Today we interview an investor that has spent a lifetime in real estate. We’re talking with Kimberly Banks Fawcett of Inspired Capital Group, LLC from just outside of Dallas, TX. Kimberly was born into the real estate business. Her first roles were on the operations side, she eventually started her own real estate firm.

Her first real estate investment was a condo purchased shortly after finishing up college. The extra rooms were rented out to friends, allowing Kimberly to house hack her way through three years of rent-free living while paying down her mortgage.

While holding a wide variety of real estate investments in her portfolio she is currently focused on residential first and second lien mortgages. First lien notes are her bread and butter, and she dipped her toe into seconds because it allows her to get smaller investments into a much nicer underlying property. Plus with seconds, she feels she has a larger variety of exits than with a 1st position lien.

When reviewing deals she isn’t so much concerned about the type of properties she is purchasing liens on, but about the opportunity to have every exit strategy as a potential from the start of the investment. With a target ROI of 25% in the case of a foreclosure, which she finds to be, her most costly and time-consuming exit strategy.

The seconds are adding an interesting play to her portfolio, as she is able to buy in pools – a recent pool had 12 notes. On a recent acquisition, she made contact with a homeowner that had their home destroyed in a tornado.

This 1st position lien had forced placed coverage, and when the owner sold the lot Kimberly netted $20,000 on a $4,000 investment from one phone call with the borrower. This borrower had actually reached out to Kimberly so that he could get the mortgage company to approve a short sale of the remaining lot.

When it comes to vendors to help add value to your business, Kimberly loves WeGoLook. They’ve provided some great assistance in getting simple pictures taken of a property she’s looking to acquire.

Kimberly left us with one of her largest challenges in the market right now, which has been in line with what we have been seeing, which is the uptick in pricing by sellers and asking for inflated pricing. Which to us, essentially means there is a very limited amount of quality inventory available at prices we are willing to pay.

You can shoot Kimberly an email at KBF@InspiredCapitalGroup.com. She also has one of the largest note investing Meet-Up groups in the country, DFW Note Closers.

If you have any questions for us or comments send them our way at ask@notemba.com.

Listen to this week’s show and learn:

  • Why An Investor Might Consider Both 1st & 2nd Liens
  • A Vendor That Can Put Eyes On A Property Before You Invest
  • What An Experienced Investor Looks For In A Deal
  • How You Can House Hack Your Way To Free Rent
  • Why Telling A JV Partner About A 400% Return Is A Bad Thing

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Thanks for listening to our show! We’ll be back next Wednesday morning.

Cheers,

Chase & Robby

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