All Forum Posts by: Robert Coomer

Marcial,
Congrats on making the biggest step! Joining a group of like-minded investors is the fastest way to tap into an endless amount of information.

Hey Everyone,
I just found an apartment building for sale at what I think is a great price, but I would like a second opinion. Here is the information:

List Price: $345,000
Units: 16, All 2BR 1BA
Rent Price: $600 per unit (low estimate)
Taxes: $6,890 per year
Insurance: Approximately $12,000 per year (estimated $800 per unit... is this even close?)

I am very familiar with single family residential homes and have been a wholesaler for a while (over 12 homes last month), but I have never invested in a multi unit building. What other costs am I over looking and would this be a good deal?

I have actually stopped by it briefly, and I liked what I saw! The wholesaling scene is Memphis honestly may be the best in the U.S. right now. I have over 25 Wholesales in the last 2 months and a continual stream of excellent new properties coming in each day.

Thanks for the reply to my post, and I'm sure I'll be seeing you around the forums!

This is a tricky issue given all of the restrictions that are currently in place. I do not know that much about the loan process, but I've been hearing rumors of grouping several loans into one commercial loan. That may be something you could talk to a local bank about.

Hey everyone! I'm an experienced wholesaler from Memphis, TN. I found this site earlier today and have been nothing but impressed! I love all of the fabulous content and it appears as though I will be on here daily to soothe the addiction I already appear to be showing signs of. I'd love to answer any questions you may have or just talk Real Estate in general. Hope everyone has a great weekend!

Hard Money is always available. You'll probably pay a little, but if the investment is sound it should work out. I'm a wholesaler and I've done it 20+ times in the last 2 months. You just have make sure that the ARV is going to be high enough.

JL,
I know exactly what you are talking about. I'm a 21 year old college student as well. I bought my house when I was 18 and have been investing full time for about the past year. Firstly, you need to establish good credit. The easiest way to do that is buy a house. I know you said that you have little cash and your unsure of your credit. The first thing that comes to mind HUD. HUD runs loans through FHA which has a primary goal of financing first time buyers, so their requirements are a little lower. Another little perk to HUD is that they offer really low downpayments in many cases. For example, in Tennessee and Arkansas they are offering $100 down payments. I dont know exactly what is everywhere but thats a great place to start.

You should also get seriously involved in your local REIA. I can not stress it enough! As for getting your license, it will help in specific circumstances, but overall it is not necessary. Most RE agents are in the business a few years before they strike up consisteny clients. Wholesaling is the way to go! I actually wholesaled 26 properties in the last 2 months, but I also have an incredible company working with me. Before you get into all of this you should read everything you can on RE and Wholesaling so that you know what you are talking about when it comes time to discuss with potential investors.

The only problem I can forsee is that, like me, you probably dont have 2 years of reliable work history in a related field which is a MUST for many banks. You may want to try to get your parents to cosign on your personal residence. As far as buying investment houses for yourself, unfortunately you are probably still 2 years away. Shoot me a message if you have any questions or want any more info.

Terry,
Here is another option. If you can afford to pay cash for the property, do so. Once all repairs have been made call the bank and tell them that you want to permanently finance the property. Many banks in my area are still doing 75% loans based on the after repair value. The trick is to find a house that you can buy and fix up for less than 75% of the after repair value. If you do this, get the permanent financing in a HELOC (Home Equity Line of Credit). A HELOC basically works like an open checking account so you will be able to immediately pull the money back out. Keep in mind that many banks have gone to what I believe is a 1+3 policy meaning you can have 1 personal residence and 3 investment properties, although some are more strict. You should check with some of the smaller banks and find out their criteria then work from there on creative financing.

Chris,
To add on a bit... In my opinion, long term rentals are the way to start. Flipping in a market as volitile as the one we are in now is a sure way to get in over your head if the properties dont sell. The only success I've seen in my area is in the upper end housing which is normally not affected as much as the smaller market as far as retail is concerned. Join a local REIA and network with some people. You will find that most people are more than willing to share information. On a side note, you should know your city and dont buy properties in area that you would not feel comfortable going to at any time of the day. Lastly, try to find a wholesaler near you. You may pay a small markup as far as price, but wholesalers have the advantage of knowing areas, rent ranges, renovation costs, etc. If you have any further questions, please feel free to send me a message I remember not too long ago when I was in your shoes.