All Forum Posts by: Charles Montgomery

So the bank loan is due in full after 5 years and has to paid off?

What I dont understand is, you still have a mortgage(s), so how do you make cash flow renting with all these mortgages done from multiple BRRR's? And isnt there a huge risk with having so many mortgages out there?

Thanks. Its going to be a fun weekend for a trial run at driving by all the houses. At that rate, I can pick 30 or so that are listed at a % less than recent sales in the area (or for my specifics the same neighborhood).

So my idea of using Realty Trac to look at REO's and recently solds in a neighborhood is a good way to narrow my search?

So, Im playing around with things on the internet, trying to come up with a strategy to not waste an RE's time by going to 100 different homes that would not work to begin with. So, I am trying to build a strategy that maximizes the chance that one of the homes we look at will be one I would reasonably make an offer on.

Ive been playing with this for a week and here is what I have come up with. Using Realty Trac, I select my farm area and use the map mode. From there, I select Bank owned properties and properties that have sold in the past 3 months.

From there, I can see neighborhood by neighborhood whether the REO prices are favorably les than retail. Im comparing REO and retail prices based on the House Flipping book by J Scott. Further, I can check bedrooms and other things to make sure I am comparing similar properties and price points.

With this, I can select 20 or so REO properties that are favorable for purchase and go visit them with an RE agent and, I know that I have a better chance of being able to have success finding a good REO to start with. This would be my 1st attempt at real estate investing of any kind.

Is this a good strategy?

One week into my BP education. I have a question. I emailed the three REIA's in my area and none of them exist anymore. Two of the three had returned email addresses, all three had dead websites and on the meetup sites, no activity for a couple of years.

With no REIA in my area, what should I do next to try to learn from others in my local area?

So, I am new to the forum... new to REI. I was wondering if starting a Property management company might be a good way to start.

I am excellent with marketing and business in general, just a complete newb in RE. Would this be a good way to learn rentals and buy/hold investing? If so, would you go alone or open a franchise?

With this, I could invest in the business and marketing versus investing in the actual property and possibly build up a quicker cash flow.

Thanks

Thanks for your reply. Since you replied I went and did another 24 hours of research. I dont mind looking at 50 houses... the agent on the other hand, maybe not. I also looked into the BRRR method to maybe do a hybrid of flipping and rentals.

I know so much more than I did 48 hours ago, including tons of acronyms and strategies and phrases I had never heard uttered. But for kicks... what is "farm an area?" I have seen that phrase on several blog posts on BP, but have yet to find an explanation.

After years of hearing people tell me I need to be in RE, I have finally taken the 1st steps. That first step being finding the forum and signing up. I didnt even know there were guru courses (or what they were) till reading this forum for hours last night. That is how new I am.

For me, my strengths are in marketing and copywriting. My weaknesses are selling. Marketing an selling are two different things :)

I have around $X that I would be interested in investing, but I need cash flow and the ability to increase the investment amount to invest in more of whatever it is I decide to invest in.

There seems to be 3 options for me: Buy/Hold, Wholesaling, and flipping

With Buy/hold, it seems like I would need a good number of properties, so I would need to find creative ways to stretch that $X. Then of course, what if a property doesnt rent and I have to carry a mortgage.

With flipping, this seems the easiest in theory. Buy one property, rehab and sell. Finance it to keep from deplete my investment and repeat after I sell each house. Lots of working parts, but if I find the right wholesaler to find me deals, I think this could work. Problem here is, I have  no construction knowledge.

Wholesaling: Im a great marketer so I could probably find the deals like crazy. I could use my investment to market my business. From what I have read, this option isnt investing it is a JOB, but I would call it a business. Problem here is, I suck at selling and networking. Which means i will have a hard time getting people to sell and finding buyers.

As you can see, I have put a lot of time into reading in the past 24 hours. I didnt even know Buy/Hold was a term... or what it meant. The problem is, I am so new I dont even really know the correct questions to ask. But, with my investment and strengths, what areas of RE should I stat to focus my research on?