All Forum Posts by: Colin G Murphy

Hi @Jon S.

There are definitely still deals to be found in Tampa. Don´t let the thoughts of one wholesaler make you change your strategy entirely. If you are comfortable having your properties close together then I suggest casting your net wider in terms of finding sellers rather than locations. 

Wholesalers are great, but there are also FBSOs, private and public auctions, regular MLS deals and direct mail campaigns, all of which have potential to help you build your portfolio. I use a mixture of all of the above and will continue to do so. BP has plenty of information on these sourcing methods.

Welcome to the site @Tom B.

Been active in Pinellas and Pasco flips for a while. Feel free to stay in touch.

Thanks @Mark J.

Yes, the Mark Twain and Live Oak properties were purchased at Pasco public auctions.

Hi @Mark J.

Thanks for the reply. Since I wrote that post in April, I also stopped doing title checks before bidding. Now I look at public records myself and get title searches done after a bid is accepted. As you say, it saves a lot of unnecessary admin and so far I haven´t lost any 5% deposits. 

Hi @Mark J.

Seems like you´ve got a good forum topic going here! 

Below you´ll find a blog I wrote on BP earlier this year. It discusses my experiences in the Pinellas County auctions. 

https://www.biggerpockets.com/blogs/1458/43966-my-experiences-buying-florida-property-via-online-foreclosure-auctions

Hi @Rick C.

I purchase regularly in the Tampa area and it looks like you´ve got some great cashflow with those three units. 

The interest rate and terms look pretty standard for a commercial loan specialist. To avoid doing this all over again in 5 years time a longer loan term would be nice, so you might want to shop around to see if you can get 7, 10, 12 or 15 years.

The problem with portfolio loans is that many have those short terms. You can get 30 fixed with individual loans, but you might struggle to attract interest if the appraisals are coming in at $50-60k per property when a lot of banks and specialist lenders want $80k+ appraisals before lending.

In terms of other questions to ask, the big one that comes to mind are their origination fees. They can vary from 1% - 5%. Many lenders also cash in by charging "LLC review" fees, which I always find very irritating. Then you have appraisal fees, underwriting fees etc. It can all add up very quickly, especially with a sub $150k loan. Make sure you crunch all the numbers.

Finally, the holy grail is private financing. Have you considered networking in your area to see if there are any friends, family or professionals who might like a 6-7% return over 15 years secured against those properties? Check out @Brandon Turners No Money Book for more information. It´s a nice holiday read :-)

Best of luck! 

Hi @Samuel Santa

Thanks for reaching out and welcome to BP. I just replied to your PM with my thoughts on the Spanish market (where I live) versus the Florida market (where I invest). Give me a shout if you are ever in Madrid buddy.

Your book is next on my list @Brandon Turner! 

Hi @Dallas Drake

A turnkey provider could obviously help you achieve your goals but good ones are hard to find. You will need to spend some of your valuable personal time on the ground researching these areas and the people who are offering to help you there. Properties and partners are equally important. A great property manager can turn a regular property into a great investment and a bad property manager can turn a great deal into a bad one.

There are opportunities everywhere - Tampa, Jacksonville, Texas - real estate investors are making good money in all of them.  Just latch onto one, and then spend just as much time, if not more, meeting as many potential partners as you can and doing as much background checks on them as you can. 

Congratulations @Elaine Kelley

Getting the first property is a major step. Keep going! 

Hi @Jeffrey Kops

It´s all negotiable and depends on how much meat is on the bone on each particular deal. Sometimes we put in a lot of sweat for a modest profit and other times we achieve a stronger profit margin with little or no effort. 

For example, if an investor wants a three bed single family with a 7% cap rate, then he/she shouldn´t care what your cut is as long as they are getting a property at a reasonable purchase price. 

Needless to say, transparency is very important, especially for licensed realtors.