All Forum Posts by: John Hickey

@Henry Lazerow

Sounds like you like your strategy. I’m not trying to convince anyone to do what I do.

I want to show those suited to my strategy or already doing something along these lines what I do........

so we can exchange info and perfect our processes.

I did this in NYC on a smaller scale I’m pretty sure your Labor rates won’t be too different then mine,,,of course depending on the level of finish each of us chooses.

@Pat Goodyear keep the kids. Yes you need to get the drug dealers to move...or at least cooperate with you and move far enough away that ppl with kids will move to the block.

Yes drive bys happen on drug areas and that’s not what you want.

Move them and no one will drive by.

@Michael Ealy

That is what I’m talking about. Thank you.

@Alan G. If you don’t mind sharing how you got started and some tips and basic numbers that would be awesome.

@Tyrone Hood

Below is what I do, it’s not for everyone and I would recommend getting the beginner part down before you move onto stuff like this   Took me a while to get here. 

Invest in newburgh

Build an empire in a high crime area

Turn crack dens into secure housing

@Dennis M. place in this world for everyone.  

The druggies will wear you out tho as I am sure you know. 

Been around drug neighborhoods my whole life.  Probably just like you.  This doesn’t work in half ok neighborhoods.  Only burnt out war zone areas.

Keep the strategy in mind.  If you see the area tip towards high vacancy let me know.  

@Michael P.  Well then you are my end user client.  

Place for everyone in this world. Wait a few years till it’s 20x the price. I need ppl like that to take me out of my loans. Nothing wrong with that. I cultivate a list of them.

@Steve K. In some cases I am gutting an actually I take that back on 508 Lafayette. That was a gut....just did it in stages.

But.....508 was supposedly worth as much gutted as it was a shell when I sold it. So that’s what was in my mind when I was posting that.

The idea that properties will be worth more to a buyer needing a ton of work in some cases no CO....then if it was stabilized.

The agent on 508 said there was a lot of buyers that didn’t like the way the Reno was done so they didn’t bid...and she said if they had bid they wouldn’t care if it was a shell..

The point I was making is that the returns are awesome and the properties while a pain in the a$$ to manage don’t need too much work to be worth money.

So you can invest less....shells in bad areas when cheap are sometimes 3-5k. If you fix the area enough that ppl want to move it it now the shells will trade at a premium.

Example.

156 south st Newburgh. This one I am gutting.

I bought it last year for 45k. We put in about 40 or 50k I think so far. It’s not finished.

The agents locally are trying to convince me to sell it now. They say I’ll get more for it as a shell 250k! Right now......just like 508 then if I finish and sell it get it appraised.

It’s worth 300k tops finished. So what makes a shell worth more than. A stabilized property? Expectation of future appreciation.

A lot of ppl don’t like buying for expectation of future appreciation. I’m with them on that.

I only buy when I know I can make the block worth more soon. That’s not expecting. Making future appreciation.

I’m bidding on another one close by right now. Shell. Needs gutting I’m bidding 225. Crazy to buy a house for 225 while I am selling one for 250k? No I bought the other for 45k and the ppl buying it will be ppl that i decide. Owner occupiers or landlords I think that are good ppl. I don’t sell to slumlords. Well at least not if I’m still keeping property on the block.

That idea falls under do not let any property within 500’ get out of your control.

@Davido Davido no. When I started out on BP I used to use the BP deal calcaulator. It’s a good tool.

In analyzing deals the the numbers aren’t usually in line with reality so I didn’t see much sense in continuing it.

I’m selling a bunch right now.

I’m doing my taxes in the spring so I’ll probably put a P and L together at some point. I’ll PDF it and post if but that will be a while. I sold one last year but it wasn’t a good example the neighborhood wasn’t that bad.

@Cin Suan Khai

NP

I’ll post details on the deal after I close.