Newbie - Availability in Louisville

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Newbie - Availability in Louisville

Dustin Letourneau
Louisville, KY · Member since 2015 · 19 posts · 11 votes

Afternoon everyone,

I'm new to the REI world. Have joined bigger pockets pro (wife's account) and started listening to webinars and a ton of podcasts. I'm currently working with an agent and seems that the pickings are VERY slim at the moment. That being said, I always hear that there are deals in every market all the time. Maybe it is my inexperienced but I'm just not seeing them yet. I have found a few properties that were worth looking at and making an offer (although many either sold or went pending before I could even make an offer) but I would consider them base hits and nothing more. While I'm okay with base hits for my first few, I'm just curious if maybe I'm missing the forest for the trees in this. My wife and I have probably evaluated over 100 properties in the last few weeks - netting to maybe a half dozen that seemed worth the time. With my inexperience at this point, rehabbing or even a small BRRRR makes me nervous that I may have numbers wrong and be kicking myself out of the gate.

My criteria:

- Buy and Hold Rental(s)
- Price Range: $0-$175k 
- B or C Deals - B deals in this price range seem like unicorns - don't exist.  Again, maybe I'm just not looking or evaluating properly?
- 3 Bedroom 1+ Bath
- Mainly looking in S. Louisville (PRP area) and basically all the way up to the Crestwood area (all outside of the 264 loop) + Shelbyville
- No flood zones (maybe I shouldn't care?)

Is what I'm looking for realistic? For that price range do I need to be looking harder at the C class deals instead of digging in the weeds for B's? Maybe I need to be doing more driving for dollars? I'm reading books, this site, and listening to as many resources as I can (2 hours total from and to work) - but I know none of it is more valuable than experience. I'm ready to be off the sidelines - PUT ME IN THE GAME COACH! Until then, Ill keep crunching numbers.

Thanks in advance.

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Kelly Bankes
Investor · Louisville, KY · Member since 2015 · 73 posts · 33 votes
5y

I second Kevin’s advice on getting on every wholesale list you can. Two of my last three deals have come from wholesalers. If you’re not sure how, call the “We buy houses numbers” you see on signs or get on postcards and tell them you want to be added to their buyer list.

You may consider widening your search criteria initially, too. It doesn’t mean you have to buy something outside your interest area, but it will let you know what is out there and give you more experience running other types of deals.

I would also recommend driving for dollars. Even if it doesn’t end up in a deal, it will help you know the neighborhood you’re most interested in very, very well and make you more confident to move forward when you have found something.

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  • Kevin Hart
    Real Estate Agent · Louisville, KY · Member since 2014 · 257 posts · 172 votes
    5y

    @Dustin Letourneau Hey Dustin, keeping grinding man. Its tough to find that first property, but once you do you'll keep finding more deals. The MLS inventory is the lowest its ever been in Louisville so make sure you are getting on every list of every wholesaler around town to see when deals are sent out. If you are not on @Rob Bergeron 's Louisville network yet, thats a good place to start. 

    1Reply
  • Dustin Letourneau
    OP
    Louisville, KY · Member since 2015 · 19 posts · 11 votes
    5y

    @Kevin Hart, I had messaged Rob not long ago (he seems to be very active on this forum) and he shared the site with me.  It is on my list that we check daily.  Thanks!

    0Reply
  • Nadia Paul
    Member since 2018 · 2 posts · 0 votes
    5y

    Can anyone recommend a tax preparer in the Louisville area who also invests in real estate?

    0Reply
  • Rob Bergeron
    Real Estate Agent · Louisville, KY · Member since 2017 · 1k+ posts · 1k+ votes
    5y
    Originally posted by @Nadia Paul:

    Can anyone recommend a tax preparer in the Louisville area who also invests in real estate?

     I use Caroline Cato. 

    0Reply
  • Nadia Paul
    Member since 2018 · 2 posts · 0 votes
    5y

    Thank you, Rob!!

    0Reply
  • Kelly Bankes
    Investor · Louisville, KY · Member since 2015 · 73 posts · 33 votes
    5y

    I second Kevin’s advice on getting on every wholesale list you can. Two of my last three deals have come from wholesalers. If you’re not sure how, call the “We buy houses numbers” you see on signs or get on postcards and tell them you want to be added to their buyer list.

    You may consider widening your search criteria initially, too. It doesn’t mean you have to buy something outside your interest area, but it will let you know what is out there and give you more experience running other types of deals.

    I would also recommend driving for dollars. Even if it doesn’t end up in a deal, it will help you know the neighborhood you’re most interested in very, very well and make you more confident to move forward when you have found something.

    2Reply
  • Robbie EddingtonPro Member
    Rental Property Investor · Shepherdsville, KY · Member since 2013 · 31 posts · 10 votes
    5y

    Everyone is giving you great advice, my only comment would be do not give up keep looking. I've been investing for over 15 years and I am having trouble finding deals. It's slim pickings but they're out there.

    0Reply
  • Dustin Letourneau
    OP
    Louisville, KY · Member since 2015 · 19 posts · 11 votes
    5y

    @Robbie Eddington@Kelly Bankes

    Thanks for the replies. I'm continuing to look each day with the few connections I have right now. I saw a great deal yesterday hit the MLS but it was sold within 1 hour of being listed. I'll keep grinding!

    0Reply
  • Dustin Letourneau
    OP
    Louisville, KY · Member since 2015 · 19 posts · 11 votes
    5y

    Just wanted to post an update on our journey. I'm happy to report that we are under contract for a SFR that I'll call a medium BRRRR. We purchased around 75% of ARV and plan to put some sweat equity into the house to can pull some cash back on the refinance (we won't get 100% back but plan to have only 11-14% cash invested when all said and done) . We ended up in J-town which is an area I had REALLY hoped to be in from the get go. I'm super excited to get the next phase of this process started and completed. I have a goal to be renting within the next 3 months maximum - 2 months is ideal.

    I will say, while this market really is nuts right now, I feel fortunate to be starting this journey in the middle of it.  I have evaluated hundreds of properties over the last few months' and without these conditions I may have not really had a good understanding of the market or how to really dig.  I think this, in itself, will help us be very successful when the markets are tilted a bit more towards buyers.

    Again, thanks for the few of you that I reached out too or reached out to me (seriously thanks!).  This is only the beginning and will be looking for a 2nd unit before long.  I'm more hooked now that I was day 1.  I hope to work and learn more about you all in the Louisville area so that we may be able to help each other in the long run.

    Cheers!

    2Reply
  • Kelly Bankes
    Investor · Louisville, KY · Member since 2015 · 73 posts · 33 votes
    5y

    Way to go—thanks for the update and keep us posted on the project 

    1Reply
  • Wesley B WilliamsPro Member
    Rental Property Investor · Louisville, KY · Member since 2017 · 107 posts · 77 votes
    5y

    @Dustin Letourneau I would also suggest the @Anson Young book finding and finding great deals I have found some good ones using his strategies.

    1Reply
  • Anson YoungBusiness Member
    Flipper/Rehabber · Denver, CO · Member since 2009 · 1k+ posts · 726 votes
    5y
    Originally posted by @Wesley B Williams:

    @Dustin Letourneau I would also suggest the @Anson Young book finding and finding great deals I have found some good ones using his strategies.

     Hey!!  Thank you for the kind words!!  You taking action on the information was what got you those deals, so great work!

    Podcast Guest on Show #235
    0Reply
  • Dustin Letourneau
    OP
    Louisville, KY · Member since 2015 · 19 posts · 11 votes
    5y

    @Wesley B Williams : Thanks for the recommendation, I will add this to the list!

    0Reply
  • Anthony Acebo
    Member since 2018 · 5 posts · 2 votes
    5y

    I couldn't tell from your post. Did you find your deal on the MLS or through a wholesaler? Are you using your own money, Bank, Or HML?

    1Reply
  • Dustin Letourneau
    OP
    Louisville, KY · Member since 2015 · 19 posts · 11 votes
    5y
    Originally posted by @Anthony Acebo:

    I couldn't tell from your post. Did you find your deal on the MLS or through a wholesaler? Are you using your own money, Bank, Or HML?

    @Anthony Acebo: We found the deal on the MLS (it was posted at 1am in the morning and we called first thing to view it). There was LOTS of interest on the unit but we made a good enough offer to lock it in.

    We are using hard money to complete the rehab process and then will be using conventional money for the refi (target is within 4 months).

    0Reply
  • Anthony Acebo
    Member since 2018 · 5 posts · 2 votes
    5y

    @Dustin Letourneau thanks for getting back to me I appreciate it. I’m starting in the Louisville market but haven’t pulled the trigger on using Hard Money (unfortunately I missed some good deals because of it). Who did you use and what did they require? 

    0Reply
  • Dustin Letourneau
    OP
    Louisville, KY · Member since 2015 · 19 posts · 11 votes
    5y

    @Anthony Acebo: Reach out to Leigh Wise and Surepoint Equity (https://surepointequity.com/about-us/). Their requirement is 10% of the purchase price, they will loan you 75% ARV appraisial value for rehab if needed. Likely normal but our loan is a rate for the first 6 months and then raises up a few points from 6-12mo. Our target is to be refinanced out of it by Month 4-5.

    We are still VERY new to all of this, but it's amazing how much you learn and the people you get connected with once you set out to take action.
     

    1Reply
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