All Forum Posts by: Krystle Khoo

@Kris Bennett congratulations on your offer being accepted! Do you intend to self-manage with software or will you be finding a management company? If the latter, have you learnt yet how to go about finding a management company? We are trying to work out an offer for a storage facility; it only has 60 units for now (there's room for a bit of expansion), but it is too small for anyone to manage full time. We want to move this towards a self-service model, with a manager in place only for issue escalation.

The goal is to turn it around into a turnkey business, rather than to buy and hold. I was thinking of using a management software like ESS and pairing that with a business service providing virtual assistants that can help to coordinate things like landscaping, checking that units are clear, etc. What am I missing that is CRUCIAL for a management role that has boots on the ground, and what direction should I be taking in finding a manager/service that can help to manage part-time?

Perhaps @Kevin Bledsoe you may have some advice here too?

@Oscar Sosa thank you! I don't need one at the moment but would still be happy to know your recommendation.

We used Glenn Fuller about three times and have really appreciated his good work.

@Tyler John Malinauskas

I should be completing my first deal this week. Do not flip this to another wholesaler. Take this deal and figure it out, you will have nothing invested in it other than your time, so it's a perfect opportunity to run into problems and learn how to solve them without a lot of risk.

You need three things:

-Ability to estimate reasonable ARV

-Ability to ballpark a rehab estimate

-Basic math skills

-A good real estate attorney

-Ability to solve problems

-Cash buyers

1. Start by getting an estimate of what the ARV should be on the property. Do this by looking at local listings (use Zillow or Redfin), what they sold for and when, and compare that to the sq ft, beds/baths of your sellers house. If you don't understand this process you can figure it out on BP or through forums or any where online for free.

2. Next do a rehab estimate when you walk the property. If you don't have any idea what your looking at, pay a contractor for their time to walk it with you.

3. Your Maximum Allowable Offer is: 70% ARV - Rehab cost - your fee. For instance: ARV $100K with $30k rehab and $5k fee means $70k-$30k-$5k=$35k. Some notes:

-Be conservative on your ARV. Subtract 8-10% from what you think it could sell as a flip

-Add 10% buffer for rehab

-Don't lead your negotiation with your MAO. Ask what the lowest amount of cash they would take for the property is. If it doesn't fall below your MAO, walk them through your math to explain what your looking at. Most sellers will see the logic when they know they need to sell to the investor and the investor wants to make money.

4. Contact a real estate attorney now if you don't have one you work with. Explain what you're doing and see if you can do an assignment of contract. Ask them to send you a blank contract. Bring that contract to the property when you walk it.

5. Be prepared to solve seller problems. Can't move out? No problem, you or your assignee will buy it "as-is". See what their motivations are. Get creative.

6. Once you have the deal under contract, go hunt for cash buyers and advertise it. In this market, they should be swarming you like sharks.

I never took a class on wholesaling. We do long term rental BRRRRs out of state so I knew what I would want as an investor and applied that to my conversation with the seller on my first deal. Be bold and dive into it intending to figure it out as you go. Your attorney and these forums should be able to help you along the way.

Good luck and reach out if you have any questions!

Get with a real estate attorney

@Sheldon Santos we are in the Camp Lejeune area as well. We invest in Fayetteville, mostly but have properties in Oceanside CA, Holly Ridge NC, and here in Jacksonville. We will be at the next Pints & Properties hosted by @Sean McDonnell (an awesome investor friendly Real Estate Agent) on Nov 10. Hope to see you there!

At your age the advice on learning rehab estimates is most useful. As mentioned above, approach contractors and see how you can help out, learn what they're doing and why. Look for rehab estimate calculators and practice your own estimates against the work those contractors are doing.

In the meantime practice estimating ARV. (If you want this enough I'm sure you'll figure that out.)

Once you're confident you can start estimating with an accuracy of +/- $5k, start looking for off-market deals. Door knocking only costs your time. When you find an interested seller, use your rehab knowledge to make a quick estimate of the repairs and with your ARV estimate make a cash offer based on a flipper's 70% rule (70% ARV - rehab cost including a 20% buffer). Be conservative with your estimates. Expect to fail and grow from it. Deals that you secure you can whole sale (maybe someone else can chime in on whether contract assignment is legal in Colorado?) to start building capital. If you can't whole sale it, figure out a way to partner with someone on a flip and raise funds.

All of the moves above can be done for the cost of time. But they will prepare you for:

-Wholesaling

-Flipping

-BRRRR

-Off-market lead generation

Along the way you should learn other skills like self-confidence, how to negotiate, and, most importantly, creative problem solving. Being able to solve problems, both for yourself and others, is your most valuable skill in not only realestate investing but in life.

Good luck, be aggressive, and reach out if you have any questions!

@Nastassia Baltodano good luck!! Would love to hear about how this goes...

@Marco Padilla Spoat Jackson Browne LLC - R.J. (Rodrick Jackson) is my PM who works with his wife Amber Jackson. They're amazing!

Thank you everyone for your suggestions. So the majority here use Cozy, which have now been bought by Apartments.com. I deleted my account with Cozy a while back, and the only way I can set up a new account now is with Apartments.com - is it pretty much the same? 

Seems a bit more difficult to list rooms as opposed to a whole house, but I guess I could advertise elsewhere and invite the applicants to Apartments.com to apply.

@Sara K.@Joseph Copella@Andrew S.@Johnny Wolff@Ron Szmik

We close on our first house-hack in a couple of weeks and will be renting out the rooms. What app do you recommend to screen for tenants and collect rent?

I am looking for recommendations for home inspectors in the Jacksonville NC area. The house we are looking at was built in the 60s/70s. Thank you very much!