All Forum Posts by: Chase C.

Thanks, Frank.  I'll be going in with a partner, and I will ask him about other properties in his portfolio as well.  I'm just concerned about eating through too much capital on the down payments and then slowing our growth potential.

Hello BP--

I got my first driving for dollars/direct mail call back on a multi-family property in Fredericksburg, VA. It's an exciting first step, but also a little daunting, given that I've never closed on a deal before.

This would potentially be an off-market deal, but the seller isn't motivated by any financial distress--he's just looking to start unwinding his portfolio.   I'm wondering if anyone has been in a similar situation, how it turned out, and how they determined their absolute max, walk-away-from-the-table price.  This is a fourplex that's assessed in the county appraisal district at 340,000 and the owner claims it takes in 925 per door.  (I've gotten pre-approval for 300k, so that's my top dollar for now).

I would value any advice or insight.  

Thanks, all.

Thanks, @Michael S.  I appreciate the insight.

Thanks, Russel--that makes more sense. 

Hi all--

I'm still in early phase of my RI career, I have yet to get over the hump of finding that first deal. I'm looking for off-market leads, so far only using the "driving for dollars" method in the DC suburbs. In trying to identify good areas,fertile flipping ground in Fairfax County, VA and Prince George's County, MD, I've found a handful of "Recently Sold" properties on Zillow, where homes sold, presumably off market, for significantly less than retail averages, and I'm wondering if these records are accurate, or if information maybe gets inaccurately ingested sometimes. In some cases, homes are listed as sold for under 100K in neighborhoods where retail homes are going for 400-600k, and I'm wondering if someone just dropped a zero fat-fingering the numbers into county records or whatever other system Zillow/Trulia draws from. Has anyone encountered inaccurate information like this, or is it possible that some folks are so motivated to sell (in such a bull market, it gives me pause) that there really are diamonds in the rough out there.

I'd appreciate any experience/insights people might have.

Thanks.

Phillip,

Thanks for the reply and your perspective.  I'm happy to put in the work to find deals.  Can I reach out to you sometime to get your ideas and specifics for your approach to direct mail and driving for dollars?  I'm in the very beginning stages where advice and networking is extremely valuable to me.

Best,

Chase

Doug--

Thank you very much.  Really appreciate the insight.

Do you two have the same opinion of the suburbs of DC as well, such as Alexandria, Arlington, or even Baltimore?

Thanks for the reply.  Assuming we can find a lender who is willing to finance 80% of the purchase price and construction costs, that would put our total budget at about 425K.   Do you think there is enough of a difference in distressed properties/retail sale price to make other places like Trinidad/Brookland/Eckington or even Annacostia profitable at that budget point?

Thank you again for your expertise and advice.

Hi, BP Members.

Long time lurker, first time poster here.  My brother and I want to team up to flip houses, and we have about 85K in cash to leverage to get started.  We thought we'd start in the DC area because that's where I live. Alternatively, we could do Houston, because that's where he lives.

At any rate, I met with a real estate agent today is was very discouraging about flipping prospects because buying distressed/undervalued properties in the DC area is so competitive that it's usually hard to turn a profit unless you're a realtor or a general contractor (thereby cutting one of your major costs). I have good contacts that could do some things at a discount and sell me materials at wholesale prices. But ultimately, I'm wondering if there are any areas in the Washington/Arlington/Alexandria areas where one can still find properties that can sell at a profit after rehab. If not, is the BRRR still an option?

Any tips or advice would be appreciated.

Thanks all.