All Forum Posts by: Brian Davis

IMO, offering your sincerest condolences to someone you don't know is not sincere and could be seen by the recipient as very fake. I have noticed this on many samples I have been seeing and it seems to me that one thing line could be the kiss of death for a mailing like this.

Here is my late introduction to biggerpockets (I just really got involved here thx to the podcast)

So we have rehabbed somewhere just north of 20 houses over the past few years. The first house we did was something like 70k purchase, 15k repairs, and 150k selling price netting us somewhere in the 55k profit range because we didn’t use hard money on that one. (awesome deal) Since that first deal, we have had some great profits but others where we were around the 20k range (which is not good for me with what I expect). It's amazing to me because I go in planning for 35k as my minimum profit and somehow a few properties have been real disappointments. At the same time, some houses we have remodeled the least have given us the best returns. The funny thing is, just when I think I figure it out, I run into another stinker. (2 actually)

So I have come to realize that the profit I turn at the end of the day is in direct correlation to the number of opportunities I have. (pretty elementary, right?) So the past 2 months I have focused on the direct mail route and stopped looking at the MLS (and I am an MLS junkie so it's hard, but I am so tired of highest and best)…so the plan is to get enough leads coming in through the direct mail that I can cherry pick the awesome, wholesale the rest, and live the dream (or at least that’s the plan). Well, after about 5000 mailers this past month, I found a deal last week. But I need more so I'm mailing another 2000 letters this week. (we own 6 houses right now, selling one tomorrow, but need 2 asap so the guys don’t run out of work because everything is coming to completion)

Direct mail has cost me a bunch of money. I think I have spent $20,000 on mail over the past 3 years just dabbling here and there never making any real headway. But the good news is, I think I finally figured it out. (market to the right list, at least that’s the plan, and mail to them consistently). Well, I still have never wholesaled anything and I have spent a lot of money on marketing with little return. (I did buy a house last year from a mailing and it was the best deal to date..107k purchase, 20k repair, 230k back end…this one should have been a sign but I was too cheap to keep mailing and stick with it hard so I went back to the MLS) - The MLS feels like an ex-girlfriend I keep running back to because she's cheap and convenient.

Well, just so everyone knows from my introduction to biggerpockets:

-I used to think I knew a lot more until I started rehabbing…I am just figuring out the mailing stuff after about $20,000 in mail (and in a year I will realize how little I know today looking back.)

But I have learned something from all the ups and downs…as long as I know what I'm striving towards and persistently move in that direction, I know I will get there (sure would be nice to be sooner than later…I guess we will all get somewhere given a long enough time frame but if I arrive at my goals in 100 years, I'll probably be too old to enjoy it)

As for the plan, I will keep mailing and rehabbing houses and start wholesaling…(and I will keep watching flipping shows as if it were my job..haha, I'm hooked on watching those shows..how pathetic)

And wanted to say thanks for everything that is a part of a community like this and thanks to josh for putting together an awesome podcast…(I sure wish Joe and Alex would release a new episode from the real estate mastery podcast..wtf guys!)

and a sorry for the rambling..if you got to this point, wow! you need to get back to work..not sure if forums are a good place to jot down your thoughts for 30 mins while hyped up on caffeine and stressed out because I have a list 100 things waiting for me to do…maybe I could have found a new house to buy instead of doing this..on that note, back to work :)

They will be on the llc for my business where I am doing multiple properties ..not an entity I would be changing ownership in

I am wondering if anyone has a creative solution without going back to the bank? Say I have an approval letter in my hand for my LLC where I am the sole member and I want to add a 50/50 partner on the deal...is there any creative way to do this? Can I add them immediately after we close? I am wondering because I cannot wholesale due to a resale restriction but thinking there must be a way to add them through some sort of mortgage or partnership or entity creation...This would be for a fix and flip..I tend to get maxed out at 6-7 rehabs and get strapped for cash so would need someone to bring in some money

If you have a short sale under contract in your name alone, what is the easiest way to bring on a partner without going back to the bank to change the approved buyers name?

Hey Guys, I was wondering what others have found to be the highest quality list when mailing or lead source...I know I have to go through a ton of phone calls with absentee postcards and a lot less with calls from the inheritance list. I have heard on podcasts that pay per click and bandits signs have a very good lead conversion ratio. I am trying to be on the phone less with tire kickers and I would rather spend a little more on my marketing than to feel like a telemarketer. I am not afraid to pick up the phone and I used to be an agent that chased For Sale by Owners but I am a very busy guy with 2 kids and I would rather spend time on lead sources that convert to deals and maybe spend a little more money.

I think the 70% formula is good for making quick decisions but if you are going to be into a property for 200k-300k- 400k, you better make sure you know your expenses, the cost of money, taxes, repairs, real estate commissions, attorney fees, etc. Then once you know your expenses and your ARV, its pretty simple to determine the profit on a deal and then decide if it worth the time, effort, and risk to move forward. With this deal that is being proposed, it seems to me that the profit should be somewhere in the 75k-100k range so who cares what rules or guidelines there may be. Flipping houses isn't always a science, its about making $, having freedom, and enjoying what you do. (i'm sure there's more to it but those are my 3)

Thx guys..I forgot about appraisers for a minute.. maybe I will just put in French doors, leave as a 3 bedroom but stage as a dining room

I would not do the basement if it is a dollar for dollar return or even close to it...you have less risk with less money in and more available buyers at a lower price. If it is the norm to finish the basement in the neighborhood, that's the only time I would give it more consideration, IMO.

I have a typical 3 bedroom ranch, 1000 sqft, with not much space for a dining room. I was thinking of eliminating the 3rd bedroom to make room for a dining room and then put the 3rd bedroom in the finished basement. My thoughts are that I can put the 3rd bedroom in the basement but I cant put the dining room in the basement..any thoughts on this?