All Forum Posts by: Kyle McCorkel

@Anthony Covington

I use lines of credit and private money. It’s gotten really easy to get money, once you build a track record and know where to look.

@Anthony Covington

I used a turnkey company in Indianapolis for 3 properties. The returns are OK. I will say it is nice to have a few properties in a different market. Central PA is nice but Indy is hyper hot from a renter perspective. It’s easy to find good renters willing to pay high rent out there.

Now I'm looking for SFH's and small multi family that need a ton of work in C+/B/A- areas. Strategy is to buy cash, rehab and add value, then do a cash out refi - BRRRR!

@Anthony N. Gonzalez

Welcome to BP. I’ve not heard of any in state college. We have several in the Harrisburg area which would be a drive for you but might be worth it.

CARPOA is in Camp Hill.

There’s a few in Harrisburg just google Harrisburg real estate meetups.

@Trever Good

Welcome to BP I’m located up in Hershey. I own a 4 plex in Elizabethtown which is closer to you. It’s arguably my favorite property. I love Lancaster county.

@Anthony Covington

Hey Tony welcome to BP. Central PA is a great place to invest IMHO but there is definitely lots of competition. Seems like it’s that way in most markets though.

I’ve been doing BRRRRs for about 2 years and working on my 5th right now. My first 5 were turnkey/didn’t need any work. Own 10 total properties now.

So I've been direct mail marketing for about a year now.  I've had pretty bad results, but this post isn't necessarily about that.

I've come to discover that for nearly all of my "decent" direct mail leads I'm getting outbid by the same company, consistently. I'm analyzing all these leads as either a flip, or a BRRRR, so obviously I'm trying to add value.

Here's an example from an actual lead:

ARV of $290k

Estimated rehab of $70k

MY Offer price = $150k

So, I've found out that this other Central PA company always outbids me on these properties, close on the deal, then immediately list it on Craigslist/Zillow/FSBO marked up like crazy (without putting any work into it).

For the example above, they bought the example above for $175k and then listed it FSBO for $250k!!! They just put in the comments "needs a little TLC". I don't know who ends up buying these properties, but I'm assuming they are homeowners who don't care about making a profit or newbie investors who don't understand the numbers.

Has anybody else done this, or run into this type of situation? How can I compete against this? Or should I just start playing the exact same game?

I'm half-kidding about playing the same game - it seems like this strategy would only work in a market with tight inventory where buyers are willing to buy a property "needing a little TLC" but if the market turned it seems like they'd be stuck with a lot of properties and not a lot of equity (and not a lot of buyers).

 I've had that exact same lightbulb moment.  I had it when I read "Tax Free Wealth" by Tom Wheelwright.

That was the moment when I decided I wanted to go big time into real estate.

@Andrey Y.

That’s how real estate taxes work! Welcome to one of the beauties of real estate.

Yeah! I passed on a property after the inspection showed a lot of issues. Terminated the contract. Ended up sending it to my contractor, who bought it and did an amazing rehab and the ARV came in $50k higher than my original estimate. That could have been me!

Major lesson learned on that one.

@Steve S.

You should raise it at least a little. Need to enforce the expectation that it can and will go up. What if they stay 10 more years, with zero rent increases? Then taxes will really eat into your profit, leaving little leftover for repairs. This happens to so many mom and pop investors.