All Forum Posts by: Francis Figueroa

I never totally understood the difference between wholesaling & assignment. Some say they are the same, others will exclusively do one or the other, which would lead me to think they are more different than first imagined. 

Any resources or videos (outside of youtube) would be greatly appreciated. 

How do you market and approach possible sellers when wholesaling or doing an assignment? Not entirely sure about the difference between the two, how to determine what a seller may be interested in or if its inefficient to do both at once. (meaning marketing and asking sellers if one or the other makes more sense) 

Also curious the most common assignment types 

Thank you!

In which ways can someone new to RE discover how to estimate ARV. Estimating repairs, comps and everything else that creates an ARV seems to be the toughest part of the process. Should you know how to do this first, then look to find places or jump head first?

Awesome - thank you Chris. 

Why do you need to pay for a skip tracing service to access property phone numbers? How does one find a phone number associated with a property without paying? 

Hello all,

I have a few questions about wholesaling in general & the process itself. 

1. First, does wholesaling or searching for deals (in whatever way) make sense as a means of finding property to invest in? Or is this inefficient considering it takes so many calls/flyers etc. just to get one deal?

2. In which ways can someone new to RE discover how to estimate ARV. Estimating repairs, comps and everything else that creates an ARV seems to be the toughest part of the process. Should you know how to do this first, then look to find places or jump head first?

3. What laws/regulations should new investors generally be aware of? I know this is jx specific, but what are general concepts that are the crux of legal disputes? How do wholesalers protect the seller, themselves and the deal from being lost/taken by someone else? 

4. What is the wholesale contract look like? The one between the seller & wholesaler, including the EMD.

 That makes sense - what exactly do you mean "by one you choose" --

Also - just to clarify, you would not consider loan pay if you were to do this equation? 

If not - what equation would you use to best estimate what a Net Worth Return a House Hack can have? 

 Ah you are so right. Craig's book not Brandons ! 

And yes that makes sense - you are gaining equity on the property so it should count as a return you are receiving. Also, the denominator is "initial investment," not "total investment" 

I just get somewhat wary of inflated numbers that make something look better than it is -- saying that my NWROI is this incredible percentage - but an ongoing maintenance concern/capital expense actually makes the property break - -even or even worse. 

I really like the equation, though, because it does encourage/provide the idea that house hacking can truly increase your personal net worth and be a better option than for example 
 (having a relatively higher income in town A but you rent versus lower income in town B but you house hack -- the NWROI may tell you house hack in town B!

But still trying to conceptualize how to incorporate ongoing expenses/interest payments and loan paydown into that equation to get a more holisitic image before deciding where to live

Does anyone remember when Brandon Turner used NWROI in his house hacking book? I am curious about how he comes up with the number. . . . the formula goes 

• NWROI = (cash flow & rent savings + loan paydown + appreciation)/ Initial Investment

So, if you have a low initial investment - it looks good on paper. It is a favorable equation b/c you get to include rent savings & loan paydown 

However, I do not understand how you can use loan paydown for the equation. I get that it's the equity you are getting in the house (you only can include the principal you are paying down) - but that feels as if it should be included as a part of your investment. If you are going to say your loan down part of your return for your net worth -- it should also be discounted, considering it is money leaving your pocket.

Gotcha. My area is not rural (somewhere in the middle), but is still eligible for a USADA loan 

The demand would be there for renting a room. I am more caught up in the fact whether or not  I can rent while in the property, during the first year