All Forum Posts by: Canesha Edwards

@Eric Hooper

Hey Eric-

I’ll give you the advice that I wish someone would have given me.

#1- Get educated. Real estate like anything else requires education. Learn about the different ways to invest in real estate. Wholesaling, BRRR, flips, passive investing, etc. Then determine which type of investor you would like to be.

#2- Pick one target market starting out. Determine an area and learn everything about the area. Which zips are the affluent area? Where are the best school systems located. Where is development happening or plan in the future. Learn the area like the back of your hand. This will help when considering if a property is a deal.

#3- Determine your buying criteria and stick to it. Say you're looking to BRRR and you want houses that are 3/2 and that you can purchase at 75% discount of ARV. Stick to those parameters.

#4- Analyze deals consistently.

We’re in an up market currently and people appear to be crushing it. Every one looks like a master investor during good times. But the real test comes when things aren’t so good. Thousands of investors were wiped out during the ‘07-‘08 crash. The ones the made out fine without losing their shirts were the ones who didn’t get caught up in the hype and still bought value.

The market can’t go up forever, it moves in cycles. Always manage your downside risk and you’ll do fine in an up or down market.

Hope this helps.

Best,

Canesha

@Mak K.

So Mak, I’m guessing you’re passing on this one?

@Mak K.

Hey Mak-

Good thought, but there’s still a lot of ground work that needs to be done.

Just because the property is zoned residential doesn’t always mean a duplex or other types can be built. call the city planning & zoning office to see what your options are. Make sure to ask them about property set backs, if there are any special requirements because the property is in a flood zone, application process, etc. The number one question to ask is if the lot is buildable, especially with the creek.

Being that it is in a flood zone, insurance is going to be high. This is a cost you have to consider whether you plan to rent the property or sell it.

I would call around to a few excavation companies to get a general idea of price of adding dirt and increasing elevation.

You didn't mention anything any ARV once the property is built. You need to know you're end numbers to figure out if this is a deal or not.

Best,

Canesha

@Forrest Kalk

Hey Forrest-

Like everyone says there’s no crystal ball.

If I had to make a prediction- I would say the market will run as long as the government props it up.

Always manage your downside risk.

For the sellers- If your property has appreciated by a large amount, and you’re looking to sell, then sell. Take profit. Don’t hold out waiting for more because no one knows if the market will keep appreciating. All these studies, reports, surveys, about to the market appreciating are just that. They’re a best guess, not fact.

For the buyers- You have to look for value in times like these. The average home price is the highest it has ever been. Real estate has always been about buying low, and selling high. You make you’re money when you buy. Determine your exit strategy and work backwards from there.

Just my 2 cents.

Best,

Canesha

@Jill H.

I guess my first question is...will the kids sell you the property? Of course it should be heavily discounted with all the problems attached to it, but I would try this route first.

If this isn’t an option, eventually the city is going to repossess the property for the unpaid taxes. From there it will be auctioned, GA is a redeemable tax deed state, which means when you buy the property at auction you’ve only purchased the right to collect the unpaid taxes and fees +20% penalty. The owner has a year from the date of the auction to pay up. If they do not, then you would take possession of the property by filing foreclosure.

Depending on how good of a deal this is, it may not even make it to auction. There are 5 big companies who purchase bulk tax properties. Because of the large amount of money they spend, they get to cherry pick through the properties and the ones that don’t get bought get auctioned to the public. The city will post properties on the docket for the upcoming auction on their website.

So, if you have any type of contact with the current owners, I say buy it from them directly, then take care of the unpaid bills.

Hope this helps.

Best,

Canesha

@Matt Charette

I would definitely find an agent or contractor to tour the property and take pictures. You don’t have to sign a buyer’s agent agreement if you don’t want to. I would offer to pay a small fee and leave it at that. But you definitely want to have some idea of what the property looks like and what work needs to be done.

Always confirm the rent. I would ask for bank statements to verify that what rent amount is being paid and if it’s been paid consistently.

Also, a 12% Cap is pretty high which means there’s risk involved. I’d definitely ask why they are selling.

Never buy sight unseen. It’s a recipe for disaster.

My 2 cents.

Best,

Canesha

@Jake Blumstein

Hey Jake. 30318 is a large zip code I would make sure the lots are in fact in the higher priced area. There were roughly 10 new construction homes in this zip code that sold from $245k on the low end to $1.3M on the high end with an average of $760k.

Also, are the lots currently owned by a builder/developer? If so, you might want to do a little research into why they are selling. There could be something wrong with the lots. I.E extra work needed to build, utilities might not be at the property, etc.

Just my 2 cents.

Canesha

@Joe Manriquez

Hey Joe. You could order the materials and have the contractor pick them up from the store. This seems like the best way to keep you from going to the store.

Also, If you can’t get to the project often, I would find someone in that city who could drop by the property to check on the progression of the renovation.

Canesha

@Damien Lee

Damien, I use the us census website for most of my information. I suggest using the quick facts and the American Community Survey. There are also other specific factors you can search. Spend time getting familiar with the website.

https://www.census.gov/topics/housing.html

Best,

Canesha

@Mason Bridges

If he has some reservations about selling, you have to nurture the relation. Try connecting with him on other things besides real estate. Try sports, stocks,kids, anything other than real estate. This way you will have other reasons to connect with him but your staying top of mind. This makes the connection personal.

Super Bowl is coming up. Which team is he rooting for?

Just my 2 Cents.

Best,

Canesha