All Forum Posts by: Gay Lloyd

We have had great success with this on Craigslist as well in the midwest.  Always be building your buyers list though.  That also can be done through CL as well as many other ways !  Sound like a good one- we have had similar.  Good stuff.  Oh, what repairs are required?

Try small local banks & credit unions (less than 10 branches in general) who keep their loans "in house" and count rent as income on the properties- lmk if you want to know more- we have a great list of 10 questions to ask banks to see if they are a good fit for investors.  

Also, remember, the banks need you as much (or more) than you need them.  YOU are shopping for one that is a good fit for YOU to work with and develop a relationship to do more deals with ! 

Besides all the legalities, there are also just the times of making decisions to move forward on projects.  We have been in partnerships that were 50/50 and we just simply did not agree fully on basic managing decisions so were held back so things don't get done in a timely manner, or at all.  Very frustrating for everyone.

We recently heard from a great attorney to never do 50/50 but always at least 49/51 so someone can make decisions and you don't get stuck in a stalemate in decision making situations.  Good advise. 

Most agents are not trained as investors so unless they have additional training or experience, they just do not think the same way we do.

That being said, we have always worked with many agents at a time and attempted to keep a good relationship with all kinds of agents and develop a good network based on mutual respect for what each other does. There are opportunities for referrals, services, education, future deals, and other contacts if we keep the doors open and attempt to give back whenever possible.

For instance, we have an agent who does not bring us many good deals, but he did invite us to come to his office meeting and present to and meet their whole group of agents thus expanding our network. At that same meeting, I was blessed to help with an office service project they were working on that day. We have provided this agent with listings from family and friends and he provides us with mls related things etc when we need them. Hope this makes sense.

We have worked with CA investors who invest in UT where we live.  We have also done some wholesaling in the Midwest (KCMO) and work with other investors there.  There is also passive investing possibilities you might want to look at.  We are happy to chat anytime.

Always have legal, signed agreements and contracts in place no matter who the partner is.  This protects all parties involved.  Partnering has created lot of opportunities for us that wouldn't have otherwise had and is a big part of the way we got started.  

@David Dachtera great advice and wisdom for everyone- love the Stephen Covey books also!  

In answer to your question about property managers, @Tasha Beal, our property management companie(s) actually currently take 8% (we turned multiple properties over to them at once), but don't be afraid to negotiate what is needed to make your properties productive.  The best ones we have found are the ones who actually own properties themselves and are in the game now.  They can be flexible and willing to work with you to be successful on each property.

It many times boils down to the cost of opportunity.  Get the money quickly or lose the deal.  

You need to be realistic, conservative, and confident in how you have run the numbers to be able to refinance or sell quickly when the project is complete. 

If we were you age and just beginning, we would purchase a duplex (or 3 or 4 plex) and live in one of the units to start out.  This way, you will get some exposure to what "being a landlord" entails and the other tenants will be helping to pay down your mortgage as well.  This is also beneficial in qualifying for financing with a traditional bank.  

That being said, we would still hire a management company as they are expert at selecting tenants, and have all the resources needed for any repairs, etc etc.  This management fee just needs to be part of the way you run your numbers in analyzing any deal (about 10%).  It is worth every penny.  

If you still choose to self manage, we have found it best for tenants NOT to know that we are the owners also.  That way, you can just refer to the "owners" as the ones making all decisions that may or may not be appreciated by the tenant, you are just the "messenger". 

KCMO I am assuming?- if so pm me for a successful wholesaler we work with there that will have a connection.