All Forum Posts by: Ali Radoncic

The MLS is not the best place to cruise for a bargain but I was looking at some 2-4 unit properties and the prices are absolutely bonkers.

 You can successfully wholesale real estate any where in this country.  Its not as easy as the gurus would like you to believe.  Some might argue that its one of the harder strategies.

you need the hustlers spirit, problem solving skills, negotiating skills, marketing skills, a good understanding of construction cost, and market analysis skills.

Although it is very possible to use low or no money down, you will quickly learn that a good wholesaler has significant marketing dollars behind them.

 I think just having full insurance coverage will be fine.  Im not an insurance expert but im not aware of any "hail insurance"  Typically if we have one of these storms and you are in need of a roof replacement, the roofing companies know how to work with your insurance and deductible.  Deductible will be around 1% of the homes value.  People will normally have this replaced with no money out of pocket although your premium may go up.

Foundation issues vary.  I see anywhere from 10-25 piers on distressed houses on average.  Well kept homes don't see this type of damage though on average.

I would respectfully disagree about Dallas market being slow.  Maybe somebody can pull some stats and Id be open to it.  Its my understanding that the DFW area is one of the hottest markets in the country.

Nice to see some competent talk surrounding the subject.  Demonized by some, and a get rich quick for others.

For those of us that are licensed and operate within the guidelines, properly disclose, and set the proper expectations, wholesaling at its very essence is problem solving.

I just want to know how much these big box agencies collect in "office fees" alone. That might be a bigger racket than HOA management.

The interview process process "interview" lol requires you to just be a living human being.

The NAR operates like the mafia, collecting fees to move product and services on their turf.

The bar is super low.  If I ask somebody how the mechanics of an airplane works, they will start by saying " I'm a broker in Texas"

Everybody thinks they are a good agent just like everybody thinks they are a good driver.  Imagine that.

 Insurance is going up nationwide.  In Dallas it can range between 3,000-4,000 a year.  I lived here my whole life and never even thought about wild fire risk.

We do get pretty wild and random thunderstorms, hail, and some high wind speeds.  Hail is the bigger issue in my opinion.  Its comes out of nowhere seemingly! 

Property taxes are considered to be high in Texas.  That is the number one thing I hear from out of state investors.

From a rehab standpoint, North Texas is infamous for foundation issues.  We basically build our foundations on mud and clay here so movement is inevitable.  If a home owner doesn't properly maintain their home, you would think an earthquake hit their house from some of the stuff I have seen.  The combination of hot long summers (soil dries out) and lots of moisture in winter and spring (saturates the soil) causes the ground to constantly expand and contract.

Out of state investors get freaked out by foundation issues but being that its such a normal occurrence, you have a plethora of foundation companies that know how to fix them with relative ease.  You can pay as high as 1,000 per pier or as low as $175-200 per pier if you're well networked. 

Dallas is a highly competitive market.  I wouldn't say it got as crazy as Austin did, but Dallas has been competitive consistently over time.  Maybe I'm biased but I would also say that Dallas is kind of the barometer when it comes to economics in Texas.  I deal in distressed properties and I see deals sell in as little as 30 min to an hour on a daily basis. 

The buy and hold strategy has shifted more to an equity play rather than the cash flow play we have all been taught and love.  You can still cash flow in some areas, but it will more than likely be in D class neighborhoods.  Multifamily properties at a discount are hard to come by, especially if you are looking in the nicer parts of town. 

The population here is rising and development increasing,  Form me, I remember when Allen was basically a field. Frisco wasn't a thought, and McKinney was farm land.  Now These areas are arguably some of the best places to raise a family in country. 

I'm sure some folks here on Bigger pockets remember when Plano was up and coming, but that was before my time haha.

 This is certainly text book and absolutely the proper way to analyze a deal.

Im not sure what he owes on the home but based on the payment and the year it was bought and the fact that its 20 min from Austin im just going to throw out 500K for conversations sake.

500K compounding annually at 3% for 5 years comes out to approx $578,000, and you have the loan paydown aspect as well obviously.  If he has the reserves for minor repairs and vacancy, I think its a good equity play.  If its going to make or break him, might be better for mental health to sell.

Austin is a great market and Id be willing to bet the vacancy could be plugged quickly.  The fact that its a newer build helps from the cap ex side as well.

I wonder when the "shift" will occur that puts "cash flow" in the back seat when considering higher growth markets.  The fact that he can even cash flow at all on that house is great in the first place.

 Truth hurts on this one haha.  Insurance companies certainly have a system.

 uffffff $7,800 for info Id imagine you could get from you tube university.  I understand investing in yourself, but with so much info flying around for free I wouldn't want to do it.

I didn't help your question at all, but when I saw the price tag I couldn't resist.

 Wasn't aware of this.  I would like to check it out!