All Forum Posts by: Rick Jones

Hi Everyone,

I have been looking for information or stories about investors flipping multifamily houses like brownstones in major cities. These would represent much higher end flips compared to standard SFR but would yield much more also. For example buy a outdated brownstone for 1.7 million, renovate for 200-300k then sell individually or as one for millions in profit. The principles are largely the same though. Buy low, renovate and sell. Granted, larger down payments are needed but I would rather raise $200k for one large project down payment than have multiple smaller SFR projects ongoing.

Has anyone had experience with this?  I may expand my direct marketing to include Boston just to feel out the number of owners who might be motivated.

Thanks

Rick

@Jon Holdman@J Scott@Manolo D.

Guys thanks for the information.  

J - I did that, and both options are appealing.  I will see where the deal takes me

Jon - thanks for the detailed response.  I looked into the valuations a little deeper and also reviewed the construction cost that would offset any gained sqft.  It seems most profitable to retain its current sq footage.  I will be add a dormer to get it inline with nearby similar solds though.

Thanks all

Rick

Hello,

I am interested in hearing comments on doing major work such as finishing a basement, adding bathrooms or building an addition when you have a house that in an area that is selling for around $270/sqft.  The house is a cape.  The idea being that even though you are having expensive work performed you are adding even more valuable square footage.

Thanks

Rick 

@Jeff Copeland

Good man, i had some remaining credit at Amazon so I picked up both books. I have the VA working on keyword research now for a very reasonable price. Hopefully i can implement the research and get my website to rank in the locations I am targeting.

I hear you about Google Adwords.  I used their setup wizard thinking I was all set with a modest budget per month but I think there is much more to it as my add is not live yet and I never chose any keywords.  The books and more suffering through the details will help

Thanks again

Rick

Excellent suggestions above about the creative cost reducing.

@Jeff Copeland

Jeff, your suggestion sparked some action from me and I set up a Google adwords campaign.  I had been meaning to explore this avenue for some time.  I still have much to learn as I set it up with a reasonable budget but I was not asked to put keywords in.  Only who my audience was and what my product was.  So I need to wade into the detail more and learn the basics  

Hi All,

Thanks for the responses.

@Antonio Coleman

I know you are a big proponent of websites. I am working on it. I have it built and I just need to start working on the SEO piece. An issue I have is not money but time. I have a plethora of irons in the fire and it is tough to find time to actively manage the site. My next steps are to use a VA for SEO.

@Chaz Reid

The money is not the issue.  I just had him contact me and was comtemplating it.  I think I will do it next run as there was not enough time for this one, (will have to wait 3 months).  I can give you his contact but he is a local guy in Rhode Island.  A simple google search should put you in contact with local people in your area.  Please let us know your results.

Thanks

Rick

Hi,

I have been recently approached by a company that makes place mats for a local popular restaurant.  Basically they will could place an add about 3 x 3 inches on 20,000 place mats for about $400.  I would make a professional advertisement with my logo, phone number, website address etc.

That is a good amount of exposure for $400 dollars but the place mat are not focused at all.  I am interested to hear others thoughts about this kind of marketing.

Thanks

Rick

Hi Chris,

Thanks for the response.  I am familiar with appraisals.  They are expensive however.  When i mentioned a "system" I meant more of a flow.  From caputring leads that call, to quickly looking them up online, to visiting the property to confirm value.  I think of a lead as a spectrum.  In the beggining nothing is known and at the other end would be the full blow appraisal.  Obviously it would not make sense to perform an apraisal on every call that comes in.

So a tiered process must be in place to evaluate each lead at each step.  In the beginning if the seller says they have a house worth $200K and want $300K for it it is easy to deem that deal a no go.  It is not so easy precisely determining value on which a bank will lend against.

As I expand I would like to create a system.  Having an appraiser on call may be a good idea but he would only get involved near the end of the chain.  As far as me becoming an appraiser that is not what I am trying to do.  My passion is real estate investing.

Thanks again

Rick 

Hi Joseph,

I applaud your efforts.  Bandit signs are like an instant trigger around here and it gives me a sensible chuckle whenever I think about it.  There are signs all over used by politicians and other businesses.  I am supposed to feel bad because I am breaking the law.  Well I am not.  I also don't feel bad when i go over the speed limit, or rip the tags off my mattresses or any other mundane illegality.  I will get my morality from own personal values.  I come to BP for real estate discussions and they are excellent.

To your question I would use Google voice and choose a local number.  Try to choose a number that is easy to remember, (111-1111, or with word in it).  Use the negative calls as practice.  Try to sway them over.  I doubt you will succeed but make use of every result of your marketing.  I am sure you are already aware but if you aren't causing people to call you pissed off you aren't marketing enough.

Also, how are you positioning your signs so high?

Thanks

Rick

Good Morning Everyone,

and gurus! @Michael Quarles @Sharon Vornholt @Ben Frink @Johna Medeiros  

Recently I have been exploring ideas on how I could use VAs, real estate agents, other employees or a combination to create a system that can take an address and generate a confident market value. The output of this system would be more than just a CMA as that relies only internet/archived data. Ideally someone would schedule a showing, take pictures and use the real time information to create an accurate valuation that an offer could confidently be based on.

This area represents a bottleneck as my marketing volume goes up.  As it is now a call center handles my incoming calls.  I follow up on the most promising.  From them it is time consuming to evaluate all the properties that come in.

Is there anyone else who has similar issues or a system implace to outsource this portion of valuation?

Thanks

Rick