All Forum Posts by: Luther Wilson III

Thank you, @Davartay Miller!

Hey all, just wanted to reach out and say "Hello" again.  Our team just launched a new property management company here in the Kansas City market.  Who's got projects and deals they're working here?   We're investing, coordinating renovation projects, brokering deals and more.  Let's connect...  What are y'all seeing here lately in the market and who needs assistance?

Hey, @Shannon Schlappi, my group here has quite a lot of experience with subject to deals and owner finance transactions as well.  There's a couple attorneys that we know personally here in the KC market who can close it.  Sounds like a pretty good opportunity; hit me up if you want to talk shop and we might be able to help get you to the finish line.

Hey @Kenneth Hynes, let's talk.  We might just have some options for you.

Hey, @Tyrone Smith.  We're here and active in the KC market.  We'd be happy to connect you with some broker/investors.  If you want, send me a message or reach out and I can help point you in the right direction.

Hey @Joe Podwats, we just closed another one here last week with Ryan Allison of Allison Capital.  Shoot me PM, I'd be happy to talk shop with you sometime. 

@Chris Trupiano, that's what I'm talking about. As far as appreciation goes, I guess it depends on what your goals are in the short term & long term... What's cool about the CFD's or owner finance deals is that the longer they are performing the more "seasoning" they have. As the houses go up in value over time, you and your buyers are paying down the notes. I'm just fine allowing my buyer to capture that equity for more peace of mind. At a later date, if we want to cash out, we can sell the note to a note buyer.

Here's part of our strategy:  For the long term, when we do a buy & hold, I treat it as though I'll hold it for as long as I live...  Something may come up where we may want or need to offload one or more but my plan for the rest is to keep them for good.  For the short term, if we want a large chunk of change, then we'll treat it as such from the jump...  We'll broker a deal, wholesale a deal or wholetail deals in order to make that happen.

@Chris Trupiano. Yup. It depends on the property, condition, location, price point, etc. We've seen other investors get $20,000 down on more than one ocassion and as high as $40,000 down. The most I've received as a down payment for one of my investments was $8,000 and that was for a $108,000 house. That was in May of 2020. We have one in Gladstone right now that we're refinancing. From there we'll be asksing $20k down. It's a $185k house... The way I see it, if I have a house and I want to cash flow it, I'll do an owner finance deal or a lease option. If I can, I'll avoid holding my own SFH's as regular rentals. It might surprise you how many people are out there who want to buy but for whatever reason aren't able to qualify for traditional financing.

Hey, @Natasha Hardy, we're seeing some of the best opportunities here with SFH's using the BRRR strategy. Going for vacant houses or soon-to-be vacant houses have yielded the best return for us, our customers, and our clients.

In general, what we've been seeing over the last handful of years is that if the house is tenant-occupied & cash flowing well or a performing turnkey property then odds are it won't be quite as good of a deal.  You gotta wonder, unless it's part of their business model, why would an investor sell a "golden goose" or a property that's fixed up, rented, & performing well?  What's their motivation?

As a rule of thumb, in order to find the best possible deals, we have to deal with motivated sellers.  There needs to be some type of really strong need or desire for them to sell besides just convenience, market conditions, or just because...  I'm just sayin'...  Think before you start buying stuff that's getting presented to you and because the #'s look good ON PAPER.  Have a third-party agent or investor send you legitimate comps.  Do your own due diligence and decide how you want to play the game.

There's nothing wrong with either way of investing.  It all can work well.  Just know that if you plan on getting a good property, that's supposedly rent & performing and in solid condition, that you're going to be paying a premium for it.  You'll get a decent return and the process will be streamlined for you.

However, if you want a better return and more bang for your buck, go for vacant or soon-to-be vacant houses, pick your own rehab crew or one that's been highly recommended & vetted, choose a property manager that you have vetted and want to work with, and use the BRRR strategy.

Reach out if you have questions. I have a business partner who lives in Canada and we've successfully worked with a few hard money lenders and private lenders, who we can reommend to you as well, doing just as we've proposed here. You might consider some creative financing strategies to get an even higher ROI. We'd be happy to talk shop with you about those as well.

Hey, @Carlotta Hall, that sounds good.

If you already have capital then that takes care of a lot.  From there it's just a matter of asking around, letting people know what you want...  Agents, brokers, wholesalers, lenders, other investors, etc.  Eventually you'll find a solid deal.

I used to think that if you find the deal the money will come.  I still think there's some truth to that philosophy however I believe that the opposite is more true...  If you have the money (or at least access to someone's liquid capital), and you know what the heck you want (you have a realistic goal and plan for how to execute it) and you ask enough people, then surely the deals will come.

If you're looking for a homerun type of deal then odds are you'll strike out or end up on the sidelines doing absolutely nothing.  We see that a lot here in the KC area and that's one of my biggest frustrations as a broker.  There are so many investor-buyers wanting deals here now and they all essentially want the same thing.  In fact, I've turned more buyers away this year than ever before...  My response is usually, "If I find that type of deal then I'll do it my (insert expletive) self and if I can't take it down then I'll have it sold almost immediately."  ;)