All Forum Posts by: Assaf Furman

@Account Closed

The 50% rule is mostly used to quickly evaluate a deal on a rental; say you're looking at 10 listings and can tell what rent rates you can get on them, deduct 50% from that rate to get the potential NOI - net operating income.

You shouldn't use this to analyze the deal though

On my street a landlord markets his rental units without the detached storage units, and rents them out separately 3 times more than he would've been if he were to package it as part of the tenants' rent.

 Between us there's a reason why this place is called Los Banos...

The closest city I know of with those prices is Los Banos.

In my area it'll be $170-$250/sqft depending on the finish level and the contractor. 

If you're going to wholesale that tear down, talk to potential developer buyers and ask them how much does it typically costs them.

 Hello Michael and welcome to Biggerpockets! 

Here's a few tips to get you started :

Look for RE meetup groups in your area, go there and develop relationships with local investors. 

Rehabbers, buy n' hold investors and developers also look for deals, not only wholesalers. The properties you'll find oftentimes fall under a certain buying category of one investor but not the others.

Evaluate the personalities of the people you talk to rather than their experience or level of investment. You want to connect with the ones you're most comfortable with rather than the "big shots", someone that can help you know the market and mentor you with patience, idealy with the same goals.

This is a game about PEOPLE. Work your way through the relationships you develop - both sellers and investors.

 Is this the one on Meridian and Foxworthy? 

 I'm not sure about going to an attorney because they're biased and driven by commisions. That's why I asked here where professionals such as yourself can share knowledge and experience.

 Asking the CalBRE is a good idea and I will definitely do it. 

Thanks for your help, I'll post my findings

@Bill Gulley

@Brian Gibbons
@Bill Gulley@Jay Hinrichs

I'd like to insist on asking you about the legality of the assignment, particularly for the case where the seller is well informed before the fact about that option to assign and there's documentation to support it.

Again I'll repeat by saying I read your previous comments, I'm well aware of your opinions on sleazy/uneducated/unethical wholesalers, better to have sales license, and taking title to the property.

@Account Closed

 One option is to not know they're in foreclosure. You're a real estate investor looking to buy a house like theirs in that neighborhood, and you want to know if they have intentions or thoughts about selling their property.

The less recommended way is to mention you know about their situation - but you don't want to embarrass anyone. Ask what they intend to do; list it, sell it, refinance it, get a second etc.  and see where can you bring value to them. Some people elude themselves to think they can solve it whereas the mortgage lates have already been written on their credit profile. That's where you can come in, but it's vital to follow up and not wait for a call.