All Forum Posts by: Adam Lang

@Erik Pacpaco That is a tough call to make. Can you get out of the offer for any other reason like the inspection contingency. There are always things during the inspection that are listed in the condition report. If you can't get out than I might stick with the deal as it looks like it would at least be profitable long term but you will have a hard time getting all your money out of the deal. 

@Erik Pacpaco I would ask your contractors why they think the roof, garage, and deck need to be replaced and why that wasn't accounted for in the original estimate. If this is a BRRRR deal maybe you don't need to update it all at once. If the structure is safe and no water is coming in then you could potentially wait. Those things will add value to the house if you were to sell it but will most likely not have a huge impact on the rent you can charge each month. How much earnest money did you put down?

@Erik Pacpaco Your P&I payment looks a little low to me, by my calculations a loan for 94,500 over 30 years at 5% would have a monthly payment around 507. This would severely limit your cash flow however I think you could lower your % for vacancy, repairs and capex. If you are doing a full rehab you shouldn't have a lot of repairs when you are done. Overall looks like you would have a positive return but there may be better deals out there. 

@Zuriel Castillo Using your home equity can be a way to get cash relatively quickly to invest but you need to make sure the return you are getting is higher than the interest rate you may have to pay on the loan. For any deal that is actually a good deal this shouldn't be too hard to do. I would start by just asking a few local lenders what their current rates are and how much equity they would let you pull out. After you talk to a few you can pick the best one. 

@Dante Foreman I have the hustle and knowledge but not money right now. I am always trying to increase my knowledge by constantly learning but in the meantime I am looking to partner with someone who has some money to invest. What parts of the triangle do you have?

@John Corum Send any potential BRRRR deals you have to me. At those prices I would love to check it out and if they really are a deal than maybe we could be in business.

If you make sure you have an inspection contingency you could make an offer and back out later if the inspection was too bad. Also, you should ask for a condition report if the seller has one, this would tell you all the things the seller knows is wrong. For additional protection you could have a low earnest money amount so even if you backed out without cause the loss wouldn't be too bad. If you have time bring a contractor in to estimate repairs before submitting an offer. 

Maybe you need to try looking at markets even further away. Have you had anyone look at your numbers? I'd be happy to take a look at one of your analysis' and give you some feedback to verify your numbers. Also if you can find a way to do the deal with someone else's money than your cash on cash is infinite. 

Try finding another successful agent who you can work for/with. Offer to help them with their paperwork or do showings for them and in return maybe they will give you a couple of their leads. Often the best agents are too busy to handle everyone who wants their services so they will have to refer them to other agents. If you can provide some value first you will most likely be rewarded. However, you do need to recognize if some is just taking advantage of your time. Hope this helps. 

For those of you who have done some real estate deals, what is the one thing that would help your business grow? What are you focusing on right now and what are your long term goals?