All Forum Posts by: Elbert D.

Well. I think everyone is adjusting to not being able to go inside a tenants property as most people are refusing to let anyone in. As far as realtors. I have noticed many realtors not returning my phone calls. Not sure if it’s due to laziness. Or because this is the time period many people are running from real estate. As far as wholesalers. I have seen many not having much of anything. Fix and flippers that I know are scared and trying to “time” the market and choosing to wait as they think anyday the crash may come and in their mind. Picture buying a property and while rehabbing it you find out your not getting anywhere close to the sale price the comps for were at during the time of purchase. Landlords are of course waiting to see what’s happening due to rents stalling. But several others I have talk to have inform me they are waiting to buy something else. Sitting on the sidelines watching. Lastly. It’s the inspectors. Appraisers. General contractors. Lawyers. Title companies..etc. Everything Is connected and apart of the real estate Cog. Literally  everyone has been affected ..So COVID plus how tight the real estate market is everywhere has created difficulties. Slowing down things for everyone. 

I look at this as opportunity. Being opportunistic and showing grit. Resilience that further builds character. COVID will pass and the entire real estate market will loosen up. The market will correct itself.  To everyone, continue doing what you’ve been doing if you’ve seen success. Any newbies. Keep researching and improving. 

Seems like things are changing daily. From what I read. All payments are deferred. Meaning there will be a time when the mortgage company or lender will want all payments caught up. And some people won’t be able to handle that.  Some people think they are skipping March and April Payments. But in reality those two plus whatever deferral period they give you will Be added on and due afterwards. Hence why everyone is expecting a real estate crash coming soon. 

I personally think many landlords may want to watch out for certain expenses that will increase later this year or next year. Such as taxes, water, gas. In some way the government will find a way to get some of that money back. But as long as their rental properties are still cash flowing I’m sure some experienced landlords will find creative ways to make back up the loses in some way. Nothing is truly free in the world. Something is always leveraged in some way. 

Well. I personally think. It’s no such thing as best strategy. As I think of all of them tools in a toolbox. Some tools are good for certain markets and situations compared to other ones. It really depends what you want to do and your capital goals. Cash you have on hand. Short term goals and long term goals. So many things to consider. All Of the strategies have pros and cons.

Nowadays. As of now the 70% rule is borderline a myth for flippers. Lol. I can guarantee if a owner is selling something like that. With that ROI it's going be gone in a couple hours. As @Crystal Smith mentioned. Find out what your minimum profit margin is and go from there. For example if a property has a 15% ROI but the dollar amount is 37k is that good for you and your fix and flip deal? Only you will know that...

It’s many ways. But they all require work. in terms of time and effort. But as some of the others have mentioned a lot of “buyers or investors” are tire kickers. And some people are just very picky. I had someone tell me despite the fact the numbers work and the property was in a decent location. She didn’t like it because it didn’t have a garage lol. But in real estate your dealing with people so you never truly know whats  on their mind. But a perspective to also look at is you need as many landlords and or flippers as possible. why? Because what if most of those people are in fact tire kickers and only 4-8 are serious. Well once those people have exhausted their funds. What are you going do? Your real buyers funds are all tied up. Hence why you need to have a large large pool to pull from. You should always be doing lead generation as a wholesaler. Always. 

A 16 unit in a C class area...if the CAP rate is good. I'll go for it if I were you. The market is about to shift to a buyers market.

As long as the numbers work. That should be your focus. If the property cash flows and in a relatively decent location. Buy it. Not let other people’s insecurities be put onto you. Just cause others are scared to jump in. You don’t have to be. Go for it! 

As Long as your not overpaying for it. Your ok. Buying rental properties, your main goal is to get the most cash flow you can. The questions you should be asking. What's the cash on cash return and or CAP rate. If it cash flows. Just like any business. It's a good thing. The value of the homes may go soon but that shouldn't matter. Cash flow. Cash flow. Cash flow.

There are some other factors if you want to get technical like neighborhood, schools, types of tenants, the local job market. Etc...but the cash flow is one of the top 3 things you should be focusing on. If your new I wouldn’t recommend going into the rougher neighborhoods just because you can get section 8 and it pays more. There are trade offs with section 8 and that varies not just by the city your investing in but it’s  neighborhood and the block and it’s radius your looking to buy.

Lastly, did you also factor in garbage and water? Landlord has to usually pay those as well.   I personally would find another way to do the deal instead of doing it that way. 

I'm not sure of those investors as well. But a lot of commercial investors do make money on coaching/education. Although there are multiple ways to get creative with purchasing. Commercial requires more money down and therefore more funds are being used. But as mentioned many of the larger investors go into syndication and use the BRRR on rental properties.

The best way to go in my opinion is to save that and keep building ontop of it. But if your set on getting in real estate ASAP. Ill use a FHA loan on a 3-4unit if its not in a bad area. Aim for a decent area, fix it up a little bit and use a property manager(a good one) to outsource those duties and to help you find good tenants. Find a handyman to make the place look good and bring the rents to market value and to make it look more presentable to good tenants. In the meantime your building equity as well. Hopefully you have started building credit as well. If not you willl need someone to cosign your mortgage as well.