All Forum Posts by: AJ Randle

@Austin Hughes Honestly, there was no excuse. The seller decided to keep the house, she bought it with her husband and reconsidered selling it after reasoning with her family about a week after we spoke about it. 

According to my research, subject-to's are good for short term deals (less than 5 years), but if the bank were to call the loan due within the next year or so I know I would find myself in a pickle. That's what I wanted to avoid. Maybe would could discuss a few of your subject-to's and some exit strategies you're considering that I may be unaware of?

This was good feedback guys. I reviewed and reviewed this property, it was a no-go. If I am going to have a property under contact, it needs to be a property at a deeper discount, and I want to be sure I make it worth my while. There was not enough equity in this property, @Austin Hughes you are correct, it's a good subject-to inv strategy, but I didn't want to go there.

Good job Breon! A lot of this business is creating a strong brand by standing on the principles that make each of us successful as investors! Congrats on closing your first deal! Wholesaling is not easy, people make it out to be a breeze, it takes patience, and building a strong report with people. Get out there and reach some more owners who could use your services. One down, onwards and upwards!!!

AJ

Jim welcome to BP. I wholesale in the area and hope you find much success here in Lubbock! Great track record rehabbing and selling bud! There are plenty of good connections in Lubbock here in BP! Get a hold of Jeremiah Phillips and Jeff Smith they spearhead the Lubbock REIA.

 @Jeff Smith I'll call you about this one on tomorrow...missed you at the REIA!

@Garrett Lambert These posts are actually pretty funny, Greg thank you bud! I agree with you on the reno. I don't want to place this into a buyers hand if it doesn't really make them much!

@Greg H. Thank you bud! I think there may still be opportunity here, even if it didn't wholesale. There may be other strategies. I wasn't 100% on the ARV, I only looked at comps in the sub zone with soft ranging from 1000 - 2000 sqft, 3/2s.
@Cody MacRae What's up man! I am running and gunning, safely though! The $12/sqft for the addition is a rule of thumb I've read on estimating the repair. Low End @ $12, Moderate @ $22, High End @ $32. These may be right, may be wrong, I am looking to get clarity there. She bought the home 11/2015 for $85, thinking she financed $80-$82. In 9 months I figure the balance is probably down $3-$5K. Not much equity.

Okay BP, I need a bit of reasoning to supplement my analysis. Here is what i have from a lead that just came in. Backstory: Property Owner is a single mother who just lost her husband and is a single mother of one child. She bought a 3/2/1, 1148 sqft property nearly a year ago for $85,000 (built1978). She is ready to sell it and move because the property holds too many memories for her to bear. She financed the home with an FHA loan and 3.5% down.

Here is my thought of the deal. 

Thought process:

This is a minor fix-and-flip. First to maximize use of the property take the garage (264 sqft) enclose and vent it to make it one more bedroom which would create a 4/2/0. Then possibly makeshift a carport for two vehicle over the driveway, which brings the sqft to 1412 (not including the carport).

Repairs:

The repair estimate (in my novice mind) at the new sqft are about $12/sqft overall - $16950 (moderate repair budget). This includes new tile / carpet for the entire home. Staining the Kitchen Cabinets, Paint (outside & inside) the home, possible update the appliances with scratch & dents to save money.

Comps (high & low) in the sub zone:

Highest Sold (last 6 mths - 1 year)
$132500 for $95/sqft 3/2/2 @ 1400 sqft (new construction)
$93000 for $74/sqft 3/2/1 @ 1260 sqft (built 1980)

Lowest Sold (last 6 mths - 1 year)
$74350 for $66/sqft @ 1126 sqft (built 1975)

ARV:

I believe ARV is $120 - 128K.

$128000 ARV
minus 30% (for return)
----------------

$89600

minus $16950 repairs  @$12/sqft

-----------------

$72650 as offer price

(assignment fee..guessing $5k to leave skin on the deal for the buyer, hence 26% ROI net closing costs ($30280)

Any thoughts feedback, corrections? Heck, any interest. Please DM me your response. Thanks BP!

Brett Welcome to BP! Glad to see more motivated investors in the West Texas Market!

Great question bud! This will require a bit of research but it's easy and worth it. First Go to your local county assessor website and find the owner of the property by searching for the address of the returned mail. Some of these properties are vacant but are also gold mines. Some properties change owners in the middle of us mailing also. Find the new owner, look at the deed to see when it was last sold, and mail the owner. Let them know in your mailing that you've reached out to them at their previous address and would love to hear from ten concerning their property at "X" address. I hope this helps bud!

Alex be encouraged that some newbies don't get their first deal under contract for a year. A few months are spent learning, a few month marketing, a few months analyzing deals, and other months placing a buyers list together and finding deals that are hot to them. It's okay to get a slower start, just be sure to take action every single day. Wrote down a plan and stick to it. I've only been in the business 6-7 months and trust me there is a lot to learn and the more knowledgable and action-oriented you are the more good investors you will meet in the Bay Area. Mentors come and go, investors do also. Start hitting up your local REIAs and network with everyone you know! I'm excited for your future success bud! Great vision to begin with! Welcome to BP!

Welcome to BP Mario!