All Forum Posts by: Derek Carroll

@Adam C.

I’m no lawyer but on all my NY properties where I don’t have a lease for whatever reason from the Acquistion, if the tenant has been there more than a year I believe, You need to give a 90 day notice of termination. If you’re lucky they’ll move out. If not, then you’ll need to then start a holdover eviction but you can’t do that until you’ve given the proper notice of termination. If you don’t know how long they’ve been there or don’t have other supporting lease details then you have to default to the longest notice period, which is 90 days.

@David Gubb

I think the other thing to look for that often gets overlooked, is that almost all large developers and investors are syndicating some of their deals. Lately with the rules changes there’s a whole new business model of folks who are actively out promoting themselves as syndicators and advertising or marketing but many/most of the largest investors in most cities have likely been doing this for years, without ever calling themselves a syndicator. Might make sense to reach out to some of the players in your area and set up some meetings.

@Alton Bell

I just focus on buying as many properties at a time as I can that fit my metric. I’m currently doing 12 flips. I need to make a minimum $25k per flip to make it worth by while and feel like there is enough margin to cover unknowns. While I’d love to make $100k on a flip that rarely happens. Just keep buying deals that fit your criteria and soon the business will scale and eventually you’ll also get the home run deal.

my accountant wanted my flips to be in an S corp for active income and all my rentals in LLCs.  reach out to @James Swiech

I haven't looked into brokering a loan on one of these in quite a while, but one of the major considerations before was that most of my lenders wouldn't touch it until there was federal guidance as to the legality (or that the feds would stay out of these deals). I think there might have been some recent relief for the banking network but it could still be an issue for life insurance companies and CMBS on the larger deals. Something worth exploring more for sure...

The other side of it is finding a deal.  If you have a great deal, you can wholesale it and get fee or part of the GP and start building some experience. 

The underwriting is easy.  Capital and Dealflow are the hard parts.  

That said, it always helps to have local boots on the ground.  Maybe someone who is already doing a deal in Tampa, but from out of town, could use some local assistance.  

the Hawaii part might be tough.  Most of mine are done through Madison mutual or Foremost.  

add Visions, Empower and SEFCU credit unions to your list of potential lenders...

I've purchased three properties this month as a result of direct mail.  Everything works, but pick one, get serious about it and build a system where you can measure results.  Once you have metrics to measure, and the numbers make sense on spend vs return, just push your foot harder on the gas.  

talk to the local attorneys and ask for names, you'd be surprised that there probably is more wholesaling activity going on than you think.  Many times wholesalers have relationships with good quality buyers and a deal is sold directly without marketing it and passing it all around.  

Specific ideas to your question, find out who is doing virtual wholesaling in another market and build a relationship with them. Prove that you are a serious buyer and they if they spend the time, effort and money, to find deals in your market that you will come through as a buyer for them.  Maybe even offer to fund a marketing campaign for them for exclusive access to the deals that come about (thats assuming you don't want to learn and do the marketing yourself, which I think is the best bet).  

think about their perspective, if they have no relationships in a market why would they spent time and money to find deals that they might have to scramble to even sell?