All Forum Posts by: Jared Smith

@Ven Perla love the detail in your post. There are certainly lots of options in those markets but could also recommend a few others that are seeing similar growth for comparison such as MEM and LIT.

It is a good idea to have someone familiar with the markets and sub-markets of the areas you are considering. We have many investors in the top two areas you mentioned that have also had success in MEM, LIT, OKC, and TUL. The dynamics of these markets are very similar to Huntsville/Birmingham markets, and similar price-points. Some of the things you want to keep an eye on in your analysis are the specific city/county taxes for each market and how often the reappraisals occur. 

Our typical deals at 25% down in these markets for the median priced homes we focus on ($175-$250k) provide $150-$250/month (not including $175-$200 in principal paydown from the resident) and if you put 30% down you can have a higher $ value for passive income. The investors that put either 25% or 30% down can take advantage of our loan buy downs to 5.75% and 5.875% for 30 and 25%, respectively.

I would love to share more insight with you but would also happily link you up to some existing new and/or longtime clients to hear about their experiences with us. 

@Kevin Liu, just as a frame of reference, I am now with a TK company here in Memphis and I routinely talk to clients that have never seen or visited their investment properties in person. In fact, two months ago I drove an older couple around that have owned with us for 12 years and I was showing them their 5 homes with us in Memphis for the first time! We are proud of our homes and our investors! 

@William Fraley, I think this is as good a spot as any! I will say you are going to find people from all over the US in this forum. For you, the best way to get started will likely be, listen to BP and other real estate podcasts, start narrowing down what type of real estate sounds like fun or interests you, and then find a local meet-up to find some people near you that are a few steps ahead of you. Always want to surround yourself with some people that will challenge you to answer questions and get better. The first step is the hardest and it's not always easier after that but it is typically less scary and you will start to figure things out. Don't be afraid to mess up and make some mistakes. If you don't make any mistakes you probably need to adjust your risk tolerance!

Good luck to you! 

@Eshe Harvey so, how did the coffee meeting go?

@Adon Ripple one thing to keep in mind is to have a plan for the first few months of what happens if you have a major expense in the first few months when your capital is depleted. Assuming the duplex and area are ok, your capital issue is what I would try to resolve. Maybe you can pay a little more and get cash back at closing from the seller, or if they are seller financing maybe you could negotiate a lower down payment. Don't just assume that the first set of loan criteria that the seller threw out is the final answer, you may have room to negotiate! Good luck

@Eshe Harvey It sounds like you are exactly the type of person that a mentor likes to talk with. Someone that is passionate enough to ask for a meeting and humble enough to prepare for that meeting. Successful people love to share their experiences and I find that particularly in real Estate people are willing to take time to share, educate, mentor, or motivate people who have an interest. I think that is really all it takes. Be interested in what they are saying and they will likely be very generous with their time! Good luck at your meeting, but doesn't sound like you need it!

@Michael Salin Welcome to BP! Do you have a timeline for your first deal? Align your goals with action and you will do great!

@Bryant Jaske-Moser I just secured one of my new investors a deal today with $175/month CF and another $175/month principal payment from their renter. Over the life of the property renters will pay down the loan and pay for any maintenance or repairs that are needed, all while paying down the entire mortgage! 

Putting money is your bank account is one thing, adding to your net worth is another. Principal pay down doesn't sound sexy, but it sure is nice to see when you get that mortgage statement!

@Bryant Jaske-Moser this is the common thread I see and deal with everyday with my clients. Sometimes it's challenging for me to get my clients on the phone because they are so busy, so if they don't have time to take a phone call because they are very busy, they need a quality turnkey company to cover those management duties.

I wish you the best and it sounds like you know what you need to do if you want to expand at this time.

@Jaime Zarate, welcome to the perpetual conundrum of real estate. If I had to guess, I would say your people around you are not investors themselves or their perspective would likely be different. The reality is that you can find good, solid, base-hit deals in pretty much any market. If I told you you can get into a deal and in 5-7 years the appreciation will likely exceed what you put down even at 30%, not including equity pay down from the resident and potential passive income on top. Would you do that deal today? Because I have dozens of those. 

Surround yourself with real estate go-getters and you will find deals!