All Forum Posts by: Curt Smith

Hi Chris, no feed back re this specific tool.  To tap into discussions re other CRMs, search here on "CRM",  "Freedomsoft", "deal machine",  "property list manager", "investor fuse" , 

I would do these same searches on youtube!!!!!   Lots of very useful videos on CRM and these tools.   

You need to know wheather a CRM is right for you in the first place.  ONLY then what CRM.

Some of my personal views from years of marketing and still no CRM.

Why a CRM? to help track leads, notes re conversations with sellers, generate reminders every NNN (30 days) that you need to re connect a batch of leads. IE everything that at simpliest yellow sticky notes, to spread sheet can do but with automation and usefuylness for >>1000's of warm leads. 99% of investors don't have this 1000's of (active) leads problem.

to have 1000 active leads you need 100 warm leads / mo that after 10 mo of adding 100/mo you have >1000 active leads.    To get 100 NEW warm leads a mo you need to be marketing to 100/0.02 (2% response rate) = 5k new leads / mo.   If post cards at $0.6 each this is 5k x 0.6 = $3000/mo.  So a CRM at $195/mo is the cheapest part.  

I'm marketing via SMS,  google ads, a few post card mailings a year and typically have zero (big 0 zero) warm leads.  Well I think I have 1 warm lead from last mo.  I manage with simple notes, spread sheet, even just making tags in my phones SMS to search back and find that person every 30 days.   

Today the real need is quality lead lists of actual motivated, stressed sellers!!!!!!!    You don't need a CRM if you don't have antyone calling you back.   Oh, some CRMs say they have internal lead lists,  vacant or absentee list.  These are so so SOOO  over mailed by the big guys.  You need another nitch to work.  Probate is very over worked.  

Spend your time and money learning about lead generation, what today is the description of a stressed owner.  If y9ou can accurately describe this owner in your area, there are tools that can give you likely lists.  I like propstream.com mosty for deep and wide (best i;ve found) data/lists and deep dive into individual addresses.  PS also does post cards, but mostly I export and skip trace then SMS.  BTW SMS is less effective then you'd think and has real legal trouble issues since youu are spamming with blind SMS.

This is a whole book so have to cut it off here.   Buy BP's books on creative financing, zero down, subject to,  pre-forclosure, even short sales.   You need knowledge worse then a CRM is my guess.    Best to you and all,  curt

AJ Good to be asking around.  You will need ALOT of education AND network in the North counties to learn the ropes of developing land.  Including the basic zoning limits per Barry above.  I have 2 friends who build houses on empty lots in Forcyth / Gwinnett typically empty lots in existing subdivisions, the easiest and most profitable scenario.  The farther away you from existing subdivisios your costs, needed experience and difficulty goes up.   Cheap land != low cost to build houses as a rule.  Its dependant on alot of factors.  There's alot of "if's" re raw land development!!

Connect then PM me I'll give you their contacts.  One who lives in Cumming has investor meetups to help folks.  He also buys buildable lots in Forsyth area FYI.  It takes alot of knowledge what the simple phrase:  buildable lot, actually means.  :)

Good luck, curt

@Kerry Baird My first post said do not use Finance of America (long list of why) and that my 3rd cash out REFI of a house that FinOfAm gave up on due to their idiots in underwriting. Lendinghome.com is my highly recommended DSCR/non-QM rental 30yr fixed lender. Automated, fast, low fees, decent interest rates. I chose 65% LTV to max minimize the interest rate. With so much equity even 65% LTV of a new appraisal got me $90k net. Its sitting in a big pile waiting for good deals this year and next.

Borrow when you don't need it, to put it to use when you CAN"T BORROW IT during a down turn. :> Borrow NOW just my views. good debt is paid for by the tenant AND if you stick to DSCR >1.3 ideally 1.4 you are taking on safe debt in my view. Plus across our portfolio our LTV is somewhere around 30%, we have alot of rentals in solo-401ks no debt (like SD-IRAs only better, if you qualify for a solo k).

Hi Jacob,  all contractors, serviices are local, 15 to 30 mile radius at max.  You need to give the location of the need, ideally the scope of the problem/need.

Its a tough situation for us landlords re appliances.  1st there was a sever shortage last year and before especially affecting cheaper refridgeratiors.   I own nicer 3/2 rentals and only put in side by side 33" refer with ice out the freezer door.  I used to buy these for $900, now $1200 or 1300 or higher since you can't find the cheap black any more.

BTW I only buy new refer, elec stove, etc.   The only failures I have in 38 doors are dishwashers every 3-5 yrs.  I buy fridgedair refer and stove.  I'd pay extra for flat top stove.  Tenants appreciate nicer appliances.

Sooo it does make sense to fix a refridgetator if the fix is <$300.  Get someone out, then ask for estimate before ffixing.   In parallel start checking in this order:   lowes,  best buy,  last in distanbt last home depot.

there are so few appliance repair men you need to google.  Yes google:  city name appliance repair. 

I don' have an appliance repair guy in my address book for the Chatt area.  Goolge.

At least with having to buy a new referidgerator  you'll get 10++ years from it.

If you took this pushy loan-ster up on his pitch you would have blown up your IRA, taking the entire value as a taxible distribution and (probably with penalties if you are <59.5yo). Any Unpermitted Transaction in an IRA blows it up. Which is why a solo-401k is vastly preferable. Statue for 401k UT is only the value of the Unpermitted Trasaction is considered either a distribution or adding of value. IE if you work on a rental owned by the solo-401k is adding of value. The remaining value of the 401k stays intact. :> We moved from a SD-IRA to solo-401k paying $NNNN to re-deed even move a non-recourse (NASB) loan to the solo K LLC...

A scenario for some who have business succession planning, the business will live on past the death of one or both spouses (business joint ownership). The succession is to a manager named in a Living Trust that is a successor business LLC op agreement member. IE the Living Trust is a successor member of the LLC/Op Agreement. Which names 2 managers (people). There's an active business LLC/s-corp with a self administered solo 401k (from Advanta) with 2 sub accounts (his/hers).

There are no children as plan beneficiaries, just non profits, churches etc and the opposite spouse of course.

The wish is that the business lives on and provides on going benefits to the beneficiary churches etc.  The Living Trust handles this I believe for the taxible businesses.  Its the assets of the 401ks that are the question.

Simple scenario upon single death, the surviving spouse has the right to move the dead spouses 401k assets into their own 401k.  Q:  stepped up basis or not??

Complicated scenario I have no guesses for best tactic: dual/final death: all 401ks are distributed upon death. To where? I could name the LLC as beneficiary so that the Managers operate those assets along with prior taxible SFRs??? Stepped up basis or not? Then the taxes are handled via k-1's to Living Trust beneficiaries (churches and some people so a mix).

Having the Living Trust be the beneficiary of the 401ks seems ok but I think has more problems.  IE 35% trust tax on assets or is it just distributions?  How is taxes handled to the beneficiaries (churches and some people)?

My guess; Distributing 401k assets to the existing operating LLC smells like the better idea. The devil though is in the details? Thanks.

Hi Tyler,  Good you are soaking up info.   Thoughts;

- buy BPs books on finding deals.  They have a Creative deal book maybe zero down.   Learn creative too to open up lead scenarios.  FWIW I'm only looking for low / no equity deals to buy subject to (youtub has tons on subject to)

- The adage is in play re your question;   You'll get best results even with inferior materials with a skilled contractor vs top materials and in the hands of an inferior contractor.   IE best tool is not really the solution.  What lead types?  What do youy say to the sellers?   Do you know how to get a contract signed?  Then what?  Yup its a lot.

- I have had various lead gen tools, including using the old standby leadsource.com and there is no perfect tool.  And BTW they are expensive/mo.   The current tool that has taken over all the others for me and I dropped the others;   propstream.com .  Not perfeet but at least has the BEST data and search tool to create lists.   Its built in skip trace and post card system is ok, I use it, but its strenght is in its top data.  $99/mo .  And this tool just gets you started.  Then there's the $0.60 per post card and typical mailing to get any leads is 1000 / mo....

- I'm working my first lead from a Google Ad words campaign.  Pre foreclosure stressed home owner who wants to (at this time) save his house...   I closed a deal off Facebook ads 6 mo ago.     I closed a deal off SMS marketing 1 yr ago.  I mail $3k post cards / yr,  $2k SMS marketing / yr,   $4k Facebook ads/yr.  And now pumping $$ into google stock price for their ads.  Whew!

Just giving you an over all how things work view.

Tips;

- Join your local REIAs. Find local REI groups in meetup.org. The REIAs are where pay for education, local experts hang. You NEED local eyeballs to help you locally. REIA s are how I got started now we are FI.

- Watch youtub videos and buy some of the teachers training;  Joe McCall etc.    Search:  talking to sellers,  driving for dollars,  marketing for sellers,   subject to,  creative deals,  

Watch youtubes, buy books, buy education, hook up with a local network of fellow investors.  Choose the local group with the most number of experts, vs the largest or most new folks.   

Good luck, curt

Lior, I hate to jump on folks but I'll give a nag and some help.   Geeze!!   Closed or closing and no GC/local experts to help?   Your months late!  Ok you're starting now great.

1)) My last cost estimate to take a 1940 2/1 1k sqft and pop out the back into a 1.3k sqft +/- was $120k.   Given contractors have nearly doubled the labor costs.  Please please do yiour profit math on $140k.  I'm serious!!!

2) occupant interests rates jumped a full point in 6 weeks!!!!! THis is huge hit for flippers profit risk. 2.8% just went to 3.8% (some might be still at 3.6%)). This will chop y9our buyer pool dramatically and your selling price. This is like the 2008 ARV price drop squeezing flippers with deals oin hardmoney loosing their shirts. Ok not (yet) as bad as 2008 price drop. Watchg youtuber "reventure consulting" for great REI price data videos.

3) Contractors are evaporating, moving to other areas, those here are 3-6mo out for a start.  I'm not kidding.     I have one guy who I can refer,  connect/PM me.

4) project cost over runs are worse then ever.   Now affordability being hit with rising mortgage rates.  :(

5) Join the local REIAs.  I'm a memver of GaREIA and has good flipper groups;  Northside flippers and Intown rehabbers.  Plus a google grouip email list for referrals.   Everyone;  join your local REIAs.  Join them all, then keep those groups that have the folks in who y9ou like and find are helpful.

6) early bird gets the worms. Espeically in flipping. You need to have this project on the market in 6 mo. I fear this will be one of those newbie 12 mo ++ flipps that ends up loosing money (holding costs, project over run, dropping ARV, increasing time on market blabla). Prob the 2nd worst time to start a flip. #1 worst was 2007-9-11.

Good luck, curt

Hi All,  The more you search BP on partnerships the more you'll see old timers like me say stay away!  Some will say the worst decission they made, better off no deal then one with bad partners...   On and on.

I happen to completely agree with this.  LOL!!   OMG so many "friiends" and relatives are lost due to partnerships!   Here's some terse, high level thoughts.  You need to google;  how to pick partners for a business?   Read read read.   Some questions I suggest from  my own experience:

1) can you loose most of your investment?  They need to say well I suppose.  This is "mad" money for me.  If they blurt out "hell no" don't consider this person!!!   They will nag you day and night about how things are going.  They will make your life miserable (or shades of grey of course).

2) Have you done this type of busines before?  If no = don't do a parnership.  Yes yes I know this is chicken vs egg.  But I found the worst partners are ones who know nothing personallyy of the sacrifices, family time sacrifices needed to run an active real time even on Sundays (on occation) business.  You can NOT run a business with partners who will only respond to important email/sms a week later!!!   In fact that is good test.  Try emailing back and forth then SMS.  How fast do they respond.   Like my tenant screen, do they communicate Y/N?   So should your screen for a partner!   

Back to no experience;  Honest this was my biggest frustration for 5 long years, partners who at the onset where good folks, even hard working, but did not have the personal, family dynamic to set aside persona goals and needs to respond to some bussiness emergency!!!  I can't over state this mis-match between busness need and partners family priorities.  Its ok to put kids first, then put your cash into the stock market!!!   Its this black and white.

3) the LLC op agreement needs to provide for payment for who does the work. I strongly (strongly) disagree with your wife re not wanting to take 10% management fee. I suggest you deeply study "Syndication" and the layered performance fees the general partners (deal facilitators/managers) get!! They are not selfish or bad people. I can tell you there iis alot of work not just PM work, setting up deals, looking for deals, negotiating, due diligance inspection and blablablabla that 10% is the least I suggest you work for. The least.

4) Please consider;  Only offering debt and silent debt at that.  IE they have zero say in the business you just owe interest payments / mo or quarter or?   Or P&I.  They aren't included in any management!!!   You will be happiest via this scenario, I can assure you.  Ask around to old timers whove done partnerships???  Please do your educatioo first.  Pick your parters as lenders #1,  equity a distant #2,   last and worst scenario as full or partial business managers.  This should be your last scenario choice.

Best of luck to all.

The county zoning regs controls everything you might consider doing on a property.  No owner is free to do what ever you want,,, well except for much of TX etc.  Most other areas have zoning you have to check into at the co permit/building/zoning office.  Best go in person.  Co folks aren't good at answerkng their phones.

FWIW and FYI in many counties in GA the counties hate mobile homes so much, and I bet in your co too, that they inact restrictions that min lot size is 2 acers.  LOL yes 2 whole acres for one double wide.  FWIW we bought some 18 double wides titled on their own land during the foreclosure years for very little, $25k +/-, for a 1200++ sqft 3/2 home on land.  New ac, fixup, $10k later we'd rent for $875 back then, rent to own, now everyone either was sold for cash to dump them because we didn't know the county was a jobs dog no jobs = no rent = evictions = dump for about what we had into it to local investors.  Others we sold on notes and then contract for deeds as a way to keep income but NOT the maintenance hassel/costs.

You mention and often repeated here and elsewhere idea of loading up a lot with mobile homes for cheap rentals.  Many many problems, least of which is sewer or septic.  The soil has to "pert test" and each lot has to have enought land (zoning provided) to hold a septic field line large enought for your number of bedrooms each.

From my time owning a mobile home park, 70 pads,  I learned that the costs of septic, power, water, moving a home ($5k to $10k just to move a single wide / double wide) can amount to $30k PER LOT not including the MH.   New single wides, 3/2, are $25k to $45k for basic models.  Used bought from craigslist usually out of parks or off owners land as they upgrade to stick built home may be $5k to $10k.  They will be asking alot more, just say, "hey would you take $5k cash?  then be quiet.  Repeat the offer a few times.  THat is if used homes are even available.   We moved some 16 mobile homes into our park that was licensed / permitted by the county for 70 MHs, where when we bought it only had 50.. So we took on alot of short term debt to fininance the water, water meters, power, septic systems, moving the homes, oh BTW the pad the MH sits on is not free and has to follow county/state regs.  Some states need poured cement pads...

You need to talk to local co' officials.  I'm sorry to say I'll bet $10 your county has all sorts of regs against you doing this.  They hate all forms of mobile homes even thought they are low income housing.  The police and local schools hate the costs to support MH parks or these mini-parks!   You have to have owned MHs, and parks, to appreciate the problems.   It sounds like a cheap plan, in my view buying SFRs in small towns is the smarter focusing of funds.   

Read the paper linked off my BP profile;  bullet proof rental portfolio.  Best of luck.