All Forum Posts by: Kerry Smith

@David Pierce that's great Dave!

I will take a look at those areas tonight on Google. 

When are you guys headed out there?

I'll definitely give you a call in the next few days to chat!

Hello everyone in Washington!

Big news -- We are being reassigned to JBLM next month! 

I am from the PNW originally, and love the Seattle/Tacoma area. It is absolutely beautiful up there! We're coming from Germany, and really looking forward to getting back to the PNW to enjoy all of the people and outdoor/coastal activities -- plus I am a lifelong Seahawks fan!

In regard to real estate -- We are looking to house hack a duplex, tri or quad in the vicinity of JBLM. My VA loan is tied up with other rentals in Colorado and North Carolina, so we will likely look to use an FHA 203k to rehab the property if needed.

Additionally, I think that once we get out there we will not want to leave the Seattle area. We've lived in the south for nearly all of my 20 year military career, and we are ready for a change in climate! I would like to knock out my agent's license and begin working in the area as a listings agent, and we plan to sell our out of state rentals and focus our efforts in the areas around JBLM.

Again, we can't wait to get out there -- meet all of you, and get started on a new chapter of our life.

See you soon!

@Anthony Montecino - Welcome to Bigger Pockets! Fill out your profile and upload a photo my friend!

Here are 10 tips to help you get started on Bigger Pockets:

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2. Check out BiggerPockets Ultimate Beginner's Guide – This little book is a true gem, and it will give you a good overview of the ins-and-outs of real estate investing.

3. Check out the free BiggerPockets Podcast - A weekly podcast with other successful real estate investors. The podcast is a wealth of game changing information, and entertaining too!

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7. Stay away from the “guru” sales-pitch events - They rarely increase your investment knowledge, they merely empty your wallet!

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Do you really want to be known as the landlord that turns down service dogs in your community?

@Marques Rounds - Welcome to BP!

From the sounds of it you're making offers on the MLS. Keep in mind that these are likely not what we would classically define as "motivated sellers." For you to get the best deals on properties, you need to be making offers to motivated sellers. Yes, you can find deals on the MLS, but it may be tougher to wholesale a property once you factor in agent fees etc.

I'm not sure which formula you are using for your calculations. The numbers you gave do not meet the 70% rule, but they appear to work with the Flipping Formula.

Let's say the property needs $10k in repairs, and you want to make $5k wholesaling it.

70% Rule:
ARV $206k x .70 = $144k
$144k - $10k Rehab Costs = $134k
$134k - $5k Wholesale Fee = $129k Maximum Purchase Price

That $129k should be your offer to the sellers.

Flipping Formula:
ARV $206k - $10k Rehab Costs = $196k
196k - $20k (10%) Fixed Costs (Agent Fees, Closing Costs, Warranty Etc.) = $176k
$176k - $25k Profit For Flipper = $151k
$151k - $5k Wholesale Fee = $146k Maximum Purchase Price

Looking at the Flipping Formula, it looks like your offer is on the mark. I'm not sure how many offers you've made, but if it's under 20 I'd say you simply haven't made enough yet. Clearly define your criteria and stick to those numbers! Do not worry about how you make the seller or seller's agent feel. You should cringe a little when you submit that offer!

@Brandon Hicks - This is a great thread Brandon. I appreciate you sharing your experiences. You've definitely spiked my interest meter. I look forward to hearing more about your deals.

Hi @Joe G Rampy - Welcome to the site! To use the @ tag, simple type @ and then a ?. A list of everyone's names on the thread will pop up. Simple click on the person you want to mention. You can also start typing their name after the @ symbol and a list of names will pop up as well. I prefer the @? technique, it's just faster for me.

Here are 10 tips to help you get started on Bigger Pockets:

1. New to Bigger Pockets? Start Here!

2. Check out BiggerPockets Ultimate Beginner's Guide – This little book is a true gem, and it will give you a good overview of the ins-and-outs of real estate investing.

3. Check out the free BiggerPockets Podcast- A weekly podcast with other successful real estate investors. The podcast is a wealth of game changing information, and entertaining too!

4. Develop your own business strategy and plan How to Write A Kick @$$ Business Plan – A great post by D. Scott Smith on how to write a great business plan.

5. Do not miss out on all of the free resources in the Bigger Pockets File Place – Lots of spreadsheets, example leases, and contracts can be found here.

6. Locate and attend several different local Real Estate Investing Association (REIA) meetings. REIA meetings are the best way to meet and network with local real estate investors, cash buyers, lenders, agents and contractors.

7. Stay away from the “guru” sales-pitch events - They rarely increase your investment knowledge, they merely empty your wallet!

8. Get active on Bigger Pockets by connecting with other Bigger Pockets Members in your area, and engaging on the forums:

9. Make sure you set up your Key Word Alerts – You will receive an email notification whenever someone posts on a topic you are interested in.

10. After you've spent some time on Bigger Pockets, make sure you go by the Bigger Pockets Podcast on iTunes and leave them a rating!

@William Byers - Interesting article, thanks for posting it! I think we all are anticipating a small interest hike this year. Let's hope it's not that bad!

I agree with @Andy Mirza - You used the word "exploits" in the title. If you are approaching this from an exploitive perspective, yes, it will sound douchey. However, it's vitally important to talk about your business with friends & family. You may be able to help them in a time of need, but if they do not view you as an active investor, they may never know.

@Lou Sunia - No....but, that's a pretty broad question... In what context?

1. Do you own it, and want to cash it out?

2. Are you considering purchasing this as a flip?

3. Shortsale?

$100,000 in equity, is a lot of equity in anything. However, if I am looking for motivated sellers with atleast 40% equity to direct market to, $100,000 may not even come close.

Can you clarify your question and add some context to it?