All Forum Posts by: Erik Hitzelberger

@Rick Shipp - I'm personally a huge believer in having mentors and attribute much of my success to expertise I gained from others. That being said, you need to have clear goals and reasonable expectations before you get started.

If you know what you want to achieve, why you want to achieve it, and how you plan to go about achieving it, you can pick someone who is best suited to help you. As an example, if you want to own 25 rental properties, you need to find a person or people who can teach you about property management, acquiring houses, financing, maintenance, etc.

Once you've identified what you are looking for, you need to also identify what value you are going to provide to the relationship. This can be money, time, deals, referrals or any number of things. But, the exchange of value should be clearly defined so that both of you understand your roles and responsibilities.

So, do you know what you are looking for?

Good Luck!

I generally agree with the above posters.

I'm not sure what your REI goals are, but when buying homes, I've never run into a motivated seller who has walked away from an offer due to a company name. In a similar manner, tenants just need to know who to pay. You won't get any more money from them based on the name you choose. Finally, if you are rehabbing or selling, the buyer's seldom know who owns the home until they write the contract. So, again the name doesn't matter.

Here's the caveat. If you want to build a brand in your area for quality of work, type of home, etc. a little thought might be appropriate. The benefit being that you will build a reputation particularly among Buyer's Agents. This requires focused effort though. If you are just getting started, pick a name and get on with activities that will make you money. You can open a second company later if need be.

Good Luck!

@Marcus James - I am going to approach this from a slightly different perspective. While I occasionally wholesale deals, I am a rehabber at heart. As such, wholesalers are important sources of deals for me. However, the quality of information presented varies wildly. As you search for (or develop) a system, please consider what your buyers want.

1) Reliable Numbers including Purchase Price, Rehab Costs, and ARV. This will tell me whether it's worth dropping everything and heading out.

2) Supporting data for #1. If you can show me you have both an itemized list of repairs (with costs) and 3 recent APPLICABLE comps, you will gain a ton of credibility. On the repair cost list, include items that don't need to be replaced and mark them as Good or $0. This way I know you looked at it.

3) A summary of the area. This can be as simple as a Google Map with important items marked. "Forgetting" to mention the property backs up to an apartment complex, sewage pumping station, or strip joint does not earn you any respect.

I know a couple of people who do this well in my area. When I see their name pop up in my email or on my phone, I give it immediate attention. I have no idea whether a system exists that can help you create this info, but I'd consider it valuable if it did.

Good luck in your search!

@Alex Johncock - It seems that you've at least tried to account for all of the relevant expenses. Like the others, I think the vacancy rate is very high. that being said, Repairs seems low if you are grouping capital expenses in there. Also, I question the utility cost. Are you providing sewer and water to 4 tenants for $83??

One other point that I'd make is to make sure you understand the requirements of the historic district. There is one area in Louisville where it is really strict. Any exterior repair in this area costs 3-5 times what a 'normal' house would due to the need to maintain the historic look.

Finally, you've done the analysis, now tweak the numbers and make the offer!! Taking action is often the hardest part.

Good luck!

A non-compete clause seems a bit extreme unless it is for a very short (6 months) period of time or simply covered contacts that were made as a result of his/her efforts.

Quite honestly, I prefer to have a more defined relationship so that both parties understand their responsibilities, deliverables and the value each brings to the deal. It is highly likely that you and your 'partner' will have different goals, values, etc that will lead to one of you wanting to exit the relationship prior to the other.

Welcome @Steve Fonger ! Like you I have a technology background (ME) and found my way into real estate. I have been flipping properties for 7 years now and really enjoy it. You will appreciate the fact that you can really systemize the process in a logically manner. Good luck and I look forward to reading about your successes.

@Dustin Markwell - Welcome to BP and to the Louisville real estate investing market! It certainly looks as though you are off to a great start. Good Luck and feel free to ask any questions you may have!

@Kameron Patterson Welcome to BP. I like your goals as I am a huge fan of student rental properties. Mine are at near University or Louisville. There are several investor friendly lenders in the area who provide good terms for rehab and/or rental loans. Let's talk some time and I'll give you some good places to start.

As others have mentioned, you should definitely show up with a contract. If Staples doesn't have them on hand, there are several websites that do. Search "Massachusetts real estate purchase and sale agreement".

I'd also try to keep the agent out of the picture if possible. The conversation @Will Barnard recommends is a good one. If they insist, you may be able to get the agent to take a small transnational fee to help with the contract, etc. Offering him/her something may prevent them from killing the deal by stating the seller can get more on the open market.

@Jessica H. I pay about $1.25-$1.50 per sqft for paint. This includes paint and would cover walls, ceilings, base, crown, and chair rail. Unless it is very minor, I have a drywall crew fix the walls. $2500 doesn't seem like it would be out of the realm of possibility without knowing how much drywall work needs to be done.