All Forum Posts by: Gavin Welch

Welcome to BP.  Remember real estate is easy to buy and hard to sell and debt=risk.  Be careful and good luck.  You got plenty of time.

Gavin

I was an investor first then I got my real estate license.  I send more time on the investments and really don't have the time to invest to really rock the realtor roll.  There are a lot more rules and fees that you are going to have to pay to become a realtor.  

Depending on how many homes you are flipping you might consider partnering with an agent and because you are doing more deals they should give you a significant discount.

I recently moved my real estate to another brokerage to partner with a friend that is flipping 50 properties this year.  They are handling rehabs (theirs and mine) and managing crews/ projects and I am selling properties (theirs and mine), helping find deals and dealing with bird dogs. ..  Its a win-win for both of us...

Good luck.. 

Gavin

Yates, it sounds like your on the right path.  Have you thought about partnering with one of our local investors?  Or a money person.  Frequently, some money people would put up the cash and you could manage the properties for a 50% split.  Ask around..  Just a thought.. Good luck.

Email me if you need more help.

[email protected]

Gavin

That's not a lot of margin.. I like to either profit $500 a door or finance less than 50%.  But i am very conservative.  If the house was nearby you and you could keep a good eye on it.  You might get by with the $100 per month cash flow then sell it in a year or so and make some dough that way.  The problem is with $100 per month repair, you're going to be negative if you have to make any repairs or vacancies.. 

I like your train of thought.. You're on the right path.. However, I'm not sure if this is a great property for you unless you have cash reserves elsewhere.. Its too easy to go negative.

Good Luck

Gavin

@pono wright, your on the right path with the subject to or a lease option.  Check out a guy by the name of Brian Gibbons.  He's got a ton of you tube vidoes and is a master at teaching these types of deals.

Gavin

Kate

I use LLc's it separates the risk and liabilities.  I have several rental properties and I group three or four in a llc, then start another.  Its really easy and cheap here in Florida.  l also use them with different deal partnerships.  Each partnership gets a different llc,  that away it one were to fail, it should effect the other.

The fact is that risk is a part of real estate investing.  If you are worried about it, then you might be taking too much risk?  Education beats out fear every time.  (not in just real estate).  Eventually, you become accustomed to the risk and that is when most people slip up.  

I have recently started using a mastermind group that I formed on line with 5 other investors to help.  They will tell me when I'm taking too much risk or about to do something dumb. Since they are not local I'm not afraid of them trying to snake a deal.  It sounds cheesy, but it works.

I think a little bit of fear is good, it reminds us that we are willing to do what most will not.

Good Luck,

Gavin

@Chip Chronister It's really up to you. But the more deposit they put in up front the more likely they are to follow through.

I just bought 4 properties with 5% down and 6 months of payments.

Since you are selling YOU call the shots. With deposit, amortization, and APR. You should also put a balloon in there somewhere as well.

If you go lease purchase.. Expect them NOT to buy it. About 80% of all lease options never use the option. NOTE: Make sure your option contract is contingent upon the rental agreement being current and in good standing from that tenant. You don't want them to move out in the middle of the night, then show up a year later and expect to buy the property.

Good Luck..

Hey Michael, the easiest thing is to teach them to find sellers that are motivated. In my experience, they try to cut and paste from craigslist or the MLS or its realtor trying to sell their deals or the house is in foreclosure. I did weekly webinars for training. I advertised on Craigslist and I had several hundred in a month. But I didn't find any deals out of it, but I also didn't spend a ton of time on it.

The easiest thing to do, would be have them send leads, do a webinar to train them. Then send the leads to a VA that would sift through them, then compare the property to zillow to get a base price. The the properties that are not foreclosures or bogus, you call on, or you could train a VA to call and make a 'soft pass' with the seller. If they are interested then you follow up.

I hope this helps. Let me know if you have any more questions.

Gavin

Hey Christina, welcome to the "nearly 40 and not trusting social security" club. Ok, here is my two cents. Right now, its getting now difficult to flip. The better margin (profit) is on the higher range properties which require more money and experience. It can be done, but the margins are not as high as they used to be.

I personally, like single family houses. Condo values can really change depending on the building and that is out of your control. Also, condos have association fee and weird rules that could make renting the property difficult. Finally, condos typically have 'special assessments' that is additional fees for maintenance or repairs that they did not predict and your stuck with.

With that being said, I prefer single family because its much easier to predict the holding costs, maintenance costs and the overall value of the property.

My personal strategy is this. Buy and rent 3/2 concrete block houses in decent neighborhoods for 40 to 60k and rent for 700 to 900 per month. Build up cash pay off and buy more.. Easy and proven strategy..

Just my two cents.. Tenants are easy.. Message me if you want some advice there also.

Gavin

@Gary Sullivan

I've never heard of him..

Good Luck

Gavin