All Forum Posts by: Ray Fisher

The quickest and easiest is to replace with what is previously there. I have started changing to electric here. The renters  really don't want to pay two deposits for utilities. I have owned and replaced both.  Around here the gas are more expensive. and the gas company here seems to try everything they can to get you to replace almost every time they come and  want you to upgrade to the latest codes.  I have called there bluff. listened to them, asked them about grandfather clause about code when house was built. They backed down.

I installed a new hvac unit in my personal house, blew in 12 inches of insulation, added soffit vents 8 more of them, a ridge vent , and added storm windows at the recommendation of my hvac contractor.  The gas company came changed my gas valve because my bill cut in half.  then they tried to make me update to newest code for my hot water heater. I told them I would change to electric. he said you don't want to do that.     My next statement was watch me!  when that hvac unit goes out that house will be all electric.  The gas company employees are killing there business here.

One thing you need to consider is if the house has enough power service to feed an electric hot water heater, you may have to upgrade that. 

Roof condition

Floor structural

Plumbing repairs and plan upgrades

Electrical basics and plan upgrades. Hvac etc 

Repair walls damages

Fix and paint ceilings

Paint walls

New or upgrade flooring 

Look at and “fix” curb appeal

Decide to rent or flip

That’s my basic 10 .  Each level can go in any direction and any depth of repairs or upgrades depending on your market. Mine is basic ,clean affordable no frills housing. 

And for j scott’s Benefit I’m going to have to buy that book someday when I have time to sit down and read it. I am too busy rehabbing . I am waiting on the book On tape, cd or what ever form us “Old guys” use.

I started investing in real estate about 12 years ago . I talked to my college roommate about investing, He started analyzing the deals. He has this idea of the perfect deal, He is still looking for that perfect deal that fits the formula that he came up with. He is a pessimist that tells me about all the bad stuff he reads.  I tell him all pessimist's need a lick in the Cant's. lol    

In the meantime,  I bought my first deal with another friend,  that deal has evolved into over 50 sfr's now.  The first ones are starting to get paid off, I'm still buying new ones signing up for 15 yr loans.  I have found that if I offer a clean , rehabbed property in the market price I have a line of tenants  trying to rent my property, 

I offer a service that there is a need for.  Bad things happen to Good people everyday, I offer practical experience credit advice to those who want to listen, I had one renter that rented from me for 4 years, rebuilding her credit, She had me fill out forms for financial institutions about her rental history, last fall she Qualified for her first home , I couldn't have been happier for her. Today she still calls if she needs information.     

As far as robots taking all the jobs. I'm 60 now when I was a kid, they told us we were all going to be in flying cars by 2020, we were all going to be eating food from tubes like the astronauts , YEAH RIGHT!  the world hasn't quit reproducing,  land isn't being created!  There are movements to go organic grow your own food, The one thing that If we all don't have jobs, and we have no money.  Who is buying that robot produced product, and who is going to pay the bill to keep that robot factory running? I guess all my  houses will be paid for, I can tear them down , rent the land for gardens or robot salvage yards.  really it's my kids problem not mine ,lol   

In the meantime pessimist's step aside  

I Owe I Owe so off to work I go

Parmer, you can take on the tasks you feel comfortable with, 

youtube and DYI shows will teach you  some things, I use them quite often. 

There are times I hire a contractor or there employees , observe and get a great education from them , I see how it's done right, I call that paying for my education, 

I have multiple sfrs within a 200 mile radius.  I can only go to those on weekends due to the fact I have a distribution business I manage during the week.  Like someone else said , those far away houses are usually about a 6 month rehab, If I have loans I have pmts due every month. those were 50% deals bought early on. but the added costs are there. I even hire my employees from distribution business on weekends, they can use the extra income ant I have a crew on the weekend.

I tried to hire "cheap" contractors , I was chasing down, calling, begging to get stuff done. took two to three times longer to get a job done. definately dont pay them on thursday you wont see them till next week if your lucky,

Today When i need a professional I call that reputable firm, they knock it out in a few days and im back in business. saved a lot of time and headaches.

Cash flow in when rented or flipped,   That's where I want to be .

I have used in house financing mostly with community banks, 15 to 20 year amortization, 3 to 5 year renewals. have repeated it many times with different banks.  I have talked to hard money lenders but as of today haven't used one.  Absolutely  no issues with using them .  I guess when I have maxed my borrowing potential I will be more than happy to work with one. 

I don't have the bRRR strategy down, I have never refinanced at the end.  Just kept my increased equity's as a leverage point in case I have a Cap Expense show up.  

Have paid cash for a couple to give me the increased cash flow in rental income.

flipped a couple for Quick Cash.

I am always looking for that diamond in the rough where I can max my potential. 

my strategy is reinvest, reinvest for the long haul. 

with new appliances you could negotiate increased rent or longer lease. functionality  verses new appliances ,  explaining the cost of new appliances and you are accommodating they should also.   try some goo gone seems to cut grease well.

some of those lakeside property communities are property owned associations  with no local job market .  Retirement communities . I live close to one . Do your due dilegence thanks like dry countys , bleak job availability, lack of people retiring , communiting distance, limits the availability of renters. I have looked at and walked away from deals when I found out that 75% of the members of the p.o.a. Has ( down from 400 to 125) are either passed on or moved away. We don’t get the influx of retirees from the big city’s we used to. Those things look great when your looking from outside the state in on a website. But living here tells the story. That’s community and the lake area dry up during the winter. other parts of the state that are wet county’s, are flourishing,  just depends on the area of the state. I own on one lake Conway , I can rent it but values haven’t moved in the last 5 years. Actually dimished

Welcome to BP, mostly SFR here, flipped a few, I live in central Arkansas would love to get together with other investors.

I am not a flipper either,  but zero down loans are available, After you prove yourself to your lender. The more experience you have with the lender the easier it becomes. our financing style is a little different than some.  I have a job that services my needs. we reinvest everything into the properties.   building retirement and legacy wealth is our focus.  I have not used hard money lenders so far,  Although I have contacted one, done my due diligence with them and if the right deal comes up I will contact them if the lenders I use don't want the deal.  Always be working on and have a backup plan.  just like exit strategy's,  Have multiple financing strategy's.

Chance,  like you I don't know what I have to offer either, My experience with using a Heloc has been some what limited, On one occasion I went to my local community bank, and received a heloc for about 50% of market value, but was 70% of my equity.  That was with my banker that I have built a relationship with. That went pretty smooth.  My other experience was with a house that was paid for. I went to an online source, for the cheapest interest rate I could get, wanted to refinance it for a cash out position to transfer equity to the existing home I was living in. this loan seemed to take forever, I was so aggravated I swear I will never go through that again.    Even after it was closed they were asking me for more financials to market my loan.     

All of my other loans have been with community banks, they are in house loans, 15 to 20 year amortizations , loans are a little higher interest and have a 3 to 5 year renewals.  This we have done many times with multiple banks.

Finding the financial intuition, and  the banker that specializes in mortgage notes is the hardest part. One thing i found out early on was if I was turned down, there is always another one and its usually across the street.    

If you find someone in central AR who wants to have a meetup let me know I will make it if at all possible.