All Forum Posts by: Payton Pearson

@Jay Hinrichs Thank you for your advice! I will take a look at what you directed me to.

@Scott Mac Thank you, and good luck to you as well!

@Jay Hinrichs indeed, and I have partnered with some of my family on one property (soon to be two), but their funds are limited. And I am indeed giving my family very healthy ensured profits (something like a 28% ROI year-over-year?) that will continue in perpetuity, with me doing all the work.

@Jessica Stevenson It's mostly business people that have booked it thus far, but no real specific group of individuals. Some families, some people coming through to visit families, etc. It's doing very well, and the area is starting to gentrify a little bit. This wasn't expected, but it seems to be happening.

@Jonathan R. My goals require that I grow extremely aggressively. Any way I can expedite my growth without compromising my financial stability is highly desired.

Your cool tips is a good idea, thank you! I'll definitely work on doing that more often. Though I have done some of that already.

Investment Info:

Single-family residence buy & hold investment.

Purchase price: $69,900
Cash invested: $15,000

This property is currently being Airbnb'ed and cash flowing like a boss! Monthly returns range from $600 to $1000 on a $670/month mortgage.

What made you interested in investing in this type of deal?

It was near my church at the time, Grace Christian Fellowship, very large, and well-maintained for the area.

How did you find this deal and how did you negotiate it?

I drove by it, did no negotiating. It was my first-ever purchase, so I felt it necessary to not even attempt at negotiating other than to ensure I wasn't getting raked over the coals (which I wasn't).

How did you finance this deal?

I paid 7.5% down, and paid PMI for a few months. This was my first-ever home purchase, so I was able to grab it for less than 10% down.

How did you add value to the deal?

I have been constantly renovating little (and some big!) things on this property since I purchased it. Just recently I had a contractor cut down some trees in the backyard that were making a mess of the area and preventing the grass from growing. Some species of tree in my area have evolved to shed branches to avoid collapsing when we get ice storms. This is a species of tree that has done that, and it makes a mess.

What was the outcome?

Property is cash flowing like a king!

Lessons learned? Challenges?

Make sure you have a real estate agent that doesn't just do it as a hobby, and knows what they're doing. I probably could have negotiated the price down to $60k or even less. Owner was motivated in their selling of the property.

Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?

Phil Forbes is my loan officer. I have been using him ever since. He is very trustworthy, and always gets me the best mortgage rates. This mortgage was 3.85%.

@Steve Vaughan The primary thing I need right now is capital. I have property managers and general contractors doing great work for me already, but I do not have the capital to invest in bigger properties that offer greater returns at the moment. I have the ability to invest in smaller multi-family properties here in the local area, because property is generally cheap and halfway decent here, but I'm looking to grow rapidly and go from 4-unit properties to 16-unit properties or larger.

Business plan has me buying 2-4 unit complexes for the next 3 to 5 years, then scaling. But if I can go faster without redlining and potentially blowing a gasket, then I will.

Also, why aren't you guys upvoting my post?

@James Galla Oh this is so very true! But when you filter your options to the highest degree you can think to do (and I'm still working on getting better at this!), it gets frustrating when you still find tire-kickers.

For instance, I was talking to an Army Captain who works as a research analyst about real estate. He claimed to be interested, told me what his target property types were, how he wanted to structure a joint business plan, and then suddenly stopped talking to me.

But you guys are right. It's going to take a lot of looking to find the true diamonds in the rough. The best way to show others that you are serious is indeed to start investing yourself. You have to follow the Leeroy Jenkins method sometimes (so long as you have planned well ahead of time!).

Or perhaps the Bill O'Reilly method of doing it live.

Thank you @Greg Dickerson. So very true, and I am grateful that you understand the merits of such a venture. So far I have experienced the many no's that will be commonplace in my attempt to serve those who genuinely desire to grow a business with fruitful, lasting success.

I have resolved myself to accept that, even if I never receive a yes, even after 10,000 messages conveyed to prospective individuals, I will accept that I put in every effort, and let it not be said that I did nothing. Even if I do not succeed at the venture (and I will), I have already learned so much about human psychology, big business mindset, and much more. It has been a humongous net win for me, and once more I am tremendously grateful.

Thank you my friend!