All Forum Posts by: Alex Craig

@Grant T. Best deals are always direct to seller. Identify your market and then go on Zillow and see if you can find any buildings that seem to have high vacancy paired with crummy online marketing. Could be a sign of a tired landlord. Search for the buyer and contact them. Also, if his loan is resetting, maybe even more motivation as high vacancy and high interest rates is not a good combination.

@Rhianna Cultrona yes. I outsourced for years until I was big enough to hire a Controller.

We had a 46 unit and under contract, but after inspection felt I was 12 k per unit high. We did find 3 houses that we are buying for 25k. Guessing we will be in these homes after renovation around 55k per unit, rent for 750 in year 1 and 775 in year 2 figured it's hard to go wrong with those numbers

I am a turnkey guy offering properties renovated well on the front end to position you for long-term success. 2 year leases with an increase in year 2. 

IMO, you don't put your financial plans on hold waiting for rates. I have been putting more $ down to make the #'s work.  If you go after linear markets, there will be comfort knowing that values will maintain through this cool off period. Those markets will see more rental demand as rising rates will create more renters. Take for instance one of the markets I own and operate within.  Good homes in high demand rental areas sell right now completely fixed up for $125,000. Those homes will rent for $950 - $995.  $125,000 is already cheap and being a linear market, I doubt the price declines that much--really, can it get much cheaper than $125,000? Give it 5 years with 3% market rental increases and that rent will be $1,100. Those #'s still work at 6% interest rate and if rates take a dive back down, you can always refi.

Happy wife = happy life!

@Kay Kim I have worked with Marco a few times and can say he is legit and has no intention of doing anything unethical. I am guessing his hands are tied as Norada is simply the marketing company and I am guessing no operational control of Wagner. If there are delays, it would be on Wangers part, not Norada. That said, he should give you updates whether they are not what you expect. Like Jay said, often, new construction does not go as planned. My commercial building in Knoxville is going to come in 3 months late and to me, I feel that is early.

@Conte Cuttino Andrew is going to be biased (well, she should be, lol), he is employed by me as the owner of CB Properties! Feel free to reach out with any questions; I am an open book.

It is very common and there are numerous TK companies on BP that offer this service. I like the TK company offering this service as it ties back the property to the seller for a long period of time, thus creating accountability. Your TK provider should want to manage the home to ensure your success and create a long term relationship.  Part of the reward of being a TK provider is looking back at the success of it’s clients and helping those who have some bumps in the road. Not providing a PM solution basically make them no different then any other home flipper. As to which TK provider and market to pick, simply interview as many as you can and decide which ones operating process aligns  best with your goals and personality.

@Jonathan Beaumont these guys and a lot of other TK providers do a bang out job on the renovation which can make it hard to offer at the appraisers opinion of value without cutting corners which compromises the TK providers business model. Often time I will see one of our homes that is fully renovated with new roof and HVAC is being compared to homes in the buyers appraisal that do not have the level of renovation as ours. The challenge here is the renovation upgrades performed to improve the property and ultimately position it to perform as buyers desire are not always reflected in the appraisal. I would say your other option other to TK is to find a home on the MLS being sold with a renter already in place that is priced to its current condition. You may find a home in this same area priced 20k cheaper but with older capex items, carpet and other deferred maintenance items that may need to be replaced sooner then later. Typically, the TK model if executed at a high level will reduce your risk by avoiding those big ticket expenses in the first few years, the downside is entry price to position you for that experience. It comes down to how passive you want the experience to be, how long you plan to hold and level or risk you want.

Is the difference in ROI that big with $10,000 extra down?