All Forum Posts by: Devon Garbus

Shane- I may have missed your call today I was helping my sister move in to college. Send me a pm with a good time for tomorrow and I'll make sure to be available.

Where we are looking at isn't war zone territory. First time homebuyer and move up area.

Avg price of rehabbed home is 180k with anything built after 1990 being 220+. Their target acquisition is between 70-120k depending on how much work it needs. Finding that right now via MLS or even fsbo/craigslist is not feasible. The hard money lenders I know need 65% max LTV so low equity 'easy' deals aren't doable as they only have about 50k in cash

Sorry- I'm a real estate agent. I also consider myself a psuedo mentor/coach. I want to grow their business so that mine goes up along side it.

If you have an agent who doesn't want to help you grow your business than I have one word for you....

NEXT.

Agents are a dime a dozen (trust me I am one) and you can easily find someone who cares about you and realizes that a good investor is like having 5 clients/year if not more.

Make sure your agent is proactive and will help you find off market stuff as well as MLS. Things you can talk about together are- sharing costs for DM advertising and signs etc. Door knocking and which areas you want to be door knocked.

Hi Chris,

We should connect. Most of the work I do here in Tampa is finding off market lots for builders. I can also help with fix+flips rehabs etc.

So here is the story-

There is a REI guru who does training and refers his local students to me. He's a great guy and his students know a lot about how to run numbers and are pretty good at estimating rehab by the time they are done. He also does basically unlimited follow up calls. Anyway...

That being said they waited about 3 months from taking his class until they wanted to put in an offer, and that was early this year so in that time the banks stopped releasing the foreclosures. Now here we are and we haven't bought anything at all. Why? Because I just can't let them lose money. I feel like I'm obliged to help them make good investment choices. I veto things they want to look at because I know the margin is non existant. That and the market they want to invest in is nuts. We offer 61k on a 49k asking price and were outbid last week! Which was fine by me I didn't like the profit margin bidding over 55k...

Oddly that particular market has nothing by way of wholesalers. I've discussed becoming wholesalers with them before and I think they just aren't 'getting it' as far as why they would want to. I think the 'dream' of fixing up nice houses is sort of ephemeral for them.

What can I do to help them out as wholesalers? I've put them together with a direct mail guy that is great, and I've told them I'd go with them to everyone they get in to speak too.

How can I help these guys? I can't door knock this market for them because there are other communities I can do it in more profitably. THoughts?

I'd love to speak with you as well.

Hi Jonathon would you have time for a quick phone call thursday? 

I just want a quick idea of how you do business what types of loans you have and where before I talk to customers. We've been hurt before as I'm sure you understand.

Hi everyone!

I have several smaller builder clients here in the incredibly hot Tampa market that are looking for more JV funding options.

The deals are from 1-off construction in the min 350k resell to small town home developments up to the 10-20 unit range. Some of these clients are ready to stretch into larger projects.

The townhome developments tend to have a budget in the mid $3m, and would be the most immediate need. 

Hi Alex,

Builders in Tampa, and from what I understand in most of the U.S. right now are purchasing property at a maximum of 1/3 of what the ARV would be.

So for a $1m home spec they'd spend 300-350 on the land. If they could subdivide 1 large lot into 4 lots and put $1m home on each they'd pay 1.2-1.4m.

If it's different in your market go for it, just be really sure on your price before you close without having a buyer for it in hand. 50% of land-value just seems high to me.

Tax assessed value is NOT a way to value property at market value.

If you go the JV route the builder will probably want to have the first lien on the property, so owning the land free and clear will help. Otherwise you'll want to create an LLC for the two of you as equal partners, 'sell' the property to that LLC so you both have equal rights to it. (consult an attorney obviously).