All Forum Posts by: Johnny Wolff

When I see issues that scare away first-time buyers (foundation, termites) - I typically see an opportunity for better returns - because less seasoned investors will get spooked and I'll have less competition when I'm buying.

That being said Bruce has a point - do you want to buy a car with a recently repaired transmission or the untouched factory part?  I think most people would prefer the factory one - but I think it's a coinflip which one would actually last longer with fewer issues.

TX soil breeds foundation issues.  If you're looking for a foundation issue-free home - another state might be the way to go.

What's a market with a reasonable yield (>7% coc) and a decent volume of deals right now?  Both KC & DFW have become very challenging with the inventory levels disappearing and rapid appreciation.  Prefer C+/B- areas but open to all ideas, cities, and markets right now.  

Would be happy to chat anytime.  Sorry for the delay.  I'm on BP pretty sporadically.  There is definitely a lot of value in slow, local and steady for sure.  That's how I got started in Austin, in 2015.

This is very cool @La’Taunja Martin Cooper!

Working to pick our 4th RE investor market right now.  With prices swelling everywhere we might look at some of those midwest markets a bit closer

@Harrison Sharp

Yes - there is a myth about the "all-cash offer" being worth a substantial discount.  In my experience - it's not.  A cash offer will typically win if two offers are for the same amount.  And you might even win if it's a percent or two lower than a financed offer.  But anything more than that - solid financing and pre-approval will be fine.

Some exceptions here. 
-If a seller is in a hurry and wants a very fast closing
-If your cash offer means you are waiving all contingencies that will absolutely help - but can be countered by a financed offer that also waives contingencies

Do think buying with cash is a particularly poor move with today's rates. Why are you buying with cash and not financing? Your ROI with leverage will be much, much higher.

Geez - $1,485 for a water heater?  Bro.  Like so many have said - find a new property manager.

If your property doesn't rent in 2 weeks, then lower the price a bit.  You should be able to lease within a month if its priced well.

Ask your next property manager if they use one of these self-showing softwares:

-Tenant Turner

-Show Mojo

-Rently

With one of the above set up - you could rent it yourself in a couple of weeks - seriously

Sorry man - you got a lemon...property manager.  Vet them hard.  And more than a month of vacancy means they really don't know what they are doing imo.

Think a good rule of thumb when investing out of state is to:

1)  Talk to their sales team and get their top property/area recommendation

2)  Do your own analysis on that area for population growth, crime, income.  Talk to some local PMs as well

If your analysis confirms their recommendation you may have found a winner.  Asking other BPs members how their experience has been is a solid secondary strategy - but really your market analysis should trump all.  Good luck!

Hey Brooks - have you considered house hacking instead?  If that's an option and parts of your home town are appreciating rapidly that's probably a great first option.

I'm a big fan of leverage - that's probably what I'd recommend with current rates regardless of the house sourcing path you take.

@Jamie K. - here's what I tell our investors.

1)  Real estate investing is enormously lucrative over your lifetime

2)  However, you need to learn how to do it well

3)  Do it the best you can each deal - but don't delay.  You're slowing down your learning - and your lifetime wealth gain.  Months of homeownership is the most valuable thing (each month you'll get better) - not squeezing $25/month out of a slightly better deal.

Close, learn, repeat - that's the key.  Good luck :)

PS - highly recommend Carol Dweck's book, Mindset, if you haven't read it yet.  It talks about this principle better than I can

@Daniel Haberkost - think you're spot on with that analysis.

60% of the investor I talk to on an ongoing basis are cherry-picking their favorite advice from the last 5 years, combining it all to create a unicorn deal that exists only in their mind and nowhere else.  That deal has something like:

-12-14%% cash on cash

-$0 in the deal

-Using an "out of state BRRR" for "value add", although they don't have a team in the market they are targeting currently

-High appreciation potential from an area with high growth

Really think investing in RE is just like anything else.  Make moves, then improve your process each time.  It's better to get out on the court and work on your basic dribbling and jump shot than focusing on doing what the pros are doing on day one.