All Forum Posts by: Deandre Brown

 Yes, that makes sense. I love Never Split the Difference and am currently re-reading it because there's just so much value that it's impossible to absorb everything in one go. In fact, I recently used one of the methods from the book—where Chris Voss talks about "going negative" to soften the blow of an offer and make it more palatable. I tried this approach by saying, "I respect that the seller wants to move the property because of the estate, but I know my offer is really low—so low that I don't want to disrespect the seller. They'd probably hate me for even offering it." I didn’t mention a number until the agent asked for it.

I see where you’re coming from about giving it time to sink in and observing what’s happening in the market for them. I appreciate the feedback Gino! Definitely gonna follow up with them next week. 

 I usually go and see properties in person, but I didn't get the chance to with this one. However, I did speak with the realtor, and she sent me information on key items like the water heater, which was last replaced in 2014. I also asked about any plumbing issues, which I would get inspected during the due diligence phase, along with other major concerns.

While I don't have much experience assessing houses and determining the extent of repairs, I’ve spent a lot of time in stores like Home Depot and Lowe’s. I’ve created a spreadsheet with prices for major items such as water heaters, roofing materials, appliances, and other big-ticket repairs. I’ve also included things like tubs, sinks, and other items that might need replacing.

I’m focused on improving my ability to assess repairs. Like you mentioned, I just need more experience. I also look at comparable properties (comps) to estimate the property's value after repairs.

I currently don’t have a real estate agent. I’ve spoken to a few, but they didn’t seem motivated to work with me or would say one thing and do another. However, I’m not letting that slow me down.

Hey fellow BP memebers! 

I've been actively searching for and analyzing multifamily and single-family deals, making calls, and submitting offers. Recently, I learned a valuable lesson that made me step back and reassess how I approach offers to sellers and agents.

One example is a duplex deal where I submitted a lower offer due to the significant repairs needed. The seller, who inherited the property, was motivated to sell and move on. My offer was based on what made sense for the numbers as a rental post-repairs. I was surprised when the agent consulted the seller despite my offer being lower than expected, given the property's condition. However, the seller decided to hold off on accepting my offer since the property had only been on the market for 7 days and they wanted to entertain other offers.

This experience made me realize the importance of paying attention to the number of days a property has been on the market. Offering on a fresh listing wasn’t the best approach in this case. Moving forward, I'll focus on properties with higher days on the market, which is something I should've been doing from the start. Lesson learned. I'll also keep up with door-knocking, which I typically do on weekends.

 I love how eager you are, and I ferl the same way about my job. I truly admire the skills you possess. With that being said, I would suggest holding onto your job at least until your flipping and investment ventures are profitable enough that staying at your job is actually costing you money. Of course, take this advice with a grain of salt, as everyone’s situation is different.

I would encourage you to keep pursuing this with everything you have, but also reinvest the profits from your flips. My approach would be to aim for doing two flips and then the third house you can flip and turn it into a  long term rental property. This way, you benefit from both the immediate gains of flipping and the long-term advantages of rental properties, like tax benefits and appreciation. Just some food for thought.

Also, could you explain a bit more about the cash flow you're referring to, specifically for flipping?

Regarding multifamily properties, there are larger ones available, but in my market, the ones in better neighborhoods aren’t for sale just yet. The ones I’ve come across are in areas with boarded-up houses throughout the blocks, which I’m not quite ready to invest in as a new investor. I’m interested in value-add properties, but not to the extent where they’re in struggling neighborhoods, which is unfortunate because these areas are just blocks away from the major hospital.

Yes, absolutely! They provide detailed information on the property address, closing costs, all utilities, lawn care, capital expenditures, maintenance, property taxes, insurance, and more. I might be missing a few things, but they really give you a lot of info to put in. After inputting all the data, they provide a review that includes cash flow, Cash-on-Cash (CoC) ROI, and even a graph to estimate the property's growth through appreciation, yearly cash flow growth, and loan paydown. It's very well-organized, and I love using it.

How much equity do you currently have in the property, and do you expect it to appreciate enough in the next six months to qualify for a HELOC? Also, be cautious when using a HELOC as a down payment on your next property. It's important to ensure that you can cover the HELOC payments from the income generated by the new property. Are you planning to purchase a value-add property, or are you looking for something turnkey? I would suggest considering an investment that could help you pay off the HELOC quickly, given the high interest rates typically associated with them. Just a few things to think about.

Do you have a specific market area where you're looking to get a Limited Partner (LP)? Are you hoping for the partner to train you while working together, or would you prefer regular updates on the process? Also, consider what type of investment you're interested in—whether it's single-family homes, multifamily properties, short-term, long-term, flips, etc. What are your long-term goals for the partnership? These are just a few things to think about. I haven't done my first deal yet, but I wanted to offer some insights to help you prepare when you're ready to find the right partner. Hope this helps some. 

He is attending an event called InvestorFuel from the 7th to the 9th. After that, he will be going to the meet in Grapevine. You can get tickets for the free meet on Eventbrite. InvestorFuel, however, is a paid seminar. It was posted on Pace's free fb group.