All Forum Posts by: Luther Wilson III

Like most things, it’s a numbers game…  You’re gonna have to present what you’re doing and what you’re looking to do with a lot of people.  After a while you’ll probably be batting them away with a stick.  😉

For most investors, if they can get 8-12% interest backed by discounted or cheap properties then it’s a no-brainer.  The better the deal the easier it’ll be to find a backer.  It’s all all out relationships and operating with integrity   🙂

David Dey and Mitch Stephen are two “gurus” I’d encourage you to learn from when it comes to private money.  Look them up on YouTube and listen to their podcasts as well..  There’s so much free information out there nowadays. Learning the ropes, getting reps in and executing is key, bro!  

Check out yellowletters.com  They've been a decent resource for us in the past.

There's a bunch of similar websites too...  If you do a web search for real estate investor yellow letters or direct mail you'll find all kinds of stuff.

They have a bunch of templates and examples of what you could do out there.  Tweak it as you wish and you're in there like swimwear!  :)

Hey, @Anastasia Gamino, we're here on the ground in KC already making moves.  What's the deal?  Let's talk sometime.

Hey, @Timothy Ng, might you share, in what part of town is the property located?  That could be part of the issue...  There's a reason your PM is struggling...  I'm sure there's a helluva back-story. 

Either way, it sounds like you're getting a true taste for what it's like to own rentals.  If you can push through this and survive then you'll be that much more prepared for future investments and hopefully, stronger and more resolved to get something better, maybe?

Thanks for the plug, @Alex Olson!  

We've been using a combination of private money and hard money.  For the hard money loans, it's been 10-12% interest only - along with 1-2 points - and we have 6 months (with an extension if need be, for a cost) to get the properties renovated and refinanced or resold.

The hard money lender we went through on our last two purchases (one in July 2022 and one in September 2022) requires that we make the interest payments each month but we needed very little to bring to the table, out of our own pocket, to get each one closed.  For some of the other hard money lenders we used, we were able to hold off the interest payments until it was time to resale or refinance but they required us to bring a lot more of our own funds to close them out on the purchase.

For the private money, it's been individuals who we've been paying 12% interest only - along with 0 points - and it's 6-12 months for the term. The PRIVATE MONEY, along with HOW we invest, have been absolute game-changers... Our private money lenders have been okay in "2nd lien position" and the funds are made directly to our LLC with minimal recourse or documentation, so it's really flexible and based on relationship & lots of trust. :)

 That's a vibe, for sure.  :)

Some other things of which you'll want to be mindful:

1.  The location of the property

2.  The ACTUAL costs of taking down the deal AND keeping it.  (pad and cushion everything and have extra in reserve somewhere or with someone.)

3.  Be reasonable on what you target as your potential "all in" amount on the purchase & rehab.  (I'd be less concerned about "built-in" equity now and way more focused on the location of the property and the size of the renovation project.) 

Basically, your options to buy are gonna be with traditional financing or a BRRR of sorts... Unless you find a seller who's willing to carry the financing or let you purchase subject to the existing financing. Even then, a BRRR for an owner occupant purchase as a house hack could be very challenging to maneuver through... Especially if it's your first go round... So really, the most seamless or simplest way to do it might be the traditional financed route.

You might want to reach out to Caleb Brown.  He's active here on BP...  Are you wanting to do a single-family home or maybe a duplex or quadplex?  You can still make it happen.  It's ever important to pick the right location and type of property...

Another plug for our property management company: www.eps-pm.com 🙂

We’re licensed and set up to do business in MO and KS. We focus in and around the Kansas City market. We can provide renovation and light - medium construction services as well.

My team invests in real estate too so we believe that gives us an excellent perspective and frame of reference for what we manage and renovate. If you or anyone you know needs assistance in this area reach out to me. Let’s see if we connect and maybe do business together.

Our bread & butter is B & C class single family homes. We manage some smaller multifamily units and we’ll do so A class properties - if it makes sense. We charge between 10% and 12.5% of the gross monthly rent - depending on the property location and number of doors. We do not up charge for our maintenance services and we do not charge a leasing fee. We do, however, charge a “start up” fee. It’s $250 for any previously rented house and $500 if it’s vacant. This can be paid once rents are collected and owner draws sent out at the end of the month.

Our fees are generally performance based. Meaning that if the house or unit isn’t rented then we don’t receive any compensation. No charges for vacant units - no additional hidden fees - no maintenance or fixes (for most situations) without consulting with the owner of the property first. We will not lock you into a ridiculous contract, either. We’re here to serve - not to gouge.

Our goal is to provide exceptional value and service to our customers and clients. We’ll help you shop for deals as well. I have a more in depth concierge program for serious investors who need better assistance finding deals. As of today, that is $3,500 for the year.

If you want us to review a deal or a situation and dive into it - I can consult with you and do that for a fee as well. I charge $75/hr for consulting. It’s $150 for a general scope of work and $250 if you want pictures along with it. I’ll tell you where to buy and why. What projects might be more risky and why location is still the #1 thing in real estate.

Investing is simple but it ain’t easy. That’s why it’s so important to have guides, counselors, service providers and much more around you. We can be your guide to investing in the Kansas City market! Hit me up if you want to talk real estate.  🙂

 You might as well hold on, @Vlad B..  If you push through the rough patch while continuing to take care of your properties -  and you’ve been raising rents so that’s a plus too - then I do believe it’ll pay off big in the long run.  Property managers, tenants, contractors, and even agents will come and go… This **** isn’t rocket science. The longer you hold on the better odds you’ll get.  When the time comes buy another property!  This time, maybe in a better location.  🙂