All Forum Posts by: Zachery Buffin

Yeah I have family out that way and am looking for properties out there. Honestly I am just not seeing the value out there right now but I hope that an investor meet up will help link me to the right kind of people to see something a little different. I also have been on the usual internet haunts looking for active investors out that way and have been... we will say uninspired, by the lack of responses thus far. I am really excited to get some face-time with folks out there!

Is this a double post?

Nevermind, I am an idiot, if I would just read.... That sounds great!

It kinda sounds like you may have a property in a sub B- neighborhood which means you are attracting the clientele that kind of property gathers. Of course, admittedly, I don't know any details but if that is a common/reoccurring theme in EVERY applicant I have to wonder why that might be. 

An interesting tactic here might be to raise the rents to market or slightly above market and see if that changes the applicants you are getting, if people see lower than market rents that is appealing to a certain type, if they see market or slightly above market the kind of person that appeals to is different. 

I would never, and I mean NEVER, listen to a story someone tries to sell you on why they got evicted before. I would never believe it because tenants always lie, once they are in you have a problem waiting to blow up in your face. I know it is hard to sit on a property that isn't cash flowing and to just try to cram a tenant in even if they aren't qualified. DON'T!

Another idea off the top of my head is to look into AirBnB, I don't know if that is an option in your area or what the laws look like where you are but it could help you start to cashflow something without the issue of long term tenants. 

I hope this helps you somewhat, without more detail it is hard to tell you exactly what the issue might be but I wish you the best!

Without knowing the details, as well as not knowing your market, it is hard to offer specific advice on exactly what you should and shouldn't do but the few pieces of advice I can offer are pretty universal. 

First, do the math yourself, when he gives you the numbers and details of the property I would run them through the BP calculator to see if it really is a cash flowing "good" deal. 

Second, don't be so eager you try to make a deal out of something that simply isn't a deal. You are excited, I understand that and encourage you to pursue this business but not into ruin.

Third, the smell test for this thing should be the 1% rule which you can look up on BP for full details and in depth info. If it doesn't meet the 1% rule then you really have to factor in more details like appreciation, the market, cap rates and exits to the property itself. 

Fourth, you said a "small" down payment but what exactly is that in dollars and what part of your liquid reserves and total net worth does that represent?

Fifth, do you have property managers info? Do you plan on managing the property yourself? How recently has it been updated, what does the HVAC and roof look like? What kind of capital are you going to have to put in to rehab any units that might need it upon tenant turn over? 

I will leave you all this to chew on but I wish you the best of luck and hope this is the first of many great deals in your future! If you have any specific questions, if you have any details you want us to review, anything at all post it here and let us all help you build your business!

@Matthew Rodriguez

Well the first thing I would do, if you are looking at putting your first wholesale together that is, is to pick a neighborhood. It doesn't matter much what or why you choose it just that you focus on it. Here is where I should clarify a bit, the place you choose should be a place that is moving a lot of inventory or if it isn't should be the next place "on deck" for investors.

If you are having trouble thinking of an area near you that people are interested in I would go to Investor meet ups in your area and ask around. "Hey man, you said you are looking to source some flips. That's great, what are some areas you have worked before? What areas are you looking in now? What areas would you never consider?" 

These will be your end buyers more than likely anyway so this should be an obvious first step but a lot of people skip it. Next you should take that info and start driving for dollars, send mailers, use the MLS and reverse search people, then put offers out. There really isn't, despite what the gurus tell you, some "wax on, wax off" secret to this business you just run the play and put in the work.

It may take you a month, two months, whatever, to find the first deal but run the numbers put in the offers and then market the poop out of the deal you have to get more investors. The more you do it the easier it will get, at some point people will just start bringing them to you because your name will be out there as someone who gets and closes deals but it doesn't happen overnight and it takes a lot of effort with very little reward at first. 

There certainly are advantages in getting the license if you are going to be an investor, not just in cutting out another middleman but in learning the process in and out. All knowledge in this business is worth having and being a party to more deals helps you see the things that nobody really knows unless they have done a deal. 

That all being said it does add some restrictions and caveats to the way you do deals. You have to disclose your status in deals even if you are buying for yourself which can sometimes make people worry that they aren't getting the best deal because you are a professional. Not too big a deal if you are operating above board like you should but there are also the fees and cost associated with being an agent. 

If you aren't planning to monetize your license by actually being a full time agent then you aren't necessarily getting much for the costs involved. In Tennessee, other states as well, you also have to have your license under a brokerage which is just another expense and if you don't plan on actually selling homes no broker is likely to "hire" you under their license as there is no benefit to them. 

All in all the time you spend getting your license and acting as an agent would be better used in building relationships in your area and sourcing your own deals. Wholesalers and other agents can funnel their deals to you and while you will be paying for that service you have to look at each hour you spend in this business as opportunity cost. Build a team, build systems, build your business and if your business isn't going to be focused on being a real estate agent first then I would say skip it and work on your primary focus be that flipping, wholesaling, buy and holds or whatever. 

Hey @Nicole Conley

I can sometimes be pretty long winded about these kind of things as this is all I do on a full-time basis. I am currently involved in about five projects that range from a 1900 to a few 1940s builds, and have several investors I represent who almost primarily deal with pre-1950s homes. In all honesty, the majority of the urban core in Nashville meets this criteria while not being "historic" though some are. Not sure what specific questions you have, but I'm all ears if you have something specific to ask. 

Like most cities Nashville can really be street to street in some of the older neighborhoods and if you are investing out of state, sight unseen, (I am assuming here based on the fact you live in Brooklyn) you really have to build a team of people that understand the area and that you can trust to lead you in the right direction. 

Well that is a complex question, what are you needing the funding to do? Are you looking to purchase and rehab something with one loan? Do you have the funds to purchase but need the rehab alone? Do you have no money? Do you want to live in it while you fix it up? Do you have crews to do the work? Are you doing it yourself? 

Sorry to bombard you with more questions in response but the number of posts on bigger pockets, podcasts, and even webinar replays (as a pro member you can access these at anytime) that can give you a lot more information than I ever could in one reply.

Even if he is and has SOME rights to inquire there is a line between harassment and genuine inquiry. Let us say that he is indeed a cosigner, which happens, if there hasn't been some breech of the agreement (I don't know either but the original post didn't make it seem so) and the issue at hand seems to be an inability or unwillingness to pay that is where you have to put your foot down. 

As a landlord, running a business, with contracts in hand, what's the point if you don't stick to the contract you put out? Why even have one if you aren't going to stick to it and force your tenant to do the same? I am not trying to be rude but I think you are going to have to dig deep here and stand your ground. It will be bad for business and for your reputation if someone can just bully you into getting out of a signed agreement.

I hope I am helping you and that you take this to heart, I wish you the best and it is a bummer when the first guy comes along to ruin your perfect streak but don't bend. The first time I did I regretted it and the next time I thought would be different it wasn't, I may not be smart but I learned eventually that even adults need to be handled like children when they act like it and forced to follow the rules one way or the other. In the end it will be better for you if you stick to your guns and the agreements at hand, the easy way isn't the right way and if it isn't the right way you shouldn't do it.