Hi All,
I have 3 questions for those that invest regularly…
Where do you find most of your deals?
Do you have an area that you specialize in?
How many hours per week do you devote to investing?
I appreciate the responses, and hope to get some ideas of what others do on a part or full time basis.
Thanks,
Jeff
Where do you find most of your deals? MLS using a real estate agent (I buy fix up and rent in Houston. if you buy fix up and sell or work a different city your numbers would be different)
Do you have an area that you specialize in? Yes (North to North West Houston)
How many hours per week do you devote to investing? (While I am acquiring 3hours per week, during fix up 20 hours, getting it rented 6 to 20 hours, after tenant moves in 0 to 2 hours per week per house.)
Personal contacts - people call me with deals.
Yes, close to home
When I started, I worked six 12 hour days per week. Now, I spend 4 or 5 hours per day doing something. That can vary depending on whether I’m rehabbing something. Like Bluemoon, I’m in the rental business, but occasionally flip when I have too many deals.
Mike
“1) Personal contacts - people call me with deals.”
Nice- I assume it took some time to build up the name, and contacts to get this type of network.
Like you, and Bluemoon I intend on buy, fix, and rent to be my plan as well. As a follow up do you guys focus on single family homes?
Where do you find most of your deals? I have 3 realtor, 2 that deal with rehabs and 1 who specializes in preconstruction only. Also I partner with 2 other investors that bring me deals to partner with.
Do you have an area that you specialize in?
Currently doing rehabs to flip (my market is not a rental cashflow market unless you can put down 30-40%) and preconstruction SFH’s.
How many hours per week do you devote to investing?
Less than 2hrs per week. My rehabs are all hands off. My partners/realtors call me, I check them out and review all there due dilgience reports, the comps, the rehab cost which they do the rehabs themselves (are GC’s) and the realtors info, plus I know my market rates on homes. My partners generally have about a 10 page report ready for my viewing before i see the home, its faxed to me, I review it, if i like numbers we go and see place. I am handsoff except for some input on rehab ideas if I want to, and i get 50% of gross profits on rehab…I just secure the financing for all deals and provide the escrow downpayment and insurance cost. But I get all money back at closing along with 6months of carry cost of the mortgage…
Jeff,
Yes, it does take some time to get people started calling you. However, it doesn’t take as long as you might think. I’m in my third year and have people call me frequently with deals. I started by using a realtor (actually went through 3 before I found one that was willing to work). The house that I’m buying this week was a referral from this realtor. The key to getting people to call you is to have either cash or credit ready to go so that you can close quickly on these deals. Another great source of deals is your local REIA. Other investors will have deals that they don’t want to do for one reason or another.
I started out with SFHs only and I strongly recommend this as the best way to start. However, I now do both SFHs and small apartment buildings.
The biggest thing that a new landlord needs is a little time to mentally adjust to dealing with tenants. It is a hugh shock in the beginning to deal with people who constantly lie, scheme, get in trouble, and act like little children. It’s like suddenly being hurled into some sort of real world drama - complete with drug dealers, thieves, and an endless supply of lazy people who are constantly doing irrational and stupid things. Starting out with SFHs allows you to start with the best of this group as tenants and allows you time to adjust to the nonsense.
Good Luck,
Mike