All Forum Posts by: Curtis Bluth

Quote from @Amy Firmin:

I have been flipping homes for several years but would like to start involving and teaching my adult children on becoming a partner. Does anyone have a partnership agreement template?

I know this isn’t a popular answer, but rocket lawyer has some decent pre made templates. Their service costs a little money, but you have access to plenty of different templates to choose from.

Hope this helps!

Quote from @Nathan Gesner:

Quote from @Curtis Bluth:

I don't recall ever hearing this term before. Thanks for the explanation!

Glad to help! 

for the purposes of the BiggerPockets community, almost everyone here is focused on value-added and opportunistic deals (think flips). Based on general underwriting guidelines for value-added and opportunistic properties, no one should be underwriting less than a 12% IRR over their investment timelines for those types of properties. Opportunistic typically yield a 18-20% or higher.

Feel free to message me with any additional questions!

Hi Mark,

Core investments are not for your average investors. These are typically investments being made by large REIT's and private funds that are looking for investment security and to be able to 'clip coupons' on a consistent basis. You are correct in noting that these properties don't typically generate outstanding returns, but that's because they have such a low risk profile. Risk and returns are synonymous to one another, and so when you notice a low return on a property then you should immediately expect low risk.

There are 4 different types of properties: Core, Core Plus, Value-Add, Opportunistic. Typically the returns are higher for Opportunistic and lower for Core, but that is because Opportunistic properties have higher risk profiles and require more problem-solving by the owner.

Often times, Core properties are 'trophy' properties that buyers are willing to  hold for a long time. They are also typically very large properties that can generate high amounts of monthly income, even with the return percentages remaining low. Fund managers and certain private investors want to have a certain level of predictability with their income, and Core properties achieve this. 

The conclusion of this is to think about your investment strategy/strategies. If you have an opportunistic fund, then a Core deal doesn't make sense. And vice versa. 

Hope this helps!

I've got a great photographer named Archie, and he's very affordable. He does all the photos for the homes I list for sale. Send me a DM and I'll get you his contact info. 

Hope this helps!

Quote from @Brandon Barkwell:

Hello,

Im looking at purchasing a property from Opendoor in Arizona.

Wondering if anyone has done this and/or would share their experience (good or bad) purchasing from them?

Thanks BP Family!

 Hi Brandon,

I work with a few investor groups that target SFR's, and we've bought multiple homes from Opendoor recently.

Majority of the homes are listed on the MLS and go through the traditional negotiation process. That said, we've been getting some very good deals recently. Happy to discuss more if you'd like!

Thanks,

Quote from @Nitya Tak:

Hi all! I am a net lease investment agent based in California. I am getting my GA license not only to continue in the commercial real estate field as an agent but also to start investing here. Where can I hang my license with no desk fees and mainly to have access to the mls?

Thanks in advance for all the help! 

Hi Nitya,

I hang my license at eXp Realty and enjoy it thoroughly for what the company provides agents. It does have a desk fee of $85/month, but all offices are virtual, so you can speak with a broker at anytime if you need assistance.

it’s also worth noting that eXp is a global brokerage, so should you decide to get licensed in other states/countries, you would not need to go to another brokerage. eXp has a commercial division that is growing rapidly and has a strong community that could be useful for you and your business. I can send you the link for agent onboarding if you find yourself interested to know more.

Hope this was helpful, and feel free to DM me with any follow up questions!

Quote from @Isaac Delgado:

Hi Everyone !

Has anyone used REDX? If so, do you like it? If so, why or why not and is there somethingness out there that could be better? 

Isaac,

RedX is a solid source for leads. Realistically, most of the lead generation companies are going to be doing mass record sourcing, so there’s always going to be a portion of leads with bad contact information. That said, RedX does a good job of separating out the different types of leads you could want. 
My advice however is to look at ways you can stand out vs your competition. Ultimately, the value you add is more important than who you are when it comes to potential clients.
Feel free to DM me to chat!

Quote from @Account Closed:

Quote from @Kellyn Cameron:

Hi everyone - 

I have a potential off-market deal and I need some opinions from more experienced investors. 

I met with the seller and they told me they would prefer not to list it on MLS but would if they didn't get the offer they wanted. Well after talking for several minutes they told me two numbers. The number they would list it for if they went to MLS and the number they would take off market. The off-market number was about 6% less. When I run my numbers at this price I come out with about 8% coc roi. My goal was to get 10-12%. While we were talking the seller also mentioned that is possible in the next several years they will be looking to sell off numerous other MFHs.

So... my question is do I offer the number that meets my goal of 10-12% or do I offer what they said they want, take a little less return in hopes of creating a relationship and possibly having a chance at more of their properties in the future. Obviously, they might not accept either offer but I'm totally new to this and just wondering if anyone has some advice! Thanks!

If I could get a nickle for every "promise" never kept . . .  well, you get the idea.

Either the numbers work or they don't. Offer the number that works for you and see what they say and give them breathing space. Then check back in a week or so.

 I have to agree with Mike on this one. It’s all talk until runner meets the road. I often will explain why I’m offering my number because of my expected costs to go into the property to get it where it fits my business plan. I simply state that’s what works for me and my group, and simply can’t budge. Most people will respect the transparency, even if they don’t accept the offer. I feel I have a higher success rate however because they now understand my reasoning and don’t feel like I’m just trying to pull a fast one.

A no is always a good thing. Means you’re making offers and trying to put deals together when others aren’t. No matter what, be proud for taking action!

Quote from @Blase Cormier:

Are there any licensed eXp Realty agents located in Massachusetts, preferably in the Boston area? I'm getting started with my license and would love the chance to connect and see if eXp is the right fit for me.

Feel free to reply here or shoot me a message!

Not in MA, but happy to answer any questions about eXp. It’s a global brokerage, so the experience will be widely the same, from those I network with that is.

Feel free to DM me to chat!

Quote from @Max Lichtenstein:

Hi BP community,

I am looking to purchase a multifamily two unit apartment by next summer. I have contacted a couple agents in the location and explained my story/ where I am at. Do they underwrite a property for you?

Underwriting is something I understand the basis of but not much after that. I would like to learn much more if anyone could provide some information, would be much appreciated.

Max,

underwriting is a process that’s typically done internally by each investment group, and good brokers/agents will perform a preliminary underwriting for you as well (although typically their numbers are known to be inaccurate). You’re not going to find agents that will typically offer to perform UW work for you on the size of deal you mentioned, but they will for larger properties.

if you’re interested in learning underwriting, I would recommend downloading some pro forma excel models to get a better idea of how they work. There are also certificate courses through universities and private groups (such as adventuresincre.com). 

Ultimately, I think it’s unwise to buy any property without performing some kind of financial analysis of the property and your business plan to operate the property. It would be best to dive in and learn it to avoid potentially getting ‘burned’ by what you don’t know.

Feel free to DM me to chat!