All Forum Posts by: Shane Dreffs

Hi Zane,

I live and invest in Alabama, but the answer to your question depends on your strategy:

Are you looking for turnkey or distressed / rehab properties, do you plan to self-manage or use a property manager, what class neighborhood, are you buying cash or how much will you put down, are you willing to look at cities just outside of Huntsville? 

Send me a message if you would like to discuss in more detail. 

Hi Kevin,

I am an investor not a real estate agent, but I seek agents that work with investors and invest themselves. Because, you are partially correct, investors look for distressed or under market value properties and often make multiple "lower" priced offers. (This can take more time and more upfront work for an agent). But the investor is always looking to buy more properties so the agent will likely get repeat business. Investors also talk to other investors, so if an agent is helping an investor find under value deals, they will most likely refer to other investors. You have to find the agent that understands this as a value, you can look at the biggerpockets agent finder, go to local meetups, or talk to other investors in your area. 

Quote from @Amy Lemaistre:

Quote from @Shane Dreffs:

Check your contract and make sure there was a defined process for change orders. There should be a process or something similar to:

The contractor identifies an issue that is outside of the scope of work, you review and determine is it in the scope or not. If it is not in the scope the contractor will provide a quotation for the work and is not allowed to start the work until you approve the change order in writing with the defined and agreed upon price and terms. 

Thank you. Nope nothing like that. I did not have an actual contract written up. Yep, my fault! This is my first flip. 

Don't feel bad, this is part of the learning, especially on the first one! (make sure in the future to have a written and signed contract with scope of work and terms defined clearly).  I would also have a conversation with the contractor and inform them that you will not pay for any extras that are not approved with price and terms are agreed upon first. If they understand they will be doing the extra work (outside of the quoted work) without getting paid, they will stop.

Check your contract and make sure there was a defined process for change orders. There should be a process or something similar to:

The contractor identifies an issue that is outside of the scope of work, you review and determine is it in the scope or not. If it is not in the scope the contractor will provide a quotation for the work and is not allowed to start the work until you approve the change order in writing with the defined and agreed upon price and terms. 

Are you renting it as an STR right now? There are some lenders that will loan on the STR rental amount. It will depend on the ratio usually around 1.25 or 1.5

Quote from @Travis Timmons:

That's a cute phrase until you have to write a check. It's scary, money is real, and you have to run your own race based on your circumstances and finances. 

I'm a fan of the consistent, not checking which way the wind is blowing, dollar cost average investor that keeps buying every year or two. Good or bad timing is too hard to figure out. Nobody knows what's going to happen rates, prices, inventory in the next 6-18 months. It's best to keep your head down and look up in 10 years to see how it turned out.

Yes, I agree, but any investing is risky so you have to be smart and mitigate the risk. The phrase does have a subtle meaning behind it, there are too many people with more money than common sense. So they chase the next big shiny thing. Then supply and demand begins to happen, when the masses begin to think it’s too hard and go chase the new thing, supply and demand happens again. I like to use data, coming from an engineering background, and I see the data and trends over history, this can be used as a guide only to help with investment decisions (it’s not a guarantee but another tool to use). 

I have been reading lately about high interest rates, high prices, low inventory, too much competition, no cash flow, etc. But I think right now is the time to be ‘greedy while others are fearful’ I am still finding deals, it may be harder but it is definitely possible, does anyone else feel the same? 

@Joseph Lavoie I live and invest in Birmingham area, I have a couple sources that will loan under $100k (hard money loan w/construction loan) I have used if you are interested. 

Hi, what areas are you looking to invest? 

Hi Michael, I am a robotics and automation engineer that has recently jumped into real estate full time, using the BRRRR strategy.

(But I have been buying and rehabbing properties for the last 15 years)
I live and invest in Birmingham, AL I would love to discuss with you in more detail.