All Forum Posts by: David Hutson

@Alex Craig,

Sounds like a great event.  Count me in.  Let me know if you need any assistance setting it up.

Orange County, if you want to meet with a great turnkey provider who deals in homes in the better areas this is the time to chime in and come to the meet up.  I have known Alex for a few years and he has a great business model and great homes.  I stop by his office each time I'm back there to pick his brain and get the latest info from someone who is there and deals with the people directly.

@Account Closed,

I have several homes with them.  Their business model works great for keeping long-term tenants.  The customer service has always been great and they continue to grow.

I was out there earlier this year and walked through their new offices and warehouse and they are expanding.  They do hundreds of rehabs every year I believe they will continue to expand. 

Send me a message if you have specific questions.

David

Rental loans are generally a half a percent higher to maybe one percent higher.  It's due to the higher risk level for the banks.  5.1% sounds ok for a 30 year loan but I would check local credit unions and banks where you live and where you want to invest.  If you have good credit and a good job I would think you'd find a rate under 5%.

Depending on whether you are trying to get cash flow or trying to pay off loans quick, you may want to look at a 15 year loan.  You can save a lot of money but if you need/want the cash flow do a 30 year loan and let the tenant pay it off over time.

@Tamaria Bridgeforth,

Welcome to BP.  As @Alexander Price mentioned I am on active duty and currently invest in Memphis.  I have purchased 12 homes there in the past three years and in the process of buying four more as we speak. 

Buying and paying off three homes in three to seven years is a great goal that will take a lot of work.  Depending on your rank and available income that may be a possibility. 

Feel free to message or email me.  I'm always open to talk to people about investing, especially in Memphis.

I try to schedule my trips out there around them.  I found a house from a wholesaler the last trip out.  It made a decent deal.  I also met a lot of knowledgeable people who have been doing this for many years, new people who want to get started, those who provide services, and more.

Get there early for the social time and meet as many people as you can.  Some will be able to provide info and some won't but you never know who you will work with in the future or need assistance from.

If you don't fly out there you don't know what areas are good for you or meet your standards. you are basing your decisions on what you are hearing and hoping that those you are trusting are providing you good info or that they understand what you want. spend $1200 and go out for four days. make appointments in the mornings and afternoons to meet with as many people as you can. visit realtors, turnkey companies, a lawyer or two that conduct closings and, if you are flexible, get to the MIG meeting, which is the local REIA meeting. This would be vertical beneficial for you in the long run andown will also show people you are more serious about investing.

Abdul,

Funny you should show this area tonight.  I have been running numbers on four houses in that area today.  2 on Cottonwood and two in the near vicinity.  I think it's a pretty good area.  Returns on properties seem to a little lower around there lately but several companies are selling homes in that area. 

I think it's a good working class neighborhood.

David

Afternoon,

I'd stay in the home your in now and go buy rentals.  If it makes more sense to rent then you should do that while you build your portfolio, whether it's one or several.  The money you are saving on rent or a mortgage for your primary home  can go towards your other homes.

Good luck,

David

Abdul,

You'll need to find private money initially, get the home fixed up and then go back later for a conventional loan.  Look for private money from friends or family initially.  From their you may need to look for a hard money lender.  If it were that easy to get loans for homes that won't pass inspections I'm sure many more people would be doing it.

I'm sure you'll get many responses but if you don't get anything that suits what you are looking for give me a call again.

David

Rico,

I buy from Rent to Reward have also done a few referrals for them where I did receive a small fee ** disclosure** but that has let me see the full process.  I worked with the people I referred to them through the complete process until it closed to ensure they picked a good home in a good area.

I have flown out and met with them also.  They took the time, as many TK companies do, to show you around and to look their homes.  I'm also in the process of choosing and purchasing another home from them. 

They have very reasonable fees and the customer service is very good.  I have had no issues with the service.  I did have a month or two where a tenant was late and they immediately started tracking the tenant for eviction if they didn't respond and pay the rent.  The tenant called in and set up a payment plan as they had an issue.  I think they are a very good company.  You will pay around appraisal value for the home, maybe a little under, but for me it works.  I also purchased a wholesale deal out there this year and by the time I paid for the home, rehab, the rent up fee, not including vacancy, I wasn't that much further ahead than buying TK, less than 10% between my total costs and the appraisal I had done.

Good luck with whichever option you choose.

David