All Forum Posts by: Luther Wilson III

Have you considered looking into Eddie Speed and his Note School?  My understanding is that they have a platform and a network of investors who are investing in notes.  I’d imagine that might be a good place to get plugged in.  There’s a chance by being around that circle you could find something similar to what you’re seeking or perhaps something better.  😉

Hey, @Chris Hamilton, you'll be able to increase your odds of finding them by putting together your own marketing campaign to do so.  It'd start with getting the data or a list somehow, then from there choosing a marketing channel (direct mail, SMS, cold call, Facebook, etc).  Then you or your company needs to get to work.  I'd venture to say that the same marketing that wholesalers and fix &  flippers are doing is the same that'll lead to sellers who'd be interested in financing their property.  Then from there it's up to you to ASK and NEGOTIATE - over and over and over again.

If you're not up for doing your marketing campaign - which is totally understandable - especially in this market - then you may consider word of mouth.  You're gonna have to turn over a lot of stones either way, though.  You're gonna have to network your behind off and talk to a lot of people.  Agents, wholesalers, and other investors will need to know what you're looking for - and then you'll need to ask or somehow incentivize them into sending you the leads that they can't or won't capitalize on.

Even though you're in Canada, the principles are the same...  It's still a relationship business and a lot of investors have had to rely on them more lately.  You can use that to your advantage.  :)

@Eric Dekker, Yes, indeed.  We’ve been BRRRing things out in the Kansas City market just fine.  The #’s have gotten tighter on a larger percentage of the deals but we’re still making it happen.

Our purchase price for these is usually between $60k and $220k.  The renovation costs for us have been in that $40k - $80k range. We try to stick with general updates/value add.  These are mostly “B-class” areas in the KC market.  Some might be C+ or A- 

Yes - finding the deal - that’s a key part.   It takes more work now to find ‘em now. And when you do find them, you gotta move quickly.

We’ve had to dig deeper in order to find good product.  Getting tapped in with agents, wholesalers and other investors is a must.  If you have the time, energy and Capital - doing your own marketing campaigns for motivated sellers works too.  It’s no walk in the park, though.  

Right now here in the Kansas City market we're still seeing some decent action with BRRRs on single family homes. A "single" might be one in which you're "all in" between 85% and 95% of the ARV. You'd be able to leverage some Capital but still have quite a bit "left in the deal" after you refinance. That sucker will cash flow if you're okay with B-class types of deals. Maybe some C+ or A-. It's working just fine here for SFHs that'll have an ARV in that $130k - $220k range. Kinda depends on what you're going for, how much capital is available, your risk tolerance, what's realistic in your market and so on.

There's a couple others we might be able to recommend here.  ;)

Good stuff, @Matt Corso

The fact that you've taken this step to reach out, ask questions, and do your own homework is cool.  That alone says a lot.  FYI, my perspective is coming from a realtor, project manager and PM whose clients are mostly OOS investors.  Many a time have I had to try and pick up the pieces after a poor service provider dropped the ball...

One thing I want to clarify:  There are some differences between building a team and hiring good people.  The ladder usually precedes the former - and so on.  Let's not put the cart before the horse here...

Your experience and the amount of capital you have to deploy will determine how you can operate.  It's gonna take time to build out a team.  It's very difficult doing it in your own town let alone OOS.  Even if you have capital and a boat load of experience - you're gonna get smoked at least once!  Whether it's with the realtor, the contractor, the lender or the property manager.  At some point you're gonna faceplant.  What you do from there is up to you...

It's gonna take not only time, but lots of energy, persistence and of course, capital, in order to build your best team.  I believe getting your mindset up comes first.  Then you pick your investment strategy and market.  From there finding folks in that market who specialize in what you're wanting to do.  Then there's actually doing a deal in that market...  Then you gotta get from A - Z on that first deal!  Then you repeat the process.

Along the way you'll find what works for you and what doesn't.  You're building a business so it's important to treat it as such.  If you want good talent you're gonna have to pay them well.  Partnerships have been gold for us...  Paying your boots on the ground or key players in equity might be a gem.  ;)

Hey, you might try Ted Anderson.  

@Joe S., the plan is to buy houses however we can get them.  Then we get long term debt on them - that is if, it isn't already there.  Then from there we'll do a contract for deed or some type of owner finance deal.  We may keep some as rentals and I'm not opposed to doing a lease purchase at some point too.

@Drew Sygit, Yup, you're correct and I believe it's a good thing.  We've looked into it and we've put it into practice even more.  One of my mentors has been doing these for the last 30 years so we're pretty comfortable and confident with the whole process.  :)

Yes indeed, @Logan Webb.  If more good opportunities for such come my way then I’ll certainly entertain them.

Pardon me for being rather facetious.  Lol.  I’m working on my online humor a bit.  I guess if you know, you know.  😉

This post was placed under “Investor Psychology” for a reason…  The whole point was to get a lil’ dialogue around why so many investors are scared or overly concerned about something that would rarely come into play - the due on sale clause.  That is, if you know what you’re doing and if you have multiple exit strategies for every deal. Or at the very least - access to additional capital, in the event that you’d need to exit with a payoff or such.

Call me crazy if you want, but I think there’s something exciting about the frenzy of taking down a deal or solving a “problem”.  Almost like an addiction that a lot of us investors, entrepreneurs, CEOs, or sales people have.  Something that definitely needs to be monitored and or reigned in from time to time.  

Nonetheless, another point of the message here is to get you to see how our minds work...  We could easily spend a couple hours coming up with reasons or excuses not to do a certain thing (in this case making some type of investment, perhaps). Yet we won’t seek out a good advisor on it. Let alone offer to pay them lol.  Whatever “it” is. 

 There are Investors out there who have been doing creative financing for years.  I’d venture to say there’s a small percentage of them in every major market who are quietly getting ridiculous returns on their investments and living quite well.  Are you catching my drift?