All Forum Posts by: Alex Craig

@Lucy Hood interested to hear your thoughts on the Sutherland Drive area.

@Bob S. what class neighborhood would you say a 1.5/2% rent ratio is to be found? In my experience, class C and D are able to find these kind of margins, but in class B, .90 to .93 ratio and class A would be below .90.

While positive feedback with a pat on the back is always appreciated, I have always strongly felt you get better with the negative feedback. With property management and 250+ owners, there is going to be opportunity for both. I have no problem with negative feedback. Thank you Hadar for the kind words and I will be talking to Aaron to get his feedback of where we can improve on the management side in Little Rock. One of the saying's in our house with my 3 daughters is "don't be a 7."  A 7 is someone who does a good job, does what is asked, but that is it. Rarely does an 7 want to improve or go above and beyond.  A 7 is happy with being a 7 and most 7's get through life just fine. I worked in the corporate  world for 10 years surrounded by mostly 7's and quite a few 3's. We do not want to be a 7. A 10 is always giving their best, trying to improve even if their results are excellent and never happy with the status quo.  We want to be a 10.

@Kyle Cox Referring to what would be the purchase price and rent, i.e., cap rate.

@David Robinson I would invest closer to home as Hunstville I hear is a good market. What about Brimingham?  I am hearing chatter after the Hurricanes, some investors are going to give their gulf properties back to the bank. Also would seems like some good deals in Tuscaloosa as vacancy could be high during the pandemic and some owners wanting to sell.

@Ryan Reddy While I do not think you need to swing the hammer, I do think it is important to have a working knowledge of why or how someone is doing something. What they do could help you learn something that would help you evaluate and estimate future deals. Heck, you can learn a lot of the construction trade on You Tube.  But you are right, swinging the hammer will save you a few bucks, but finding the deals and knowing how to estimate, along with what to do to the house will make you a lot of money.

@Kyle Cox  I plan to get up to Nashville soon, while I am interested in the locally market and what opportunities are left, the nature of my visit would be to open up a second Gus's fried Chicken franchise. Figure if I own a restaurant, mind as well own some Real Estate too. Where are you looking and what type of #'s are you aiming for.

Curios, to know what type of deal you are looking for. What is all in cost you are aiming for? ARV? Rent and lease terms. Would think AirBnB would be huge. I have never been to MT, but certainly on the radar soon and soon could be when my kids get quarantined which seems inevitable now.

@Sal Romano  can you not take your expenses and divide by 2? That is the way I did it in the 90's when I rented. Or you can do like the guys who serviced Clark Griswolds car when he jumped it in the middle of the desert. Basically when rent is due, just roll with strategy that you are the mechanic and your roommate is Clark.https://www.youtube.com/watch?...

@Ryan Reddy It depends on your experience level.  My first couple of flips I did mostly myself and found out that I was not handy and about electrocuted myself. After that, I hired a contractor and that is when I decided to never hire a contractor for my projects again. Nothing against contractors, but in my market, the good ones are doing better projects and the ones who are terrible at job management were left over to work in the investor space. While it took me years to get it down, I finally did and we have been acting as our own contractor ever since. If you are not doing moving walls, pouring concrete, redoing plumbing and electrical systems, rather then a fresh coat of paint, new flooring, new fixtures, landscpaing, roofing and other cosmetic details, either try it yourself or find a mentor who would not mind helping you, even if they charged a fee to train you during the process. I imagine Denver's economy is booming too, thus I imagine the good contractors are doing owner occupant, high end jobs. Whatever you do, never let the contractor get ahead of you with their draws, in other words, if they have done $20,000 worth of work, give him $15,000, not $25,000.  A contractor should also have some skin in the game. BTW, I am saying this as someone who held a contractors license.