All Forum Posts by: Mike Snyder

@Devlin Quarles If you start to look at your career through the lens that not succeeding is taking food out of the mouths of your twins, it will push you! I've worked like a maniac over the years (the competition drops off significantly after 40 hours a week!) and done well for my family, who has been my motivation. Make your children your motivation. You're very young to start to figuring something out that I have only recently come around to realize: If I had put the effort into real estate that I have put into engineering and other areas, I would be a multi-millionaire many times over. So I'm starting with the basics that everyone suggests: Look for deals, look through your areas, analyze numbers. Even if you can't get a Pro membership now, you can get 5 free analysis on the Wholesale calculator. Use it and expand every section to run through the numbers, then copy them down on paper and repeat. I've set a goal that I will do at least one analysis every day (and tonight I'm DOG tired but will do at least one). 

Another note: I've done plenty of minimum wage jobs before and even after becoming a parent. Years ago I was working at Red Lobster. In the back the radio was playing Pink Floyd. The dishwashers were all singing along "We don't need no education...!" Dude I loved that song! But at that moment, I tacked another line onto it: "We'll just stay here at Red Lobster...". And I made a promise to myself: Not me! I didn't just quit, but I knew hanging out there was not going to be the way I needed to stand up and provide for my family.

God bless and good luck!

@Ken Badziak, @Account Closed:

Is the legality an issue mainly when it comes to HOW you market a property under contract? If I do not have a RE license and get a property under contract but then immediately post the address and pictures to CL, that is illegal right? But if I send that directly to one of more buyers who I already have a relationship with, then it is legal isn't it? Can you correct/elaborate on this as far as FL is concerned?

Thanks guys!

@Jeremy Kloter They aren't nabbing you in Tampa? I thought that they were starting to push back much more in the Tampa/St. Pete areas?

@Pablo Ottenwalder Jr. This was just an example to show what I thought was an inconsistency in info I was getting but...

You're right @David Dachtera! Not 30 minutes after I responded to your post I was listening to The Book on Investing in Real Estate with No (and Low) Money Down by @Brandon Turner and he literally goes over the difference between the 70% rule and the fixed cost method (the calculator). This includes, as you said, holding and closing! Thanks for helping set me straight on that difference. And he also indicates that even as a rule of thumb, the 70% rule doesn't work as well for lower or higher end houses.

I hope this isn't too far off topic, but is using AirBnB a viable option for something like a triplex? Higher vacancy rates but from some of the forms that I have read the benefit of higher per/day rates and quick turn-over, plus visitors have their AirBnB reputation at stake and tend to behave better, seems to make it a very attractive option. If I remember, BP Podcast 210 had an investor who used that and was very happy. 

@David Dachtera - Yes, for my question I did leave those out but for comparison, they would be factored into either BP Calculator: Wholesale or 70%. I hope this doesn't sound like a big sticking point, it's just a little confusing when starting out.

Sure @Loren Clive: MAO meaning Max Allowable Offer (the most I can offer for a property) and ARV the After Repair Value of the house which I guess may be subjective based on the buyer I would market it to. My confusion is why there is no "70%" type of margin that is a part of the BP Wholesale calculator? I'm not knowledgeable enough to say that's right or wrong, but it is a distinct deviation from the very general 70% rule of thumb.

When you say you brought in a GC, was that actually on wholesale deals? If I am going to evaluate a wholesale deal, I would like to have a GC to review my estimations, but then I'm not planning on actually doing repairs, just getting info to show it is a deal (or bail if it's not) for some buyer. I guess my main question is how does a GC look at being used as a "second set of eyes"?

And thanks so much for this thread @Will Barnard! I think I will spend a month combing over it!

 That was one of the best posts I read. I've tried to teach my kids the exact same philosophy: when someone says it can't be done (or even worse, you aren't good/smart/strong/quick enough to do that), to either let it roll off like water on a duck's back, or use that as fuel for your fire! Will be reading a lot more of your poses @Henry M.

@Eugene Beard I just found this thread and tried to look at your analysis but the link expired. Do you still have it anywhere or do they just roll off from BP after time?

@Chris Jackson did you every get an answer to the 50% rule for commercial? Curious myself.