All Forum Posts by: Emily Wilson Litzinger

Hi friends,

I could use some advice on what to pay this wholesaler that I’m considering a deal through.

Usually when I deal with a wholesaler it’s for a one off deals. But for this particular deal (my first big scale up) I’m dealing with 2 commercial properties, and then 10 units.

Originally He said he wants $2,500 for every 50k, but that was for 1 unit at a time. Also, it’s important to note that we have never closed a deal together. Mostly because the deals haven’t been worth it. He’s always late, he forgets appointments etc. But I always look at his stuff bc I never know when something will work out.

When doing multi unit deals etc, what do you pay your wholesaler? Is $2,500 for every 50k normal? Or do you have a package deal?

Any advice is appreciated.

Thank you for your time.

@Whitney Hutten

My property manager takes the first months rent, and then 5% of the rent for the duration she deals with the property. She does not charge for maintenance calls. My dad owns lots of properties and has used her for years. I’ve been using her with my other properties for about 7-8 months and so far so good. She’s also found us great tenants so I’m happy.

I did not set aside additional costs bc I withheld 6 months of rent for things that might pop up. Vacancy, capex etc.

I did this with my other properties and so I have a little chunk of rainy day money. This will probably not work when I have more than 5 but for now it’s just what I’ve been doing.

Wow, writing all this out I feel like I’m flying by the seat of my pants. But like you’re interview said- get some systems in place!

@Tim Jacob

Thanks for the great advice.

I’m from Baltimore so I’m very familiar with the areas. This particular property is in Dundalk near Morgan state. I only buy in the east side and usually never in the city. (Although this is technically the city, its not a bad area)

Our contractors are usually ppl we have known for years or I do the work myself ☺️

I’m there every weekend bc my dad lives there and he can pop over to check on it.

But my new issue is that bc I'm calling my bank to refi another property I have, Wells Fargo is awful and it's going to cost so much to refi. The bank seems to be my issue now. I'm thinking I'll have to try a credit union to try the BRRR method.

Ugh.

Ppl say BRRR and they make it sound so easy. The bank is scaring me.

@Whitney Hutten

Thanks so much for replying!

I listening to your podcast right now, and this property sounds a lot like your first BRRR. Deal

67,500$ cash.

10k on rehab

Worth about 105-110k.

Rents for 1275$

Property tax is 2,500$ a year ( I know its a lot. Baltimore city is no joke) and then my manager fee is 5% a month. No other fees.) cash flow is a little low.

But I heard you asked you lender to refi before you got it the property. (Did I understand that correctly) I’m assuming that’s the I route I need to go. I just had no idea you could ask to refi before you even get into it 🤔

@Kenneth Garrett

Thank you so much 🙏🏼

@Kenneth Garrett

Thank you so much for the quick reply. The 2% rule isn’t normally what I care about, but I feel like- omg should I be caring about that!? That why I was nervous using the calculators bc it was using that metric.

I guess I'm just confused bc if it's a BRRR and I'm not using my own money, and the return is infinite then how is it not a good deal.

But you’re right, I need to find out about the refi bc that will make all the difference.

Thank you 🙏🏼

Hi friends,

So I own several rentals and they're all cash flowing nicely. Now I'm ready for my first BRRR. When I started I didn't know about Bigger Pockets but now that I do, I've got myself in knots trying to analyze deals on the calculators. But I'm having an issue with one deal in particular bc it doesn't make the 2% rule and now I'm nervous. Normally, I just multiply my rental income by 12, minus yearly expenses and divide by the total price of the house. Which would put me at 14% and I'm happy with anything over 12%. But like I said, I use the BRRR calculator and now I'm not so sure I know what I'm doing.

The property is 67,500. 

Total budget: 79,550.00. 

ARV: conservatively 105,000.00

Rent: 1275.00 

Is this a good deal?

thanks in advance for taking the time. 

@Bridgette Delva

I guess I was wondering if legally we needed a lawyer. But you kind of answered that in your answer anyways. Thank you so much for the help. I would love to see the template you used!

Hi BP,

I own 2 rentals (one outright, the second is mortgaged) and am looking to buy two more this year. I found 2 great deals but I’m going to use private money from a friend.

Do I need a lawyer to write up the terms? Or can we just do I own thing? And is 8% a good return for her? And if we can just do the deal by ourselves, can she just wire me the cash and then I can just transfer it back to her after I refi?

Thank you friends

@Jennifer Pauyo

Hi! Here I am!

I own my own business in NYC and I bought 2 rentals last year in Baltimore. And currently looking at two new properties. Girl bosses unite.