All Forum Posts by: Alex Young

Never use the zestimate for your arv!  its algorithmic, used for general public knowledge. if you are trying to invest ... I would never rely on anything but my own research 

having someone in your corner to assist and point out market opportunities is never a bad thing.   

more eyes the better... you dont want to miss something that will cost you down the line.

After a handful of projects, then you can start to see what they see 

are you doing the work or financing the rehab costs?     right now I'm working in a partnership because I have too many loans/ "risk" in my own name, so my partner achieved the loan and pays the mortgage... I do the work on site. 

The way I structured this is if its a construction loan, which the bank will be providing the funds for the rehab, we do a 20-80 spilt on profits at the very end 

But, if its a normal conventional loan, my partner will pay for rehab costs out of pocket. He will get 20% of money fronted. Its basically hard money and 20% is lucrative 

love it @Brian Erickson, best of luck brother !

You want a great turn over rate ... Be next to hospitals and military bases. Bases have a turnover rate of about 3 years ... meaning families are constantly looking for housing, both to rent and own. Government and VA give out great benefits for military families so they are great buyers and sellers , plus they are usually noble and clean. Traveling nurses make hospitals a great spot. just a little tip

Two big indicators are stickers on the door...  Ooo I love seeing those stickers  ( either means vacancy,   bank owned, foreclosed on, or going on auction).   But as for door knocking, properties stick out like a  sore thumb.  Look for untrimmed  bushes when the the neighbors have clean yard... look for semi damaged roofs and houses that have mold/mildew on gutters and siding.   THE BIGGEST INDICATOR and this is a good secret , are houses with missing/cracked/or uneven shutters. shutters are like the face lift/makeup to the house....  if they neglect them , usually means they don't want to impress the neighborhood anymore.

With overgrown bushes could be a timing thing and they just haven't got to it... with the roof and mold, could be they just dont have the powerwasher or tools at the time.... But with the shutters, you know when something doesn't look right and if they leave the shutters crooked or off, they just dont care no more 

As go knock on doors as a regular guy. No one wants to be greeted with someone all dressed up. These are people that most likely are in bad financial situations. Approaching as a "professional investor" to me will scare some away thinking that you are all about the money.  

When I door knock, I'm wearing my work clothes ( sweatpants and a shirt that is usually covered in paint or mortar)  Id like to think that id give a sense of honesty.  So approaching with your family and just having a conversation about the neighborhood, what you want, where you are from.. is easy and genuine. 

@Jeff Lundeen

@Brian Erickson

auctions online call for a buyers premium usually around 5% ... its a chunk. Check each websites credentials, read the fine print.   If its a live action, the bank will some times buy it back at the courthouse (this goes as an expense for tax reasons for the bank) they will mark it as a lose on the books and then list it later.   All the live auctions Ive been to require a cashiers check of 5-20k.  Auctions can be a good outlet but its a time game. If there is a reserve price on a property, they will just keep resisting it. I believe it's all algorithms on when to re-list lower.  Be patient with those auctions 

they have heat maps for crimes and rising housing values..... there are also websites ranking school districts ..  those will get you the borders but to understand neighborhoods just get in the car and drive ... enjoy it ..   I bike and run weekly, picking new routes ..... try to repeat every few months. see what's going on .. what houses are not being managed 

how many properties? who are the experts giving the tour?  what comes with the 100$?

I would not do this deal as an investor. You will be eating -150 or more each month. 

Now if you just want to live comfortable for 150 a month and aren't worried about the return. Then go for it 

Overall, not an investment,,, no return , no cash flow. 

A possible discounted living arrangement with risk in your name, Certainly!