All Forum Posts by: Anthony Vargas

Hi Ari! I am practicing running numbers and analyzing deals, so I hope you find some value in this! 

Looks like this could be a good deal if the numbers are right! What exit strategy do you have with this property? Based on the 0$ rehab cost, im assuming its a turn key rental or primary residence that you could house hack.With the loan payment being as low as $330. House hacking might be a good idea if you haven't thought about it. 

If you're looking at this as a rental investment, i would double check the expenses for the property. The house being built in 1918, 2020 makes it over a 100 years old. I would increase the amount set aside for maintenance and CapEx. You have less than 1% of your PP budgeted for something going wrong, on a 100 year old house.

As far as the comps, the house looks very dated and looks like it could use a full cosmetic and probably some structural rehab. If you haven't already, I would reach out to a contractor and have them give a bid/assessment of the property and its condition. If its in a good area, the rehab might be worth it. But if not I would not purchase at 90K. 

Im not sure what market and what prices look like around your area, but you might want to consider other exit routes. I like a wholesale or whole-tail on this, otherwise I would consider a rehab and then exit using a BRRRR. or flip.

Let me know if I missed anything or failed to see something in the report. 

Hey John! I've been practicing analyzing deals so my numbers may not be 100%, but I hope you find some value in my analyze. 

I am curious about the size of the property and the location; if you're purchasing at 2k, assuming you're getting what you pay for, it must be a small amount of sqft if the rehab is 40K. this is me just taking a wild guess of what you're actually buying for 2K and how much money it'll take to get it fully rehabbed. If everything stands true, you create almost 23K in equity with an ARV @ 65K.

The initial ROI (NOI/Propert Cost) would be 9.3% which sounds good to! Not to mention the COC return being 10.3%, you can't get much better than that for only being 42K all in.

IMO this would be a great deal if you're looking to take on a project to add to a portfolio. Plus the appreciation would be an added bonus down the road depending where this is. 

what kind of exit strategy did you have in mind for this deal? 

Ive been practicing analyzing deals, and I would have to agree with @Daniel Zapata based on year one returns, its a lot of capital to towards a negative cash flowing asset,initially. Correct me if im wrong but cash flow,appreciation, and initial ROI is what makes a deal profitable.Based on the report and some of my math, you'd get a 2% return on your initial investment of 370K. You could pretty much get that leaving you money in the bank with 0% risk. Your COC return would vary on what kind of financing you put it on but based on the report. 2% return on coc return is not very good based on what ROI in other market, like the stock market. Assuming you would refinance after putting some repair $ into it, you would gain around 90K in equity using the BRRR strategy if the arv is around 1,000,000. Personally I would leave any equity after I got my money back using the BRRRR so im not over-leveraged, but in this case you wouldnt create enough equity to do that. So it wouldnt really fit a BRRR model exactly. If the PP is 600K and it need 300K in repairs, it might not be worth 600K as is and you should negotiate down. Especially after holding cost.

I could see this deal working out better if you had 400K liquid and wanted to park it somewhere knowing that it will appreciate. Average rate of appreciation in Minneapolis is around 5%, so that be around 45K per year gained. Besides the gained equity, which can be volatile.it doesnt seem like this would be a good investment for seeing immediate or cash flow return soon enough. 

These are all my own calculations, so please let me know if I left something out or if im wrong! Im trying to get better at analyzing deals so I hope you find some value in this. 

There are plenty of scripts out there that covers all the bases on what to say or what not to say, but the biggest thing ive learned in the past almost 6 months about cold calling is this.. It's not what you say, its how you say it. The most successful cold callers/conversions come from having high quality conversations with motivated sellers. Find out the reason behind why they want to sell and qualify them based off 4 Pillars; Condition,Timeline, Motivation, Price. 

Really try to build as much rapport as possible within the phone call and let your personality and strength show. Ill end it here:

Someone can always hear a smile through the phone; the conversation is set by the tone

@Jose Castillo I'd love to hear what systems your friend Ali has in place for his Podio set-up! How can I find out more? I messaged you!

Message me, I can possibly help you out in this situation. This is do-able but you have to have the right people in your network to make something like this happen, Just as Barry said. Look forward to speaking with you. 

Hi Tricia! I am actually going through something similar to this as well! My best suggestion would be to try and reach out to anyone/everyone who may be in relation to this person! If you use truepeoplesearch.com, a free skip tracing service, it names off people that may be in relation to whom you are looking. That might be a good starting place. Maybe check whom you are looking for on Facebook and reach out that way! Keep the "7 degree of separation". feel free to message me with any questions!

Sounds like you've got a good start man! Only thing I would suggest is to gather specific questions to ask another investor to get the best direct response! Feel free to message me with any of those! Would love to help answer anything I can chime in on. Best of Luck

Hey Ethan! I am currently 21 years old and wholesaling here in Nashville,TN.

All of those are great question that im sure a lot of people had first starting out wholesaling. I think that every market is different and of course you want to fall in line with laws in your market to make sure you are doing everything legally. Before going and hiring anyone I would complete a couple of deals to make sure you understand how the whole process works. Not to mention, the greatest part of wholesaling is the low amount of money that you need to actually get deals done, compared to actually buying properties. Keeping your overhead cost, or COST PER Contract is something you want to keep in mind before going out and hiring a whole team if not needed. 

How far along your journey are you? have you completed deals? 

Feel free to message me if you have any questions!

Reaching out from Nashville!

Hey Man, congrats on entering the real world. I am 21 years old and am currently sourcing off-market deals in my area to sell off to an investor, also known as wholesaling! Wholesaling can be attractive for many reasons, but mostly for the large return, with little to no money in. 

It's possible to wholesale with no to little money, but if you're serious about it I would consider spending some money for some marketing tools. You're going up against people who do this full-time and spend thousands of dollars a month on marketing so its going to take a lot of effort to get your name out there. 

The best way to find deals to assign with no money is by driving for dollars. Drive around your town and surrounding towns and look for properties that look distressed, or needs loves. Find out who owns the property and get in contact with them. 

Feel free to message me through BP and ill give you my contact info, let me know if you ever need anything! would love to spread some knowledge behind the things ive learned on my journey, Best of luck