Hey yall. Nashville native here. Single, 28, work full-time for a concrete company and rent in Hendersonville. I have decided to break up with my rental and I'm reading books and listening to podcasts trying to educate myself on moving forward with real estate investing. I'm interested in the BRRRR method to achieve cash flow (I have no idea how much cash flow I want). But I love the idea of flipping as well. My long term goal is to be able to do real estate investing full-time within 5 years. I have great credit and have managed to save 10% cash for my 130k budget. I have been pre-approved for a conventional loan and would like to buy my first investment within the next year. I met with a lender and he said what I am looking for is a "dinosaur" rare and hard to find. The realtor that I met with also told me I am five years too late to be getting started. I've tried picking the brains of people I know that are doing the same thing but no one seems to be thrilled about feeding this hungry girl their information, therefore, I've decided to become their competitor. Basically, I'm going it alone. I know contractors and am not afraid to get my hands dirty but I need advice on how to find something in my budget. Also, is a conventional loan the best way to go or is there a better way to finance this method and how do I find these affordable deals ? Any help appreciated.
A couple of things....
Realtors can't see past the MLS. They don't know that the deals we are looking for actually exist, just not on the market. Can't tell you how many times I've had agents laugh at me and tell me "that doesn't exist" Forget the fact that I've closed multiple of these deals that don't exist.
The market here is a bit challenging I have to say, but that doesn't mean it's impossible. What you are looking for is quite tough, however-it's not impossible. My best advice is to not get discouraged if it takes longer to find than you would like.
"you are 5 years too late"-5 years from now those same agents will be saying "you are 5 years too late" and that will go on until the end of time. I personally am 50 years too late bc I would have loved to buy at those prices. Just remember, the best time to plant a tree was 20 years ago, the 2nd best time is today.
In terms of finding what you're looking for-it largely depends on the area. Those prices are possible in 37218, the Madison area, some pockets of 37211, and then surrounding cities and counties such as Smyrna, La Vergne, Ashland city, Pegram, etc. You probably won't find a 130k house in 12 south for example so you have to be realistic!
My recommendation would be to get at least 2 bedrooms. That way you can house hack. Especially being single, this is the best time to do it as you don't have to worry about family, etc.
In terms of financing, cash is always the best ha! Your conventional loan is perfectly fine too.
That's what I have.
So how would I find the deals past the MLS? Is this the door knocking method I keep hearing about or using the drive app (What's the name of that app again?)along with snail mail? I am looking more like 20-30 miles out of Nashville ( Sumner County).
You should check and see if there's a local REIA (Real Estate Investor Association) chapter near you. That would be a great way to find some potential off-market deals. It's also a great way to find potential vendors, GCs, agents, PMs, etc.
Katelyn - Your network is your net worth. Some very valid points above, but you also need to know people. Start networking with local people who are actively finding deals and coming across deals. Some of my best deals have come from wholesalers / agents. Others have come from direct mail, or some other form of marketing. I personally like mail and networking as my two main avenues. Other people like SEO, ad words, etc. There's a lot of different avenues but at the end of the day it comes down to who you know. Hope that helps! :)
@Katelyn Moss Mailing is probably the best way to find your own off-market deals. These are people who share motivational characteristics of people ready to sell, but haven't yet done all the work they think they need to list property. The best way to find them is to send out mailers.
Some good lists to target are Absentee Owners with Equity, Seniors with Long-time Ownership and Homeowners with Low Financial Stability Scores.
You can work with a list broker to optimize your list for your area. From there, there are a lot of companies that can help with the printing and mailing. Be sure that you highlight that "selling your house can be easier than you think" with the advantages of working directly with you instead of the more traditional route.
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