All Forum Posts by: Kimberly Anderson

Hi,

I may be over thinking this but I'd like to get some feedback. My husband and I are first time home buyers, using an FHA insured loan to purchase a 3/2 SFH in excellent condition in Tampa's Seminole Heights neighborhood. The plan is to live in the home for 1-2 years, then relocate for job/personal reasons and rent the home out. We've offered $198k on the home, paying the 3.5% down payment. My MLS research shows me that homes in the area are getting rents in the $1500-$1800 range. Based on my research of what has been leased in the neighborhood, I know we can get $1600/mo in rent. But when I'm plugging in the numbers on the BP Rent Calculator (assuming purchase price of $198k, 8% vacancy, 5% repairs, 5% property management), I'm getting a negative cash flow and a low purchase cap rate of 4.89%. But, am I looking at this too conservatively, considering that by the time we rent the home, we will already have equity of at least $13k from paying the mortgage from the year we lived in it? In others words, we will begin collecting rent at the start of year 2, when our mortgage amount will be lower. How (or should) I account for this?

Thanks!

Awesome flip! I'm a newbie so this might be a dumb question, but what's your reason for holding for 5-7 years? Is that just a matter of preference or is that part of a strategy?

Where are these locations in relation to Charlotte? My husband and I are planning to relocate at he end of the year but we want to focus in Charlotte. I'd be interested to know why you're interested in those specific areas of NC. I'm also interested in duplex as a buy and hold, we'd live in one half of the unit to comply with FHA, and once the year is up we would plan to move to another duplex.

Wayne Brooks yes, I didn't see this method as a shortcut from due diligence. The interview didn't really go into this but my understanding is that once the seller returns the contract, the wholesaler sends the contract with the EMD to the title company. Wouldn't that then ensure that no one else can have the home under assignment for however long is stated in the contract? Then, at that point, due diligence would be done and further negotiation would be done based on what the wholesaler sees in person. So for me, the biggest benefit I see is focusing on locking the property down sooner rather than later... Tim G. That's pretty much what I wanted to know. I highly doubt I could go virtual this early but just wanted to know if this method of contract first has even worked for anyone on BP. Thanks!

Wayne Brooks yes, I didn't see this method as a shortcut from due diligence. The interview didn't really go into this but my understanding is that once the seller returns the contract, the wholesaler sends the contract with the EMD to the title company. Wouldn't that then ensure that no one else can have the home under assignment for however long is stated in the contract? Then, at that point, due diligence would be done and further negotiation would be done based on what the wholesaler sees in person. So for me, the biggest benefit I see is focusing on locking the property down sooner rather than later...

It looks like I accidentally posted this question twice, but here's a response I had gotten from @Manny Cirino on the other post:

This is doable but realisticly only works if price is low enough for you to be at wholesale price minus a few grand to compensate for what you can see. The reason real estate is such a good investment is because it is actually tangabile and you want to keep that aspect alive so I say if can go see it them dont bother Unless the price is low, you have trusted boots on the ground or unless you know the area well.

Hey guys, I was on YouTube recently and I watched an interview with a seasoned virtual wholesaler. In the interview the wholesaler said that once he gets a motivated seller to call him via direct mail marketing, he allows the seller to make him an offer price for the home and if it's a reasonable offer, the wholesaler sends out the contract for the seller to sign before he (the wholesaler) even steps foot on the property. Then, once the wholesaler receives the seller contract, he or another person will take a look at the house, assess repair costs, run comps, determine ARV, and therefore the negotiation can be based on the actual condition of the home without any risk of losing the assignment. I'm wondering if this is a good strategy, considering that hours of time won't have to be lost on getting comps or negotiating with someone that's not as motivated as they claim. It locks the property down for a minute which can buy me, as a wholesaler, some more time for negotiating. But I recognize the caveat of losing the EMD if a negotiation with the seller can't be made. What are your thoughts? Has anyone tried this before? I'm new at wholesaling and I'd be interested in any input. Thanks!

Hey guys, I was on YouTube recently and I watched an interview with a seasoned virtual wholesaler. In the interview the wholesaler said that once he gets a motivated seller to call him via direct mail marketing, he allows the seller to make him an offer price for the home and if it's a reasonable offer, the wholesaler sends out the contract for the seller to sign before he (the wholesaler) even steps foot on the property. Then, once the wholesaler receives the seller contract, he or another person will take a look at the house, assess repair costs, run comps, determine ARV, and therefore the negotiation can be based on the actual condition of the home without any risk of losing the assignment. I'm wondering if this is a good strategy, considering that hours of time won't have to be lost on getting comps or negotiating with someone that's not as motivated as they claim. It locks the property down for a minute which can buy me, as a wholesaler, some more time for negotiating. But I recognize the caveat of losing the EMD if a negotiation with the seller can't be made. What are your thoughts? Has anyone tried this before? I'm new at wholesaling and I'd be interested in any input. Thanks!

@Doug Merriott I thought I did my research but now that I think of it I was primarily searching for the property address from the tax collector site, solely focused on what was going on with the house,got her full name from there, went to the clerk site, and didn't really think there was a major red flag because nothing immediately tied to that property. Now I know I have to really dig into the owner's history to get the full picture. And that sun biz site is another good resource I'll be bookmarking. Thank you for your help!

@Michael Olesky I will definitely be backing away from this one. I don't mind putting in the work, but considering she's out of the country and has already tried to pull a fast one on me, I need to heed the warnings with this. Plus, I highly doubt any end buyer will go through a deal with me, a first timer, without escrow. You're absolutely right too, my career at this will easily go up in flames and I'm only 3 months in. I just can't take the risk.

And thanks for calling it @Wayne Brooks

@Account Closed