All Forum Posts by: Devon Rollison

@Shahriar Khan It is not necessarily the process of doing the sale that I need to find out the legality of. It is more so doing my due diligence on knowing for sure that the stuff I learned and am going to implement is completely legal and for me to know what not to do because I have learned from people doing it living in the US and doing it state to state virtually, I don't know what differences I would be faced with doing it in across country. Also anyone that is losing money and has to close shop wholesaling is not doing it right, you simply add contingencies so that you can pull out of the contract with no penalty's if you cant find a buyer in time, usually a 10-15 inspection/due diligence contingency starting the first day the contract is accepted. 

@Shahriar Khan Hello Shahriar, 

I really appreciate your response, your 1-7 steps are nice. Would you be able to look at my other more recent post that i did, I have a problem I am trying to solve and I would REALLY appreciate it if you could give me some feedback please and thank you sir. 

I will leave the link here https://www.biggerpockets.com/...

@Wale Lawal I would definitely entertain that offer once I get this figured out and I am ready to go, especially if I am still not completely confident with doing my first wholesale deal by myself. I would especially like to work with you if you would help me with my problem I stated, hoping to hear back from you Wale.

@Wale Lawal Hey Wale, 

Yes actually, I am living in Canada (Calgary AB), and I am looking to virtual wholesale the way I have learned from people doing it in the states state to state. However my problem is right now, now that I have worked at the acquisitions phase and got 4+ high potential deals that I need to offer and hopefully put under contract ASAP, my problem is that I am on a very short time frame to do my operational and legal due diligence before going through with it. That is my pure focus now i've stopped acquisitions as of today and I am struggling being able to find the best source to give me all the legal and operational information on how It works being that I am in Canada and doing it cross country as I learned how to do it state to state when you live in the US and who knows what differences there are that I need to know. I have messaged 15+ agents, a few lawyers and most recently and best is a agency that takes your legal inquires to the best attorney for your case. So I am waiting on that trying to find out from anywhere and everywhere what is my best way to do my due diligence/make sure that I do everything 100% proper, without spending a ton working extensively with attorney or someone else very expensive, I need the best cost effective option.  

Hey guys I am looking to do "Virtual Wholesaling Living in Canada Doing Deals in the US". I am fairly educated on the method, however I would like to know as much as possible before I get into this. Specifically the legal aspects of doing wholesaling virtually whilst living in Canada (Calgary, Alberta) and wholesaling deals in the US market. I would also mainly like to know where I would be able to go to get professional help in doing it such as a real estate attorney or something. The problem is I have searched for real estate attorneys and it states that they can not give legal advice about other provinces or countries as they are certified only for individual provinces. I also want to spend the least amount possible to say the least. 

Any and all answers are very much appreciated, thank you.

Hey Guys I'm looking to wholesale a place around Houston Texas and would like to know what you guys think the Houston markets cash buyers are buying at? Based on the 70% rule do they pay more then 70% and if so what is the number for Houston markets, for Ex Phoenix Arizona is very high at 80%-82% because it hard to find deals there. I would think 75% would probably be a fair number for Houston and surrounding areas, but I assume not anymore then that, Please all the feedback possible is much appreciated. 

@Thornton Drury

And regardless, it could be 3-5% ROI and it would not change anything basically, the returns I am showing add up to be insane amounts, clearly.

@Thornton Drury

Also no I am not neglecting any of that, that falls under your cash flow. 

Your Cash Flow is expenses minus rental income and expenses with a true net cash flow covers everything. Cash flow IS NOI...

@Thornton Drury

I just did it that way/converted it so it would fit into my example in a basic way... Anything can be shown in any kind of conversion and it is still correct/a equivalent.  

First off for some reference before you get into the Example: As you know there are at least 5 different possible "sources" of income when buying any kind of Apartment, multi family or single family real estate deal. 

3 of them are recurring and passive profit each year #1 Cash flow, #2 Principal paydown ,#3 Appreciation. 

The other 2 are not recurring and not passive #4 Bought Below Market Value , #5 Other Value Adds (Not Renovations).

Now this example is just laying out what based on my knowledge, how much each one of these "sources" of income have the possibility to return.

I.e #1 Cash flow, it is a very known fact that you can get 7%-10% ROI I.e 7-10 CAPs. Therefore I know I am 100% right with how much ROI Cash Flow can bring in (7-10%/yr ROI).

Now, what are the known ROI's for the other 4 "sources" of income? This is what I am trying to find out for certain.

What do you think about the possible ROIs I suggest in my example, because to my knowledge they are all very possible, and some if not all are even somewhat conservative.




Ex: Purchase Price: 75-100 unit @$4m PP, $1m down

ACCURATE CONSERVATIVE RETURN NUMBERS FOR APARTMENTS (Can apply to Single and Multi Family as well):

Income #1)Cash flow:@7%-10% ROI =$5.8k-$8.3k/month =$70k-$100k/year

Income #2)Principal Pay Down: @33% minimum of $3m-$4m mortgage ($15k/month mortgage) =$60k/year

Income #3)Appreciation: @2% of $4m PP =$80k, @3% =$120k, @4% =$160k

Income #4)Bought Below Market Value: @5% of $4m PP =$200k, @7.5% =$300k, @10% =$400k

Income #5)Other Value Adds (Not Renovations): @2% of $4m PP =$80k, @3.5% =$140k, @4.5% =$180k, 7% =$280k

Total Yearly Reoccurring ROI On $1m:

1)Cash flow =7%-10% ROI

2)Principal Pay Down = 6% ROI

3)Appreciation =8%-16% ROI

Total =21%-32% Yearly Recurring ROI ($210-$310k On The $1m Down)

Total One Time Only ROI:

4)Bought Below market Value =20%-40% ROI (@5%-10% Below)

Total =45%-72% ROI ($450k-$720k On the $1m Down)

5)Other Value Adds =10%-28% ROI (@2.5%-7% Value Add)

Over All Total ROI =55%-100% ROI ($550k-$1m On the $1m Down)

#1 is 100% possible 

#2 is also 100% possible

#3 is also 100% possible when talking long term and not being stupid/bad

and so are #4 and #5 honestly as far as my knowledge goes, just seems way to good to be true ofc.

As well as basically no taxes paid on all of it... (Property tax write offs alone =$70k/year, and cash flow is the only taxed income when doing everything properly so the $6.7k-$8.3k/month Taxable Cash flow = basically 0 taxes paid with just ONE right off/tax savings method)