All Forum Posts by: Logan Turner

@Michael Quarles not sure what you interpreted to be "whimpiness". Building rapport so they open up, subtly suggesting this property is a burden to them?  

you need to chat with them like its an old friend and your having a conversation. Its not a formal interview here. So break that tension with a few comments. Today i spoke with a lady she said "yes my name is .... and you wrote me a letter for my property at ...." i usually always respond with, "hey (blank), hows it going? or how've you been" then, i say "(blank), so why is it your wanting to sell". then build rapport... she said, "well i don't live in town anymore, and since my husband passed away"... i said "i'm sorry to hear that"... "yeah trying to manage the property from way out there must be difficult". I try to mimic their tone, but i often ask them questions that are completely not related to the property. Just ask get to know you questions. Make small talk. 

Go practice with paid workers in the stores. See how long you can chat with someone before they give you the "i have to get back to work look". The goal is to have a smooth flowing conversation without those awkward pauses and moments. Once you get that down then you can employ more advanced techniques like Michael is talking about. 

Just wanted to pass on a pro tip to people who may not know.

When constructing your search criteria for leads on listsource, instead of selecting "current home value" which increases your price per lead by 50 cents (1000 leads = $500), select "total assessed value" which only costs 0.25 cents per lead. Yes, 4 leads = 1 penny extra. Or 1000 leads = $2.50.

Save $497.50 per 1000 leads. 

I tested my purchase list using the same criteria of total assessed value, against a new list using current value and the leads were only 25 percent different. 

Assumption: Total assessed value is using the ECAD tax assessed value from County. 

These are updated annually and seem to fall pretty close to true value, at least close enough for list generations. 

Hope this helps someone save some money on your next list! 

Oops i missed that. Yes, closing costs would be factored into acquisition price of the property.
"divide your net operating income by the total acquisition cost for the property, including brokerage fee, closing costs, and all the rehab costs necessary to make it “rent ready.”

Looks pretty good. A few suggestions. Total rent = Gross rental income. You take your gross rental income and minus your operating expenses and you get your NOI (net operating income). This will allow you to figure out cap rate for the property. Also, who pays water, sewage, trash, and utilities? Often times that is the landlord for duplexes and up. If this is going to be a live in for yourself, recalculate doing a 30 year loan, at 5 percent down. And calculate for both when you live there and when you move out. I would use 30 percent total for: vacancy, repairs, management. Maybe even throw in 5 percent additional for capital expenditures. You also did put in any dollars towards repairs. Is the property ready to go now as is?

Agents are independent contractors, not employees. So to qualify for a mortgage, 2 years of tax returns usually.

Originally posted by @Michael Haynes:

@rick I'm fairly certain the current owner is terminally I'll and selling because his wife doesn't want to manage properties.  They just want out is what I've gathered.

House hacking isn't an option in anything over 4 units since its forced into commercial loan terms.

 So if she doesn't want to manage properties, then explain to them the benefit of seller financing. Explain how they can receive a down payment now and monthly payments to help supplement her living expenses for the next couple of years. Then after a 3-5 years they can get a balloon payment on what is still owed. This gives them some money now, and consistent month to month cash for the next couple of years. 

@Carol Hall where did you find this deal at? What is FMV for a property like this? I ask because you want to make sure you buying deals at a discount, and that your not paying retail. So if this is a deal thats being posted for everyone to see (MLS) then i would pass. Find the distressed sellers before it goes to the public and get yourself a more solid deal.

8k for kitchen and bathroom updates, will not go very far at all. Since this is your first deal, how certain are you on those numbers? Is it possible that it costs 15k to update it? What if you find a 10k problem with the home? These things that could very easily happen, blow your deal out the water and leave you trying to break even, at best and most likely trying to minimize losses. 

Have a plan A and a Plan B. If a deal makes sense to flip, well whats the best case scenario? such as, 5-8 k of repairs and being able to sell quick and for top dollar. Word case scenario? repairs are more than expected, it sits on the market (holding costs) and you calculated comps wrong and it will not sell for what you were expecting. If you can live with the worst case scenario, then its a safe deal, especially if all your eggs are in one basket. Plan B, what if you can't sell it and have to hold it to rent? Whats the current rent rates for the market, do a rental analysis. But you must consider your financing costs when analyzing the property as a buy and hold as well. 

No problem. Which one did you end up going with?

I am currently setting up a site with agent press pro as the child theme and genesis. 

are you going to be hiring help to set it up for you?