All Forum Posts by: Chris Kennedy

@Raymond B. thank you! I actually figured it out this morning, but it was frustrating the heck out of me - much appreciated!

Hi James,

Great questions. And yes, you do have valid concerns, but I agree with what @Jordan Archer said - you can acquire property significantly faster with seller financing. You can also work financial partners into your plan. Maybe you have some friends that have cash stashed away and don't know how to get decent returns? 

If you do have some extra time to start marketing for sellers direct then you can wholesale some of the deals for extra cash - this is a great strategy for saving down payments.

Down here in south florida I can still find SFR rentals that will cash flow $400-$500 per month after financing, but I assume that is harder to do in your market. Either way, buying rental houses on your own with traditional financing requires patience to save down payments and it takes time, it is a long term wealth building plan.

Gary Keller's book "The Millionaire Real Estate Investor" is great because it highlights strategies used by different investors around the country, so you should give it a read and see what others have done. 

Best of luck!

@Tom Krol great post, thanks! Good to hear from another Florida wholesaler. By the way, I'm looking for SFRs for buy and hold, what sort of prices are you getting up there in Port St Lucie? 3/2 or 4/2, CBS, no pool, not a war zone...

@Michael Q. Okay, I'm going to go ahead and take the bait....what source of leads are you talking about? I'm a loyal customer of YellowLetters.com and have done 13 deals this year off the marketing so I'm a huge fan, but always on the lookout for new ideas and lead sources. 

You should go find more money/lenders, then when you find a deal run it past multiple potential partners. This makes the lenders more competitive, and it gives you a reality check because you get multiple opinions on the deal. Having options gives you more confidence and leverage. Good luck!

@Jarlen Martinez feel free to hit me up with questions or for help on any deals! 

@John Andrews I usually use the standard Florida Realtors-Florida Bar contract if I know it's going to be reviewed by sellers attorney. I also like to select the title company, and you can still have seller pay for title charges if you select the right boxes on the standard contract. I'd be happy to walk you through submitting the offer, just send me a private message or give me a call. 

Hi all,

I have to agree - its pretty insane down here right now, but there are still a few deals to be found (just don't look for them on MLS or LoopNet - that's where all the overpriced ones end up!)

I just closed on a 5 unit with $48k gross annual rent for $240k. It's somewhere between an 8-9% cap. In May I wholesaled another 5 unit in an B+ location for $275k. These were both in Fort Lauderdale. 

I find an average of one of these multifamily deals every 1-2 months doing a ton of direct mail. So it's not easy by any means.

@Aly W. or anyone else interested, send me a PM if you want me to let you know of any I find. Otherwise I suggest sending out your own direct mail and making it happen - I do about 2000-3000/month and go on a lot of appointments to find the gold nuggets! 

As an aside, I think finding good SFRs in decent areas is the best way to go down here right now if you're looking to buy and hold. 8-10% cap is easier to achieve. 

Get your license, but do not quit your job until you understand how to generate leads and close deals. Part time to begin with is the only way to go unless you have at least 6-12 months living expenses saved that you don't mind blowing if it doesn't pan out. 

I work in a large brokerage in south florida (400+ realtors), and far too many of the new agents have already quit their jobs and bought a brand new car (on payments) before closing a single deal. No matter what anyone says, it is a very competitive business and the first year is a real challenge. But it's a ton of fun and very lucrative once you get it figured out! Go get the license and good luck!

Totally agree with Rick on this. The value you provide as a wholesaler is being able to take care of these type of problems with little/no hassle to the seller. If you don't take care of the eviction then you're likely to lose the deal to an investor who will. Work enough into the deal that you can offer tenant cash for keys and hopefully avoid needing to evict. 

Hi James,

Congrats on considering an RE investment while you're still in college - I wish I had been half as smart at your age!! 

While I like your strategy of buying a duplex and living in one side, this specific deal is too slim for my taste. It does not meet the 1% rule when you use comparable market rents and analyze it purely as an investment property (without you living in it). 

Based on my quick calculations I don't think it meets the 50% rule either. $18k in gross annual rent would leave you $9k for  debt service and profit, and I think the debt service on your loan will run about $9500 per year, which means you're cash flow negative every month. 

I think you should look for a better deal, or if you can come up with a larger down payment it might make sense since your mortgage payment will be lower = more cash flow. 

Best of luck and keep us posted on progress!