All Forum Posts by: Darvin Ezell

I spent about six months pulling my own probate records each week. In the end, I just started buying a list produced by a list seller in my area. The list I get now is much more complete and typically more accurate than what I was pulling on my own.

So I would suggest you investigate the time associated with pulling them on your own and the money cost of purchasing one from a reseller (assuming you have that option in your area).

Ask where the most recent filing can be found then just work backwards.

As to the details, how would you approach learning how to fly an airplane?

Hmmmm. 

You think the property would be good to deal with but don't know how to calculate the ARV or the rehab? Thats always a bit of a red flag. Be careful not to jump into any deals until you're sure you can come up with rehab estimates and ARV numbers on your own.

One of the best ways for you to come up with a rehab budget is go into the house and make a list of all the items you want to have fixed. Then ask a couple of contractors to come look at the house with you and give you a bid for all the items on your list.

As far as ARV, you could ask a realtor to give you an estimate on what they think they would list the house for once you completed the rehab (and give them the items on your rehab list so they know what would be fixed up and what wouldn't).

The best way to come up with ARV is look at the sold houses in that subdivision that are similar in terms of bedrooms, square footage and year built. The sales should be in the last 6 months. That will give you a reasonable idea of what it should appraise out at.

Hope this helps. But I'd suggest you hold off a bit on buying anything until you're a little more comfortable with coming up with estimates and ARV numbers - even moreso if its a flip. For a rental, if you miss your numbers, it just means you have to dip into your pocket more and your returns aren't as good. For a flip, the difference could end up meaning you lose money on the deal....

That is always a tough question to answer when starting out.  You should do three things.  

1) Do as much research as possible. Know your comps, know the after repair value (ARV), know the cost of repairs, and maybe be familiar with the maximum allowable offer (MAO) formula which is 70% of ARV minus repairs. This last part is just a guideline.

2) Put together a buyers list and ask your buyers what a deal is. Get very specific--type of house, size, location, their MAO formula, etc. If they tell you they are looking for a pink giraffe, you'll know when you find a pink giraffe that you have a deal.

3) Get it under contract and try to wholesale it!  Have an escape clause in the contract, like "subject to partner approval."  Be honest with the seller and tell them what you do.  You have money partners, the end buyers, who provide the funds.  Nobody has an endless bucket of cash and different partners are in always moving in and out of buying mode.  Shop it around, and see if you get bites.  If the price is too high, ask buyers who are interested what price they would pay.  Then go back to the seller and tell them you have a partner that will approve it at their price minus your cut.  And make your cut small.