All Forum Posts by: Steven J.

I've been messing around with VBA functions in excel in order to build my own custom CRM software. I imagine you could do the same with either that or Google Apps. Downside to excel path is you need excel where as downside to Google Apps is you need internet access. 

Sounds like what you've got is successful so far. I'd suggest to sign up for a few of the 30 day trial offers of various programs that offer property tracking. Cozy, podium ,etc might be a good start. Can't say for sure as I've not delved into any of them deeply.

Short answer: No.

There are too many markets, too many variables, too many goals for varied investors, etc. There are many sources that give a good look into variables in the market but you need to draw your own conclusions from the various sources. Zillow, for example, has a garbage zestimate but at least gets you into a ball park. Listsource gives you plenty of leads to filter through but 'everyone' uses that. Craigslist provides sketchy leads and lots of scams yet many deals are found this way. 

@Abel Rodriguez take some action and do those things you've mentioned! Don't wait to get all your ducks in a row because they may never be and you'll never learn from those mistakes if you never make them if you're too busy trying to set up a system; a system which you don't know will work because you haven't taken the actions yet to find out results. 

I am certainly not a proponent of wholesaling for beginners. IMO, it takes a lot of time to learn the different skills, set up the marketing, set up the systems, and learn the business. I used to think being a jack of all trades was the way to go because I didn't trust others to do as well as me but I have seen the light! Become great at a couple of things and force yourself to rely on others to do well on the others. Eventually, you'll become great on working with others as team members.

BTW, welcome to the group and congrats on moving forward with your licensing! Keep taking action each day that makes hesitant just a little bit each day. Soon those hesitations turn into habits which don't feel awkward at all. Keep up the good work!

The Realtors are there to assist with the complicated paperwork aspect and 'proper' negotiations. They are supposed to handle the inside of the business by marketing, showing homes, and setting up paperwork properly giving the seller and buyer the comfort that things are being done correctly. 

Does this happen? OF COURSE! Does it not happen? OF COURSE! I think if you have a comfort level of dealing with the paperwork and negotiating you likely don't need that Realtor on your end. Unfortunately, you can't just cut out the Realtor on the buyer's side. The buyer may not want to worry about scheduling showings and negotiation when they know what they want. 

I definitely prefer not to work with Realtors because I feel I can bring a human element to the conversation that a Realtor is not able to. Can I bring the same level of security that paperwork is being done correctly? Likely not. I think for most, its a matter of not having done research, not feeling comfortable, and not wanting the headaches associated with a handful of real estate deals the average home owner participates in. If you're looking to do multiple deals per year then you can likely learn to do it on your own but keep in mind, you'll still have your fair share of screw ups!

Most banks have a bad vibe towards mobile homes in general. If they finance them they are just as strict if not more than FHA financing. It must be no older than x years old, must not be a fixer upper, etc. Mobile homes are a very difficult thing to finance with typical banking financing. Keep in mind, mobile homes in parks are typically not going to appreciate over time. In the 2-3 years you may live there doing the BRRRR strategy you may not get the sale price you're hoping for BUT you could get some great return on the rents if you bought right initially.

A mobile home can be a good first deal or a horrible one. Depends on your expectations. Nowadays from 2000 forward homes are built much better. And moving forward they are often the types of homes that receive some of the first use of new market technology. I believe mobile homes had pex plumbing (as a dry run) well before it hit the markets of stick built homes.

Nowadays, these homes are built to HUD code because the factory doesn't know where they will end up in the county. This means that quite often the home is built better than the local/county codes require. Where the local/county codes could hurt you is with the initial set up and move of the homes into their are and sometimes even passing through.

An older home, pre 90s, for sure will have had different construction standards but if you're looking newer and then you can likely find a quality deal. As a coincidence though, building of mobiles through the 90s was at a low point compared to before and now.

I would suggest that you watch out for homes that show lots of water damage form the ceilings, along/inside windows, and into subflooring. A few of these issues isn't really a big issue but when its spot after spot after spot that gets cost prohibitive.

For one deal I suggest to self manage. There is a ton of talk about out of state investing on here now so check that out, it would be a great resource to start. In the mean time, to fill it have a Realtor or PM company to help fill the unit and then manage it from there. One of the most frustrating issues with properties is when people don't show for their showings. It'd be a pity if you drove all the way to have someone not show. 

Once a tenant is in place and you're not there, this will help you improve your skills of finding people you can add into your team. With a list of repair services in place in that are you should be able to have them handle issues as they come up.

You could also add in your lease that the tenant is responsible for the first $40 of any service call. This will encourage them to take care of some issues themselves, if you're comfortable with that.

I second @Kreighton Reed at Solera. Local banks in town couldn't help set up a solo 401k the way I wanted (I'm not a big enough business) but solera was easy.

I would work with local 'contractors' and handyman and feel them out job by job having them bid per job allowing you to get a feel for them in person and how their work is after they have done some stuff. Bring them to the 6 plex and take them through the first unit you intend to flip. Be clear and upfront that you've got more units but you want to test them out on the first unit first. If it seems to be going well you can show them a second unit and get them more interested. From their perspective you've got lots of work to keep them busy to keep them getting paid. This means they have less time to spend looking for the next job. Ideally, it would be best to have the same person/company handle each plex unit so they can reuse materials, cut down travel costs etc. 

I would avoid the 15 hours per month approach to an on call handyman. When you have a turnover that could easily eat up all 15 hours in a month while others months it might be 5. Again, it comes down to stability - a turnover or two per month would be fantastic but when its slow I might not get to issues that need addressing because I'm either working other jobs or looking for other jobs that are bigger. 15 hours per month just isn't much to rely on.

You can use the strategy I found myself in. I got hired as a PM to take care of the showings, listings, advertising and what repairs I could in an apartment. Made a flat fee per month for showings and collecting rent and then an hourly rate for repairs. Although it took me longer I was still way cheaper than a $50/hr specialist. I happened to be eager to learn the business and knew my way around repairs enough that I could learn things on my own.

In either a SDIRA or SD401k you can personally borrow money from the account as a loan to you. Difference is the amounts and time frame. With 401k you can borrow up to 50k or half your total amount and make a loan to you at a rate you get to pick payable over 5 years. IRA can do unlimited amount but must be paid back in 60 days. I put together a comparison of the two (others correct me if i'm wrong on any of it) here. By lending the money to yourself you should be able to acquire the loan in your name and you just make your payments back to the IRA/401k you borrowed from. 

I recently set up my sd401k and I'm happy with IRAFinancial handling the process. Did have to go through a unique bank to set it up the way I intend to manage the funds. In either of your cases the funding should be available if you're set it up correctly with a company that provides and understands this strategy. Its just a matter of finding the ones who want to play those rules; not that they are questionable but they don't make commission when you manage the money yourself.

In both cases you'll need to keep things at an arms length transaction meaning no benefits for immediate family, yourself, and some other requirements. Now where it does get gray for me is when you lend money to yourself (say that 25% down payment) and get a loan for the remaining 75% to purchase a property you do intend to work on/live in. My guess is this would be considered non-arms length, but I would ask the pros on that.