All Forum Posts by: Brendan Lawrence

Hey Valentin, when you're getting into a deal try to have backup exit strategies. purchase price pretty much dictates what your exits will be. assuming if you want a multi that you'll be a buy and hold buyer? if that's the case, having an extra 20% in the deal from either buying low or adding value will be a big help in weathering the storm. this will make it that even if you ahve to sell, you could still earn some money or break even. additionally, with a multi it's generally more of a cash flow play, and if that's the case an economic dip won't be too big of a deal if you are cash flowing an acceptable amount with a buffer included. lastly if you get into a deal and have extra equity, you could bring in another investor in the future and "sell" the extra equity to them, while still staying in the deal. 

there are other options, like subject too's and rent to owns that may work here but for me buy low is the best defense. 

@Jonathan Tran, keep up the good fight! keep on trying out the calculator and adjusting as needed. last advice i'l leave you with, don't force the deal! not always but i think great deals, often turn out to be good deals, good deals often become OK deals,, and ok deals often turn out to be bad deals. 

@Jacob Kline, i do not use carrot, but it would be the same idea. my guess is the better branded the site the higher the conversion. as in people are more likely to fill out the lead form on something like iwanttobuyyourhomenow.com compared to abcdefg.com. we have our leads tied to Podio, this along with some other tools, automatically sends out texts, automated calls and emails. The lead is only the first part, you either have to sell the lead or convert it. (or let it get wasted)

Hey Diana, 

Great job getting the fish on the hook! why not go into the actual place and get a real estimate by 2 or 3 trusted professionals? with that much money on the line i wouldn't just guess it. caveat, if this is wholesaling i don't know what is acceptable. however if this property is for you in the end (buy and hold, flip, house hack etc.), the only way is to get in there and get real facts. past that anything that's been in a rental for 14 years, is most likely torn up. i wouldn't count on upgrades from 2005 to retain value. not saying it's not possible, but i would start from scratch and then add the upgrades in only after inspection and as a bonus only. 

if i can help in any way please let me know.

Hey Isaiah,

Great question and i certainly relate to your issue. so much to learn, so much to do. IMO, it isn't about one or the other, but a constant pursuit of your best self. your best self most likely has more financial independence, AND is more educated. 

Education is clearly the first step because you can do it with less resources and before you actually know what you want to pull the trigger on. however once the ball is rolling, you need to keep on learning all it can all come crashing down. 

Maybe you can find ways in the early stage to dovetail the two, as an example, learning about credit scores and debt while aggressively paying down actual debt and manipulating you credit factors to increase your score. another example, mind an investor who need help in your area, work for free to learn stuff and ask instead for a tiny slice of a deal, learn and build your future at the same tie. it's a life long pursuit!

i wish you luck out there

hey Jonathan, 

by the looks of the results this was just a test? otherwise let me be the first to say, RUN. do not buy this. ok with that out of the way, a few things you can adjust to give you a more realistic picture in the calculator. no matter what you'll always be spending some money on repairs when you first get into a place, so off the bat i would put a grand or two for estimated repairs. i run my vacancy numbers at 8% as this is just about a month. your capex should be lower, unless this place has some really big ticket items waiting to die. same with repairs. also the insurance numbers and property tax number both seem very high, is this the real numbers or just place holders? lastly you have no growth on any of the charts, as place holders use 2% for rental growth, expense growth, and appreciation. this growth is what could transform this deal. however even with the adjustments i'm pointing out, it would seem you would need a better price off the bat to make this work. 

i wish you luck

hey Harrison, 

i'll start by saying i'm not an attorney or a cpa, you should really talk this over with a professional. so past that disclaimer. i do the same thing. i buy properties using my llc's funds and own them in my personal name. SInce LLC's are pass thru's i've never had issues with the IRS or my cpa.

PPC runs 50-200 dollars a lead, depending on specific market and level of competition. it's roughly 1 in 20 leads turns to a conversion or about 5%. so on the high end 4000 a conversion low end 1000 a conversion. this is backed up by text and email. so i build them all in for cost. this doesn't not include any overhead just the marketing. 

Neil, i want in! i'm on the east coast and we are not growing like this!

Hey Jaycinta,

for me as it stands unless something is missing this deal wouldn't pass my tests. a few reasons. i personally am looking for 10% cash on cash minimum. i'm also looking for some sort of value add, either the purchase price could be great, or some units would need work to increase value or rents would have to be low and you could increase them. from what you've presented it doesn't seem to have any of these abilities. 

a few other things to point out, very rarely would a new to you place really need zero dollars of work. think paint or carpets, or landscaping or anything like that even if a large rehab doesn't need to take place. additionally i think if you shop around you could do better than 5% for your mortgage. 

IMO, either offer lower, or find a new place! good luck out here