All Forum Posts by: Christopher Salazar

@Greg W. @Michael Pease and his team does a great job and manages our entire portfolio. We're really excited to grow together as we acquire more units 

Javier, I would say the 70% Rule is mostly used in areas with lower property values. I would imagine trying to apply the 70% rule in an area like CA would cause you to lose out on most deals. It ultimately depends on your investment strategy and what your goals are. 

Hey Brian, if you're looking to grow quicker I would focus on finding partnering up with someone who has the money and wants a passive investment. This would allow you to purchase several more properties without needing to save the money yourself. 

Hi Ricardo, sounds like you're off to a great start! If you're interested in making higher returns I would suggest doing research on smaller markets across the Midwest. If you find the right partner who's an expert in their market, you could do very well. 

@Byron Bailey Good stuff! Those are great books and really helped expedite my learning process. Best of luck!

It may be better to walk through with several contractors who you'd potentially hire for the rehab. There's a good chance that after 3+ contractors walk through with you, they will point out most items needed to be taken care of on a cosmetic flip. That way you'll have a lot better idea of repair costs and major items needing completed. 

A piece of a deal is better than no deal at all. If you build a track record of successful deals like this and show you can keep providing consistent returns for investors, you'll have more credibility to raise capital. 

Hey Byron, these metrics are about the same as my bread and butter properties. Since you guys don't have too much experience, I would spend more time on finding the right contractors. 

The math is pretty simple but your challenge will be dealing with contractors and ensuring they do quality work at a competitive price. I'm sure you can find contractors to bid on your project without having to pay them for a quote. 

I would spend time interviewing a few and listening very intently when doing the walk through. My guess is that each contractor will address some different items. You should put together a scope of work and make sure each contractor are bidding the same items as well. 

@jscott has a great blog at 123flip.com which will answer virtually all of your questions on how to correctly run a flip. Of course you can find everything you need on BP as well. 

Hopefully this helps and best of luck. Good to hear you're jumping right in and taking action!

This does not sound like a deal to me. At 26k ARV, thats got to be in a super rough area. Who would be the end buyer once it's completed? With at east 10k in repairs, there wouldn't be any equity in the deal for you to leverage. I would be very skeptical of any property with that low of an ARV.

Those all may seem like tough obstacles at this point, but they are not difficult to overcome. Most people never invest in real estate because they listen to people who are either jealous or never took the steps themselves to live their dream. Family and friends want the best for you, but are a huge obstacle sometimes. Put yourself in the shoes of a successful investor. What steps would they take to buy a rental property? Figure out your WHY, take calculated risks and go do it.