All Forum Posts by: John Bryson

Well lets see...

$69,000 purchase price...$850/month with rent....Just based off of the 1% rule it seems to pencil...But there's so many other considerations to take into account....for example, a new roof could set you back pretty quickly....If I make the assumption that the neighborhood is good....property is not in need of repair.....and there's no other circumstances(liens on title ect) yeah, it looks pretty good....

My suggestion is to get this under contract---with a good feasibility/inspection period(if possible).  Once it's under contract, do your due diligence and ask other investors in the area to run the numbers WITH you....if you have it under contract, they can't steal the deal from you....if it's good enough, you might just find a partner....I wouldn't get greedy, especially if this is your first deal....because who knows, maybe the next deal will come from a new partner?

-John

Questions for seller:

1-Why are you selling?

2-Can I see the leases(Then send to a real estate attorney to look over)

3-Can I see the rent-rolls/taxes expenses ect.

4-Can I do an inspection on the property

What to look for:--I'd speak with the neighbors to get an idea of not only the neighborhood, but activity at the house you're thinking of buying....I've learned more from doing this than anything else....One time, I was talking with a neighbor and they asked about the guns in the garage.....Turns out, the tenant was illegally selling guns....OUT OF THE GARAGE!!!

Do an inspection and have inspector advise you on the condition of the home.

This is just a beginning list, but hope it helps!

In all honesty(I started real estate 5 years ago for the exact same reasons)  I'm not sure it matters.  Here's why:

1-If your goal is investment, would your time be better spent learning how to be an agent, or learning investment?

2-From personal experience at both National(Keller Williams) and no-name(City-Closers) brokerages, the only time the name of the company has cost me has been when speaking with luxury sellers.  Even then though, most clients choose YOU, not the brokerage you work for.

YOU MUST KEEP THE END GOAL IN MIND OR YOU'LL GET LOST IN BEING AN AGENT AND WASTE TIME DOING THINGS THAT AREN'T BENEFICIAL TO YOUR END GOAL!

My best advice is to choose a brokerage that can help you with your goal as much as possible...If rentals/commercial real estate is the goal, then you're going to want to become a WIZARD at analyzing properties....I'd research commercial brokerages that have good training programs....it may be difficult at first, but at least you won't waste years.

Hope this helps!

This is a tough one.  Not sure there's a specific "area" that's good for wholesaling, I think it's more about the margin.  For example, if an area doesn't have any sales, but you speak with a seller and after running all the numbers realize that you'll be able to acquire the property for an amount that would be appealing to an investor, then you have your margin.  Of course if you can do this in areas where your investors want to buy, all the better.  Sometimes the best areas to attack are the least utilized(sought after) as there's not much competition.

This also depends on what type of real estate you're wholesaling....Trying to wholesale land is much different than trying to wholesale single family homes....or multi-family homes ect.

If I had to answer your question as written, I'd say look for neighborhoods that are gentrifying and appreciating...the earlier you catch these, the more quickly you can become known in that neighborhood as "The person who'll buy my house".

Hope this helps, feel free to reach out with any questions.

-John

Your best bet for your first investment would be somewhere somewhat close to where you're going to be.  Once you get the hang of things, then you could venture out into other markets.  You most likely have a good idea of some of the neighborhoods near you....War zones vs A+ neighborhoods.  This is more difficult in markets you know nothing about.
Also, it seems like you're using appreciation as your main investment strategy which may not be the best strategy honestly.  You can have appreciation as another box to check off with all of the other indicators, however, using that as the main indicator can possibly get you into some trouble.

What I'd do:
--Check rental rates in the area
--Check home sales in the area
--Check sold/listed %--This will show demand....if buyers are paying 110% of list price, you know there's demand for that area....if they're paying 70%...not so much.  Make sense?
--Talk to real estate agents in the area
--Go to investor meetups in the area and ask questions
--Connect with other investors here who live in your area and ask for their expertise.

Also, another important thing to do is to CLEARLY DEFINE your investment criteria.....ESPECIALLY AT THE BEGINNING....You may have $750k, but what if you could get a better ROI buying 3 $200k properties?

Hope this helps....feel free to reach out with additional questions.

YES!  Definitely get your license.  I would get your license in the state that you live in.  If you're going to do "real estate agent" business in other states, check the laws for that state as you may have to have an office in that particular state....This isn't necessary for investing, just doing real estate agent activities such as listing a home or helping someone buy in that particular state.
I think someone else said this as well, but you can always refer those clients to other agents to avoid needing to have an office there.

Forgot in the title....Specifically, what is a utility chargeback.

I'm analyzing properties and just curious what this is as I ran into it for the first time yesterday.

Thanks!

Congrats on your first investment.  The garage issue could be interesting, but I've never personally  dealt with that.  I think it would depend on how much room there is in this garage....the bigger the better.

I would begin thinking about your exit strategy....I know, I know.....YOU JUST BOUGHT THE PLACE!  But if the market turns or something happens in your life that causes you to need to sell, you don't want to be caught unaware.  Having a solid exit strategy will be very advantageous for you no matter what happens.

Best of luck to you!

-John

What is the reason they want to pay a full years rent at once?  It could be for their own peace of mind, or maybe they're drug smugglers....you have to know the reason they're wanting to pay up front.  Also, combine that with the normal due diligence(specifically, their rental history) and you should be able to make an informed decision.  Could be more difficult to kick them out if that need rises as well, however, this can depend on the specific tenant laws in your state.

Hope this helps!