All Forum Posts by: Will Pritchett

@Abebayehu Gechere I choose lower priced rentals because of the price to rent ratio being favorable and the demand for them. I’m not sure how much demand there is for rentals at this price point. What do you predict it would rent for? Why this price point? Do you need cash flow or is this an appreciation play? I doubt you’ll see cash flow at that price point with that low of a down payment. Just my two cents.

Good luck

@Mark Marino funny you say that. We’re i. The middle of a 10-31 too. I’ll keep you in mind if I see lending opportunities. Best of luck. 

@Mark Marino i haven't partnered on BRRRR deals but we have done many of them. I think it may be helpful to envision what you would bring to the partnership vs what the other party would bring. In my opinion, if someone has the hustle to source the deals and manage the projects, they just need a lender (debt partner) which is generally cheaper than an equity partner. What do you see your role being? The hard part is the consistent sourcing of deals (in my opinion). The old saying is that if you find a good deal, the money will find you

Now if you are a great deal finder, I think you could be the missing piece for someone who struggles with that piece. For my business, I would partner all day long with someone who can produce consistent deals because I have access to capital and systems for project management and property management. However I don’t need partners for the things we are really good at. 

What value do you bring to a partnership? I may be inferring too much but it sounds like you would like to bring the money and be more passive and partner with someone who would do the work?? If so, you may also consider private lending. We borrow private money and lend private money to other investors. The lending is the easiest money we make. Great returns too that are backed by real estate. Just another thought to consider. Good luck!!

@Matthew Kuhn there are so many neighborhoods in SA that can work for rentals. Our property taxes are high here which is one reason we avoid rentals above about 170k. Rents don’t tend to keep pace with taxes. Just one thought when considering price points. 

@Robert Skruhak check out Alamo REIA. Great people sharing a lot of great information. I recommend this group as it helped us get started years ago.

@David Meier I agree with @Collin Corrington about the falling knife metaphor with a couple of caveats. Remember that all real estate is local. San Antonio is a pretty steady market with less price volatility than some other markets. It doesn't bode as well for appreciation plays but provides relative stability in recessionary periods. So I don't fear a downturn as much as if I was in a high-priced coastal market. As a rental property owner, I am currently more concerned about rental rates and employment opportunities for my tenants than values as I can stomach some "paper loss" of equity given I don't intend to sell anytime soon. Cash flow is my biggest concern. 

I like what Collin said about tightening standards.  That is what we've done as well.  One consideration for us is that a lot of the non-QM lenders have pulled back and aren't lending.  This limits the loans available to those who cannot qualify for conventional financing or leaves us paying private money terms - which for me aren't as appealing for long-term holds. I also haven't seen much improvement on the wholesale deals being presented yet. I think that forbearance and deferments will delay the inevitable for many people - as tragic as it is. That is a long-winded way to say that if I was trying to catch a falling knife, I wouldn't squeeze just yet.

Best of luck,

Will

Sounds interesting.  I like your idea to sell a couple, if needed, to recoup some of your investment.  If you fall short of reserve funds for the lender, maybe consider a local partner with property management experience or connections.  Good luck!

Good thread.  No effects on long-term rentals in our portfolio in San Antonio yet.  Interest rates will drive us to do a couple of refis.  Not that the rates were created by the pandemic but likely influenced.  I'll echo some of the others that we'll play a little defense and prepare for opportunities should they arise.  Best of luck to all!

@Manuel Rodriguez PM me if you need yet another company. They’ve done several for us with good results. Best of luck!

@Merari Alfaro ultimately you are looking for someone with a reason to sell below market rates. Usually a problem with the property physically or a problem with the seller that requires a quick sale. I would read as much as you can about wholesaling. Don’t expect a yes right away. Just be persistent and learn all that you can. I think you should listen to the BP podcasts by wholesalers and get familiar with the terminology. It will help with those conversations with sellers.

Best of luck!