All Forum Posts by: John Webster

Maurice is right, what market are you in and expertise. You could do cosmetic flips, which is slapping on some paint on the walls etc. Outside that it depends on your definition of small, which depends on your expertise and length of time some deals you can fix up In a matter of weeks and some days. Good thing is I dnt know how to do anything physical, therefore, I had to leverage everything. Some that have certain expertise tend to want to be involved. Depending on if people have full time jobs and kids etc takes some so long to get anywhere trying to do the work themselves. I have stopped flipping like a year ago, cause I have easier ways to make money in realestate , faster and less headaches can do alot at once. Yeah In realestate tons of ways to make money just depends on your end goal. You came to the right place plenty of great advice on here! What gets most is finding good deals , not really hard imo I responded to a post on here and plenty are doing great now they pm me.

It all comes down to having a good team, you could do several deals at a time and never see the properties. The money side your finances dnt have to be strong to do multiple deals. My friend is doing 14 deals right now, I showed him how to find great deals, his credit is worse then mine and he has less than 11 months of exposure to realestate. Even when I started I did 3 deals at once , was limited on how much I could pay for deals , I was able to roll all costs into loan I barely made anything monthly. I did have have points and high interest but the deals were so good it didnt matter. I would research lenders cause some require reserves etc and some dnt. Most people dnt know how to find great deals why they are stuck coming out of their pocket. I show people in my city and the surrounding cities quite frequently . it is funny I go to networking events etc and the veterans are taking notes when i talk to people afterward lol. I replied on here about how to find deals etc, people pm me with thanks and how much they made. Lastly, I would make sure whoever is showing you is showing you correctly. You look at national avg for take home it is so low shows me many dnt fully understand what they are doing. If you are like my friend 14 deals at once 15k each on avg is pretty nice. Good luck you came to the right place, many amazing people on here!

There are lots in every market. Many neighborhoods no way for people to know what is in every neighborhood, therefore, people say deals are dried up. I responded to someone asking how to find deals from what I can tell it worked they pm me they are doing well. People are set in their ways too much, keep doing what dnt really work I love Cali.there are ways to make it easy

Nah I dnt blame you most people dnt know what they are doing when it comes to fix n flips, why the avg take home is so little. I see people post no deals , all deals are dried up, too much competition not like people know all the houses in all cities/neighborhoods in their state. There are several ways to find deals in any market. Not really hard but like anything most make it hard

There doesn't have to be a good profit to wholesale, you have rental buyers, like some on my buyers list just want a certain amt per month in cash flow. Same as people are taught put a property under contract then find buyer rather than vice versa, many are taught wrong. Some buyers just want deals that appreciate, minimum is close to 6% annually, that alone adds a nice chunk of change for a buy and hold investor. I have buyers paying over asking for the appreciation more than worth it in the long run

Everything is a deal I learned that and boy am I glad I did. I closed 11 deals this past weekend and half were tight numbers that I moved very fast. 3 of them other investors walked away from cause of the numbers homeowner told me. One thing you want to look at is the appreciation,they didn't look at that obviously , it was appreciating 15% annually..I sent out to my appreciating buyers I have buyers paying over asking for that very reason. Most of those I use transactional funding, double close where I made on avg 22kk vs 10k wholesale fee if I am lucky, besides hard to make 10k wholesale fee on A deal with tight numbers, after taxes very little, just think if you added a 6k fee, not making no where close to 6k. Depends on your buyers i have buyers for every type of deal. You said arv is 445k but not true arv what does the comps say? Comps dnt lie if you have recent sales it tells you what you could or should get. Yeah I have lost several deals at the beginning because of listening to people say numbers dnt work walk away. If agent is assigned to deal they will get a commission may be a way out not sure. I have been lucky to where the contract runs out with agent for homeowner a week from time I come into picture , therefore, they just let contract expire and call me or vice versa .

Yeah Luke best to have buyers first, cause you dnt want to find stuff that no one wants. Most will tell you buyers want a 3/2 etc not a 2/1 dnt bring that to them..you never want to assume anything more types of buyers you have the more deals you can do. Between my buyers and my partnerships for quick flipping etc I have over 15k buyers nationwide. Over 500 buyers 2/1. Another thing is many will tell you if the numbers are bad nobody will buy investors want to make at least a 30% profit etc , that is true to an extent for fix n flip but buyers outside that. For example, I put 11 deals under contract this past weekend. 6 of them moved same day. 4 of those were to buyers that were looking for deals to rent out with appreciation. Because of appreciation a great number of buyers are willing to pay over asking . let's say an investor can get a deal for 50k worth 70k, with just a 5% yearly appreciation . that same deal would be worth close to 500k by the time a person retires, great buy and hold lol..I have buyers for trailers, manufactured homes etc. There are buyers for everything but when I was shown I was shown if the numbers dnt work walk away but they never said look at the appreciation etc. Ask for referrals sellers won't just suggest people, out of those 11 I got 3 referrals i am meeting with this weekend. I have a business degree from a very prestigious university, that had taught me how to expand my mind to the extreme. I have tested it in over 60 markets with new people and veterans. They call me dude I am getting all kinds of deals now thanks. I have a few hundred buyers that want a certain monthly rental amount and that is it, times could be tight, just as long as it fit their rental. Yeah like I said with the appreciation I have gotten deals others walked away from. For example, deal worth 300 moved with my fee for 265k, cosmetic 10k. By the time you add closing costs etc 300k basically, no thanks nobody wants that move on right? I went to my appreciation buyers , that same deal is appreciating 15% annually, moved very fast wow! Others didnt pay attention to that they just saw numbers were tight. Like I was taught in business school think about the whole 360 degree picture, majority dnt. Most see the class half empty lol..enjoy your day

Yeah there are lenders that want skin in the diamond. Many say 65% of arv. Meaning lets say a deal arv is 100k that is 65k. Meaning if you could get a deal under that it is covered . problem is most dnt know how to get low enough. My first three deals I just had to put up 3k, I couldn't go over 250k pp and 50k rehab, could do 3 deals at once. Once complete I got all my money back but 650 bucks, that was for appraisal. Ever since then I got low enough with junk fees rolled in and everything to get for 100% financing. If lenders feel like they have nothing to lose they will fund 100%. Like I said if you get a deal for 25 cents on the dollar, with not much rehab on a deal worth 100k at very least you dnt pay they get a deal with great equity. Win win for them. If you are asking for 75k on a deal with 100k that is more risk obviously, therefore, they would want skin. Let's say if everything came back and you needed lets say 2500 for junk fees you can always go back to owner and negotiate that 2500 to make it truly 100%. Most likely homeowner wnt mind not a big deal to ask for a drop the equivalent to your added fees

Duplex rental you said you weren't sure but even at 1200 per month in the long run yuu would make more then the 25k or 30 you may see flipping .

Well did you mean 100k pp and arv 165k for duplex,think you have it backwards. Without knowing your repair costs I can't say for sure. Gv my opinion off of hypothetical numbers. Your first numbers 50k arv of 80k. That is tight numbers for a flip..lets say your repairs are small 10k that is 60 plus your costs, taxes dnt know how you are financing plus that costs too if using lender. Leaves little take home cash. That case a rental would be better. As far as the duplex same thing plus costs to convert Into duplex which isn't that much anyway. Your arv numbers is that the low end or the high end and what are the days on the market. I have so many friends mess that up they say 100k but dom is 6 months etc , where as the lower end is 70k but 60 Dom. Seems like common sense lol. They bank on the higher comps and lost most of time until I showed them.