All Forum Posts by: Sam Wilson

Certainly buying on a retail level I think is directly out. In my opinion it should be directly out for anyone who belongs to BP, because we aren't here for that.  If you are lucky enough to be experiencing price appreciation in your purchases, and there are those do- good for you. But a patient investor doesn't bank on price appreciation. That is just decadent icing on an otherwise fantastic cake.  Everything and everyone says that there are deals in every market. I know there are in mine. And the harder it gets and the more obscure the deal is to locate, the less competition you'll have. And for that less competition comes a lot of legwork and digging on your part. We have purchased solely in the foreclosure/pre-foreclosure market. It's not a terribly difficult thing to figure out- but it's reasonably obscure in how it functions, what you have to do, the deals you have to analyze, how to buy at the auction and how not to get totally hosed on a bad buy. Speaking of buy- your money  is always MADE on the buy (and the future Cash Flows from renting).  Buy right and you're fine. So good luck hunting your elusive prey. It's there. But may be harder to locate than you want. The payoff for the kill is totally worth it though! (ok if you're vegetarian insert 1000 year old heirloom seeds planted in some amazing soil or something and forget the hunting analogy).

@James,

I own the home outright, that is the real rub. I really don't want to own it free and clear for obvious reasons. So long-term financing is the ideal solution, or punt it. But it makes a nice little return...We'll go through the channels mentioned above and see where it gets us. If we can't get long term financing you'll see it listed soon! Thanks everyone for pitching in and giving great feedback. I (we) appreciate it very much.

-Sam

@Chris Mason - Great advice!  Hadn't thought of that.  Thank you! 

Douglas,

I've spoken with someone at brighton before. If my memory serves me correctly, the issue is the value of the home. i.e. I haven't found anyone that wants to lend on a 50k home. But my memory could be wrong! We'll call them and see what they say for sure.

Thanks,

Sam

We have a rental property in Memphis that appraises for 53K and we net about 7500/year for the last 2 years.  Any recommendations for good places to ask about a mortgage on it?  It is currently our only rental.

Thanks!

Hey BP crowd - I have a rental property that appraises for 53k and rents for $750.  It has been continuously rented for over two years and we net about 7,500/year.  Currently we have no mortgage on the home but would like to get one to free up that cash.  We've talked with two banks that said they do not give mortgages to homes that appraise so low.  Didn't know if that was a universal problem?  If so what suggestions do you have for this?

Thanks!!

As many have already said, go for it. Make your mistakes- but keep 'em small if you can help it. You'll never know what you don't know until it dawns on you that "oh, I should have known that". And from then on...you'll know it. Experience will help you iron out your systems. As for how much to rely on an agent? Sounds like some people have really figured out how to leverage an agents time. I'm not that good. I like to use them for what they're good at; Knowing market values and keeping deals moving along. But how often to check on my property? Everyday if I am available. Time is clutch on a flip. Carrying costs can eat you alive.  Get on with it and do not delay. I have found that simply by showing up for 10 minutes each day I can head off days and weeks of delays by some critical thinking. Don't get me wrong- I have good contractors and all, but they're not the ones who get shafted if this baby doesn't stay humming. So I stop in, answer questions, make changes. It will save you loads of time and money. My background is in the trades- I DO NOT self perform anything if I can help it though. It doesn't make sense. If I can pay someone else to do what I am doing for $20 an hour- then why am I doing it? I'm not an employee/contractor. I'm the engine that drives this rig and if I am heads down in a painting project trying to save $500 I guarantee I just spent $2000 on something I missed. So that being said- go for it. I'm sure you'll do great- and I'm sure you'll do just like the rest of us and really screw some things up-at least once. Maybe not that same mistake again, but you'll continue to do that the rest of your real estate career. All the best!

Just bought two tickets! I NEVER go to things like this- and somehow the lineup of folks and the variety of backgrounds seemed to click with what we want to do next. I need to go to this. My wife and I are pumped to attend. Thanks so much and looking forward to it!

Chandler, Contact Sean Trail in Manchester. BC of the rules of the forum, I can't post a phone number here but I'm sure you can find it! He closes all my deals in coffee county, and is a good resource for questions, evictions etc. Also, what are you looking for? If you find anything in coffee county you don't have the capital for or don't want for yourself and want to make a quick buck, hit me up!

I bought a house in a new city (town) in February. I've wanted to expand the footprint of our business but in my effort to get things moving I actually just set us back. Didn't know the market that well and didn't realize the house was in a flood plain, had settled tremendously and the neighborhood was not very good. It was a foreclosure, and often times we do not get to see the inside of the house before we buy. I got hasty and even paid over my max bid for it. Not that much- as I have paid marginally over max before and come out ok. Not this time. It was our first real money pit loser. I mean loser. Egads. I'm thankful for all of the wins we have to cover the loser. Also I self financed it and had the hardest time selling it. We were fast approaching asset rich and very cash poor. It's a terrible feeling. All in all- we sold the place. I got my cash( minus my losses) back and got right back in the saddle on some other deals. Which are moving along nicely. But I'll never totally self finance the thing again unless I have ample cash reserves- and I'll do a lot more studying before we expand.