All Forum Posts by: Hattie Dizmond

 I am telling you I do not lock up retail listings, increase the price and then try to market something that was already retail as wholesale.  

And, yet another Net Worth newbie. 

BTW...since Net Worth employs a practice of putting MLS listed properties under contract and then listing them as "wholesale deals", how exactly can you say you are offering "off-market deals"?

Can't wait to hear this answer. 

You can generate cash flow from day 1.  Again, you're focusing on terms and measurements you don't understand. Cash flow is simply does the money coming in equal more than the money going out, including  reserves?   If it does, you're cash flow positive. 

If you're looking for how quickly that cash flow will payback your initial investment of liquid capital, that's IRR.

There are a ton of ways to evaluate an investment. There are any number of "rules" used to gauge it, which are described here on BP. There is the CAP rate. However, that's better applied to MFR than SFR. There are more traditional capital invest calculations like NPV and IRR. There is CoC and ROI. The list is long.

Determine your personal goals. If you want to invest $20k and have it paid back in 5 years, then you need a net positive cash flow of $333.34/mo. That's a really simple calculation that doesn't take into account the time value of money or lost opportunity cost. But, it gives you an idea. 

Ideally, it should hit the 70% rule. At that point, the potential profit generally outweighs the risk. However, the bottom line is the investor determines the minimum profit or minimum ROI (or whatever calculation they prefer) they are willing to accept.

I think you're using terms you're not familiar with. ROI is a rate of return, not a payback period. Although, a higher ROI should mean a shorter payback period.

Every deal is different. Every investor has different goals and criteria for evaluating deals. If you are focused on the payback period of an investment, then set your requirements and evaluate your deals against that criteria. If your don't know how to calculate payback period and other profitibility indicators like IRR and NPV, just Google them.

You can purchase a list of people who are past due from places like YellowLetters.com. The get their info from info reported to credit bureaus. There are no NOD filings in Texas, because we are a non-judicial foreclosure state. The only court filing that is required is the notice that the property is scheduled for auction.

As for the probate, what is easily available is different by county. You should call your county courts office that handles the online data and get the correct search parameters. 

I'm definitely not good at math, but I'm excellent at Excel!!!

The calculations are pretty basic. Once you learn the operations, you just use a calculator. I will never be able to calculate the 70% rule in my head. My brain just doesn't work that way. But, my Android has an app for that. It's called a calculator!  

So, while my sister/partner, the engineer, does the math in her head, I do it on my phone. We get the same answer, so jo one cares how we got it. I've built great spreadsheets to do the heavy calculations around financinf and cash flow for me. 

Being a huge Texas Rangers gan, I immediately think of Josh Hamilton and Prince Fielder. Josh's arms are covered in tattoos. Prince has multiples on his neck. I wouldn't say either of their tats are extremely well done. However, they clearly can cover the rent!!  

Cody...what's your price point for purchases?

@James Blasczyk

Welcome!  You're already getting involved and listening to the podcasts, so I don't have a whole lot of other BP advice for you.  Let me know if there's anything I can do to help.