All Forum Posts by: Justin Williams

Say you have 250k cash to spend. You can buy 2 houses for 100 each that need 25k in repairs and then you are done until those close. Say you are making 15% on your cash invested. They you can anticipate making a total of 30k on those 2 deals. Say you can turn it 3 times a year. That is a fantastic 45% annualized return on your cash! Or 90k for the year.

Now say you use HM. To make #'s easy we'll just say you are getting 75k from a HM lender so you have 50k into each deal. Now you are able to do 5 deals at a time. That would mean you are paying for int. on about 375k. Prices vary but if you are paying 3 pts and 12% and turn around time is 4 months, you are paying an annualized 16%. Let's be conservative and call it 20% including junk fees or if they charge more pts or int.

If you are now doing those same 5 deals at a time and turning your capital 3 times a year, you are doing 15 deals a year instead of 6, so the total profit not including cost of HM would be $225k instead of 45k now since you were paying 20% on 375 you would have paid out 75k in HM int pts and fees, which would leave you with $150k for the year over the 45k thus tripling your personal cash return (around 150%) and profit.

Now imagine you are using private investors at 10-12% without points and junk fees and they are putting up most or all of the cash? That's when your cash return will really explode!

Could I have made that anymore confusing? I hope I got all that right lol

If you can get decent margins, you will usually make way more on the big picture leveraging OPM ;-)

I didn't really analyze your list but if you were at the auction for the first time and there were a bunch of people with lists they were probably from FR...Is there a reason why you don't believe him?

I will be hosting a 2 day mastermind meeting at one of my houses in Lake Arrowhead CA on the 24th and 25th of this month. (Friday and Saturday)

Focus will be flipping/wholesaling residential real estate.

Topics covered will include

1) Acquisitions-Including REO's/SS's/listed properties, Trustee Sales, Direct Marketing/all marketing to equity or other sellers, probates, evaluating deals and making offers etc.
2) Rehabbing
3) Financing
4) Systems
5) Selling and overall market conditions

Some of the flippers/wholesalers attending are also land lords so we will probably discuss that as well, but it won't be the main focus.

Looking for people who are willing to be open and share with the group. No "empty cuppers". Not looking for contact info for your PM lenders or agents that send you leads, but we are looking for a pretty open group so everyone feels like they are getting out of it what they put in. You also have to be able and willing to attend both days, and show up on time and stay the entire time, so we are not "filling you in" on everything you missed.

In order to attend you need to have flipped or whole sold a minimum of 40-50+ properties, and currently be doing a number of deals on a regular basis. Everyone who attends will be doing a presentation on their business, current model, success/systems used, current/future goals as well as anything else you think may benefit the group.

If you are interested please respond or message me and include your background, current focus and an idea of the level of success you have had in flipping or wholesaling properties, and I will get you more details on the meeting.

Thanks.

I have very little involvement and very rarely even see the properties myself.

I have about 3 GM's that understand they can have all of the business they can handle if they do a good job, finish on time etc.

I also use my agents to check up on occasion, do final walk throughs, and my assistant will walk the properties every couple weeks just to make sure all is going according to plan etc.

We currently don't do very many high end or structural rehabs, but do a pretty high volume (about 50+ at at time)

We are starting to do some higher end more involved ones as well and will be bringing someone on to help with management. They will still manage a similar system but be more involved on those ones than our lower end ones.

Mike, would you mind sending me his info as well? Thanks.

I am always trying to improve our systems for organizing deals. I do mostly lower end deals but do a pretty high volume so being organized is important to really be able to track everything.

We are currently using several spread sheets on googledocs.

I have one I call "deals at a glance" that will quickly show me all the houses and what stage we are in IE Rehabbing, listed, escrow etc. This is a quick way I can "glance" at our deals and see where we are and follow up as needed. Then we have more detailed checklists for each property depending on what stage we are in etc.

We also have spreadsheets to keep track of Utility companies, investors, contractors etc.

I would love to be able to "sup" up my current systems and allow for more items such as making notes, clicking on a house and it opening up into a more detailed section. I would also love to be able to automatically track total turn around time and turn around time from each stage. IE how long does it take for my contractors to finish a job, how long until we sell, in escrow, and total turn around time. Right now we put dates on each but I would love it to keep track automatically based on when we update the "status" to the next phase.

It would be great to have date and time stamps as well as who entered what ie so we can see who turned on utilities and when or when they were turned off etc. Anyway you get the point.

Are there current databases that will do things like this that you can customize but are easy to use and not too time consuming?

I was going to contact someone to design my own but I wasn't sure if it could be online, or how involved (and expensive and time consuming it would be)

I've seen others that are made for direct mail, but as of right now this wouldn't be the main focus, so not sure if these would work...

I'm not much of a techie so any input or direction is appreciated.