All Forum Posts by: John Walker

@Darsh Patel Monthly insurance will need to be accounted for; such as dwelling, flood, & liability coverage. Another monthly expense could be any utilities that you are including with the rent, if any. 

Also keep in mind to allow for Vacancy, Repairs, Capital Exp, & Property management. Use the Rental Property Calculator above under Tools and it will help. Good luck!

@Jared Smith That's a tough one. The investing side of me understands that you want to get a feel for the properties but as a real estate agent, I also understand the other side of it as well. You have to keep in mind that the agents do not make a dime until you purchase AND close on a house. 

My recommendation would be to get things squared away on finding a partner or figuring out your financing. Why would you want to waste any of your time on looking at houses if you aren't sure what the outcome will be? I'm definitely all about making things happen and not analyzing things to death but you also need to make sure that you're moving through the right steps. 

Also the properties that are found in the MLS will 99.9% not be properties that you could wholesale. If the property was that good of a deal, someone else would have already snatched it up.

Overall, I would focus your energy on financing, finding a partner, and acquiring more and more knowledge. Good luck to you going forward! Stay positive! 

@Tom MacDonald Each state/country is different but I would recommend checking with a real estate attorney to make sure that all bases are covered. You will need a Buy/Sell Purchase Agreement and Property Disclosures if you were in my state. There are many other optional documents such as, AS IS addendum, Termite inspection, Sewerage, Lead Based Paint(older than 1978), etc. 

It's a great idea to bring the info that you have but I would also say that I would be careful on giving the seller too much info b/c it could just turn into information overload or more points for potential negotiation. You may bring something to their mind that they haven't even thought of yet. 

I have a property in a flood zone as well, you just have to make sure your numbers work even with paying for that. It's expensive in Louisiana but the property that I have it on works regardless. Just make sure you have accounted for it accurately. 

Good luck to you guys!

@Eric P. I think you already have a pretty good idea based on your bullet points. Each market is different. I would say that a big deciding factor for me is if there is room to flip it then I will just b/c highly profitable flips are more difficult to find in my market. I can find good rental property all the time depending on preferred neighborhood. If your market is the same then I would suggest that approach. However, if it's more difficult to find profitable buy & hold then I understand the dilemma. Specific neighborhood and location is a big factor for me. I want my flips to be in locations that will sell quick and easy. Good luck in the future!

@Jerome Coles Unless I'm not understanding completely, it does not seem like a deal. Profit margin is entirely too tight. Even if you could get it for 200k, it's still tight with closing cost, realtor fees, and any needed repairs. I would steer clear of it based on what I'm reading. You want Purchase Price + Repairs = 70-75% of After Repair Value. You can make it work with 80-85% ARV but it obviously gets riskier if things go wrong or there is an unforeseen repair. Good luck in the future! Stay positive and make things happen!

@Matu Ambaye I would recommend looking at the House Flipping Calculator in this site. I would also check out books on the subject. 

Finding a real estate agent that has investing insight would be a great way to start. I would also start looking into lenders. Local lenders are usually better b/c you may be able to find someone that does portfolio lending. Good luck and soak up as much knowledge as possible but then go out and DO IT!

@Talyta Noronha Welcome to BP from Central Louisiana!! I am a real estate agent as well. Keller Williams. I have 4 rental units and I have flipped one house and of course looking to do much more. This is a great resource for learning. Listen to podcast and watch videos! Good luck and let me know if you need anything from me. 

@John Chetta Welcome to BP! I'm from a little north of you. I would recommend searching for other investors in your area that are on BP. I know there is an active group in Lafayette and I'm pretty sure there are some in BR and Nola as well. It's a great idea to connect with other local investors b/c you can learn from them, they can be a source of finding deals in the future, and help with finding quality tradesmen for work to be done, and much more. 

I would recommend diving into as much content on here as possible with videos, podcasts, webinars, etc.

Great job on getting your license as well. I did the same thing and I really enjoy selling as an agent as well. Good luck and Best Wishes!

@Account Closed Keep in mind that in most states(maybe all) using a real estate agent as a buyer is essentially free for you if the property is listed on MLS. The listing agent negotiated the commissions with the sellers and they pay it. That money designated for the buyer side of the commission is going to go to someone whether the listing agent brings the buyer or the buyer is brought by a different agent. What I'm getting at, find an agent for yourself that you feel comfortable with and it's free for you. Best wishes and Good Luck!