All Forum Posts by: Dennis Wayne

I have found most wholesalers ARV stands for absolutely ridiculous value . It's Ok if you don't the exact value of the house most of your comrades don't either ! You can always go by the rule of 70% minus repairs . You will still need to heck out various website valuations such as realtor .com Zillow , trulia etc and you must run comps and look at recently sold homes in the area .

Exit strategy -I’d owner finance the homes off to folks who can’t get a bank loan . It sounds like you listened to some bad advise on long distance landlording by gurus and guys on here that tell you can do it all with an algorithm .your trying to auto pilot real estate in bad areas from the west coast which rarely works out . Of coarse your frustrated you have no control because you delegated that out and your getting hosed

. This sounds like an advertisement lol it’s not rocket science to manage a couple dozens homes folks . Does it suck some days ? Yes but so does a w2 job that pays you a pittance for an hourly rate .it is fair to say it’s not for everybody ,but it’s also fair to say you will get substantially less profit off your rentals if your paying a property manager and that’s a fact . Their fees are very high and profit / incentivized when you fail or have problems .

The common arguments that I hear are “ oh but when you are paying a PM you can then have more time to go out and get deals !” Really ? Is that really the way it works in your business ? That your husseling and getting all these deals coming in that are just consuming your day lol ?

I’d argue If you actually are grinding like that you need some better methods of lead generation ! For the overwhelmingly majority I’d guess There’s plenty of time in the day to call handymen post notices and arrange things and still find deals in the evening I know because I do all the time .

@Matt Tobler

Ha ,I’m not missing out on anything , a house is just 4 walls and roof I’m concerned with the income in generates not the asset class or building or neighborhood.I can buy my houses in cash and get 300-400$ in cashflow . . Why would I want to go in a nice area and kiss a banks butt to be leveraged with a 150k loan for a pretty house and add risk to my situation ? When you buy at lowest prices like 7-10k for a home the bottom can’t go lower and it’s easy to calculate .sure you don’t get appreciation but I can easily make up for that in returns .

Are you freaking kidding me ? What a Silly foolish unscalable gesture that only a hobby landlord with 2-3 units would do . What are you going to do when you get dozens of units ? Go around door to door like Santa clause buying them useless crap they don’t even want all day ?

When they get the worthless trinket from you they will just assume their own hard earned rent money bought it and that you have so much excess that you just blow it to spend for your end of year tax reasons . No good deed goes unpunished!

If all I could get is the 2% rule I wouldn’t even buy it , 1% there’s just no point unless you live in San Francisco or Dallas Denver etc and crossing fingers for appreciation . I get 3-4% rule pretty regularly and would not get out of bed for 100-150$ cashflow but to each their own . I invest in the Midwest and like my cashflow . I generally buy livable homes for 7-10k and rent for 550-650 a month .

Invest in debt - Jimmy Napier

None of the above !have him buy them in a land trust and use an llc for the beneficiary

Well I would like working with them to get off market deals but sadly most want to market their piece of junk house for three times what it's actually worth . In my experience They are completely clueless unethical and almost always have a crazy high unrealistic ARV number based on some immaculate home they found on a much better asset across town . It's called comparable for a reason lol . Their arv stands for

“ absolutely ridiculous value “