All Forum Posts by: James Galla

@Joel Gierbolini

Banks in Akron lend on values under $40k all the time. If they didn't, there wouldn't be a market here. I suspect it's just local banking policy related to the specific market, though. In other words, I wouldn't expect an Akron bank to lend on lower values outside of Akron.

James

I have experience in many price ranges. I don't hold anything against the $30k club. I actually enjoy that range as well (I enjoy working with and volunteering for lower income folks), especially for my area. The issue I frequently see in that range is folks from California, Colorado, and Washington coming into the idea that the $30k club is often viable. Then, when they jump in, the tenants and property management companies kill their margins. So, my skepticism online isn't really how I view it. I would just prefer that folks don't walk into a trap or get the wrong idea that low-income investing is easy or some magic ticket to wealth.

So, for something in the $30k club, I normally want a ranch-style home under 1200 sqft. Utilities should be centralized in the home. This means no random maze of pipes for utilities. Toilet should be close to the stack, etc. Neighborhood is critical and cash flow will be related to the neighborhood, but you can normally get gross rental of around $600+/month. I'm at a mix between cash/credit for the $30k club.

I know some folks that buy the $500 properties, put in $10k for renovations and rent by the bedroom. That's not my style.

Get a lawyer.

Good luck

Definitely see about joining your local REIA. That's always pretty easy. You can also see whether there are any BiggerPockets meetups in your area. These are often hosted by BP members and you can find them on the forums. I'd also check out any Facebook groups regarding sales of real estate in your area.

@Andre' Arceneaux, just a heads up, @Katie L.'s educational background is fantastic. I'd consider a consult with her, whether digitally or in person. I know I'd retain her.

- I'm not financially connected to her in any way. Nor does anything I say benefit me.

Higher education is a great thing to get, as long as you can earn a return. I've dealt with so many real estate agents that didn't have the slightest clue as to what they were doing, but I still gave them a shot. However, that kind of charity is not ideal for the average consumer. In the end, things turn on what kinds of leads you can turn, and that depends on how you handle your clients. For instance, I'd tolerate a poor agent, but I wouldn't recommend them. Earning those recommendations and leads is critical to success. If you feel like being a car salesman, then I'd pursue a real estate sales person license. The difference is you sell houses instead of cars. If you're not interested in that kind of wheeling and dealing, I'd change the scope of education to something that could make you some money via some useful skill.

There isn't an issue with buying older buildings. You should keep an eye out for updated electrical, plumbing, roof, and secure foundation. If you keep those critical components fixed and the living space updated, you ought to be fine.

Roof, Electic, Foundation/Basement, Plumbing.

I just buy $10 doorknob/deadbolt lock and key set from a local store and install them myself. Check out Ollie's Bargain Outlet.