All Forum Posts by: Alex Grosvenor

Hey @Tonya Weathers send me a PM with your email and I will send it over

Hey @David Ramsey. 

They pretty much already answered how to get accurate rehab estimate costs. 

I would like to just say that $5/ft won't get you anything. All of those numbers are extremely low and will never work for estimating any rehab in DFW. If you connect with me I will share an in depth excel worksheet with you that breaks down EVERYTHING. From the cost per sq ft of flooring to getting a new HVAC unit. 

@Nick B. Pretty much covered the basics. You can get an agent involved the first time. Pay them to teach you how to do it correctly the first time; then go and do it by yourself every other time after that knowing that you didn't miss everything. 

The BiggerPockets Real estate Podcast Episode 446 just covered doing things like that! 

@Dracy Campbell It would be a risk. The investor would be betting on appreciation to go up AT LEAST enough to pay 7.5% on closing costs and realtor fees on the back end alone then another chunk of profit gets taken away from capital gains taxes from their profit as well. I can't see a seasoned investor doing it. Not to say that no one will. It would just have to take a special circumstance. 

@Erik Gensler I want to start off by saying you are doing GREAT! DO NOT STOP GRINDING! It is way more than what 99% of people are doing. 

With that said you sound CRAZY!!! You started doing something for one month and you expect to be killing it already? When have you ever started anything and in one month you are out performing people who have been doing it for years? NEVER! 

Considering the market is so hot right now people are getting at 5-10 postcards a month. If you sent one for one month and everybody else is consistently doing it you are going to get beat out every single time. You have to be consistent with your marketing or it will NEVER work. 

Since you used two different companies which tells me they aren't hand written. Why would they go with you when you sent a postcard that was most likely the same as everybody else's postcards and everybody else has been mailing them every single month consistently besides you? 

Hand written letters I would've expected 1 out of 1500 to maybe get a reply, but even then maybe not. Handwritten letters are just more likely to be opened and read. Would you read a handwritten letter or a laminated postcard? Which one are you throwing away faster? 

As for the website Search Engine Optimization (SEO) takes about 6 months to get well and it takes a lot of time and effort. You website isn't expected to do well immediately. It takes a lot of time, energy, effort and money in this scenario. Or you can do a pay per click (PPC) campaign on google to have your website at the top. If you did that I would've expected you to get something back, but if you didn't work towards either of those two things it is expected. If your landing page for your website isn't very well made people may click away immediately. 

I say these things to hopefully push you past this discouragement that you seem to be feeling! Consistency is key. You have to take one step forward every single day. Just one and everything else will work itself out!

I understand what you are saying, but as an investor why buy a house and rent it out for two years to then sell it to the tenants?

If it’s going to cashflow most likely the investor will want to keep the property for their rental portfolio. If it doesn’t cashflow then it’s pointless for the investor to buy it in the first place because he would be breaking even or losing money. Which unless you plan on holding for a long time doesn’t make any sense.

If you found the property and sold it to the investors with tenants already ready to move in the same problem would arise down the road. Either it’s going to cashflow and they are going to keep it. Or it’s not going to cashflow and people won’t buy it. Or the person who buys it as it’s not cash flowing is going to want to buy it hold for appreciation years and years down the road.

I just can’t see a scenario where a investor buys it and with the intention to sell it a year or two later. MOST investors hold for long term. 

I think your best bet to make a profit is to refer the people to someone to get them into a rental and you make a referral fee. They will most likely have to re evaluate their plans of how they want to buy especially in this market.

The most important thing to me is having a group of people who match my motivation and values. Go and attend the meeting in person or on zoom before you ever agree to join or make your decision. 

ANYBODY can teach you how to write a contract, navigate the MLS, run comps, or lead generate. That information comes with every brokerage and doesn't make the brokerage special.

DON'T let them fool you by saying they are going to give you a mentor. Unless you find a single person willing to be your mentor and you've built that relationship you will NOT get one that's going to teach you the ropes.

Profit share is good but revenue share is better. Don't get hooked just because of profit share/revenue share at all. 

A LOT of brokerages do not fully understand the investment side of real estate. If you want to specialize in that you need to go with a brokerage that knows how to handle it in depth. 

ALL brokerages will say they do know how it works, but I can tell you from experience once the more complicated questions came up they didn't have an answer or their answer was totally wrong. 

Other important questions

Are there people in the group doing exactly what I want to do? If not then how are they going to teach me? 

Monthly fees?

Split?

Do they provide Listing signs?

Docusign/Authentisign provided?

Offices you're able to use?

E&O insurance?

Stocks? 

Profit/Revenue share?

There are many more but these are important ones!

@Dracy Campbell I'm a little confused by what you mean get it under contract until they are ready to buy it? Are you planning to have a property under contract for a year or two? 

I don't believe this market that is even remotely possible. Or am I miss understanding? 

Also how are you going to wholesale the deals to an investor if they tenants are planning to buy the homes? 

I am just a little confused.

Hey Everybody!

I am looking for a Real estate CPA for the state of Texas! Preferably one in the DFW area but doesn't need to be. 

I am looking to build a long lasting relationship for many years down the road. Needing advice throughout the year and not just for filing taxes. 

I appreciate any recommendations! 

I just had a conversation with an investor today about how Dallas has hired a third party company to help with the permitting process they are so far behind. 8 weeks is about normal right now with Covid. 

It may seem like a waste of time, but trust me if they catch you working when you shouldn't be they will shut the operation down for a lot longer than that and be a real pain in the a**. 

No way around it unless you have a friend that works with permitting.