All Forum Posts by: Trevor Ewen

@Jeremiah Gray 

Welcome, I would talk to @Jon Deavers 

@Crystal Smith 

It's only because I know it, well.

People often make the mistake of anonymizing everything they do. But everything is local, everything can be personal. I actually think a tremendous edge that we all have is our personal network and experience(s). That's the thing that can make a bad deal good, and make a good deal even better for someone else.

In Roger's Park, I would have no problem with property management, contracting, or evaluating neighborhoods. Those are bigger hurdles to jump over in the south side or another region (where my pm would not be able to travel). As a result, even if fundamentals are better in other areas, I choose the devil I know over the alternative.

@Kevinn Harris 

Quick recommendations before working with a wholesaler. Wholesalers are generally trying to move distressed assets, as a result you need a couple things necessary for distressed assets:

1) Good general contractor. This person is critical for doing repairs, but also estimating repairs. It is well worth your trouble to pay their hourly rate to come to showings with you.

2) Property management. Who is going to manage? If self-managed, can you go to this neighborhood late at night? Is it worth your time? If you use an external manager from the area, they can be a great resource for determining reasonable rent (before you buy).

3) Rainy day money. This should be in addition to the cost of repairs. These properties may come with surprises.

Shoot me a private message. I grew up in Evanston, Illinois. A good friend of mine will be a good connection for some of your needs.

@Elke Cardella 

Census.gov is great for this:

http://quickfacts.census.gov/qfd/states/25/2574210...

Above are the statistics for Wellesley, Mass. Looks like homeownership rate in 2010 is a very high 83.5%. Keep in mind that it's been 5 years since this census was taken. I would apply your own assumptions based on qualitative data like news, anecdotes, new developments. 

Best of luck.

@Hector Lozano 

There are a lot of wholesalers on the forums who can definitely give you advice. I have heard it's a great way to get started with the lingo, but it's also hunt >> kill >> eat in many senses.

If you are looking for capital to get a buy and hold portfolio started then you will need to figure out who would be willing to invest in 'you.'

When your starting out, your lack of track record will not attract new investors and partners. As a private lender/investor, I expect a pretty long track record.

The notable exceptions are typically people who know you. My brother in law is doing a deal in Paterson, NJ this summer. We are going to partner with him. He has no track record or experience in REI. Our investment is based on trust and his request for our advice and support in the process.

Sit down and make a list of people who you think might actually want to invest in you. Those people are your startup capital. Give them good terms on the first deal, and definitely do not let them down.

@Crystal Smith 

I grew up in Evanston, Illinois. If I was currently investing in Chicago, I would be in Roger's Park, no question. In part, this is because I know the area well. Also, because I think it's one of the most under-valued urban neighborhoods in the country. It's a great community, very safe, and convenient for several universities.

We should talk more. I'd be interested in hearing what you're doing in Chicago. 

@Michael Miller 

Welcome. Your experience is a treasure trove of value. This will get you into the game faster than most. You have seen the bad side of this business, age makes you wiser, and you clearly have many years ahead.

If I was looking to make my day job in real estate, property management is assuredly where I would be. The main reason is because the bar is set so low by many managers that I have met. The good ones stand out: just for doing their job. As a result, there is a sincere need. 

Research Triangle in Raleigh/Durham is a great/nice place. If you are looking to get your legs in property management, I would even get started in Kalamazoo. Get some experience, some references, and make a bit of scratch while you're at it. 

@Daniel Morgan 

You're right about private lenders. As a private lender/investor, I would not work with a newbie. I have to see a track record.

One notable exception is someone with whom I have an existing relationship. For instance: one of my best friends in high school is looking for some capital to fund a deal in south/central Illinois (Bloomington/Normal area). He has no track record, with the exception of owning a SFH with his wife. I would still fund his deal because I know his character, work ethic, integrity, and I would be involved and able to take a look at the numbers.

What should you do with this? Think of the people with funds who know 'you'. These people are the ones who are going to believe in you and push for the best. If/when you succeed, they will be your cheerleaders.

@George B. 

Good morning. In order to get an FHA loan, you will need to be a resident at the new property. If you are okay with moving to the Duplex, this could be a nice way to go. In that case, I would recommend keeping the single family home and renting it out for monthly cash flow.

@Mike Higgins 

I have not done any flips, but here is my assumption. Your timeline is inevitably compressed, because you are essentially looking at the market that exists within the calendar year. In that regard, you want your flip to be in a place that is growing, now. 

As a buy and hold, I could accept low (even small negative) growth numbers in an area that has good fundamentals. When I originally posted that article, many of the Ohio investors were a little surly, because it put their markets in a bad light.

Like anything, this is a factor that can help you test an assumption about a market, but it's not everything. 

Big cities tend to run high on renters. In part because cities like Atlanta, NY, LA, Chicago breed transience, and also have all income brackets. I still think there is a huge market for buyers in an area like Atlanta. The percentages are lower than in Green Bay. I would assume that's also because Green Bay does not see that kind of revolving door of people that Atlanta does.