All Forum Posts by: Ryan Porter

In short, investors want security. Once they have decided to spend their money, they want to ensure it's secure in whatever they invest. In this case, real estate. My pitch to investors and what we strive to do is find them the best home for their money. Once we decide on a home, we will have it inspected by a home inspector and a property manager. We will give them a list of things the home needs to be rent-ready, a list of things they can do that will increase the value of the home for resale, and a list of things that may pop up in the future. That way, they know exactly what they are buying. Also, have some rock-solid property managers in your pocket. I started my own a few years ago to give my clients the best possible management experience. I know that an out-of-state investor is not just buying one home, so we want to provide a great experience all the way around to keep the business flow. Be as turnkey as you can. 

The few I have done, we coated the studs with Kiltz. I never tried to save the duct work though, all have needed new HVAC with duct. 

 In Jackson, MS, the "class C rentals" are usually built in the 1950s and 1960s. After that, they have been patched on, painted over, glued shut, and oiled infrequently. The homes are just in bad shape. Which in turn, you will likely have a bad renter. The newer, nicer homes that don't have over three mainace calls a year usually tend to attract the better tenants. 

 I concentrate on three areas that I love to flip in: text, call, postcard, and email. Every 3 months, they will hear from me in one of those forms in rotation. Most of my best deals have come from referrals, though. I constantly let my sphere know I am flipping homes through social media. I got a nice lead this morning from one of my construction companies. Also wholesalers. May I love those guys. They underprice things a lot. Not as much as they overprice, but deals can be found. 

I have bought two homes off of Upnest this year. Those are Realtor.com seller leads. Upnest is designed to get real estate listings, but sometimes people want to hit that easy button and sell for cash without having to deal with the public market. 

Yes, the time is now. Life doesn't wait for interest rates. Find a local mentor, and start putting properties in the calculator. You will likely strike out on the MLS finding anything decent. I would join some local investment groups and hook up with the wholesalers in your area. Also, introduce yourself to as many real estate agents as possible and let them know you are looking. The good news about high rates is that deals can be found. Just make sure and quadruple-check your numbers. Find a deal that works for you on paper. I have been doing this for 9 years and still get nervous about most of my deals. Just make sure the math adds up for the 2 exit strategies. If you plan on getting a rental, ensure it is sellable for a quick profit. If you are flipping, make sure you can rent it if it does not sell for a nice return.

Put together a spreadsheet using the bigger pockets calculator. Do two: one using cash purchase and the other using a bank loan with 20% down. On investment homes, I have learned that it matters less about how cute they are and more about the numbers. 

I talked to Cadence Bank In Jackson, MS, this week about a Brrr I am doing. After you have the lease signed, they will do an appraisal. You can pull 80% of the value on a 20-year amortization with a five-year rate lock. The rate on Friday was 8.79%.

How much is the buy-in? If the downpayment + closing cost is free, and you are doing a triple net lease to keep any repairs on the tenant in the next ten years, it may be worth the trouble. The 30-year amortization I am not crazy about either. If you could make it break even on a 15-year note, that would be an entirely different story. I wouldn't want to take a break-even property with any risk at all. Unless it's an Airbnb that I could stay in a few times a year, haha! 

I would choose A. If you are starting out investing in real estate, you will have a lot less chance of failing by keeping your eyes on your investment. Out-of-state investing can be risky. Half of the homes I look at where someone is upside down are an out-of-state investment gone bad. 

Good Luck! 

I have found lately that banks want 20% down on an Airbnb if it is turn-key. If the unit is income producing for 2 years, you can use that income on your DTI. If you are unable to do that, you can still Brrr an Airbnb as long as your income will carry the DTI needed to secure the loan. The downside of an Airbnb Brrr, from what I have seen, is that you cannot use the income from the property on your DTI. This limits the volume of what you can do versus a year contract rental. Not to mention the $5,000 - $8,000 to furnish them. Once you set them up as a business, and after two years of steady income, the bank will use that income on your DTI. It is a slow growth in AirBnb world for us poor folk!