All Forum Posts by: Brett Russell

@Cory Magnus , I think most people on this site would say to stay away from paying that much especially to a big company like that.  $3k could get a lot of direct mail for you once you spend some time educating yourself here.

@Jean Nkondi , I think you really need to reconsider this strategy because of problems at multiple levels.

If you don't have a contract, then you are just acting as a bird dog and you better have a close relationship with the potential buyer because if not (ie just posting on a website), what's to keep that buyer from bypassing you completely and just going directly to the property seller?  You lose all power and control.

A larger issue, though, even if you have a contract, is what value are you really bringing to the transaction to warrant a wholesale fee if you are just finding MLS deals? Why should anyone pay you $1K, $2K, $5K, heck even $200 for a deal they very easily could have found on their own? Unless you have amazing negotiation skills and can get the property under contract way below the asking price so that once you add your wholesale fee it is still a better deal than he/she would have been able to negotiate on his/her own, then you aren't adding any value.

You should focus on finding off market deals.

@Shaylene Tootle , you should definitely check out the BP Ultimate Guide to Working with Investors

Agree with the above.  Spend some time here, read the blog, listen to the podcasts, pick up some recommended books.   You'll be way better off.

@Shepard Solomon , there have definitely been discussions about this type of thing before.  Try searching "tenant proof" in the search box and I'm sure you'll find some good information.

@Joseph T. , to add to your discussion, remember it's not just a problem when the tenant isn't following "what's outlined by the landlord" but it can be more of a problem when the landlord didn't outline expectations well.  There could be a lease in place with provisions you would never agree to normally, but you are going to be bound to them until the lease is up for renewal.  

@Cassie Davis , Listsource seems to be the most common source people go to.

@Joel G. , first off, obviously you realize there will not be any positive cashflow since you'll be occupying one of the units, decreasing gross income by at least $590/month, right?  

That said, you may get to "live for free" approximately so if that's what you are going for, then it could work.

I'd say you should account for property management even though you are planning to do it.  You should pay yourself for that time in addition to your return as the investor.  Furthermore, some day you might want the building to be able to cashflow with property management in place, so you need to account for it from the start.  

Also, you don't really mention creating a capex fund for future big expenses.  

Those 2 things are the big ones that are accounting for the difference between your income-expenses and 50% rule calculations of cash flow.

@Account Closed , it's better to miss a good deal than to buy a bad one.  So, don't compromise on your standards.

@Sulin Rubalcava , you have found BiggerPockets and that's going to be one the best resources.  There are all sorts of how-to guides and other resources under the "Learn" tab in the blue menu bar at the top.  Then start searching for what you want to learn.  There are even lists of great real estate books.  Listen to the podcasts as well.