All Forum Posts by: Darrin Carey

@Connor Nelson Congrats on deciding to prioritize your time. Taking the action to learn real estate will produce results.

Take time to network with local people. There's the Cincinnati REIA meetings, plus we have a Dayton Meetup. The OREIA conference is Nov 5-8, 2015. Meeting other people focused on real estate will really help you accelerate your learning, and prep you to take action.

Feel free to call, or come to any of the networking opportunities and say "Hi" I'm happy to help anyone who wants it, but as a reservist, you can get a little more time. (it was only 8 weeks long when I went through boot camp)

@Ann Howell See you what you started! (You should be proud) I'm assuming this was one of your first TK property investments. I put up with some BS like that on some of my first investments. Now, I see all that as warning signs to RUN AWAY! I still find contractors pulling the same crap. Really, it'd be easier if they just did it right and became overrun with business.

There will always be shady operators in every business, including TK. Our job is to OUT them. Anyone who promises a product/property, then makes excuses and blatantly lies about what is done or not, is a thief. Period. They should be "disposed of"

That said, there are good TK operators, and good TK properties. I don't have a TK business; I have bought and sold performing investment properties. It WORKS, whether it's one at a time, or as a full time business. Like anything else, due diligence is required.

@Ben Leybovich has never met a PIG he liked (except when he bought his ;-) and now doesn't like them ). However, there are people making great money with them. They are ABSOLUTELY management intensive. And you can't spend money on "pretty upgrades". If that doesn't fit you, then don't go there. I don't expect many property management companies to be an adequate substitute for personally managing PIGs. Personally, I think most "hands off" and "out of state" investors should stick with B and nice C properties. They have a much higher probability of success for hands off investors.

• ASIDE: I bought a D+ property (PIG) two years ago. I've collected 575 every month (13,800). Paid out 1500 per year in improvements (furnace year one, driveway year two, and expect 1500 or so every year for the next 7 years.) Plus I've paid 1000 each year in taxes and insurance. Do you think I'm doing ok? Any math geeks want to do the IRR/ROI on that? Oh, I paid 5,500 for the property +$10 and 30 minutes in repairs, and I self manage this one (use 10% mgmt if you like). I haven't done the numbers, but I'll buy another like it given the opportunity.

Too many people get wrapped up in a fictional ROI or IRR that's never going to happen. Maintenance, repairs, vacancy, are part of the business. YOU need to manage those. That's Ben's sticking point about PIGs, although I haven't seen it called out explicitly. By the time we spend money to make properties the way we want them, they are losers. Shady operators leave out the those numbers, and present a "best case" ( and I use that term loosely) scenario That's how people end up in D properties, and get sucked into shady operators. If you own PIGs, keep them clean, safe, and habitable. up-to-date doesn't count.

Picking a rental price point of $600 per month doesn't mean a flawed property. You need to be more specific. I have a personal affection for 2 bedroom properties renting for $625 or so in my Dayton Ohio market. I get great tenants in ok/good areas. I like the numbers for those. AND, I know how to manage them, and so does my property manager,

I am NOT going to buy a 3 bedroom that rents for $550. I KNOW that in my market that property will be more headache than I want to deal with. Others may do much better with that property, I don't have the patience. 

Remember, ANY price point is market specific. A $30,000 house in Dayton may be the same as a $100,000 house in Los Angeles. 

Hi @Lynda Crittendon, Welcome to BP. It's a great community of people here.

Locally, We have a Dayton meetup that gets together once a month. There are investor friendly agents attending also too.

Cincinnati has a great REIA you can check out too.

In the meantime, jump in and participate.

Most banks will want 25-30% down to lend to your LLC. You may be able to find one that will do 20%. You can try Spring Valley or Guardian Savings also.

If you find a 20% or better, let me know.

If you work the residential side, you can do less down, but they will want to do it in your personal name. You may get lucky and find one that will let you deed to the LLC after closing.

Mike,

Any local Title Company can put together the basic paperwork and handle the details for you. They'll know an attorney that can do the mortgage and note also. Personally, I use National Title in Centerville. (937) 291-4201.

If you are selling to an owner-occupant, I would consider using a Land Contract instead of a mortgage. For the first 5 years, or until they have paid it down to 20% equity, it's less expensive and faster to get the property back if they don't pay.

There are multiple servicing companies that can handle the monthly billing and tracking. AllServicing.com and TrustFCI.com are two examples, I'm sure you can google others. I think basic servicing is $15-$20 per month, but don't quote me on that. If it's an investor buyer, you can pass the fee onto them.

Since it's in your IRA, make sure you keep enough cash in the IRA needed to cover any foreclosure or other actions you may need to pay for.

Hey Sam, hit me up at the Dayton Meetup tonight. It's a simple question, but a long answer.

Sounds like you need an attorney.

Montgomery Electric.

He's good, and works well with investors.

Dayton Real Estate Networking 10/12/15

Event Details

Get to know other local real estate professionals, investors, landlords, and more.

No formal presentations and no specific topics. Ask questions, start and join conversations.

You're encouraged to bring your deals and what you're looking for.

Add Cincinnati to your list also.

Ohio in general is great for Cashflow investors. You do have to be very specific about your neighborhood though. 

There are a lot of good deals here in Dayton. 

Unfortunately, there are also plenty of deals that look good only on paper.