All Forum Posts by: Conner Bland

@Bill C. Usually your one of your most challenging financial risks as an owner will be the variable repair costs that pop up throughout a lease and during tenant turns. They can get out of hand quickly if your PM is not on top of it. Could you help cut out some of your risk and give your PM a potential upside by sharing the cost of certain repairs for an increased monthly PM fee, equity or cash flow split? Example- bump PM Fee from 10% to 14%, but repairs are split 70/30 up to $100 paid by PM? Or PM pays half repairs for 5% equity in the LLC? Or PM shares 50% of cash flow, but pays 50% repairs including tenant turns?

Just thinking out loud. Great job keeping your PM in mind on this! They are such an important partner for long-term profitability.

Conner

@Ryan Cleary Indy! Come on over!

@Larry Wilson I do not. We sold back in June. Are you looking for a property in that area?

@West Wiggins Thanks so much for letting me know! We're actually looking to double down our investments here in Indianapolis, so that's the main market we're focused on right now! I appreciate you letting me know though!

Best!

Conner

@Devan Mcclish just sent you a PM! Cheers!

@Tanner Hale Hey Tanner! That’s awesome!! Nashville has been great to us! I think y’all will love those numbers! I actually have a few properties I’m potentially selling right next to the river on 1st Ave N, 0.8 miles from Broadway if you’re potentially interested! We could chat more live! PM me if you’d like the details!

Best!

Conner

@Tchaka Owen That $84k is for all rehab and carrying costs incurred on the property.

Best!

Conner

@Philip Steen Hey Philip! So sorry for my delay! I’d love to chat more about them if you’re potentially interested in purchasing. Have multiple properties.

Thanks!

Conner

@Barry W Bahr Hey Barry! Just a couple quick thoughts: seems a bit tight with an all in budget of $194,875 and ARV of $225,000. With it being sold AS-IS, that makes me think there may be some potential roof, foundation or mechanical hiccups. You've only got a $15,000 margin and no 'contingency' budgeted which would not make me feel great on a flip, especially 'AS-IS'. 90 days of work with $195k in expenses and only a potential top end payout of $15,000 if NOTHING goes wrong, may not be the best bang for your buck.

As a reference, I typically target a 30% market up on total expenses for a flip- including a contingency budget of at least 10% the rehab cost. My numbers would look a little like this:

Purchase: $161,851 , Rehab: $30,000 , Contingency: $3,000 , Carrying: $3,024 = $197,875 TOTAL EXPENSES

Minimum ARV must be: TOTAL EXPENSES of $197,875 plus 30% MARK UP = $257,238. This is what I would have to be able to resell the property for to buy it at the numbers you've listed.

If your comps don't validate a $257,238 ARV, I wouldn't buy the deal at that price. You could back into your purchase price number though by taking your confirmed ARV of $225k and dividing out the 30% mark up to get your TOTAL EXPENSES number of $173,076 less rehab, contingency and carrying costs = Purchase must be $137,052.

Sorry for the info dump, but hope it's helpful for you!

Conner

@David Morad love that! Hope the move goes great! I’d say that anybody you come in contact with that has any hint of Real Estate knowledge or experience is worth buying them a coffee to hear what they do and see if they have any advice or referrals regarding what you want to do. Some of my closest working contacts are referrals from a referral from a referral from some random person I bumped into at an event one time. I’m a big believer in the 7 degrees of separation, so buy anybody you can coffee, food or a delicious adult beverage and listen, learn and ask for referrals! If you have no clue where to start, start with your closet BP Meet Up or local Real Estate Investors Association.

What city you thinking about moving to?