All Forum Posts by: Steve Chaisson

Redemption period in Tennessee is one year.

You will not be able to get a title policy for 10 years unless you get the sale certified through a third party vendor.

Watch out for "white elephants". If there is something inherently wrong, such as a utility easement that renders a lot unbuildable, or a subdivision that doesn't show a parcel split on an online map but is recorded, there are often reasons why properties wind up being given up just for taxes, and you should not take them for granted.

If you buy a condominium, you will be responsible for association fees immediately.

And finally, don't be dumb and forget to file your deed. I'm filing suit to quiet title next week with an individual who purchased a property at tax sale that I purchased over a year later. He didn't file his deed. He's about to lose $25,000 because of Tennessee's race to record statutes.

When you get 1510 Norvel closed, talk to the owners. Tyler and Paul renovated 56 houses last year. They are always scrambling to build new investor relationships.

REIN is a pretty good network. Attorneys like Carlton Drumwright and Trey Cain work with a lot of investors and have boilerplate note documentation they can provide so you can learn how to pitch any of your investor partners. Attorneys create a sense of trust and a level playing field when you're setting up private money. You'll want to have a sit down with a good one who has the ability to put everyone at ease.

It's always easiest to work within your personal relationships then branch out. My past investor clients have become my lenders.

Zoning is an issue. You need the zoning that allows sufficient density for 3 units. If you're not grandfathered with 3 existing meters you're probably only good for two units.

Call Brandon at the planning department - 862-7150. He's very helpful and will answer your question.

@Rex Scott My father is retired Navy and lives here in the Nashville area. He's from Massachusetts but I was born here in Tennessee.

@Joel Owens I know Brandon Patrick well from our days together at RE/MAX. I used to have a bit of a Sperry's addiction myself. The prime rib sliders are awesome and the bananas foster is a great desert choice. The steaks are so-so for the price, but the bacon-wrapped filet is tasty.

Rex,

I've got a guy knocking on doors for mortgage late leads. He's picked up three strong wholesale deals his first week out of the gate. This is stuff that isn't on the market. These three are already sold, but we will have many, many more. I generally like to qualify the right fit for an investor based on their goals, their experience, their capacity for risk, and their ability. My best piece of advice is get out and think like a hunter - be extremely proactive and engage every opportunity. You're in a great place to do real estate.

Yes, I have an idea.

Gary Keller probably didn't know much about multilevel marketing. He wrote a compensation plan on a napkin which was a simple unilevel plan like Amway, which is a dinosaur in the United States.

Make a real estate brokerage MLM that is a binary/unilevel hybrid like every other successful major MLM of the last 20 years.

Personally, I think that's pretty complicated. If I'm just an average guy with the talent to do that (which I am, lol) I'd set up a Reg D securities offering with some form of unique financial modeling niche and broker all of the sales.

Please don't take this personally, but if you don't know the brokerage business well enough to have a pretty rudimentary understanding of the regulations and relationships between owners and brokers in charge you probably shouldn't attempt a franchise model without first running your own shop. In Tennessee, anyone can own a real estate business, and a broker in charge is supposed to be at the office 40 hours per week.

I think the real estate industry is ready for a new franchise model. I don't know that calling yourself "investor-centric" is sufficient differentiation within the business space.

Keller Williams and Exit transformed the business space a bit by focusing on the recruiting model. You must notice also that Gary Keller and Steve Morris are dynamic individuals who are strong leaders. If you try simply applying a model and excusing yourself from the leadership component that is required to manage a bunch of lazy, insane salespeople it won't work. You're probably not a multinational conglomerate like Berkshire Hathaway that owns numerous other service providers in the industry, and you're not RE/MAX, who is effectively continuing to profit from being the biggest dinosaur on the block for a long time.

I hang my license with a local 100% broker. I pay nothing if I use their affiliated title relationship. I cap at 3k a year if I use my own title attorney. That's it. I'm an investor, and I don't need a broker. You can't compete with this in my area among agents with an investor niche unless you are truly adding value through something innovative - or unless you are an incredibly effective leader, trainer, and motivator.

I welcome ideas but I would warn you that the franchise model for real estate is an extremely difficult business space to enter.

I bought and lived in my first 4-plex in Tallahassee, Fl. when I was 23. I paid 110k for the building and lived in one of the units. The other units rented for $450 per month and covered the FHA mortgage. I bought the building next door for 115k the next year and never looked back.

That's a great way to start a career in investing. My family is from Newburyport and my godfather has been an investor in Massachusetts since the 60's and was my original inspiration in the business. Keep the hunt on for a good property where the numbers work and good luck in your investing!

McEwen Drive is the exit just south of Cool Springs Blvd. in Franklin. I was referring to the Ovation project that is going in. I guess my overall point is that I'll take a 300k house in Franklin that will be 400k in 2 years with one tenant over a bunch of small headaches any day. If you are smart and you buy right that is exactly what you will get in Williamson County.

That depends on perspective.

I bought a house at auction last year in Franklin for 330k and sold it in a week for 450k. It would sell for 580k today. You are in the most affluent county in the southeast United States. If you buy right there and hold for growth you will crush small cash flows you can get from holding cheap rentals. There is a $700 million development going in on McEwen. You are in a unique bubble, and you will not get hurt holding in Williamson County for the long run. Period. There are other Nashville area investments that can perform well, but it's difficult to beat your location.

Your numbers aren't right.

Maintenance reserve at 8% might cover long term physical depreciation but not expenses. You are way off. Add another 15%-20%. If this property is in perfect condition in an appreciating area and you are buying equity on the front end, it might be a good deal. It's very difficult to qualify the value of a $58,000 investment with a cap rate, because small fluctuations in expenses mean large variations in cap rate. The aesthetics, the physical condition of the property, the potential for appreciation, the ease of management and maintenance - these are things that are much more important in the consideration of a single purchase. If you are an institutional investor and you purchase hundreds of these properties with more conservative expense numbers then assumptions within the model become more important.