All Forum Posts by: Sean Tagge

I would call the PM companies that are recommended by Roofstock on their website directly and they might have some properties that become available from time to time. 

Hey Brandon glad to see a local Memphian wanting to get it going here. You are living in a great Market to buy and hold. I live here as well would be happy to show you around our office and PM company and have a chat with you anytime at lunch or whenever. Here are answers to your questions. 

How to find hard money (or other types of) financing?

Bridge Capital

Lending Home

Lima One Capital

Do I setup an LLC before buying my first property?

I suggest no as long as you get a good insurance policy your good *unless you have a lot of assets not worth the cost. Wait until you have a few properties then get an LLC for them for asset protection

Do you recommend finding a few easy turnkey properties before going into BRRRR?

Pros and cons to everything. My first suggestion is "house hack" a house you are living in or if you are renting buy a house to live in that can turn into a rental someday. 

Spend marketing money as much as you can on:  direct mail, networking with wholesalers and agents, expired listings, fsbo, driving 4 $, SEO, PPC, targeted lists; probate, divorce, high equity, pre foreclosure, tax liens etc. 

I'd be happy to share with you a video I made explaining the areas of Memphis on a Map very informative. Also my thoughts is try to buy in the higher end one you will likely have more appreciation two you have fixed costs time and effort associated with just buying a property no matter what the price you buy it at. 

Ya Memphis is a great market good cash flow and now appreciating a bunch recently. 

Most conventional loans are a minimum of $45k and lots of hard money lenders have a minimum as well so its hard its just not worth the effort to some lenders when they could be giving out a $200k+ loan for the same amount of effort. 

That being said man you might want to consider just getting a personal loan of if you own a car all cash getting a loan on that or a HELOC on a house or getting 0% interest introductory credit cards or borrow from a private lender like a close family or friend.

Brutal Honesty here- Chandler Reports is already decades ahead of you on that and they charge pennies for any custom data pulls you can think of and monthly data subscriptions. Also listsource.com does that as well. Several other companies provide this data as well. Also MLS access gives you a lot of insight as well. So I would say probably not worth your time since there are already several other competitors. Only value would be if you could pull data they are not already pulling, like some sort of niche distressed owner list.

But as an engineer and fellow nerd great idea and it would be fun to build that crawler tool!

mortgage brokers that work exclusively with REI:

Aaron Chapman 

Greg Iverson

PM me for more info if you want to. 

@Juan Rivera Here are answers to your questions below in Bold. I'd be happy to chat personally DM me if you want. 

Any advice on steps to take BEFORE making our initial purchase?

get pre-qualified with a lender. I would recommend Aaron Chapman or Greg Iverson

Read books listed to the BP podcast religiously

Have a reserve fund

Try to house hack and invest where you live. Go to your local REI

Did you create a legal entity BEFORE you made your first purchase?

If you are getting a conventional loan you need to purchase in your personal name because you will be personally guaranteeing the loan. You can then a few months after ownership quit claim into an LLC. So no don't make a legal entity before you buy if you are going to get a conventional loan. if you are going to pay cash maybe. You live in Brea CA so there are some big expenses there you might want to consider with an LLC vs owning in your personal name so if I were living in CA. Personal opinion if owned less than 5-10 doors I would not get an LLC and just make sure to have good insurance policies. 

I think a big thing to consider when trying to narrow down a market is the team you will be working with. Do you have any connections in either market? Can you partner with someone in either market? Fining someone who already has knowledge about the market wether they are a true partner with you or just a team member RE Agent or Property Manager or contract can really make or break your success and also jump start your success. It's all about the connections talk to everyone you can. Which market do you know the best. 

Next topic Memphis is lower end compared to Nashville with prices so your barrier of capital entry is smaller. How much capital do you have? Analyze 50 deals in each market and see what the average all in capital needed for a deal is and compare that to your capital to invest in RE. Most of your deals will be light rent ready flips where Nashville you would put in big repairs to get them up to retail/homeowner standards. There is probably more development opportunities in Nashville compared to Memphis. 

Another consideration is what is your plan? Then see which market caters best to that plan. Buy and hold? probably Memphis is your bet. Flip 2-4 really high end houses a year? Probably Nashville. 

Both markets are equally competitive and attractive to other REI I would say in their own regards