All Forum Posts by: Brandon Davis

The intention was simply to have control of the deals by marketing and getting to them first. Wholesale, buy and hold, or fix and flip. We have liquid cash but want to hold on to that because we have deals in the pipeline for flips and renovation costs. We would rather bring on someone that could put down a down payment. 

Good afternoon.

My partner and I have gone all in during the past couple months and have built a real estate investment business complete with virtual assistants and acquisitions managers. We have a robust cold calling campaign and post card campaign. 

I went on an appointment to sign a purchase agreement with a seller that wanted to sell his rental. I asked him if he had any more properties. Long story short, about 3 weeks later we signed a purchase agreement for 13 properties, totaling 24 units contingent upon inspection and financing.

My partner and I could wholesale this deal and make a sizable spread, but we are getting this deal at a deep discount.

Purchase price : 1.08 Million

Tax Value: 1.1 Million

Value based on NOI and cap rate etc: 1.8 million

I have calculated taxes, insurance, miscellaneous, vacancy, maintenance, etc etc..

We don't have the money for a 200k down payment to get in the game so I want to raise the money.

Question:

If you were to give someone 200k as a downpayment on a portfolio, what type of return would you want on your money? What would you need to have to make it worth your money.

So, in Virginia, If a wholesaler markets a property to his or her list, before putting the property under contract, that is considered illegal, correct?

So I found a potential wholesale deal. I met with the gentleman informally before, and he seems motivated to sell. I examined the property and everything is move in ready. He wants 110k and the 5 comps I pulled are around 150k. The cash flow for the property is really good if purchased by a renter. I think can get it under contract for 100k.

I am meeting him this weekend to negotiate price and hopefully get my first deal done. The gentleman requested references for my past deals, but I don't have any real estate references to give him at this point. 

I'm not going to lie to the guy, but I'm curious how some of the wholesalers out there have handled this in the past. Thanks.

Okay guys,

Looking at my second deal for a 7 Plex. I analyzed this property with the Rental analysis and I feel like my numbers are way off, so I want to see what you guys come up with.

Specs:

7 units with 1 vacant.

3,335 in gross rent with 6 currently

Property Tax : 3891

Insurance: 1656

Repairs/Main: 4190 

Water: 3000

Dumpster: 1200

vacancy 10%

Cap Ex: $333 (too much?)

Asking Price : $425000 ( I think my offer should be 300,000 range based off of cap rate of 8.45 and noi of 18053)

Cap rate 8.45

Thoughts?

Awesome. Thanks for the reply. I am banking on the fact that:

1) I can trust them

2) They do great work

3) I can get discounted work done without having to haggle for every dollar.

Would it make sense to have them work for a deep discount to keep food on the table and split profits? Cheaper than I could hire a GC for?

A family member of mine really needs to get out of a home in Tomball, Texas. No damage or problems, just money issues.

In light of the recent disaster in Houston, is inventory lower, thus making rents and costs of real estate higher? Or does the flooding dissuade people from purchasing? 

Thoughts on how disasters like this affect markets?

My two cousins own a successful cabinetry/remodeling business. They are trust worthy and do an incredible job

They want to get into business with me flipping homes.

 I'm ready to pull the trigger, and have money for down payments, however:

How would I structure a deal with them? 

I guess I would get the loan on the property, and they would receive the money set aside for the GC on the rehab plus a 50/50 split when the property sells? Does this sound about right? Would two men be able to do more than a couple flips a year? 

Thanks.

The property came back on the market last week and I took a peek with my agent. The city condemned the property due to a leaky roof, which subsequently turned into a disaster. A new foam roof was just put on. There are quite a bit of city punch list items to get the property rolling. It will be a complete gut, but has a great foundation, and great bones (reinforced steel with concrete from the 40s) . If anyone wants to further a convo about this property please message me privately. I am looking for any help I can get :)