All Forum Posts by: Alex K.

@Joel Fernandes Don't be discouraged. If it were so easy to find deals and they were a dime a dozen, I'd have purchased them all already. :D

Seriously though, it sounds like you've talked to one company about a few houses. You need to look at 100 houses and talk with many many people. Even then, you might not find something you like right away. This is a long game and it takes a lot of time to either build the team and structures to have a deal land at your doorstep, or search through a lot of avenues yourself.

Remember that there are 100 flavors of "turnkey" companies and more are not truly ones where you can turn the key, than are. Also, if you are looking for a smoking hot deal with tons of cashflow, it is not going to happen through that avenue most likely. Why should they do the work and leave excess meat on the bone? They don't, won't and shouldn't. If it was that easy, then they would keep the deals all to themselves and their investors.

Keep plugging along, and keep looking. Make your plan, set criteria and keep searching. Something will come up. But if you think it will be easy and happen overnight, you are in the wrong business. Ex: My first deal took over 3 months to find, another 3 to close and I looked every day. That was after learning about REI for over a year. Yes, it waxed and waned, but you have to be persistent. When you do, you might find yourself with 3 deals in 3 months from now and have to figure out how to buy all of them. That is a good problem to have. You've got this!

PS - Always run your own numbers. Don't just trust what someone provides to you.

@Thomas W. The loan to value on the second house should be ~48%. Looks like a typo where it is showing 1.8% on that particular screen. If you have an account and look at the loans that are funding, you will see this:

Couldn't agree with @Jay Hinrichs more. There are much smarter people out there than all of us and if it was as easy as going on the Roofstock platform with smoking deals just sitting there, they would have been snapped up. Heck, I would have borrowed all the money in the world and bought them myself two years ago when they launched :)

There is always another deal. Patience is a &*%$! but necessary in this arena. Just keep your eyes peeled and keep looking for opportunities out there. A deal will come along.

@Dan Keldsen There are lots of great threads on the site about that. Search for Jason Gines and Roofstock, or Zach Evanish and Roofstock for common ones with lots of commentary.

@Ryan Fitzstevens Do a quick search on the site for Roofstock. There are already plenty of threads with information.

@Jay Hinrichs Looks like your TK reviews site has been hacked. 

@Lance Robinson Hi Lance - I tried to connect with you on BP as I had a few offline questions. Could we connect?

Thanks!

I would like to hear more on the mortgage deduction limits. Overall and generally speaking!

Mindy - You rock!

Why don’t you ask them to sign a term lease if they are good tenants? Maybe you offer a concession if they’ll stay as vacancy is literally the worst. If not, can you get a long term tenant now/at closing? Otherwise table the longer lease until Feb/Mar. I’ve MTM tenants now but what’s the point of not collecting rent? Losses?

@Varun Parkash - I'd look at the deal and your goals this way (using napkin math and flat rents): 

You say that you want to purchase this home at $315,000 which would cost say ~$5,000 in closing costs. You then want to hold it for 3-5 years and sell. Assuming no appreciation, you would need to pay 6% or roughly $19,000 in sellers fees. Maybe you get a better deal, maybe you don't, maybe a buyer covers some costs. I'm not trying to argue that here.

The point is that you would have a potential $24,000 in costs associated with on and off loading this deal. Is that worth the cash flow (My estimate is you'd make about $140/month?) or COC you could get elsewhere? Also, what's your exit if the value decreases when you go to sell in 3-5 years? (Hint - If you sell, it's not pretty.)

Like you said, it HAS to appreciate for you to win. If it is flat or goes down you lose. I did some quick math shown below in the attached image. I only see you winning if you hold for 3 years and it appreciates. Otherwise, I like what @Jay Hinrichs  has to say. Great as always!