All Forum Posts by: Justin Fernandez

Good Evening,

I have a charming townhouse (No HOA) that has been upgraded from a 2/1.5, to a 2/2.5 in the Stone Mountain area.

Financials

Purchase Price: $33,500.00
Purchase Closing Costs: $600.00
Estimated Repairs: $0.00
Total Project Cost: $34,100.00
After Repair Value: $44,841.00
Down Payment: $33,500.00
Total Cash Needed By Borrower: $34,100.00

Income: $750 (Monthly); $9,000 (Annual)

Total operating expenses: $338.25
Vacancy: $60.00 (8%)
Repairs: $60.00 (8%)
CapEx: $60.00 (8%)
Management: $60.00 (8%)
Property Taxes: $98.25

Income-Expense Ratio (2% Rule): 2.20%

Pictures and info here

www.redlionrealestate.com/901th

Regards,

Justin

That was one spectrum of street side.  The point I was meaning to drive, is that you can drive down one street and and the subcultures just change.  For example in Atlanta, you get off an exit and it looks nice, like a B+ area, then after a certain intersection it turns into a warzone. You learn a lot driving for dollars. Crazy how it just jumped the C section to just straight warzone. 

But as always, @Brian Gibbons gives good insight!

@Michael Galesky

Lol, that was a good one.  The website is working now. Let me know if you anything else.

Ammon,

You sound like you're getting super desperate in wanting to get it done.  That's good! That means you're ready to take action.  But Action without knowledge is a gamble.  You're gambling on a prayer,a hope,a wish and not making a solid business decision.

Wholesaling is the hardest part of Real Estate and it's not even real estate investing! You're a marketer that just happens to sell real estate.

There is a lot of sound advice on this thread, but @Miguel Rosario offered great advice and to his point, you'll both need more knowledge on the subject which is easily available to you across these forums. 

I'm not saying you shouldn't wholesale, but you'll have to put in a lot more time and effort into succeeding. If you want something now, you could start bird dogging deals. Plenty of Atlanta people are looking for that. You can create a business model around it, then when you start seeing what people are looking for you can start locking up deals via a JV, then you can start moving forward by yourself or continue partnering up.

Drive the neighborhood in which you want know. Understand that where a house is on a road can change the ARV by thousands to tens of thousands. Understand the economy of the area you're pursuing. Inclining? Declining? New construction? New stores? Gentrificiation? Demographics and do they serve your target market?

Food for thought

@Brian Gibbons

Thanks bud! I'm getting my license as soon I get a duty station. 

Listen to show 37 with Aaron Mazrillo. And the comments in the show tackle a lot of what you're looking for in a direct mail campaign. 

Even though you do the same things your products are different. You might wholesale a tear down while they short sale an overlevereged property. It's all about relationships and referrals. 

The best relationship I've heard of was from Shawn watkins(BP Audio 2012)? As he buys sub2 from from MLS with high DOM referrals from agents.

If you treat others as competition and not as a future possible business partner, you're limiting what you can accomplish. 

As far as questions go, how would they fit in your business model? Are you willing to pay a commission on top of a lease option? Toss referrals(short sales, retail sellers)? How can you bring value as a wholesaler to an agent? And how can you create opportunities by working with agents. When you answer those questions, that should give you an idea of what to ask. But I'm not all too sure about doing a partnership, just referrals really. 

Personally never liked signing name and or assigns. 

Just have it as a clause that the contract is assignable. 

Have an inspection clause

Have an assignment contract handy or be prepared to double close.  If you need a transact lender let me know. 

Best of luck!

Yes,

Write a professional letter and include some information about yourself. You want them to like you before meeting you. Unless you want to call them, then you can do some detective work via Google. If you can't find it then a skip trace is your next bet. 

Hope his helps