All Forum Posts by: Brian M.

Investment Info:

Single-family residence other investment.

Purchase price: $83,000
Cash invested: $600
Sale price: $135,000

This was a wholetail deal that we purchased in August 2021. Our "rehab" consisted of a clean-out and home inspection, after which we listed the property on the local MLS for $119k, though we sold well above asking.

@Anthony Watkins @Anthony Watkins we spend about $25k month on marketing. This doesn’t include wages, data or bonuses. We make several thousand attempts at contacts per day plus run ads.

It IS a numbers game, a skill game, AND a time and circumstances game/ business.

Stand out with credibility markers, professionalism and really knowing your numbers and who you’re talking to. If you’re calling seasoned investors, the conversation if different than if you’re calling a novice or non- professional landlord. Focus on solving a problem, not a property. And understand 90+% of the time there will be a NO or there is no deal to be had. It’s a simple business that requires consistency and trial and error because each market has its own personality.

@Darren Lenick I agree with most of what you replied with.  Although I don't know if I agree that they can't sustain with this model.  Even at those skinny margins, if they're holding the properties the opportunity vertically is property management, rental income.  Time will tell, but seeing as this isn't Zillow's primary business, it doesn't have to stand alone and can complement the company's other businesses.  I'm very curious to see how it pans out.  To your point about guts, we do value adds and guts as well.  In Phoenix it's becoming less and less worth it with labor being an issue.  There's commercial construction wherever you go and typically my cheap properties cost nearly $200k to get into.  The $65k was a rare gem in this market.  Hence our migration into NC and other areas soon.  

@Darren Lenick, I disagree that that the corporate entitles won't be much of a factor.  Zillow has already stated that its target is to net just $3-$5k per deal, and by volume, create an additional $1B in revenue. They can pay what smaller investors can't until the scorched earth only leaves those who innovate.  I was in Raleigh on business a few weeks ago and met one of Zillow's execs at the airport.  he confirmed, they're just doing volume... For now.  But with a goal of $1B it's clear they don't intend to make that in just Vegas and Phoenix.  And they'll get more efficient as they bring on local talent.  

To the point of the post, flipping isn't dead. EASY flipping is dead. We flip in AZ & NC. I just picked up a property in for $65k that needs $45k in rehab, with an ARV of $205k in Phoenix. But we don't but from wholesalers any longer. And it took me months of wrangling to close it. We started as flippers and about a year ago began building out a sourcing arm to back into the wholesaling space because there was just no real margin in the deals I was seeing from wholesalers. They were laughable. The guys that'll survive are the ones who can source for themselves or build on vacant lots cheaply in my opinion. I believe new guys hyped up by the TV shows will continue to overpay and may things crazy until they go out of business.

@Derrick Thomas, 

I can tell you this.  I ran A/B testing over the course of 6 months to determine if discrimination played a part in some online conversion challenges I felt we were having. After making 4 or five modifications and waiting to see results, the last was simply removing my picture.  I made it the last change because I'd suspected but didn't want to believe this was the hiccup. A friend of mi d had the same experience.  Result: In the span of 6 days I generated more leads that in the previous 5 months.  And it was near instantaneous.  It's ugly.  And nobody wants to discuss it.  But today it's very real.  You just have to find a workaround. 

Hi @Marty Smith,

I'm in the E. Valley; Chandler/Gilbert, and I'm we're at an interesting intersection so. to speak.  Our company is about a year old, and we've currently got 4 projects either on the market or being rehabbed.  My question is, is there a particular type of presentation yourself or other PMLs would be looking for to lend at an established investors rate?  Is there a format you've seen used?  We're looking to drive down the cost of paper and being able to show margins of completed deals is something I'm looking to do.

@Edgar Rosales

These are all very good pieces of advice and insight. My partner and I each attended real estate school and passed our AZ tests, however we decided only one of us would hang a license, granting us both MLS access (very beneficial for comps) as well as some flexibility in terms of DNC lists. The savings in commissions on our first deal would've been $12k had we taken this approach. I'll be honest in that my experience with most agents we've interacted with has been lacking. Most are clueless about investing and even fewer will be willing do much leg work for a new investor. We actually did source a deal on MLS and netted $43k when it sold in just three days. That of course more than paid for school. Does it happy everyday? Not in this market. But that's all the more reason agents will be less likely to spend their time on two unsure things; those being the likelihood of finding deals that close AND you, before you have a track record.

At what point do any of you bring on designers in your flips? I'm an investor in Phoenix, AZ. Our company's just under a year old and we've tackled some ambitious projects already. We're just now crossing a milestone of running four projects at once and figure we'll be stretched a bit, so I'm looking at bringing on a structural engineer/ designer for a project that we'll be doing additions to. We're just completing one now where we originated the concept and an architect polished it. Does your designer help with creative as well?

Robert, shoot me the addys to my inbox.   We can take a look and help you out. 

Just saying hey and welcome to BP.  We've got some things in common- currently two projects underway and although a sales background, I've done data analytics for one of the world's leading pharmaceutical companies.  And like you, always open to meeting new people.