All Forum Posts by: Edwin Brown

You are in a great market to make that happen. I'll be in memphis later this week meeting with some other investors. Great opportunities there for cash flow

This is not a solicitation.

I would like some feedback from new and potential investors looking to get into this business.

Here is a scenario:
You go to your local REIA and meet an experienced investor in your area who is full time in the business and had done over 100 deals. He mentions that he is looking for an apprentice. He wants someone to work with him in his business and in return he will teach them the investing business.
He tells you upfront, he is going to have this apprentice do a lot of grunt work like collecting rents, taking pictures of properties, and running errands.
He also tells you he will introduce you to contractors, closing attorneys and realtors and give you more and more responsibility as you grow in your abilities. You will be with him regularly and get to watch him interact with customers and vendors as he runs his business.

Is that something that you would be interested in as a new investor or does it sound like the exerience investor is just trying to take advantage of you?

I would say no and here's why. If you don't particularly like your tenants you might forget and get pulled into another years lease with them. If you do like them and they like you, they will stay on month to month or come back to you to negotiate a new lease. I just don't see the benefit in the autorenewal. Also, if you tried to use it in court it might not go very far with the judge, so I don't think you will be able to "trap" a tenant into staying.

Here's a suggestion for financing your first deal. Go to your local bank and tell them what you are trying to do. Tell them you want to do a Home Equity Line of Credit (HELOC) on the property once you have renovated it. The HELOC will let you borrow on a line of credit against the house for future deals, and you won't have to worry about moving title around.

Ah, the Golden Rule... He who has the gold makes the rules.

Doesn't matter if they want to see what you look like dressed in all velvet, if you want their money you have to do what they say. That's what the banks are telling us. Sometimes we do find overzealous closing attorneys. Call the bank and see if they need the info. If they don't know what you are talking about find out why the closing attorney wants them.

Depends on who your end buyer is. If you are selling to the full time investor, they usually go for the lower total price. My clients that are just looking to build a portfolio usually prefer properties that are already up and running.

There will be deals you will be able to fund with a conventional mortgage and there will be deal you won't be able to get because you will not be able to move fast enough. Make sure you tell your wholesalers how your financing is set up so that they know what kind of deals to offer you. Good luck

Over 250 is really slow here.