The Charleston Real Estate Connection
The Charleston Real Estate Connection
Ep 11 - Short and Long Term Real Estate Investing with Jim Duffy
Ep 11 - Short and Long Term Real Estate Investing with Jim Duffy | Charleston SC | Columbia SC. Nia Joy converses with Jim Duffy of Atlantic Coast Mortgage. Jim is a Producing Branch Manager so not only does he lead a top producing team, he is also a mortgage broker that is active with clients. Jim explains that investing in real estate can be done in different ways with the help of different options and products to serve your needs.
Nia works with Jim to help more people close on their real estate goals.
Read more about this topic in the following referenced article:
http://financeonthefrontline.com/multiple-streams-investment-property/
If you would like to speak with Jim about how you can invest in real estate, reach out to him via his contact information below:
Jim Duffy
Loan Officer
C: 843-735-0865
O: 843-535-8417
jduffy@acmllc.com
AtlanticCoastMortgage.com
Click here to get pre-qualified: https://apply.acmllc.com/#/journey?referrerId=jduffy%40acmllc.com
Follow Jim on his Facebook page:
https://www.facebook.com/JimDuffyatAtlanticCoast/
To listen to this podcast on iTunes, Soundcloud and other Podcast hosts, got to our website: www.charlestonREconnection.com
spk_0: 0:04
Welcome to the Charleston real estate conviction Podcast. Connecting and reconnecting you. All things troublesome. I am your host. Me? Enjoy your Golden Realtor License and status. Welcome to the show. Hello and welcome to the 11th episode of the Troughs in real estate connection podcasts connecting and reconnecting you with all things trough in I am your host, Nia Joy Swinton Jenkins, your Golden rolls, her license based South Carolina I have with us today Jim Duffy of Atlantic Coast Mortgage. He is a producing branch manager and he's gonna be going over with us investing. Not only short term, but long term as well. Thank you so much for joining us today. Jim, can you tell you? Yeah, yeah, yeah. Thank you so much for joining us. I know this is like a really busy day for you.
spk_1: 1:09
It is. It's a busy time for all of us in real estate and mortgage because it's the end of February as we record this, but it feels like it's Mayor June as faras the market. It's hot right now, which is fun.
spk_0: 1:22
Oh, yes. I'm not complaining about that. Um, we're definitely grateful to have a year. We're starting off. Very. We're moving. We're moving me? Definitely. So So. Thank you for your time. One
spk_1: 1:38
11. That's that's great. I didn't realize you were in the double digits, so that
spk_0: 1:42
Yes, Yes, yes. Today we also recorded for some 10. Um, so, yeah, so we're doing everything's so let me
spk_1: 1:53
get content. I love
spk_0: 1:54
it. Kiss. Thank you. Thank you. And so, you know, for those of you listening, Jim's contact information is gonna be in the show. Notes not only his contact information, but accuse you would like to go ahead and get free fruit on and things like that. I have questions for Jim's contact information. You down here, so that would be very helpful. So, Jim Okay. For those of you who don't know, I've done some deals with Jim, I met Jim. I don't work with Jim literally since I got my license. Um, yeah.
spk_1: 2:25
Oh, that's beginning, which is great. And you really rock your your Your trajectory has been fun to watch because you got into a brand new he didn't really know. But you know how to ask the right questions.
spk_0: 2:36
Ah,
spk_1: 2:37
now you're on the cup of becoming one of the top producers in Charleston. And it's been fun to watch
spk_0: 2:43
a gym. I receive it. It's it's going, it's going down. It's happened, is happening. And I'm grateful, too, because of you being such a Stephen. Um, you know, mortgage loan officer. I mean, it's really helpful because with not without asking the questions is like, I need to know all the answers and you're you're really been available. I'm not only you, but your staff as well. I appreciate that again.
spk_1: 3:09
Thankfully, I think we have a good team. I do. I'm proud of the team that we've built over it, that's for sure.
spk_0: 3:15
Oh, definitely, definitely. I, um I was wanting to know what we do on the show here is we always ask our guests their connection to the transit area. And I would love me to tell us What is your connection to Charleston and maybe a little bit about yourself?
spk_1: 3:30
Share? Absolutely. So way were I was in Atlanta blending in this land for about 10 years. In about 10 years ago, we moved to Charleston that had the opportunity to come and run a branch here, and as a family, we decided the kids were young at the time, so it was kind of like we can do it now. It was really a lifestyle choice to jump at the chance did moves to Charleston. We did it when the kids were young enough, and now they're old and graduating high school soon and all that. So And it's been great. We never looked back Charleston home at this point. And I know that native Bostonians are gonna be like, Well, you don't really, But it's home. It just feels right
spk_0: 4:12
way. That's good to hear. You know, we like to hear that. We love to hear that. Uh, then you've not called. They're calling it home. Where would you? So you from Atlanta, then?
spk_1: 4:25
Well, I grew up in Indiana, small town USA, Indiana and I went to Europe for about seven years, and I lived in studying your work over there for a while,
spk_0: 4:36
came back
spk_1: 4:37
and landed in Atlanta and in Atlanta is a great town. We loved it, but again would never look back. It's some Charleston's just got everything. It's got the the ocean of culinary that they got the culture an awful place. We love it.
spk_0: 4:56
Nice, nice we were happy to have you here. And I know the work of industry is happy to have you here. I really so Yes, I don't one of the biggest things. Although I worked with hotel hero specifically. And you work on Justin veterans before? Yeah, despite specializing in and with hometown heroes actually have some home time heroes and not hold town girls that actually invest in real estate. Rather be all cash deals. Or, um, maybe doing long term and short term Reynolds. I really wanna hear your take on Lee on that on that, You know, I know the short term alone time Reynold, and you and I were having a conversation earlier. Where you breaking down defenses?
spk_1: 5:41
Yeah, yeah, sure, because everyone looked buying. Your first home is it's extremely important because it's a way to build wealth, that security. It's everything I want to get past that. Ah, lot of people like to invest in real estate, and I just read I don't know if you tell this article meal, but somewhere I saw the article just in the last day or so. That
spk_0: 6:03
nor
spk_1: 6:03
Charles is one of the best places to invest in the whole United States, which I didn't realize, but it really is. A lot of people want to pick up the first investment property and then keep going,
spk_0: 6:15
right,
spk_1: 6:15
because it away get cash flow going, build wealth, etcetera, especially those in our industry. Yeah. I mean, in real estate, there's no pension. So you create your own intense, so to speak, by doing what you know, which is investing real estate. I love it. I mean, I cut my teeth out of backs in the housing crash. All the realtors I worked with left the business
spk_0: 6:41
I
spk_1: 6:42
would do, and I fell into the real estate investment community, and I was doing somewhere between seven and 12 investor loans. Hunt can't be in the business, so I absolutely love it.
spk_0: 6:56
It's
spk_1: 6:56
not the majority of what I do. You, by any means, but absolutely love working with investors and especially first time investors. But of course,
spk_0: 7:05
of course. So tell me about that the first time investor, when the first time investor is looking to invest in property because I know I mean, I personally have inherited property and working with, but I'm also looking at possibly, you know, purchasing and actually have some stuff of mine in Russia. Austin Pit Maybe. But when we're talking to first time investors like myself because, of course, again, like you pointed out, a lot of us are agents because we need that passive income for retirement. Yeah, So when we're looking at getting a first time investment property, what is something that we need to look for? Think about what we're doing that
spk_1: 7:45
well, this has been followed. I see a lot of people, do they? I think the first thing is to decide. What do you want to do with this for property Isn't a flip that you're gonna buy a property that's run down me three having rehab it every, sell it quickly for profit or is it a buying hold? Are you looking for cash flow over the long term?
spk_0: 8:05
And
spk_1: 8:05
there's two different things, and I think a lot of people get the two mixed out
spk_0: 8:11
and look
spk_1: 8:11
for the perfect property. That could be a flip, but by and hold, and they're over complicating things unnecessarily. So I think that's the first step is decided. The exit strategy.
spk_0: 8:22
Are
spk_1: 8:22
you acting 10 or 20 years from now Or are you actively 90 days from now?
spk_0: 8:28
I see. I see in it and, you know, on the real estate Saturday, I get investors and they see a good deal. Then you know the factor in the numbers. I know sometimes investors specials with the numbers like they may be big on construction like they're familiar with it. But on the back end, with flipping and how that works, do you work with investors that sometimes may need some assistance with maybe ratios And that sort of being
spk_1: 8:55
Oh, yeah. Oh, yeah. As far as it goes. Sure. So we've got a number of investment vehicles or loaned some of them. One of them, in fact, is even the no doc loans. I call it the No Doctor Best. Your loan is based on cash flow on the property. So if the ratios aren't working or if someone self employed, then they don't have a show enough income, that sort of thing. We have something that big solely on the property.
spk_0: 9:20
Now it's
spk_1: 9:21
a portfolio of loans with a little higher interest rates. You have packed with that and but it works well so we can help investors with all sorts of those I like to go full documentation, a lower interest rate.
spk_0: 9:34
Right now
spk_1: 9:34
it's better all around. But if we need to, we could go with cash flow. Eventual.
spk_0: 9:40
Okay. And with the cash flow, I know some people I've had investors. You Thanks. And I know you were a lot of banks, but I know sometimes when you're dealing with, maybe you're shopping around for a loan. In my opinion, I would. I like about working with mortgage professionals like yourself is that you have the ability to shop around for different types of moments, and I think sometimes and I mean nothing against the local banks or anything like that. But what I love it is from from on both sides of working with investors, it's really nice to have somebody like you can sit down with you and say Here, this is maybe your best course of action. You know, brother, be long term or short term, you being that break that now. And that's really what I love about working with people like you. But what they do on my side of the deal, it's agent. They kind of forget about those numbers, and that's what I was gonna mention with you. Sometimes you're buying low, but then you're putting all that money in the property and then having to sell it. You made it make a copy. All
spk_1: 10:45
right, exactly. So I totally agree with you on that. So if someone's living a property, you know you have to get the property. I'm making up numbers now, of course, but you have to get something for 150,000 that needs 40,000 of rehab that you can resell for 230,000 right, or some in that neighborhood because you have a lot of the profit margin. But what a lot of first time investors do is they were looking for that. But their goal is to buy and hold for 10 years and have the appreciation in the cash flow in the equity. You don't have to get the deal of the century if your goal is to hold for the next 10 years, even buy it. Rita, you can buy at market value something that's new. That's something that's already rehab. So there's no we have cost going into it. In the first few years of these, right? Right. See that same investor that bought for 1 50 put 40 into it sells for 2 30 The long term investor could buy that $230,000 house from them and be perfectly good with it. And so I think a lot of times that get caught up in these, well, I'm gonna have the deal of the century type thing.
spk_0: 11:59
So
spk_1: 12:00
you don't build well slowly with real estate, and over time,
spk_0: 12:04
yes. And it's such a great investment because we're looking at about, Oh, May and seven, sometimes 678% you know, return annually. And that's really good. I mean, residential investing insistent isn't really good. Now. You also work with commercial.
spk_1: 12:24
I don't personally know. I recommend that a lot of people who start with presidential and then move on to commercial until I can recommend and put them in touch with the right people who commercially, But I don't personally
spk_0: 12:36
that's good to know. Listen, deny this could be a question that our listeners will have. Um, you know, about the short term Reynolds and running the numbers and that sort of thing, um, this for the long term rentals are concerned. Uh, however, investor determined the difference between the two on do you help work Work with them on on distinguishing. Yeah, Well,
spk_1: 13:01
run numbers together. Oh, absolutely. Yeah, that's part of the fun of it. It's running the numbers and showing people. So what I do with that, especially with the long term investing
spk_0: 13:10
I
spk_1: 13:11
show people, here's what it costs. We know what it will rent for currently. We know rents go up over time, right? The average 3% increase per year and so we can run that number. But we also can look att. What are they expected? Appreciation rates. So that only cash flow, but long term over years. And it just ran one for someone
spk_0: 13:33
on
spk_1: 13:34
DDE. They suddenly appreciation rates. In Charles County, they were buying it 240,000. It was just happened to be the case. They will have. Um I'm looking at my numbers here that just pulled up. They'll have about 150,000 in equity as well over this nine year period that they expect that hold onto this property. So that's what I like the show as well as it becomes it's no longer opaque like, Well, I hope the property goes up about you as well as cash flow. We can say, based on the expected appreciation. Here's what you could expect and then from the members That way,
spk_0: 14:13
that's really good. And that's really good, because, um, I know I would like to know, You know, my mom works. That's a big deal with me because especially when yeah, I mean, you're thinking about Texas is in, you know, upkeep and that sort of thing. You know, with returns, that sort of thing. You know, it's a lot of factor in that. No, with your with your loans when you're working with your banks, I just to me there's a package that has to be completed for a CE faras the number. Yeah, so with that package the manufacturing and maybe rent and other numbers like that, Is that something that do you guys do in houses, farms with your staff? Or is it something
spk_1: 15:02
way? Do all that? So the way it works with a lot of people, that's a great question, actually, cause a lot of first time investors are worried that well, if I have to carry this entire mortgage and qualifies for the whole thing. It's gonna be tight,
spk_0: 15:16
yes,
spk_1: 15:17
but not really. Because we can take the projected Grinch and that's the appraiser goes out. If it's not rented already, the appraiser says, Well, the average rent for this property, right? This neighborhood is X and we take 75% of that and say that will upset the mortgage. You don't hope you call it home.
spk_0: 15:35
Oh, great, great. Ready. And that's that's good to know. That's good to know. So what type of loan? Um, packages, you know, just kind of Is there a certain name for these top of loans that investors will be using?
spk_1: 15:51
Now it's a conventional loan. Mostly time I'm interested is an investor loan. So Fannie Mae, Freddie Mac, either one their conventional loans. It requires 15% down payment. However, on investment property with 15% down the PM I and it's pretty expensive on investment property. So it kind of cuts in the cash boat. So most people, but 20 or 25%
spk_0: 16:16
Okay, purpose it now what's happened, baby? With people need tohave like prior to coming to you like what type of paperwork and items is important.
spk_1: 16:27
I say you're gonna have incoming asset documentation, Really? But we've got this online application which is so smooth it's intuitive so much you answer a question. It automatically is creating in the background the needs list. You know, if you say I'm simply we asked her tax returns. If you see I'm not some point, we don't you know, that sort of thing,
spk_0: 16:48
and then you can
spk_1: 16:49
upload directly to the to that application. As soon as you finish filling it out, you can then upload the supporting documentation that's being asked for. So it literally in 20 to 25 minutes, the whole thing could be done. And then we're off and running in pre approved
spk_0: 17:04
Oh, wow, that's awesome. Now, with that being said, another great thing, I just thought about that. That this nurse and my clients we have is Do you need tohave? The property picked out already? No, no,
spk_1: 17:22
no. And you will appreciate this because it's so helpful to get pre approved first.
spk_0: 17:29
You know
spk_1: 17:29
how much your for you know how much you come forward and you know what the payment will be? Cash flow and all that. And then you get with Nia, right? You get with yourself and you can then show them exactly those type properties fit. What they call for with the cash flow will look like etcetera. It's so helpful to do the number side first on investing, invalid, buying your old primary residence. There you dream. And that's how good
spk_0: 17:56
it on
spk_1: 17:56
invested properties. Yeah, you wanted to look nice, whatever. But really, it's about the numbers. It's about cash full. And so I would do the numbers first and then you, me, it can help them find exactly that home that fits those numbers in that what they're looking for.
spk_0: 18:11
Well, that that sounds like a great plan and definitely some some teamwork involved. And that's what we that's what we care about. And that's why I was so people, you know, when I worked with team members like yourself, it really helps to have that great communication and able to know that my client's reductive, you or me. We work together to help get the deal done, and that, and I think that's really what's most important is no one that people have the support and know that you know, I have a question you're gonna answer.
spk_1: 18:43
Well, that's why I like working with you. Yeah, about bragged on you just for a second, if I can. Because one thing I've noticed about you over the several deals we've done together is you put the client's needs first and that's not I know that goes without saying, but that's not every realtor in town somewhere. Elders. They kind of put that commission kind ahead of everything you'd never have done that. You've always said client needs first. And that's why you have repeat client referrals
spk_0: 19:12
and
spk_1: 19:13
your business growing the way this
spk_0: 19:15
we'll take you down. Thank you. That means a lot. That means a lot and echoes True. I believe that with my client it so thank you. Thank you. So thank you. Yes, I'll tell me. I know about wrap things up, but, um, I see you're doing things like blocking and YouTube videos and that sort of thing. How compete? Oh, make contact with you or connect with you.
spk_1: 19:41
I think we'll put in that showed us the the link to the website Atlanta Post Morgan's class. Jim Duffy. And that's the easiest way. Or on Facebook. Get the Facebook page. Jim Duffy, Atlantic Coast Mortgage. Easy enough because that's where most of the content most of the external content, that the videos and the blonde posts and all that good stuff.
spk_0: 20:04
Yes, I mean, I will say that's pretty awesome, because it is not many more of these people in the area that provides so much content information, people. It's often you have to wait. Do you have a question of mine? But I like that you produce the content. I enjoy sharing it and watching it because I'm always learning something. I just saw something you posted recently that's related to what we're talking about. And it was about him. Race rentals in trust in the price of rape, um, versus person, home in the equity over time, a gain. That's
spk_1: 20:36
the part that I love because everyone's everyone tells people you'll build wealth with real estate. But then no one knows what that means. It's so it's so, Terry, this bag, this child up there, like I don't know that. So I try and put exactly how much overtime you'll pay this mortgage down,
spk_0: 20:53
right? So you're
spk_1: 20:53
gaining equity by paying down the principle as opposed to raising where you're just giving it doesn't land more and the appreciation piece So no one knows how much of property is going to appreciate in the future, right? But we do know projections, and we know what it's expected to appreciate so we can put that number together and say It's gonna be in this ballpark at least.
spk_0: 21:16
Yeah, and I loved it. I loved me because you think I have some rice purchasing an investment property or their their own personal home. And they're with the sea charts like that. How it progresses over time, that's so useful and start being a huge military town when people might sort out here. I mean, that's not yours right there. You're not years easy.
spk_1: 21:35
Oh, totally great. And, yeah, that's where I just everyone has their side of the business. I just love the numbers because I love you pulling back the curtain and saying this is what it really means. A bill will fill a state And what it does it as well, because, you know, if you're going in short to your boy, I have talked to you in the past. Some military personnel on the boat basis, and we're gonna be transferred out. They knew that, you know, 12 months. Well, there e hate to say it, but unless you're gonna convert that home into a rental property if you're planning to sell it, uh, sometimes it doesn't make sense toe by Sometimes it doesn't make sense to, right? Yeah, And you and I can help them decide that as well. You know what? What makes the most sense for your particular situation right now?
spk_0: 22:31
Thank you so much for saying that I am. I'm a true believer in that when I meet a client and I asked them why they wanted by that is a hard why I enjoy what I'm doing, what I do. Because it was important we had a really good realtor. He asked our communication to this day on him that he kept our desires first and foremost that he really got into what we're doing, what we're doing and thinking I was gonna move in the next few years as I learned from him. And that was something that protected with my client because I took
spk_1: 23:04
it. He I'm caress with hands, fire you to get into real estate or what? What was the catalyst for you? Get in the real estate,
spk_0: 23:11
Believe it or not, it was my realtor. It was actually what it was prior to meeting him. My mother purchased property emotional in North Charleston. I'm from a place that's always my mom. Like my paint, my parents with my parents and purchasing property there when I saw that deal that my mom got. I mean, it's obviously with the lower time on. This was like in 2000 when I said lower time. I mean, it was It was a while ago. It was more like in 2000. Um, 13. You know, it's still kind of This is huge for from that time. Yeah, he
spk_1: 23:49
has the money. Then it would have been great,
spk_0: 23:51
right? Right. A lot of people conduct during that time, and here I am. I just looked to Charleston and I see my mama. I just like property. Unlike what? And she said, Yeah, I said, How much do you pay? And she's like, I'm right. What is the price of a car? And I was like, I was right and she said, You know, she kind of she and I got to talking, and she's like, No, maybe it's something we could do. Um, I'm sorry. I was like, Yeah. So that was the seed? Uh, yeah, that was the sea that she planning tonight. I've been a science scientists my my entire time since college. So in the back of my mind, that is something I want to do next. Really? What sparks me into going, Really?
spk_1: 24:32
You like being living of it? Yeah. The 2009 with the perfect time to buy investment property
spk_0: 24:40
in the
spk_1: 24:40
second. Best time is right now because it's time to start like the president and just start accumulating little by little. Time is because you want investment properties because it's a great way to build. Wealth is not the only thing is invested, obviously, but it's I think that's important.
spk_0: 24:58
Oh, for sure. Especially in Charleston. Yes. I'm gonna definitely put on your contact information there. I appreciate your time and speaking with us and our guests, and it's really been a great a great session here with you.
spk_1: 25:15
I appreciate it. Thanks a lot has been fun.
spk_0: 25:17
Well, Jim, I would see you soon, I'm sure because I know we got to step up to work on and again, thank you. And, um, Charleston. Stay golden It you would like to hear the stock, as you can hear on iTunes, Soundcloud, Google play in all the other major podcasts. Uh, you can also follow us on our baseball page as well. It's our website at Charleston re connection dot com. That's trust every connection dot com Where the artist Way Next. This has been another episode of the Charleston Real Estate Connection podcast. You can find us on our website at Charleston re connection dot com. That's Charleston re connection dot com.