All Forum Posts by: Hugh Ayles

@Lisa Marie

What I have found is "REIA meetings" in Austin, Dallas, Houston, and San Antonio are mostly run by the Groves. Their main intent is to get you to buy into their Big Dog Program.

You need to find meetups.  These are the networking groups you are looking for.

That being said, so far we have come across a couple of meetups we found out about from the Austin REIA. I also met a private lender I am using from the REIA. So it was not a complete waste of time. With the REIA meetings, you need to show up at least an hour after it starts so you can avoid the sales pitch.

I have found out about several Austin meetups from right here on BP.  You should be able to find some in your area as well.

We chose to use wholesalers because of time savings for us (we focus on what we are good at) and it takes awhile for your own marketing to start returning deals.

So far our experience with wholesalers has been good. It is VERY important to run your own numbers as far as ARV and repair budget.

Think of it this way: it is your money on the line.  "Trust but verify".

@Joe Villeneuve  I think the question being posed is how can @Tequila Brown

invest in real estate without bringing any of her own money to the table.

The answer is you have to have relationships with private lenders and show them that you can protect their money.  You protect their money by finding good deals with great return.  You also protect their money by showing that you have experience and they will get their money back plus interest.

They look for code violations, outdated services, flaws in the home such as a leaky roof.

They may point out missing GFCI or faulty wiring.  They may observe mold and report it.

Depending on your inspector, some write reports trying to avoid being sued which is to say they report everything, whether it is a real issue or not.

That being said, if you are new to real estate, it is probably a good idea to hire an inspector before you purchase a property.

Some good advice I once heard: do not add to overhead until it hurts not to.

Are you working more hours than you want to?  This one is tricky because in the early phase of most businesses the owner puts in ALOT of hours.

Are you not completing tasks in a timely manner because you lack the time?

Are you missing out on business opportunities because you are mired down in details?

Do you have enough cash reserves such that added overhead is not a stressor?  

@Manolo D.

When I worked as an estimator I always got a chuckle out of being asked "How much does a (fill in the blank) cost where "fill in the blank" was some type of building.

At least give me a layout, type of skin, and number of floors.

I am scared for people trying to use square foot prices for rehabs.

@Austin Hughes

Like Russell I have seen people come here for advice, not get what they wanted to hear, get angry and argue.

You did not ask for advice but showed some maturity in seeing a theme in this thread and acting on it.  Tough patches don't last long when you behave that way.

 Sounds like dotcom stocks circa 2000.  Back then I wondered how a stock reporting "only losing x" was cause for the price to go up.

I am shocked at what some houses are selling for before rehab right now.  I think some "investors" have the outlook that everything will sell for a profit.  It does not help that every couple of weeks a guru is having a seminar in town.

I believe he meant profit as $0 revenue means you are not doing anything.

But by showing $0 net profit, how are you accumulating cash (working capital) for your business?

@James Hamling

Why do you suggest posting near to no revenue or even losses?

That might be a good tax play but it makes it hard to get loans.

I subscribe to an accountant newsletter and he rightfully points out that we are in business to make a profit.  The point is capture all expenses but hopefully at the end of the day you make enough money to turn a nice net profit.