All Forum Posts by: Canesha Edwards

@Pawan Kumar

Hello Pawan-

I wouldn’t consider a 5 % increase as an abuse. Do keep in mind that the price of building materials, especially lumber, is increasing every week. There has been roughly a 300% increase in lumber in the past 12 months. These escalation clauses are becoming common place for builders to try and offset increasing cost.

I hope this helps.

Best,

Canesha

@Terry Pollman

Hello Terry-

I would need more details about the type of deal you’re trying to put together. Is it a single family or multi family deal? Are you bring anything to the table? Are you looking for financing to cover the acquisition and rehab?

Canesha

@Carolina Servigna

Hello Carolina-

Here are a few things you should know.

What areas are established, what’s areas are transitioning, what areas are not a good by.

What’s the Average selling price of properties in your area?

What’s market rent based on different bedroom sizes.

Does the government have any future development for the area?

If you’re looking to flip, what level of finishes are other flippers using? Are the properties selling?

Hope this helps.

Canesha

@Andrew Chong

I agree with Zander. Some people say the BRRR strategy works better when you acquire the property with all cash but it still works with financing as well.

If you use a loan to purchase and rehab, you can still refinance. As long as the numbers work, you can find a lender to refi.

Example:

Purchase price: 100k

Rehab Cost: 50k

Lender will lend 100% of rehab cost and up to 70% acquisition price. ( check with lenders in your area for exact terms)

Cash needed to close the deal: $30k + fess

ARV after rehab: $225k

You then refinance into a new loan for 80-85% of the ARV: For our example that would be roughly $191k.

You take the loan proceeds and pay off the original loan and the remaining funds is what you profit.

Take that profit and repeat.

Canesha

@Andrew Chong

Hey Andrew,

If I were you, I would use the money as a down payment. You need to keep some liquid cash, so maybe only use $85k of the money. Have you considered starting with less units?

Canesha

@Rayhan Husain

Hello Rayhan-

Welcome to BiggerPockets. The Atlanta market is crazy right now. Home prices are at historical highs. My advice to you would be to look for value. Meaning, find something that needs a little work. I wouldn’t recommend buying anything that’s turn key. Why? Because you’re going to pay a premium price. Since the housing supply is so low, all properties are receiving multiple offers.

Sit down and determine what you’re comfortable spending. Also, don’t be in a rush to buy. A lot of newbies feel like they have to purchase something right away. This isn’t the case. Real estate moves in cycles and right now we’re in a very confusing up cycle. But the market can’t go up forever. I’m not telling you to wait, I’m just recommending you to be patient. Feel free to shoot me a PM to further discuss in detail. I hope this helps.

Best,

Canesha

@Jake Arnold

Hey Jake,

If the property still cash flow since you account for the zoning and sprinkler system, why are you hesitant?

I would say to keep in mind that it’s it a guarantee that the rezoning or variance will be approved. So, do the numbers work as a 4-unit?

Canesha

@Jack Stauffer

Network. Join a local REIA and start networking.

Canesha

@Faustin Hoover

Hey Faustin-

Out of state investing is risky. I have an investor friend who spent upwards of $20k on an out of state rehab to only find out that the job was poorly done a week before she was supposed to list the property. Now, she’s had to pay another contractor to fix the job she already paid for.

If you’re going to invest out of state, at least take the time to visit the area and interview the people you will have working for you.

Contractors are important. Always ask for references. Make sure they are licensed and insured. You want to see pictures of completed work. When paying, I always buy materials and only pay once the job is completed correctly. FaceTime is a great way to keep the line of communication open and to see work as it’s being completed. If this isn’t an option, ask for before and after pictures. For larger jobs, you can pay in phases.

Same with property managers. This person will be your eyes since you’re out of state, so take the time to really find a good property manager. Ask for references as well.

As an out of state investor, take the time to build a solid team. This may mean you visiting the location several times, but it is well worth it.

Best,

Canesha

@Patrick J.

Both. I use a generic letter.

Example: Hello ( insert owner’s name)

My name is Canesha Edwards and I’m an a local real estate here In Atlanta Georgia. Should you ever consider selling your property located at ( insert property address) I would love to assist you any way I can. Feel free to reach out any time.

If the property is one that I know I have a buyer for, I will mention that I have buyers willing to buy the property. If I’m just looking for agent leads, I use the example above.

In the letter I include a pen with my contact information. The letter will get thrown away but people will keep the pen.

I also call every owner that I send a letter to. The key is to connect with the seller In different ways.

Conversation rates really depends on the area. Areas that aren’t really on the radar, the seller’s respond at a higher rate.

Hope this helps.

Best,

Canesha