All Forum Posts by: Tucker Cummings

"Timely" is a subjective term. "Necessary" is a subjective term. Seems like a lot of gray area and room for abuse in there.

I conglomerate data from a few sources and price accordingly.

Zillow Rent Estimate

Rentometer.com

Propstream (paid service I use for many purposes)

Between those three, I can usually get a good idea of what the rent will be.

This is the kind of entertainment I needed as a pick me up today.

This has me conflicted.

https://www.wsj.com/articles/i...

The snippet I'm talking about is how Fundrise bought an entire subdivision of 124 new builds 20% over asking to then use as rentals. This isn't the first article I've seen like this. Other hedge funds like Blackrock, along with Offerpad and Zillow are buying up houses left and right. 

First off, let me say that I'm a huge fan of capitalism. I love real estate and owning rental property (up to 8 in two years!). I think we're all in control of our financial lives and we are all personally responsible for ourselves. But isn't there a point where things like this squeezing out the middle class? How does a young couple, even if they have great jobs, compete with hedge funds buying houses like this? Homeownership is one of the biggest wealth builders and indicators of future wealth. 

I'm conflicted because I'm using the path of buying, flipping, renting, selling, assigning homes to build wealth. But this just seems excessive. Seems like it's more damaging to the overall market than helping it. Which then brings in the matter of some kind of subjective measure of "how much is too much?" 

Feel like I'm rambling, not making sense, but thought this would be a good discussion on BP. 

If you're already doing the driving for dollars, I think you could easily scale by cold calling the addresses as well. You'll get more touches on each prospect and potentially higher prospect to lead to contract rate. 

Direct mail has its pros and cons, just like any marketing funnel. Opening up other funnels would increase your deal flow. Here's a couple ways you can open up your funnel:

- Get a website and start posting content for SEO/High Google Rankings

- Google Pay per Click (PPC)

- Facebook Retargeting (drive traffic to website)

- Direct Mail

- Cold Calling

- Texting

- Email

- Door Knocking 

Not in the Atlanta market but have done a few BRRRR's now and can assist in that regard.

Going into this, I would say you need to go ahead and comfortable leaving anywhere from 5-15% of the ARV in the deal. 15% would make it a not-so-great deal. 5% is really good, especially if you're acquiring the property from a wholesaler. If you're looking for a rule of thumb to know what costs to account for, be prepared to part ways with that amount.

Buy - Get off market, start networking with wholesalers in your area and get on their lists. Start analyzing deals and make offers on everything. This is free to do. You'll also need to figure out how you're going to finance it. Do you have the cash on hand? If not, start calling hard money lenders and network with people that might be private lenders. Once you know lending terms, you'll be able to figure out what holding and acquisition costs you might incur. 

Rehab - Who is going to be your contractor? Most are so busy right now they won't really give you the time of day unless you have a property under contract.

Rent - Go ahead and network with a good property manager. Ideally, look for one that can also act as a project manager for the rehab portion as well. They may be able to get you the contractor you're looking for and once you've acquired the property, you can hand things off to them.

Refinance - This is the easy part. You'll just have to call up more institutional lenders and see who can get you a 75% LTV. They're all over the place. You'll probably have closing costs and you might have to come to the table with some cash to close.

If you want to find deals where you can get 100% of your money out, you'll likely have to go direct to seller via other marketing methods. I've done that on 3 of my 8 deals so far. They're out there, just takes more leg work.

Is the question, "is it smart to buy a property with less than 20% down, even if you have to pay PMI?" I would say as long as it cash flows, then yes it is smart to do. I'm buying a property right now for 15% down, and I have a $20/month PMI payment. I still cash flow about $250/month. On top of that, I'm gaining appreciation, debt paydown and tax benefits.

Would you do that deal @Elijah Wichers?

Yes, it's certainly possible. I'm buying 3 right now with 3 different loans. Just need to qualify for the financing that your lender is offering.

That's awesome news! Congratulations! There's nothing to worry on your end, all it really means is that the seller/builder left some money on the table that you get to capture now.

Could you just do a cash out refinance? Capture the liquidity/equity of the asset, buy another property with it, and keep the original property.