All Forum Posts by: Allan Smith

I borrow a lot for my flips from a doctor that was 8% and went to 9% recently. You could probably go up some too since the competition all has higher rates. Even a bank is freaking 8.5% now!! I would pay 11% probably to not have to deal with the red tape of banks.

I've never thought about those three things. I just want there to be enough profit. If it's a house that needs a ton of work, I will decrease my offer's % of arv to increase profit a bit. Likewise a house that barely needs anything and can sell quick, I might offer a little more.

standard is 75% of arv, then subtract repairs. That's your offer.

Biggest thing to me is why wasn't the first round of capital enough, and why wasn't it brought up to 90% Occupancy ages ago? Only excuse is if the sponsor distributed profits heavily since the start and gave back too much capital.

I guess I'm in all the stages. Several projects going and looking for more.

but if the 7 stages are geared towards a beginner doing their first deal then that makes a lot of sense.  That's what the stages were for me at the beginning too!

I have had to evict a couple tenants that I inherited when I bought the units and usually the cleanup and repairs were around three or $4,000 and the eviction cost s were under a thousand. 54k is a rather extreme case. for those out there that have not run into this, that might help you be less afraid. 

You need you your re license to do this. 

20% of gross is typical. It's whatever they agree to.

you pay the cleaner bc you are the manager and getting paid well for it.

you collect rent and pay the owner monthly what is left over after pm fees and expenses. Use software or do ach through your bank.

Townhouses are side by side and never stacked on top of each other. Also, multifamily Apts are owned by the same company whereas townhomes have different owners.

Most deals don't pencil for me either. I look 30 - 40 wholesale deals before buying one. And that's off market!

Not with a bank loan. Some hard money yes. Some hedge fund money. Seller financing yes. 

Builds are easier with more profit, but sometimes a lower roi due to increased cost and time. Run your numbers. It's usually pretty obvious which strategy is the highest and best use.