All Forum Posts by: Brad Bellstedt

Hey Luis! 

My name is Brad and I am an agent/team leader here in Vegas who has prior experience working with investments. I've helped to purchase a couple of buy and hold condos, I've located flips (but didn't represent the buyer in those instances) and have represented the buyer for a 4plex. I also have 5 years of full time experience and my business partner and I opened our own brokerage in November of 2017. I'd be happy to help you get familiar with the market out here. 

Excellent! Glad I could help. Good luck!

Hey Mike! GRM is calculated by using the entire amount of rent towards paying back the initial cost of investment but that's not how it works in real life because there are other expenses like HOA, insurance, landscaping, etc. which is not accounted for in the GRM. The years to break even number that I am using is including all of those costs by dividing the purchase price by the yearly NOI.

There are quite a few on the MLS and I run the numbers on them pretty often. Most have a CAP rate of 4-7% and the asking prices are well over FMV. I found one recently that has some potential. I haven't made this math public yet so you're the first to get it but this is one of the better ones I've seen lately and I run the numbers on quite a few properties each week.

Cash, unimproved, at list, stated income:

Cashflow - $1,849

COC - 6.59%

CAP - 6.62%

NOI - 22,193

GRM - 11.63

Years to break even - 15.1

Cash, unimproved, FMV, stated income:

Cashflow - $1,849

COC - 7.01%

CAP - 7.05%

NOI - 22,193

GRM - 10.94

Years to break even - 14.2

Cash, unimproved, at list, projected income:

Cashflow - $2,189

COC - 7.81%

CAP - 7.84%

NOI - 26,273

GRM - 10

Years to break even - 12.8

Cash, unimproved, FMV, projected income:

Cashflow - $2,189

COC - 8.3%

CAP - 8.34%

NOI - 26,273

GRM - 9.38

Years to break even - 12

Hey Rexanne,

I run a TON of properties from the MLS through the calculators on BP and I can confidently tell you that you won't find a volume of deals online. Wholesalers are looking to purchase at around 80 of FMV, right? A couple of strategies I've heard that have had success are

1. Door knocking

2. Sending out "I want to buy your house" post cards. (Brandon talks about this technique fairly often in the webinars)

3. Posting those signs "I want to buy your house" with a phone number all over town.

I'm leaving out networking which should be obvious because networking is a remedy for just about everything in this business and chasing down the "notice of default" recipients because there are quite a few really dedicated, and well versed individuals doing that already. My personal thought is that door knocking will be the most successful. It takes a lot more effort than sending post cards but the conversion rate can be higher if you've got a good approach. Hope that helps!

I think Mike's suggestion to wrap the loan sounds like the winning option. If the seller hasn't already linked up with an agent here in Vegas, I'd be happy to introduce him to the market here and help him find his next home. 

Have you purchased the land already?

Hey Brandon! My name is Brad and I'm a real estate professional here in Vegas. Rentals in Las Vegas are hovering around the 7-8% CAP rate for homes listed in the MLS, when buying in cash. Debt servicing will cut into that pretty seriously depending on how you structure it. On the other side, if you buy in a community without an HOA, you can push that cap up a little bit.

As for the Air bnb goes, you have to acquire a special use permit for short-term rentals and the property has to conform to the permit requirements. There are some good and recent articles to read as the laws and requirements are still developing. If you're familiar with the laws and requirements and still want to get a search set up for properties that conform to those conditions, I'd be happy to set one up for you and send you what's available. 

Hello Justin! 

I would be happy to take a closer look at the property and comps for you. I can even run the number through the BP calculator for you and send you what I find. I'm a real estate professional here in Las Vegas and I don't charge a buyer's agent commission. (Our commission is traditionally paid by the seller) I could help you find and secure private money, contact contractors for the conversion, purchase the property, and list your current home for rent. Please private message me if you are interested. I can give you an accurate estimate of what your current home will rent for, how much the comps for the 2 bedroom are in it's current state, the rental comps for a 3 bedroom in the area for after the conversion, and we can nail down the NOI, CAP, COC numbers both before and after we secure financing. As I mentioned, my services as your buyer's agent don't cost you a single dollar so long as you commit to allowing me to represent you as the buyer's agent for the purchase of the 2BR property. (And so long as the seller is offering a buyer's agent commission of at least 2%)

Sounds like a plan! We have study sessions on Wednesdays for test prep and our office doesn't charge any monthly fees for hanging your license with us. If you have any questions along the way, feel free to reach out!