October Review – Moving Forward Slowly

The months just keep flying by.  Business is moving forward, but things are definitely a bit slow out there.  We are being cautious as we do not want to make any mistakes, but we also do not want to completely stop looking to buy.  This brain process makes business difficult, always second guessing your decisions.  Investors continue to be willing to pay more and home-owners just don’t seem that interested to buy anything right now.

Summary

  1. We only bought 1 house.  One purchase we had fell out due to a title issue, another one got delayed and should close this week.
  2. We rented 2 house.
  3. We sold 1 house – House #39 sold today Nov 1st… so that cannot count, but we just missed cut-off.

Get to 20 rentals properties (not units)

We are now at 27 rentals; we have two months left to get to our “beefed-up” year end goal of 30 rentals. This goal is do-able, but it really depends on what we find.  We aren’t going to push to do any iffy deals, so I am hoping we find the right houses!

Make 36 Purchases (Rentals, Retail or Wholesale)

We have made 32 purchases to the end of October.  We still have 3 properties in escrow.  So that basically puts us one away from hitting our 36 goal.  Our volume sure has gone down as I thought almost for sure we would hit 40-45.  I really cannot complain though…

Make at least 10 Blog Posts per Month

Once again this seems to be the hardest goal.  I got a great head start on this, but I was gone 2 weekends in October which really didn’t help matters.  I do have almost 200 blog posts though!

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3 Responses to “ October Review – Moving Forward Slowly ”

  1. Steve,

    Congratulations your doing great. So it’s slowed down a lot in the I land empire also eh?
    I definitely am not buying as many as I would like but the deals I have been buying have been home runs.

    How are you financing these rentals? Norris?

  2. Chuck Henisey says:

    Steve,

    Great blog..Tell me this – it seems your first properties were flips, but your last 40 or so you have made over half of them rentals. Is this market only allowing you to do rentals at this time? or have you started liking the steady rental income.? Just curious – Thanks, Ch.
    Good luck to you..

  3. Steve says:

    Curtis – Ya, the market is definitely slow. Some of it has to do with the season, but the buyer’s don’t seem near as motivated as they used too.

    Chuck –
    Good question. The answer has some explanation. But a big portion of it, it is that my business partner was really negative towards owning single family homes as rentals and we were not sure if the market was done going down at the start (mid-2009).

    After we got three or four, he changed is tune and we started scaling up our rental purchases. Before we close on a property we always identify what it will be for (retail deal or rental) and we have not deviated from that.

    Pretty much our rentals have the same purchase criteria as our retail deals… but we will buy in some neighborhoods that have a little less re-sale activity if we are renting (ie: mostly cash comps).

    There are some other major factors that have made us push rentals hard: tax benefits, one of the lenders we use offers long(er) term financing, diversification, etc.

    As you can probably tell we are happy landlords.

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