All Forum Posts by: Jordan Berry

I just saw that there is a 1031 exchange forum. oops :)

I'm not looking for legal advice and will consult a lawyer before I take any action, of course, but I have a question about 1031 exchanges someone might be able to shed some light on. I own a coin operated laundromat. If I were to sell it, would I be able to 1031 exchange it and purchase real estate with the gains? In other words, can you exchange a business for real estate tax deferred or only real estate for real estate?

That was not at all helpful to your question, so let me take a crack at it. First of all, it depends on your goals. I can throw out some general numbers for you, knowing that it will depend on a variety of factors for your individual situation. But if you're sending, say, yellow letters, you can estimate around a 10% response rate. Of those responses, someone with experience might expect to convert 1 out of every 25-30. Until you figure out some of the things Charles was pointing out in how to best convert those calls, it might be more realistic to shoot for 1 out of every 50-60. Postcards generally get a lower response rate, maybe 1%, but are cheaper to send out. Again, all of these are just some general numbers to help you get started. You should track your own numbers and figure out where you land so you can tweak your campaigns and conversations with home owners to increase your rate of conversion. But until then, you can use those numbers to help you work backwards to determine how many letters/postcards to send out and calculate how much that will cost you in total. Hope that's a good starting point for you.

I have been reading a little bit about the minimum wage battle going on in Birmingham and was curious if anyone had any insight as to how the sharp raise in minimum wage in a short period of time might affect real estate. Anyone have any insight to share? 

http://www.al.com/news/birmingham/index.ssf/2016/02/birmingham_minimum_wage_vote_d.html

depends... Does that lava lamp come with it or nah?

Mike's post has some great advice. I would also look into refinancing them through a smaller regional bank in your area that keep their loans in-house and aren't dealing with Fannie/Freddie. You may still have to give up a little cash flow on your five properties but if you can find one that will work with you you'll be adding the cash flow of the apartment complex that you wouldn't otherwise have. It's definitely worth asking around.

@Dev Horn yeah, that's a great quote, too! It's not applicable to you though, I appreciate the good feedback! And I will definitely look into the virtual wholesaling threads. You rock! (Even though you're from Texas and Texas keeps stealing my favorite people here in California)  :)

@Dev Horn Thanks for the response. Those are some of the obstacles I'm wanting to see if anyone is currently overcoming. I see how it's an uphill battle for sure. I guess I'm trying to figure out if it is impossible, untried, or if there is anyone around here doing it successfully. Thanks for the honest feedback and the inspirational quote! :)

I'm located in Los Angeles and I was just wondering if there are many of you out there living in California but wholesaling out of state? I am primarily interested in buy and hold investing and prefer to focus in a midwest market to maximize my buying power and cash flow. I will be doing direct mail marketing as well as phone calls to owners of vacant rentals. I plan on purchasing for myself any property that fits my criteria but I will likely have opportunities that I am not able to take advantage of myself and will look to wholesale. 

I would love to hear any advice of anyone doing something similar. What are some pitfalls to look out for (aside from knowing the market)? What are some ways to overcome the disabilities that come with investing at a distance, such as not being physically present to inspect properties, or even close the deals with sellers? 

Thanks! And thanks to all of you doing the work and inspiring me to get in the game!

I'm also looking for a good CPA with real estate experience in Los Angeles. Thanks for the recommendations guys!