's sad to see anyones dreams being crushed based on things not unfolding the way they envisioned. However, I truly believe that the effort you have displayed is the same effort that is going to be the reason you will soon have 100+ properties. See there is 10 Things that require Zero Talent! 

    1. Being on time 

    2. Work Ethic 

    3. Effort 

    4. Body Language 

    5. Energy 

    6. Attitude 

    7. Passion 

    8. Being Coachable 

    9. Doing Extra

    10. Being Prepared


    If you are doing these 10 things the rest will fall in place. You have to keep grinding. The market is competitive. In fact, in BiggerPockets there is some of the same people who is beating your offers. But it comes down to resilience. The capacity to recover when things get tough! While I know I may have not given you the secret sauce or the answers I do not have . . . . I just wanted to say keep pushing sir. 

    Best of Luck! 

    0Reply
  • Drew SygitBusiness Member
    Property Manager · Royal Oak, MI · Member since 2012 · 13k+ posts · 9k+ votes
    5y

    Who are you networking with besides the PMC owner?

    Spread your wings and network with everyone you can and tell them what you are doing! The challenge of networking though, is trying to stay top of mind with them after you meet them. So, try to connect with them on Facebook, Instagram, LinkedIn, etc. and then post weekly updates about your efforts. 

    Eventually, the "snowball effect" takes place and you'll be very busy.

    [email protected]248-209-6824
    Logical Property Management4.9469 Reviews
    WebsiteView Page
    0Reply
  • Account Closed
    Specialist · Bozeman, MT · Member since 2016 · 237 posts · 153 votes
    5y

    I'm here in Bozeman, and I can tell you that Bozeman and Big Sky may be some of the toughest markets to "get started in real estate" right now, just about anywhere. There are still markets in Montana which are very nice for investing, both for equity and cashflow. You've got to know the markets. It's not just Bozeman and Big Sky, there are many other places you can invest in around here. If you can manage your property you have an advantage, if you can build you have a HUGE advantage. Price of materials has skyrocketed, which I've been talking about since last year. Reality is really hitting some REI's home now. It will get worse before it gets better. Feel free to contact me if you want to talk about some smaller markets.

    0Reply
  • Erik W.
    Real Estate Investor · Springfield, MO · Member since 2017 · 1k+ posts · 2k+ votes
    5y

    Let's break this down a bit....

    4 months of submitting offers.  What does that mean?  How many offers are you submitting per month or how many offers have you submitted in total?  Are you getting any feedback from Sellers at all (i.e. counter offers) and if so what about your offers aren't appealing to them?  How many deals are you looking at vs. how many offers are you submitting?  How are you structuring your offers (all cash, some owner finance needed, 100% owner finance needed, bank financing needed?)  Are you submitting the necessary documentation with your offers to show that the deal can and will be done if the Seller accepts?  Things like "purchasing as is with no contingencies", etc?

    Also, what kinds of properties?  SFHs?  Duplex-Fourplex?  100+ unit apartment complexes?  The TYPE or property can make a big difference.  I wouldn't expect to land 10 deals a month if you're after big fish.  But smaller ones shouldn't take too long to get a hit.

    Details needed!

    2Reply
  • Marissa Nestor
    Property Manager · Big Sky, MT · Member since 2021 · 8 posts · 3 votes
    5y

    Welcome to Big Sky, Charles!

    0Reply
  • Boone Tyson
    Real Estate Agent · McAllen Texas · Member since 2018 · 188 posts · 186 votes
    5y

    @Charles Tucker Kimbrough Thank you for your service! Can't tell you how much we appreciate you.

    I'n going to jump in and agree with @Erik W.. If after 4 months of submitting offers, we don't have some traction, I think we have a flaw somewhere in the system. You are an engineer, so you are probably a systems oriented guy. @Brandon Turner always references the deal funnel. Thats what we are trying to identify here.

    In the last 4 months:

    - How many offers have you made?

    - What type of properties were those offers on?

    - What/who did you use to present these offers to the sellers?

    - Where did you identify the properties you were offering on? (MLS, preforeclosure list, wholesalers, etc...)

    - What tools did you use to determine the offer price you presented and how did it relate to value and/or listed price if it was listed?

    - How many offers at least got a response or counter offer?

    - What other markets have you looked at investing in?

    Once these have been answered, it should point us in the direction of the breakdown.

    1Reply
  • Charles Tucker Kimbrough
    OP
    Investor · San Diego, CA · Member since 2020 · 21 posts · 16 votes
    5y

    I just received a call that my partner and I didn't get our most recent deal in Big Sky.  We placed an offer on a condo at full price and were pre approved with financing.  I assumed that pre approved offers were worth their weight in gold.  It looks like we were beat by a cash offer.  I am wondering how to re-think our strategy so that we can beat all other offers and put a place under contract?  Failure in real estate is the only thing I have experienced but it has only continuously made me work harder and harder.  Below I will attach the letter from the partnership I created in Big Sky that we have put on top of everyone of our offers.

    0Reply
  • Charles Tucker Kimbrough
    OP
    Investor · San Diego, CA · Member since 2020 · 21 posts · 16 votes
    5y

    Thank you all for your reply messages that has been very helpful.

    0Reply
  • Charles Tucker Kimbrough
    OP
    Investor · San Diego, CA · Member since 2020 · 21 posts · 16 votes
    5y

    I have found a local agent in the area who has been absolutely wonderful.  I have also gotten pre approved by both a traditional lender and a private money lender for Big Sky, Bozeman, and Whitefish Montana.

    0Reply
  • Aaron Ziegler
    Real Estate Appraiser · Three Forks, MT · Member since 2017 · 16 posts · 8 votes
    5y

    Hey Charles, I’m an investor here around the Bozeman area and a real estate fee appraiser. Part of my work is analyzing contracts for purchases, and I can tell you that it is very normal for properties to sell much higher than their already aggressive list price in this rapidly increasing market. Big Sky especially, if it’s under a million they go within hours and usually for much more than the list price. The main issue around here is simply the demand and very low supply. I’d encourage you to look off market if possible. 

    0Reply
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