All Forum Posts by: Keith C.

Any BP members that have done any  deals with the larger nationwide wholesalers  that were profitable ?

I dont want to mention names , you can PM me if you are not sure who they are.  

I receive multiple city listings  via emails and text daily. I feel they  use  Hard sales tactics geared towards new investors who feel everything they pitch is a deal . Requirement avg 5k non refundable deposits.. and typically they try to push purchase  site unseen  and or very little time time to inspect ( at least one does )  , Many deals are going within the hour. ( so they say ).

I feel they hype newbies.

Issue is Almost all the deals I run numbers based on their own calculation , Buy, rehab and ARV's -- only leave the buyer 15-18% after the flip side sales commissions. With that margin if anything goes wrong your pretty much up the river without a paddle.

I wanted to know if anyone else had success or opinions. 

They both cover most of the SouthEast and West Cities. 

Originally posted by @Lennon Lee:

Actually, anything at 2 units or more is a multifamily. It can’t be a single family home if you have 2 to 4 families living in separate apartments on the same building. If the idea is to clarify things for new investors I think we should not confuse things then.

That being said, anything at 4 units or less is consider residential and anything at 5 units or more is considered commercial.

Residential properties are valued according to comparables and commercial properties valued on NOI and CAP Rates.

I agree with you on everything else. I just wanted to leave it clear and not cause confusion to new investors by calling a 4-plex a Single Family Property.

@Ryan Swan , I would love to learn more ,How have you gotten Condo approvals on for STVR's ? they are typically are frowned upon and those that try without approval dont last that long before other owners rat them out  

So many great suggestions

I take a more liberal approach by  offering  $500 / $700 cash  after a move out  ,CONSIDERING  tenant has paid on time and adheres to resolve any issue  which cost under $100 in repairs.  Giving tenant  positive incentives has saved me chasing rents and fixing a toilet chain.  I consider the $500 my Home warranty policy .

Stacy , if you want to make money with Airbnb the unit will need to have people provide 5* reviews .

When your doing the garage rehab make sure you are designing a theme or design that will entice people to want to come back and of course leave great reviews 

With a garage you likely will need to go a little extra step in making it pop and keep the Benjamins rolling in

Id be happy to give you some guidance on themes or layouts for a free night stay :) 

Send me a PM 

Best of luck 

Sounds like a good idea , and I have looked at that concept at other areas .Monmouth is certainly one of the closest universities to a beach community . 

The university has student population of 6000. I also assume many of them are locals . Is their demand for student housing ?  

@Jack Butler , Nice spreadsheet ,  People like Grant Cardone and others believe you might as well and invest in the project or city that makes the most sense. People get caught up with roof over their head, I'm of the belief Cash in my Pocket will buy me a much larger roof .. You know the book ' Make your  bed '   - I think ' Make your money  'will get you a lot further...  Take the studio and Find an awesome deal ,, 

IMO Paul was one of the best guests ever on BP. Great motivators / speakers / authors provide Takeaways  by using basic numbers to drive points home. Anyone who's show starts a show  with  " 3 Rules...  "  You know will leave  you with at-least 3 memorable points. Paul provided much more than that from great RE / business tips to mindfulness exercises  . I'd love to take Paul up on his mentoring offer.  Coffee on me.. 

Amy,

There are a number of creative ways to finance a home . Rent to own would be one of the more common. see if seller has interest.  I think by giving yourself an option you are risking less in the long run. 

For some reason if the STR doesn't work as you thought it would than you walk away minus any small money you may have put up for the option.

It would be considerably less stressful than having bought the home and now being in a situation where you want out of the home . Your purchase  costs would be gone , sales costs gone  and even possibly the home Devalued .

Most of the time landlords wont allow subleases and will likely not allow Airbnb . However if you intially presented it as Rent to Own , they may be more open .

I would offer the landloard the rent they are asking plus An Option To Buy deposit . He gets a few extra bucks - $1000 -$5000 depending on market . You get freedom to act as you want . Suceed @ Airbnb, or watch the house appreciate and you execute the contract . If it goes the other way walk away , and leave the deposit — which would be much less expensive than having purchased a home and than having to unload it .

I think it’s a win / win 

What city are your beach homes in ?

I have a home near USF and would consider a rent to own tenntant / buyer with terms above .

All the best 

If you plan on getting more properties it’s going to be more complicated getting commercial loans or sometimes even standard mortgages for under properties under $100k ,,many lenders say the paper and legal involved not worth it for them . buying condos imo gives you less leverage and you have less people who want to loan you the money.