All Forum Posts by: Carl Dean

Antione Warren congrats on your investments! I actually have a lot of rental homes in the Lancaster area. I have had much success there with the right rehabs and management. Let me know if I can be of any assistance. I have great contacts in the market from all angles. (DFW, San Antonio, Houston)

Stephen Goff Congrats on your success. Real Estate investing is my passion and has been my entire adult life. We cannot self promote on here but I would be glad to help and have deep roots in Texas to assist you and your wife in your investment objectives in any way I can. Let me know if I can be of any help.

Lamont Mitchell my rule #1 (unless a personal house that your wife wants Aka happy wife happy life) I never submit at asking. If I can't get a deal I don't want it. Many guys don't want to sum it them because you can build a reputation of being the low ball guy. Either way be aggressive and keep in mind... Retail real estate agents suck for guys looking to invest. They just don't get it. Find a realtor or better yet a broker that specializes in investment properties and is familiar with battling for deals. I know some good ones depending on where you are at. Let me know if I can help.

Jordan Hanksion where are you currently? Do you have an LLC and bank account tied to it? Are you planning on financing? Do you have the lender in place? Really I would advise to get your ducks in order so when you are ready you can pull the trigger quickly. Vet out different sourcing companies (make sure they are actual providers and not just brokers so you don't overpay). Set up your LLC, shop out finance options (I would be glad to give you references for some good and proven lenders), decide on what market you want to invest in and what your target price is Ext. There are a lot prints that can keep you busy until you are ready to purchase. Do your homework on the source and the property manager and don't buy from any supplier that does not offer a warranty on their assets and work. Let me know if I can be of further help.

@John Ma Assuming you are talking about the Infusionsoft software? I wouldn't say there are things I don't like about it really. Mail Chimp is similar and free but not as good in my opinion and offers less. 

I only use the sales and marketing automation portions for the most part. So all my leads that come in from our site or an affiliate site that opt in through a form fill-able add box (created in the Infusionsoft and prints out the java or HTML for any website) go into the system and are tagged based on how they opted in. I then have 12 emails put together with good market content and videos that will be sent out to them automatically over the period of 3 months. I can also go in to the system and create an email to send to the whole list or specific groups based on the tag. The one I purchased I got for $1,000 up front and $300 a month. It is great for just staying relevant to clients over a period of time and we get good feedback and conversion rates when we send out the "deal of the month" email to our groups. 

I cant tell you much about the layout and in depth stuff because my marketing director runs the system here at my office and I just know enough to oversee it. I did start it myself and do blasts myself at first, and after the basic training courses it was a very user friendly service. 

If you are referring to the Freedomsoft I have truly only used it for 1 thing ever. Searching for cash buyers when I was starting out and looking for funds to source properties to. It will give you the purchasing name or LLC, addresses they purchased int he last 6 months, total amount of homes, and price points for each. Basically outlines the buying structure for many funds. The tricky part is they always buy in different LLC's with secret names. You have to search to find the singer for the LLC, then look that person up and see what business he or she is affiliated with and then try and find the acquisitions person for the company on LinkedIn. This has worked for me and made me more than I care to boast about. The negative to this one from my experience is just that it does not update as much as it should but can still point you in the right direction.

@Benjamin Blackburn

Hope this helps guys. 

@Roland Thomas Well thanks for the warm welcome! I would love to do some deals together. Making friends is easier than making money and its easier to make money with your friends! 

Lets definitely connect, I would love to see what kind off opportunities can come from it. 

Best,

Carl

@Benjamin Blackburn Short answer no. If anything maybe a system like Infusionsoft to store all your clients and hit them with email blasts but initially this is not at all needed. Use a google doc if you have to. Rule #1 capital preservation is key. Save your money and dont get something until you need it. 

Infusionsoft is a great automated marketing system that I use and Mail Chimp is similar and even free I think.

Also to find cash buyers and do mailers I highly recommend Freedomsoft. I cant stand the pitch guy for the software but it is worth its weight in gold for finding cash buyers and funds. 

@Steven Anderson Welcome, I am also very new to BP. I am doing some large residential land developments in the Woodlands currently. I love the Houston market and own many rentals in Humble, Katy, and other good pockets based on my criteria. I would love to hope on a call anytime to just go over any synergies we may have in the market. 

Feel free to reach out. 

Best. 

@Crystal H. there really is no set in stone matrix. Considering each housing market is different in values. For instance a C class asset in CA could cost up to 400k and C assets in Texas will be in the 50k range. Each market is different, however, within each market it is easier to gauge these separation in classes. I am actually getting ready to record an educational piece on this and will have it on YouTube soon but until then here are the factors that are considered. 

• 1.Age of the property
• 2.Demographic location and crime statistics
• 3.Average household income
• 4.Geographic and economic growth projections
• 5.Annual appreciation forecast
• 6.Monthly Rental income
• 7.Amenities

And here is a break down based on the Texas market. 

A-Class – These properties are the highest quality buildings in their market. They are generally newer builds (usually built within the last 20 years), they come with higher end finishes that attract higher income earning tenants and low vacancy rates. The areas have little to no crime and offer better school districts and higher appreciation to secure a more solid exit strategy. A-class homes are typically professionally managed and usually demand the highest rent with little or no deferred maintenance. A-class investments generally offer a 6-8% return and are typically $120,000 or more. If you are an investor looking for a truly passive investment, I recommend going the A-class route.

B-Class – These properties are one step down from the A-class. These properties are generally older than A-class properties and therefor more prone to standard maintenance issues. B-class investments also tend to have a more “blue collar” median income tenant. The B-class investment will have your basic finishes and a low to medium crime rate. B-class investments tend to appreciate very little and generally offer an 8-11% NET yield. These B class investments range in price from $65,000-$100,000. Due to the higher risk involved with these type of properties you are usually able to acquire B-class investments in at a lower price point than your typical A class investment.

C-class- These properties are typically much older than 20 years and are located in less than desirable areas. These properties are generally in need of renovation or have been renovated very inexpensively. As a result C-class investments tend to have the lowest rental rates in the market. C-class properties have the highest rate of vacancy, late & missed rental payments and deferred maintenance. They are the most difficult properties to maintain steady cash flow and are not a good option for an investor who expects a passive investment. These investments are very “hands on”, and typically in high crime areas. It is also very rare that you would find a professional management company to manage these type of investments successfully. C-class investments generally offer a 12% or higher return but based on the elevated risk involved, these numbers are tough to achieve and even harder to maintain.

Hope this helps.  

@Manolo D. I can understand your points and I certainly agree with you.  I have I very streamline system myself and to be honest I should have clarified my perspective a bit more. We have a formula that tracks the potential rehab cost base on sq. ft.  If the numbers work when broken down in a spreadsheet then we send our guys out to bid (before purchase, assuming they can get in).  At that point I'm purchasing at least 80% of the homes. Wasted time is something nobody likes.  I find that with my consistency, my crews are battling to finish these and get the next rehab.