All Forum Posts by: Jay Dewberry

Hi Paul. Let me start by saying this is waaaayyyy out of my league to even attempt to respond to, but I wanted to offer my two cents in the event it would lead to a solution. I'm here in (near) Atlanta, and it's very common for sellers to request POF's for buyers to weed out those that may not be serious about purchasing. It sounds like your buyer is one of the serious ones and the seller may be frustrating the progress. Have you tried getting someone to partner up with the buyer? Perhaps they can provide a joint POF submission to satisfy the seller? I'm not sure, but will a transactional funding institution be able to supply a statement for the remaining balance? Perhaps shopping the deal for syndication is an option? Just my thoughts. Hope some of it helps.

Hi Raymond. From the photos, the property doesn't seem too bad. Definitely will need some rehabbing. What are the market rents for the area? If there's solid rents, it looks as though you'll have several exit strategies to choose from. Make sure to add a cushion to what ever bids you get just to be on the safe side. Also, run your numbers through the Rental, Flip, and BRRRR calculators to see what you get. Looks like you're off to a good start. Good luck and keep us posted.

Looks pretty good @Mark S. If all else holds up, you may be good to go sir.

Hi Mark. I’ve got to admit; this looks like a pretty decent deal sir. I’m a little concerned about that 5/20 ARM, but depending on your exit strategy, this can be managed. Without breaking contract, what are some of the details on the Operating/Syndication agreement?

Hi Whitney. Welcome to BP. From my initial review, all in all, this doesn't seem to be a bad deal. My only concerns would be the Repairs and Capital Expenditures seem a little low…and property management seems a tad high (but this could be due to your particular management company). Otherwise it looks as though you'll have a modest ROI. I noticed you didn't have a number for repair costs. Is this property turnkey?

Hi Rafael. Welcome to BP. If you’re in search of a buyer, a good place to post your deal would be right here on BiggerPockets in the Marketplace. Craigslist would be another avenue to travel, as well as, your local REIA meetups. From what you've described though, your deal doesn't seem like it would leave much wiggle room for the end buyer once you've factored in acquisitions and sales costs, your profit, and a rehab cushion. But I will defer to more seasoned investors on that. But to answer your initial question, craigslist can be a good source to locate an end buyer, just be careful and make sure to get a deposit to make sure the end buyer is serious about the purchase and so not to waste valuable time. That's my two cents. Good Luck.

Hi Taylor. Can you give the forum a little more information on your situation? Have you had the owner agreed on financing specifics? What's the property numbers? Investment numbers? What are your strategies? In other words, I think we need a little more info to help. Just thoughts...

Hi Brady. Welcome to BiggerPockets. When it comes to real estate investing, there isn't a one size fits all "best strategy" It really depends on your personal investment goals. The strategy for a long-term buy and hold investor will be different from a short term fix-n-flipper. The Single Family Home investor will have different goals than the 10 unit Mobile home investor. It just depends. Perhaps a good starter is to research the different niches that real estate has to offer. Perhaps your niche is SFH's, under 100K, that rent for $1300/mo. Or, perhaps your niche is Multi-Family Homes that have a combined rent of $3300 in a hot market in Denver. Even further, perhaps you found a great off-market deal, but don't have the funds, and just want to make a quick $5k on the wholesale of the deal. The goal is to find what works for you and catch that investment bug. There's no where better to do that, than here on BiggerPockets. Take advantage of the many, many, many seasoned investors on here and make it happen. Just my thoughts...Good Luck!

I agree with @Michael Campbell. There doesn't seem to be enough information. What are the recent sales comps? What were the acquisition costs? Where are the figures for Vacancy, CapEx, Repairs, ect? Did you (or the property manager) have a deposit on the reckless tenant to offset the damage? When you factor in the new property management company at 8%, does your figures improve? Is the new property management company have a thorough screening process to weed out future bad tenants. Many questions. Nevertheless...keep going and good luck.

Hi Christian. Welcome to BP. I too had a chance to catch the great @Brandon Turner webinar as well. When it comes to house hacking, the ultimate goal is to have enough income to offset expenses during the time you are living in the unit. No matter if it’s a 2/3/4 unit, it should cover your expenses until you have the opportunity to move out and/or reinvest and/or put a new tenant(s) in place. Numbers are numbers. As long as it makes financial sense, reach for those goals.

When it comes to wanting to have the same expenses as an owner that you do as a renter, I’m not sure you’re grasping how the analysis differs from renters and owners…big difference. Many of the questions I see in your post seem to stem from improper understanding of the total analysis. I was always told; you make money when you buy…not when you sell. In other words, if a property is NOT cash-flowing as you would like, Perhaps there’s an issue with the analysis. Perhaps take a moment and perform some general analysis for the SoCal area. Use comps for 2/3/4 plexes and see what works for your market. Play with the numbers until you (perhaps) have something that works for you. Just thoughts…good luck.