All Forum Posts by: Dorothy Butala

When speaking with potential lenders, you are going to want to highlight your credibility as well as present any potential deal to them in a professional manner, check out the post I wrote to another aspiring investor regarding lender packets: https://www.biggerpockets.com/forums/48/topics/496900-presenting-a-deal-to-a-potential-investor-partner

In my experience lenders don't advertise that they are lenders, they are usually born from networking and connections you have made by going to events, working with other investors etc. Whoever you meet can be a potential lender, so always be ready to tell everyone what your goals are, what your experience has been, and do it in a professional and concise manner (elevator speech). You can even create a credibility packet to give to anyone who inquires about your business (gives you another opportunity to connect with someone). For example, you go to the next REIA meeting and you sit next to someone who you tell your elevator speech to, and they seem to be inquisitive, you can ask for their info and then send them your credibility packet. Always have another reason to connect with someone you want to speak with before leaving them. I also always ask everyone what they are doing in the business, and finding out what someone's goals are will help you in finding lenders as well. It's part science and part art...listen to some of the podcasts on finding lenders, watch videos of people giving their "pitch" then practice. Hope this helps a bit!

Hi @Aimee Orozco check out some of the advice I gave to another aspiring investor: https://www.biggerpockets.com/forums/12/topics/496755-trying-to-get-my-real-estate-career-started Hope this helps a bit!

Getting into a C or D class area, could be nice because the cost to purchase is usually more attractive, however there are some things you should keep in mind.  You will have to set what expectations you have of the applicants for this asset class, which isn't an issue, but you shouldn't expect to have highly qualified applicants for this area.  Also, showings are a bit more difficult since the area isn't very "welcoming" and as much as you try to make your building the best on the block, the general status of the neighborhood may be a turn off to applicants.  You will spend more time on this type of asset because it will probably need more work than a B class asset, however your cash flow will probably be a bit higher, so you have to ask yourself, do you want time or money?  

If the buildings are older, you may have more expenses due to the age of the asset, which could potentially knock out the cash flow even if it is a higher cash flow due to a lower purchase price.  

I bought a 6 unit in a not so great area, and have done as much as I could to increase the curb appeal and rents, and was pretty successful but it took about 2-3 years to really get it running well enough to increase the value of the property.  It wasn't until the neighbors started taking care of their properties as well, that the area started to improve and bring better tenants.  Had I known then what I know now, I may not have purchase the property, however, it has been a great teaching tool (paid a lot of tuition and been kicked a lot by the building and tenants).  I personally suggest that new investors find something a bit easier to manage and learn small lessons first then get into more challenging types of investments as time goes on.  But that is just based off my personal experience.  I wish you the best in your decision and future ventures. 

What are your real estate goals?  It seems like you are more interested in the financial markets and where to put your money in financial assets....or are you looking for advice for your real estate assets?  

Why do you desire to wholesale?  What are your real estate goals?  Flips? Rentals?  

Yes, my lease says strictly no smoking, and it includes all guests and any other person's the tenant may bring to the property. If someone is a smoker, I don't care if they are at the property, as long as they don't smoke in the property or on the property. If someone picks up smoking but they weren't a smoker before, I may not evict them, instead give them 30 days notice, and if they don't leave by that point in time, then I would start the eviction.  

Yes, the reason I ask how many vs do you smoke is because open ended questions people tend to tell the truth and have to pause for a second to think about the answer when they are smokers.  Non smokers immediately say zero, but everyone who has hesitated always admitted to smoking.  I don't care if they smoke 1 or 20, the point is to know they are smokers, then at the end of the pre screen, inform them our properties are strictly non smoking inside and out, and we can not proceed with a showing.  It also states in my lease the non smoking policy, but I don't even want to show my properties to smokers and waste my time and theirs.  Smokers never get an application.  I recently had a guest of a tenant set a porch on fire, 10 to 15k in damage.  And in the past when smokers told me they didn't smoke inside, they lied.  So it's not only about difficulty and additional funds turning units after a smoker leaves, but also safety.  

@Andrew McManamon I sometimes have a hard time comping houses for myself and clients, is there another agent or sales manager in your office that you can have help you run comps to give you better idea of the upgrades needed?  Sometimes a second set of eyes definitely helps.  

I suggest making some type of credibility packet that highlights your experience and education.  For specific properties I make a lender offering packet, here is the main page, I also include all the supporting docs at the bottom as well: 

I would recommend talking to some agents or other flippers in the area who can tell you what your particular area demands in terms of renovations and upgrades.  For example, if all the similar houses in your area that are selling have tile floors, you may need to upgrade to tile, but if they all have laminate, then stick with laminate.  You want to make sure you don't over improve unnecessarily so getting the input from people who are working in your area will be the best bet.  

But some things that most people would probably agree on are a neutral paint pallet - painting over the dark colors, and cleaning up as much clutter and personal items as possible for the pictures you or your agent will use to market the property.   Hope this helps a bit.