All Forum Posts by: Canesha Edwards

@Andrew Ramos

Hey Andrew-

Have you tried looking at county property records? Tax records?

Also, check Zillow for rentals. A lot of small landlords lost their own properties. Call and see if they are willing to sell.

Some people buy list of properties from data companies.

Hope this helps.

Canesha

@David Bean

Hey David-

Congrats on getting started at such a young age. If I could go back to 18, I would find a small multi family to house hack.

You can purchase 2-4 units with an FHA loan putting down 3-5% and live for free while collecting rent from your tenants. If you buy right- you could pocket monthly income. However, even if the property only makes enough income to cover your mortgage that's still a win, who doesn't want to live for free? You only have to stay in the property for a year, then you can move out and rent all units or continue to live for free.

Best,

Canesha

@Scotty Tullis

Run your numbers the same. Start with the ARV and work your way backwards. Example: If my ARV is $200k, I want to be all in ( acquisition & construction ) at around $180k ( I like all of my deals to have built in equity).

Timing also plays a factor. This is also why I build equity into my deals. If the market takes a down turn, I’m not stressed because I planned for this in my budgeting. If the market goes up, icing on the cake.

Canesha

@Scotty Tullis

The process is the same. Just make sure you have the funds to cover the acquisition and construction, and contingency. Something always goes astray with construction , so just budget for it. Now once the property is built and rented, mortgage it and move on to the next.

Now, financing the entire build with your own funds ties up a lot of your capital. Why not purchase the land out right and finance the construction? You could scale faster this way. Most lenders will count the land as equity so, the amount on money you need to bring to the table is reduced.

Happy Investing.

Best,

Canesha

@Ricky Dorn

Hey Ricky.

Welcome to BP.

First, build you team of contractors. If your thinking about using hard money, you need to be able to move quickly on renovating properties to avoid additional financial and mental stress of a hard money loan.

I find my contractors a few different ways.

1. Go to Home Depot early in the morning. Like as soon as they open and just hang out. You want to network with the contractors that are there early.

2. Ride around looking for rehabs. Anytime I see someone working on a house I stop, introduce myself as an investor, and start up a conversation. Sometimes you’ll get lucky and they will give you a tour of the property- this lets you see their work product first hand. Always pay attention to the job site. Is there trash everywhere? Or does it look fairly clean?

Now, in terms of the actual deal itself. Find out why the owner is selling. Maybe the owner doesn't want the headache of rehabbing the property, but they maybe be willing to partner. See if they would do a JV deal with you. You and the owner enter into an agreement to where if you front the rehab cost- the both of you can split the profit once the property is sold.

If this isn’t an option- see if you can find a partner to help you tackle the deal if you don’t have the funds to do the deal yourself. If it’s a good deal, you will be able to find a partner.

Hope this helps. Happy Investing.

Canesha

@Jordan Guerra.

Welcome Jordan. I’m in the Georgia market. Let’s connect.

Best,

Canesha

@David Evans

Hey David-

Welcome.

First, I think you should start with only one state. I would choose whichever one is closet to you or easiest for you to travel to.

Second- Any major city is going to have a lot of competition. It will be easier to buy in a secondary or Tertiary market right now. Say you picked- NC as your state of choice. Start checking out the areas around the major cities ( what areas are right outside of Charlotte for example).

Third- Determine if this would be a good market. You want to look at a few different statistics.

1. Population: is it growing or declining?

2. Home Value: growing or decreasing?

3. Job Market: Are jobs being created? Are new companies moving here and are established companies expanding their operations?

4. Income: What’s the median household income?

5. What’s avg rent for the area? Is it increasing or decreasing?

If all of these factors are positive….. start looking into the area further. Analyze deals. See if the numbers actually work on a real deal.

It’s going to take some time and effort but don’t over think it.

Hope this helps. Happy Investing,

Best,

Canesha

@Logan Olsen

Welcome Logan.

A few things about appreciation. It’s not guaranteed. Yes, some areas are considered “good” areas that always increase in value but you don’t know what that increase will be. To me investing for appreciation is like gambling.

I think a lot of new investors see how prices have increased over the last 10 years or so and think it will continue, but that is not always the case. Home prices are at historical highs, it will not go up forever and I think we’re nearing the top of this cycle.

You also cannot not pay your mortgage with appreciation. Lenders are going to underwrite the deal based on the amount of cash flow that’s produced, not how much the property is expected to appreciate.

So, invest for cash flow first, and treat appreciation as icing on the cake.

Hope this helps.

Just my 2 cents.

Happy Investing!

Canesha

@Shelita Compton

I say hold. Why? Because you’re unlikely to find anything else worth buying that will cash flow. Secondly, rents in the metro Atlanta area are projected to continue growing. It doesn’t make sense to sell.

Best,

Canesha

@Jill Lutz

Making decisions with high emotions often clouds our judgement. With a less emotional mind, you found a solution. That’s what it’s all about! I wish you much success!! I live in College Park. I would love to connect one day.

Happy Investing!

Canesha