All Forum Posts by: Joe Holloway

Cool, thanks Joel Owens, that's about what I was thinking...I was hoping to keep it under $80K for the full rehab.

BP community...I wanted to get any feedback from experienced members on doing multi-family rehabs. I"m looking at putting in an offer on a 6-unit that needs complete rehab. Total sq/ft is 6440, 2/1 units, in need of demo, flooring, appliances, everything...not high end, just quality living space. Not sure about the condition of plumbing/electrical as I haven't been able to get in it yet.

Thoughts? Are there any rules of thumb on a unit of this size that I'm not aware of?

While I am not nearly as educated in Real Estate as most people here, I have bought and sold a few service-based businesses, in my case they were accounting practices. Whenever you are considering buying a service-based you must make sure that you have strong Non-compete clauses, so the existing owner can't just sell to you and then start up another business doing the same thing one town over. I would also recommend getting, in writing, a commitment from whoever is really running the business that they will be staying on. Lastly, I believe in buy-outs in any service-based transaction, meaning you will make a down payment but a portion of the ultimate sales price will be paid to the previous owner as a percentage of net income over the next 2-5 years, or whatever you decide.

I came across this interesting article on Yahoo finance today regarding the new-build inventory that will be flooding the market in coming years.

http://finance.yahoo.com/news/multi-family-home-construction-overheating-160959716.html

Thanks all for the kind words...Brandon Turner I would like to build a diverse portfolio of rentals and flips. I would imagine a lot of people say that and end up focusing on a niche, but we will see. I'm currently in Corp. Finance so this will be a part-time thing until I can generate enough cash flow to quit my day job. I want to learn the wholesaling marketing methods but eventually would use that to source my own deals.

Jerry Puckett Thanks Jerry, I knew you'd have the answer, I was just seeing what others would have to contribute on this thought.

Sharon Vornholt I understand what you're saying about targeting a type of motivated seller, I would just think you can find more of those types in certain areas versus others.

Thanks for all the feedback.

Thanks for the response Sam...I understand that ultimately buying the property in any given location depends on how comfortable I am with it, I guess I didn't properly word my question which is, is there a higher response rate & marketing ROI for a certain price point? As an example, I can get the same return on investment for a house at $100K or $200K, but I may get 5x the responses for motivated sellers marketing to an area with $100K price point.

I'm looking at getting started with a direct mail marketing campaign for wholesaling but I'm not sure of the target market. I live in a upper-middle class neighborhood and my familiarity with housing is mainly around where I live but I'm thinking that for wholesaling I should be looking at middle-class and lower on the socioeconomic spectrum. Any insight on this would be helpful.

Like many others, I've been scoping out the BP for a while and decided to post on the forum to reach out to others in my area and start to network. I'm looking at fix and flip opportunities as well as buy and hold. I've got a few different investment partners lined up for different types of projects I'm interested in connecting with Real Estate agents who focus on investors, Wholesalers, and anyone that would like to mentor/partner with someone fairly new in the game.