Coffee On Me - Nashville

22 Replies

Hi fellow investors! I live in Nashville and am looking to meet other locals active in REI in any capacity - fix/flip, wholesale, lending, contracting, titles, etc. As far as what I'm doing, I have one goal right now, and that is to get in and successfully complete my first fix/flip. I've recently attended local Meetups and met with wholesale companies. But I want to reach out and connect locally on BP, too, to connect and learn, and see if there's a way we can help each other. If interested in connecting shoot me a message, I'm happy to spot a drink or coffee.

This marketplace seems to be very accommodating and helpful, I'm sure some fruitful relationships will come out of this for you. 

@Ben Travis I have started thinking about Nashville for long-term investing because we have some very good friends there. What wholesalers have you met with and have you found a good local meet up to attend regularly? If I fly out for a visit, we'll have to connect and chat about the investing landscape of Tennessee. 

Seriously looking at nashville and murfreesboro area as well. Would love to fly in and join a potential meetup. working with a couple of agents currently in the area, but for some reason they keep pointing me towards condos/townhomes.

Ben, I’m a new investor looking for my first deal in the Nashville market, my hometown. Would enjoy getting together to talk strategy and am happy to share any resources I can. 

@Matthew Iulo What type of deals are you looking for?

You might only be seeing condo/townhouse deals because of the price point you are interested in. 

Originally posted by @Luka Milicevic :

@Matthew Iulo What type of deals are you looking for?

You might only be seeing condo/townhouse deals because of the price point you are interested in. 

 Hi Luka

Ideally small MF but i believe inventory is low in the area. So was looking for a few SFH that are in good condition, cash flow ok (not expecting 1% in Nashville market), but also take advantage of some appreciation growth in line with the market there. $160-$220 was my goal for sfh. Am i off?

@Matthew Iulo

I mean it's possible. Not easy at that price in Nashville proper, which is probably why you're getting a lot of condos and townhomes. 

I would imagine that since you are only working with agents that it's going to be rather difficult to find what you are looking for. 

I would think you would have to get in tough with wholesalers

Originally posted by @Luka Milicevic :

@Matthew Iulo

I mean it's possible. Not easy at that price in Nashville proper, which is probably why you're getting a lot of condos and townhomes. 

I would imagine that since you are only working with agents that it's going to be rather difficult to find what you are looking for. 

I would think you would have to get in tough with wholesalers

 Thanks for the tip. Anyway dont want to hijack Ben Travis post. Ill be following it and hope to join a meetup!

So I am curious, why do most new investors gravitate toward flips vs. buy and holds? Is it the market? Am I going to see something different during other market  cycles?  Is it low hanging fruit? Because I would disagree I have done one extensive rehab and found it very difficult to find affordable/reliable  trades people in the market. Is it the quick buy/sell? Do they lack capital? Have they considered short term capital gains? Is it because of the TV shows ? I would love to see a sexy tv show about landlording.  "Bunny, I have told you about our no pet policy.  Now I dont want to evict you and your iguana sanctuary, but I dont appreciate being lied to. " That would be funny. 

@Carrie Carlton

Makes me think of 'Nightmare Tenants, Slum Landlords' on Netflix...would love to see a US version of this show.

Thanks for the replies everybody. 

@Cody Caywood  It does, probably the only online forum I've been on that seems to do what it's designed to do while remaining cordial. 

@Justin Koehn Let me know if you fly out. I have met wholesalers both at a local REI meeting, and I've met with New Western Acquisitions, a wholesale company. I'm also connecting with local lenders, as well, and making other calls to wholesalers, realtors, etc.

@Taylor Cochran That would be great, I'll shoot you a message off the forum. 

@Matthew Iulo No worries, we're all trying to connect in some way. Chat it up.

@Carrie Carlton A couple reasons for me - 

1.) Capital. I can do a flip. But I don't have loads to invest in much more at this point. I work an average job that pays very average, and I want to replace it by the end of 2018. I never watched any of the shows. I only watch Breaking Bad once every three or four years ;) Buy and holds are for sure on my radar. But I have a single focus getting started - one profitable flip. Learn and go.

2.) With that, I enjoy managing processes and want to become fluent in this. I was initially interested in REI from a wholesaling standpoint. But after learning more, I have no desire to explain (i.e. sell) to homeowners over and again that I am not actually buying their home, I simply am putting it under contract. It's just not my game nor my interest. I put out five yard signs one day and knew those were probably the first and last I'd put out.

Of every point of REI entry, this one - so far as I can see - makes the most sense for me to get things going, the challenge/risk has me motivated, and happens to be my strongest area of interest. I worked in home remodeling for a few years as well with a local contractor, maybe the familiarity has something to do with it. My lower back knows why certain labor costs are what they are. But my floor-sanding days are done.

Thanks for commenting, would love to hear any follow up thoughts.

@Ben Travis What a nice offer! Unfortunately, I'm not in the area. But I do enjoy coffee! :) 

@Carrie Carlton

Fantastic point you brought up!!!

I think it's largely the excitement. 

I started out focusing solely on buy/hold because of the passive income. I slowly transitioned into renovating and new construction. I think a big reason is because there is nothing exciting about a rental. 

The more experience I get, the more I like the boring rentals. Receiving a check every month is fun for me :-)

At the end of the day, it comes down to goals. If you want active income-do rehabs. If you want passive income-rentals. 

I consider rentals the only true form of investing, as rehabbing, etc requires actual work. 

Again-ALL depends on goals. 

@Matthew Iulo Those areas are great I just had a property for 62k with an ARV of 130 in the Murfreesboro, another in the North Nashville for 85 with a 200 ARV, and both of them just this past week. When looking at the rehabs it does need work but the equity in this market based off of what I have had my hands on are great!

@Carrie Carlton I have limited experience here (I have done two flips, but don't  yet have my first buy-and-hold, but I'm working on it), but let me give my perspective. 

Flipping is a job that can pay BIG if done right (buy right with correct ARVs and rehab estimates, AND the market doesn't change dramatically while you are holding it). However, there is a lot of risk, especially if the margins are slim or the market is volatile. I have been doing it with my personal residence to create a chunk of money to start with buy-and-hold. Many buy-and-hold investors need a lot of start-up capital or creative financing for each property purchased. However, if you combine the flipping and buy-and-hold world, you get the BRRRR strategy that @Brandon Turner talks about so often. This is my plan once I have a chunk to start with. I assume most other new investors start with flips because they (hopefully) have a short-term gains, and those gains can be rolled into the next project and increased. The same can be done in a quickly appreciating market with buy-and-holds, but it is a big harder because of the refinancing necessary to get your working capital back out of the investment. 

So it seems lack of capital is the reason. What is used for purchasing property and rehab cost ? That seems like that would require capital, right ? I started out with 20k in capital and bought 5 or 6 properties  using 5 year balloons. I had this really creative banker that shifted all the debt onto 4 of the houses and the last house was used as a line of credit. Over the past couple years I have moved them all to fixed rate conventional loans. Why don't people do that ? 

Originally posted by @Carrie Carlton :

So it seems lack of capital is the reason. What is used for purchasing property and rehab cost ? That seems like that would require capital, right ? I started out with 20k in capital and bought 5 or 6 properties  using 5 year balloons. I had this really creative banker that shifted all the debt onto 4 of the houses and the last house was used as a line of credit. Over the past couple years I have moved them all to fixed rate conventional loans. Why don't people do that ? 

This is interesting and I've never heard of this before.  Care to share the logistics behind it.  What price point of properties were these etc?

@ Devin Deich 5 year balloons (at least in  my case) are much lower in closing cost and this banker was more than happy to give me as many as I wanted. They did not even show up on my credit which baffled other banks.  They are called 5 year balloons because in 5 years the balance is due or you have to refinance.  So in my case I would buy property, spend a little to fix up, get rented and repeat. After doing this a few times, I went back to the bank and she looked over my portfolio and I had a few places reappraised. Since they had increased in value, I could obtain loans for more. My husband called this my shell game, because I basically shifted the debt for one house on to the others. But it was genius, because then I had one house "paid off". I was then able to get a line of credit against the paid off house. It increased my competitiveness in a very hot market. I was able to offer cash offers against my line of credit and also use for repairs. Now I have enough funds that I don't really need the line of credit, but I keep it open just in case. Over the last two years I have either paid off the mortgage or obtained a 30 year fixed rate mortgage. My plan is to never pay them off until the end of 30 years .  

Wow never heard of the 5yr balloon deal.

Hi Carrie, that sure sounds like a great idea. I have $20k, but not sure how to do that correctly.

What type of areas did you buy your properties and what price range?

Thank you,

George in Murfreesboro, TN

Originally posted by @George McNeil :

Hi Carrie, that sure sounds like a great idea. I have $20k, but not sure how to do that correctly.

What type of areas did you buy your properties and what price range?

Thank you,

George in Murfreesboro, TN

 I bought in East Nashville, Madison, North Nashville, and Old Hickory. I did this though in 2012 to 2015. I am struggling to find cash flowing deals these days. I actually grew up in Murfreesboro. My father has a lot of rental properties there. He occasionally finds a deal. 

Price range, let's see, 65,400 to 145,000. As far as purchase price on 5 year balloon. Direct message me if you want. 

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