All Forum Posts by: Account Closed

@Garrett Holbrook It doesn't matter how much other people are asking for their properties. You have to look for recently sold properties. Did you already compare it to actual comps (sold properties in the last 6 months?)

I only see one furnace so you'd probably have to pay for heat. Check with the city if this is a legal 2 unit building. A lot of the times people turn SFH into two units to live in one and rent the other one but they don't always apply for the conversion. This is probably a very old building so don't forget to add a good amount for CapX. Remember to do some research on vacancy rates. Judging by the pictures and price point, this is probably either a C or D neighborhood. I wouldn't purchase any property in a D neighborhood so make sure you do good research on the area before you commit.

@Gregory H. Sophisticated investor? I don't think so. Deep-pocketed, most definitely. Best case scenario you're paying 85 cents on the dollar and maybe up to 90. That is of course, assuming their numbers are accurate. I know for a fact they sometimes cherry pick comps. A sophisticated investor wouldn't pay that much for deals like these. I'd much rather just invest on amazon stock rather than putting all that work into a property. If you have a six figure job and you're well capitalized, I can see how a few of these deals can work from a buy and hold perspective. You'd still receive pretty mediocre returns but it might be worth it for people who don't have time to search for more profitable deals.

@Melanie Hartmann I wish you the best of luck. Before you start spending on marketing, I strongly suggest you consider getting a real estate license. Wholesaling is a lot harder than being a RE agent IMO. In most markets, wholesaling is ridiculously hard. I'm not saying it's impossible, but you will need a very solid plan and a good amount of capital to invest on marketing. 

If you have a good chunk of capital saved up, I'd go and look for a fix and flip project for yourself. Familiarize yourself with the market before you start spending big on marketing. I learned that the hard way. I hope you do well, best of luck!

Hi everyone, 

I'm doing a flip in the Park Ridge area. I'm having trouble running ARV because there are no comps with similar square footage as the subject property. If anyone knows the area well, I'd appreciate some input.

@Jay Hinrichs Do you think these type of brokerages will face some regulation at some point? I get that they don't represent buyers in these transactions and as an investor you should do your own due dilligence... but advertising "great" deals without solid evidence and providing unrealistically high ARV numbers... that should be considered fraud.

This is standard in several states...owners of inherited properties don't have to disclose. And if you think about it, it makes sense.. Why would you have an opinion about the condition of a property you didn't own and maybe even didn't live there? By disclosing, they are just putting themselves at risk when there is no reason for doing so. 

@Jackson Pontsler Well, it depends who's the wholesaler. There are very few of them that can actually perform as most wholesalers don't have the financial capacity to close.

I know I wouldn't sell to a wholesaler . Unless I know he has the financial means to close the deal. I can just look up recent cash transactions closed  and track down the active investors in the area.

I do see this model happening a lot here in Texas ..these brokerages focus only on finding distress properties and double closing them to other investors... but they cherry pick comps, inflate their ARVs and market the property to newbies who have no clue what they are doing . That's why they are so "successful" at doing these type of deals.

The spreads are to thin in most hot markets to be able to double close MLS deals. You might be able to do a few here and there.. but I really doubt that you'll be able to do this consistently .

@Dylan Barnard not true. It is actually more risky to wholesale without a license with the new Texas laws. There's a brokerage in Dallas that allows wholesaling and they even allow net listings. PM me if you want me to share their info. 

Hey everyone,

I'm going to start a rehab in Park Ridge, a suburb in the north side of Chicago, and need some good GC referrals. If anyone could PM their info, I'd greatly appreciate it.

@Michael Clay There are a ton of other factors you should take into account. I'd say some asset based lenders couldn't care less about credit score. but they will ask for previous huds to verify experience. I personally wouldn't lend to anyone that doesn't have any experience. And assuming they have experience,I'd still make sure they have adequate cash reserves in case things go south. 

You want to know the SOW and wether or not the estimate matches the SOW. I'd maybe go as far as finding out who's going to be the GC working on the project. Is she financing the repairs? Is this a cosmetic project or a full gut? And why is this person not financing the deal through a HML? I'd hope he/she is trying to get a better rate. If another HML, doesn't want to finance it then it's a red flag.