All Forum Posts by: Chris T.

Eric most of the landlords I talk to are the same way.

Most landlords that I talk to are nowhere near as educated in REI as the good people on this site. Advantage, YOU!

Investors also have different goals in mind that justify the amount they pay for properties. Some investors are just wanting to build up a nest egg so that when they retire they have cash flowing properties with 100 % equity. These kind of investors don't plan on retiring for at least 10-15 yrs and just want someone in the house to pay their mortgage for them so that when they retire they have a house that's been paid for. However, when they need to liquidate early they will have some difficulty finding a cash buyer to cash them out.

Some fell for the appreciation trap, or rather got stung, when the bubble popped!

Then there are the ones who are just kind of ignorant and make poor choices due to their lack of knowledge.

In the future you may want to consider mixing in a few short sales and sub2's.

Yeah I know. I was busy fielding calls and analyzing properties.

If you look closely, I made a slight adjustment to my status. Superbowl 2011 with home field advantage!

I figure it out as 70% of ARV first.

Then I compare that to the number I come up with when I do an Income/Expense report.
That is:
{(Monthly Income) minus
(PITI+10% of mo/rent for vacancy+10% of mo/rent for repairs)} minus (Repairs needed to get it in good shape)

Then I use a 50 multiplier which gives a rough estimate of the 50% rule. So, $800/mo for rent times 50 - repairs needed to get it into good shape.

Of course you subtract your profit from each of these formulas to get your offer price.

Then, when I approach individual investors I have whatever scenario best meets their expectations.

I certainly think you should go inside before you buy it.
I usually give them a ballpark figure over the phone first, then if we are in the same ball park I'll schedule a time to view it. Once you figure out what you're doing, reputation is everything!

You should know what it would rent for but if you're going to buy a property where the seller claims it rents for way more then you think it would, the renter always pays on time, never needs anything repaired and they are on a long term lease then you would definitely want some proof to show your end buyer.

Getting a GREAT deal will bring the buyers. But, you need to know how to find the buyers. If you don't know how to find them then maybe you should figure that out first. For rentals, you can call all of the For Rent signs in that area and classified ads.

This is what threw me for a loop. I consider investors to be rehabbers, landlords, and those looking to owner carry. Usually, when I find a deal using that formula one of those three types of investors will be interested.

But usually not another wholesaler! :oops:

I've actually met a few young urban professional squatters as I was volunteering at a soup kitchen. They do know what they're doing, are well connected and most likely targeted your house.

They're like traveling hipsters! Nerd glasses, dreads, bright-colored knit....

It seems as though "or less" has been overlooked a few times.

And, I'm not sure what you mean, Ryan, about it not being the proper way to assess an investor price.

Maybe some of you are missing the point, and that is, if a wholesaler brings an investor a deal that has, at least, 30% equity after having accounted for repairs, then would that be a good deal, as opposed to, a deal that is marked up well above ARV and calling it a wholesale deal?

It's being pushed by Daigle right now as "MLS Flip". Same $60,000 price tag.

I wasn't even aware that there was a 9pm chat. Is that central time? Where is it exactly?

better buy a lotto ticket with that kind of luck! lol

I just took offense to the "All Wholesalers Suck" approach to this post.

If you are spending time messing around with people who don't bring you good deals then who's fault is that?

If you've researched wholesaling then you know that the basic model is 70% of LTV - repairs. I know that some wholesalers are using 65% as I do myself. That doesn't really do much to change my argument.

I also use cash flow analysis such as income vs expense, 50% rule and multipliers that adjust according to the neighborhoods.

I only charge 5% of ARV or 10-20% of equity.

If someone is trying to sell you a "cheap" property at or above retail then they are a scammer, hustler, dumb $%@ not a wholesaler.

It sounds to me like the wholesaler bought the property and is trying to carry the note or L/O. It doesn't sound like they were marketing it as a wholesale deal. Did this guy actually market the property to you, Eddie, as a sweet opportunity for a cash buyer? I mean if you get a so-called wholesaler sending you junk then just hit the spam button.

I also disagree that the argument "buying, doing nothing, and reselling" is a non productive activity.

Good deals don't just walk up to you and jump into your lap! (unless you have a good wholesaler of course.)