All Forum Posts by: Jay Dewberry

Truly Awesome @Undrea King!!! Keep it Up!

Again, it will depend on your investment strategies. For example, if your interest are multifamily units, your investment strategy could be locations near colleges/universities/trade schools. Or perhaps you are looking for SFH's in which your focus could be locations near schools with good ratings. In general, find locations that are NOT in war zones…again…unless that's your focus. Find neighborhoods with well managed streets, lawns, that appear to have a great curb appeal and the feel of safety for children.

Another way is to befriend a Real Estate Agent and ask him/her what zip codes are booming and which to perhaps steer clear of. Hop on Zillow/Redfin/Trulia/ect, and see what zip codes have a higher amount of recent sales. That may be an indicator of a shift in local market trends. There are many avenues, but perhaps it may be best to first map out what your interests and goals are and build a goal related checklist from there.

Ahhh….I think I have a slightly better understanding of what you’re referring to. If I’m not mistaken, Ben Leybovich focuses on location being the driving factor behind desirability of places to invest. In the podcast, he speaks of valuation being determined by the market. In other words, unless the market you choose supports the expenses you will incur, then it may not be a great place to invest.

He wants to have not necessarily the best unit available (A), but one of the better units(B) that yield similar rents in order to increase long-term desirability. So my interpretation of what he says would be to find highly sought out areas (depending on your investment strategy), and analyze deals in such a way that if you were to find a less than desirable property (C or D) and are able to rehab it to that of a (B) then factor in desirability v/s market v/s expenditures to result in the highest ROI. Thoughts?

A=Best properties in a particular community

B=Better than average properties in the community

C=Average properties in the community

D=Distressed/Less than the desirable properties in the community.

Hi Kendy. Quick question. Where did you hear about this A/B/C/D investment strategy? Did it come from a particular blog/forum/book/video? I assume you’re referring to how to determine where to find the worst home in the best neighborhood in order to rehab for a buy/hold or fix/flip. I suppose it would depend on your investment strategy, exit plan, financial goals, ect. There are many factors to consider with little to go on in your post. Have you thought about picking a few up and coming or established communities to locate distressed properties? That way you can practice using the BP Calculators to see if any are a profitable option and pursue a contract with the owner(s).

Jay

Hi Christy. Perhaps one way to go is to get multiple estimates from reputable contactors. My biggest concern would be the risk you open yourself up to. If there is, in fact, an electrical issue and your dwelling isn’t up to code, you would open yourself up to several problems. Lawsuit, negligence, potential fire, tenant injury, and/or other legal issues comes to mind if something happens. I’m sure you don’t want to bring that type of nightmare upon yourself. Have you considered searching for several professionals on BP in your area, such as a R.E. Attorney. Perhaps they can guide you as to local ordinances when it comes to being a landlord. Perhaps there is a way to fund the rehab portion for you? Private lenders, rehabilitation loans/grants, refinance options? Hope this helps.

Hi Jonathan. Welcome to BP. It’s understandable to be rather overwhelmed with trying to figure out which path to take with Real Estate Investing. There are so many strategies available, even for the newbie. Perhaps one method to familiarize yourself with various strategies is to check out the podcast archive and sign up for the weekly webinars. There’s a wealth of information in them for newcomers all to way up to seasoned investors. Also, check out found on the Education drop down menu. Signing up for your local REIA (Real Estate Investors Association) meeting is a good way to network and learn about market trends in your town as well. Hope this helps.

I tend to agree with Seth's view on this post. I think it depends more so on what type of listings you're in need of. You can't go wrong with either. Perhaps try both, or either on a trial/short run to see which best fits your needs. Hope that helps.

Hi Jordan. I would suggest using the search options to check on other replies on this issue. I am hesitant to say much as this seems like a question for a investor friendly attorney in Michigan. But from a quick search, it seems as though if wholesaling, you would actually be assigning your "interests" in the transaction instead of actually completing a complete purchase, and perhaps the 5 RE rule may not apply.  AGAIN...confirming with an RE attorney would be best IN CASE laws have changed. Also, perhaps you'd want to have that same attorney review your contracts to make sure they are correct and legally binding. Hope that helps.

Oh...also to your question of contracts, you may want to check out the BP Podcast archive and sign up for the webinars. I know I have watched/listened to several that walk you through which contracts to use at which point.

Hmmm....the first things that come to mind are:

1) Networking with other local investors (perhaps at local REIA meetings)

2) Driving 4 Dollars (locate distressed/vacant properties and send a note/letter to the owner)

3) BP Search Platform option (There are several search results with ideas)

4) Bandit Signs (Be aware of local sign ordinances though) 

5) Lead Generation Web/Splash/Squeeze Pages

6) Free Classifieds (Craigslist, ect)

7) Social Media (Facebook, Twitter, Fivver, ect)

8) FSBO and/or Expired listings

9) Local Probate listings ***Be very careful/understanding of the nature of any contact with owners as they've experienced a loss***

BP has a Perks page which contains several options for landlords. One of which is Transunion's Smartmove, which offers credit/background/criminal type checks. Perhaps that could help.