All Forum Posts by: Kendell Johnson

Margaret:

I am a Denver-based wholesaler. We have found several properties and are currently working on a few new deals. Please let me know what you like to see in your deals (i.e., price, ROI, Percentage of ARV, property types wanted and areas interested in).

Kendell

!!! CASH BUYER NEEDED !!!

!!! OBJECTION DEADLINE 10/5/16 !!!

ARV $ 800,000.00
Purchase Price $ 559,000.00
Rehab $ 80,200.00
Junk Fees $ 10,500.00
Taxes $ 1,000.00
Realtor Com $ 48,000.00
TOTAL COST $ 698,700.00
PROFIT $ 101,300.00

Solid brick ranch in excellent Denver neighborhood.
Rehab estimate includes replacement of HVAC, windows, roof, flooring, and sewer line PLUS updates to electrical, kitchen, and bathrooms. Quick turnaround for a $100,000+ profit. 

Rent potential for the area is $2,400!

Visit the following link for additional information regarding this property:

https://www.redfin.com/CO/Denver/2350-E-Flora-Pl-8...

Hello BP Group!

I am running across quite a few scrape and rebuilds in my search for deals in Colorado and South Carolina, specifically. These tend to be a little different when calculating rehab costs. Also, how many wholesalers out there have had success with these types of deals? Any difference in the way you structure your IP?

Thanks for any input you can provide!

Kendell

@Troy Gandee 

@Troy Gandee Sounds fantastic! I have found several deals recently so I will definitely keep you apprised of the deals I find going forward. 

Look forward to working with you!

Kendell

Hi Andrew!

It depends on what you are looking to do, fix & flip, buy & hold or wholesale. You'd be served well if you built a list of wholesalers that will do the dirty work for you and bring you deals if you are fixing and flipping or buying and holding. Because then, they come to you. If you are not in the place to do those two things, then finding deals to wholesale is a bit more complex. You need to look into direct mail and finding deals outside of the MLS. I have found deals with realtors on the MLS but it was hard. So. Bottomline is find deals that aren't on the market yet and have solid documents ready to be able to support the offer.

I would be happy to offer any more information if you found this useful.

In my business...I live and die by comps. What I can tell you is that I have tried to find paid sites, free sites, basically anything to get outside of realtors with access to the MLS to get comps on my own. What I have found?

No dice.

Get a realtor you work well with and that understands investors. Make sure they stick to your criteria for comps too. Because they can fudge and you could get in trouble with ARV if those comps aren't valid (i.e., farther than a mile, more than 200 sq. ft, bed/bath not comparable, 2-story vs. 1-story, bungalow vs. traditional).

Just make sure to check your realtor's comps. 

I am an investor in Charleston, but I am not located there. I just saw this and wish that I could have attended! Charleston is a beautiful area and an excellent market. If anyone would like deals that I find in the area, I will forward them to you. 

Thanks,

Kendell Johnson

Hi Keith! 

Welcome to BiggerPockets! More information on your situation would breed more helpful results; however, what I can tell you is that, from your intro, you might want to focus on wholesale deals as @Louis Davis mentioned. You find the deals. You do the legwork on cost. Forward that to investors wanting to flip (or buy and hold) and you make a profit (anywhere from 3K to 20K depending on ROI).

Here's the caveat: make sure you have all of your numbers inline including realtor fees, insurance, closing costs, etc AND be prepared for the earnest money deposit (EMD), which is typically required within 3 days of offer acceptance. Depending on the area, it can be anywhere from $3,000 to $5,000. You can put this on your wholesale buyer....but (!!) you have to have that list built so that you can get the deal sold before the EMD is due. If you have the funds to cover the EMD, then, in most areas, you can request a 14-day Due Diligence (Inspection) period should you not sell the deal. This gives you time if you can't find a buyer to back out of the deal.

My advice is to build your buyers list first. Get people ready for your deals. And make sure your ROI is at (the very) least 17% for HML, if possible.

I hope this helps!

Kendell

The way to avoid the assignment issue, which is absolutely true, you need to get under contract with either an LLC or a Trust; both of which can be transferred to another party, seamlessly, avoiding the visibility from the bank.

I am a strong wholesaler that will find amazing deals with at least 20% ROI....on a bad day.