All Forum Posts by: Jordan Fulmer

@Bob Ross

Typically the homes you are using for comps have been renovated (or are at least in pretty good condition) as well, so the price/sqft on those should be close to what yours will be worth when renovated. You don't really want to try to go too much over the price/sqft of homes that have sold in your area, since these sold homes are what set the standard for the rest of the home values. Ideally, you should be using homes for comps that have similar finishes to what you are planning to do with your renovations.

Hope this helps!

Hi Emanuele, from my experience, your biggest hurdles will be locating deals and negotiating good deals with sellers. I would really dive into your marketing strategies. So many people get into wholesaling but don't realize that finding motivated sellers is not a walk in the park. Aside from honing in your marketing and negotiation strategies, building your buyers list will also be helpful. This will allow you to understand the types of deals your buyers are looking for and what prices you should be getting deals under contract for.

Another note: from my experience, if you get a good deal under contract, you shouldn't have an issue finding someone to buy it. Especially in this market.

Docusign is probably your best bet for e-signatures. It's not too expensive ($15/month) and you can always cancel if you don't need it anymore. You can make an electronically signed document out of any document you have. You just have to drag and drop the signature areas.

If you want an expert to talk to about landlord-tenant law, Sarah Taggart is your go-to resource. Everyone in my local REIA (Huntsville, AL) respects her a lot.

Hi Andrew, that's a great question. My advice would be to hold off on a refinance unless a new purchase is right on the horizon. What you don't want to have happen is for you to pull out the money and have it sit in your bank account for months while you are looking for a new deal. Cash-out refinances are amazing tools, but you do need to time them right.

I think the optimum setup for you is to have maybe one house with a HELOC on it. That way you have access to some quick capital for a purchase and rehab expenses. Then you can refinance other properties (or the one you just fixed up) to pay off the HELOC. Basically, just have one house with a dedicated HELOC that is there when you need it, but you don't have to pay interest on it unless you use it. Then refinance other properties only when you need to.

Hopefully that helps!

My rule of thumb is a comp has to be a similar build style, size, and age. The most applicable comps are going to be in the same neighborhood. I always try to only pull comps in the neighborhood of the house I'm looking at. If you can find houses that are similar in square footage and finishes to the finished product you are shooting for, you should be good to go.

Practically speaking, however, sometimes there just aren't enough sold properties in the neighborhood you're looking at. I don't abide by a certain distance rule. This can go both ways. Sometimes you can have a house 1/4 mile away that is nowhere near the same. Or you can have a neighborhood a mile away that is very similar in house types and age. Now obviously the closer the better. I would start looking at the sold homes closest to the one you're looking at, and only work outward if you can't find houses that are similar.

I agree that an older home could be riskier depending on its current state. If its major systems (electrical, plumbing, HVAC, etc.) haven't been brought up to modern standards, you could run into a lot of major headaches.

My advice would be to not run from it just because it's old. If you can get a good deal on it and have plenty of margin for if issues come up, then go for it. And when problems arise (and they will), just remember that you budgeted for them and use the process to learn something versus panicking. On the contrary, I would not move forward with it if you can only get it for a price that will require a shoestring budget. That is a recipe for lots of stress.

I'm not sure about Venmo, but if it continues to be a problem, you could always switch to Apartments.com. It's completely free and your tenants can set up automatic payments. It's what we use for all of our rentals.

Hi Michael, Glad to hear you're excited about getting into real estate! Keep that enthusiasm! However, many people get into real estate wanting to make "millions" (including myself). The key is you have to know what you're doing. Really focus on your education and figure out which strategies you want to focus on (BRRRR's, creative financing, lease options, etc.).

Also, don't get too stuck on learning strategies. Our main issue right now is generating new leads, so we're taking that issue head-on and developing a website that brings in motivated seller leads. Many investors pour so much effort into learning strategies, which admittedly is super important, but neglect to address the most significant bottleneck in their business - namely lead generation.

I think it would make the most sense to create a two-member LLC with you and her as the members. That way your income can help her qualify for loans in the future. You should be able to transfer the properties into the LLC with a quit-claim deed.