All Forum Posts by: Devan Mcclish

@Jared DeValk

I know all of that. I have several specific searches set up. I was just seeing if anyone is having luck with using the MLS

Welcome to the nashville market!

I am very curious to see if anyone is finding any deals through the MLS in Nashville, TN. I do not really use the MLS anymore because most of what I am seeing is either overpriced or at market value including foreclosures. I do direct mail simply because I never see anything on the MLS, and as an agent I actively look at it every day. If anyone is having success, I would like to hear your thoughts.

@Calvin Jones Go find hard money or private money to fund the deal. If they truly are a deal, you can easily find someone to fund it

You should become a marketing master. Read the millionaire real estate investor and agent. Gary Keller talks a lot about lead generation. You're not in the business of real estate investing, you're in the business of lead generation. What you should do with that 5k is setup a 6 month marketing campaign to generate leads in your area (direct mail is what I would advise). Find out who you want to mail to (absentee, divorce, eviction, etc.). I would stay away from pre-foreclosure unless they have equity. Find people with equity, start talking to sellers, and start making offers every day on houses. Find the deal and the money will come. So focus on getting the deal. Once you get the deal either wholesale it or find another investor to partner with and split the profit. You also need to become an expert on estimating rehab costs whether it's a rental or flip. Read J Scott's book on estimating rehab costs. That is where most new investors go wrong is that they cannot determine ARV and rehab costs. In the meantime, read everything you can, listen to the podcasts and gain as much knowledge as you can

Huy Ly I don't like this deal. Even if you do get the deal at 2k rent per month that 1.1% rent of the purchase price. That's assuming no repairs need to be done to the property whatsoever. You need to get closer to 2% especially if you're carrying a mortgage 144k financed at 4% for 30 years = $687.48 a month. Capital expenses should be around 40-50% a year of gross rents in the long run. 2k a month = 24k x .5 = 12k less mortgage is $8,249.76 = $3,750.24 = $312 a month in cash flow assuming no vacancy. This is also if you get the 2k a month in rent and no repairs need to be done which is highly unlikely

Deduct 7k from the sale price and the back end buyer can pay them and still have a good deal

Kim Annello neither one of these is a deal. Both are speculative investments. Starting with the single family home, you are getting less than 1% rent, you're getting .8% rent. Idk how old the place is, but generally in the long run (what buy and hold is), your capital expenses will be 50% of your gross rent, you might be at 40% because you're managing the property. So with that being said, $100 a month = $1,200 a year in expenses. Your gross rent is $17,400. Meaning expenses will be around $6,960 a year maybe more. So that's close to 6k not accounted for. Same thing with the duplex less than 1% rent. Duplexes will have a high capital expense rate so 50% is pretty reasonable. And again you're running into an issue because both properties will negatively cash flow with a mortgage carried on it. EX: 17,400 x .5 = $8,700. 132k (80% Ltv assuming 20% down) financed at 4% over 30 years = $630.19 a month = $7,562.28. That's $1,137.72 a year cash flow or 94.81 a month. Idk about you but that's not very little breathing room if you have a roof to be replaced or HVAC etc. Hope this helps

Bok O. Warren Buffett famously has stated don't look at the market because you can't predict it. No one can, not even himself. what he does is look for "undervalued" deals. Take the same approach in multifamily and real estate investing. Before the crash in 1970s he wrote a letter to his shareholders explaining why they were selling off their investments because everything had inflated too much and there were no undervalued stocks. Switch to real estate, how easy is it to find a multifamily building at a 10 cap? Or even an 8? I can find any deal I want for a 5 or 6 cap but that's not a very good investment for most people. I had a guy the other day wanting to sell his apartment complex at a 4 cap. You just have to have strict criteria, be a disciplined investor and stick to it, don't follow the herd just because you want a deal

Title search through an attorney