All Forum Posts by: Glidden Rivera

@Guillaume Lechat

You can ask the insurance company to help with mitigation: most have their vendor network.

If it had heavy smoke damage, you will be hitting the entire place down to the studs.

Likely you can salvage some of the contents and get them cleaned ( insurance company can assist with vendors who are vetted)

The studs will need to be encapsulated with an oil based primer.

Run an Ozone machine to kill any remaining odors.

Commence build back. ( insurance can assist and or you find your own contractor to assist)

@Joe S.

Get the police involved

@Vik C.

I have borrowed from 3 different hard money lenders. Honestly, terms are what would do the trick. I see hard money lenders as a necessary evil when getting off the ground.

The biggest obstacle for me is building a relationship that doesn’t gouge me when I borrow. I want a long term relationship with a lender I can drink a beer with. I’m still looking for the right partnership, my previous lenders were a means to and end.

@James Courim

Tampa is hot right now, the property is relatively cheap in comparison to Orlando

@Max Sherman

Start looking for the property management firm,

Often they can walk the property and put together a pretty thorough scope of what needs to be done. Also you can leverage their network of inspectors, contractors and suppliers.

I agree that you should defined go see it in person and schedule interviews and inspections while there.

Fire the contractor! I also agree he may be taking you on a ride.

Additionally, consider what kind of rehab you have conveyed. You will need to be clear, concise and also communicate that the

property is a rental not the Taj Mahal. The hard part here is that this was never a real BRRRR because of the numbers.

BRRRR is about leaving as little money in the deal as possible, it starts with the right property,

Next; an appropriate scope, 3rd making sure your rents are realistic and proper for the area.

When you refi, often the best LTV is 75% ( I suppose there are exceptions, but conservatism is what wins this game)

Last, your supposed to repeat the process. How can you repeat the process with so much money left in the deal, overpaying for property, and the exaggerated work scope.

Having money to burn, doesn’t mean you should do so!

Never lose money!

@Meryl McElwain

Could also hire a large loss claims adjuster.

Through him or her a couple hundred bucks,

They can write a scope very quickly. That would give you a decent ball park.

@Amber Singleton

Get educated is the point here. Learn to manage yourself first.

Not having money is really a non issue, because deals can still be made.

I was broke cash wise but my number one asset was the space between my ears, it still is. Don’t be discouraged, invest in Yourself, you are worth it.

Be responsible, prudent and proactive.

The mind is the first obstacle.

Anybody can this, if you have a plan

@Shiloh Lundahl

I started with no money. I definitely struggled but I managed because I was focused.

I was not 40 without 20k, I was 22 and most of my friends couldn’t rub two nickels together.

My first deal was busted duplex for 12k.

Disclaimer, I was a good remodeler. I was able to get a lead grant from the county ( 30k)

I did all the work myself, and make great cash flow. I sold the property and reinvested.

I don’t know if it’s the money or more about grit and ingenuity.

The barrier to entry can be overcome easily,

The barrier to success is inadequate info. Get smart!

I would agree with your point because I understand where your coming from, management of resource is an important skill in this game. The risk increases when your dumb!

@Carlos Castañon

Florida sucks right now, caps are low and many investors don’t seem to care.

Many say good deal are created.

The best way to make the deal great is through your model: will you stabilize, add value, increase rents, increase NOI, and Force equity.

Additionally, your best deals are going to come by way of direct contact with a seller.

Take the properties your looking at on LoopNet

And use them as reference to target neighboring properties that are not currently listed.

Additionally, in Florida and many other states

Building and owner info is available on the county website, you can populate list and export into excel, filter it again target properties owned for more than 10 yrs. At this point the current owner has had a taste of ownership and has likely even dealt with or is in the middle of a severely mismanaged asset.

Send lots of letters ( you will need to work on this letter and make sure it is concise and comes across as genuine)

I did this and sent out a hundred, and got 2 responses ( so my open rate was 2%)

I spent $50.00, so each lead cost me $25 each.

Nothing became of these, as the owners wanted more than I wanted to pay.

If I send a 1000 letters it would cost 500.00

And with an open rate 2% it would bring me 20 leads.

Typically your chances get better after re targeting the leads that didn’t call or send a letter back. My best results on similar campaigns come after I have sent an owner the 4 th correspondence.

Last thing, on LoopNet make sure to set you filters and set a minimum cap of 8% (for Florida that is high) what that will do is show you the listing that are higher potential for bargains.

Last you may find better success looking at a different State. Build a rockstar team: Realtor/ Broker, property manager, contractor, banker

Treat it like a business and not a hobby then you can scale. The asset being out of state may be a blessing, in that you must learn to delegate to the team you created and empowered.

Define your model now. Not later.

@Paul Ellis

The program is great for people to follow when they don’t know how to use their money and leverage debt like a weapon as opposed to noose