All Forum Posts by: Kyle Cabral

Quick question for all the investors/wholesalers who actively utilize Google PPC marketing for lead generation.  How much does it on average run you a month for your PPC marketing efforst? Also, if anyone has done the analysis what is the average number of clicks you have come across that equals 1 form submission.

Thanks,

Kyle

@Brian Gibbons Go PATS! is right.  Love the way they look right now.  Thanks for the insight.

Just realized as I typed this out that my HOA was $150.00 when it should've been $150.00 * 12 ... well there goes my cash flow. Whoops.

Oh Jeez, that didn't come out as well as I'd like.

Rent Per Unit: 850
Units: 1
Annualized Rental Income $10,200.00

Down Payment: $2,200.00 or 5%
Repairs: $300.00
Vacancy: $510.00 or 5%
Taxes: $1245.84
HOA: $150.00/month

Reserves $ 306.00  or 3%
Operating Expenses $ 4,251.84 or 44%

DSCR 1.782403
Cashflow $ 2,611.00
Cap rate 13.4%
Monthly cashflow $ 217.58
CCR (%) 104.44%
# Of Partners 2 Cashflow per Partner $ 1,305.50

It's at 7% because I threw a seller financing option there as the sell own's it outright. Would look to refi within two years or just sell.

I know there are a lot of people that aren't into condo rentals as investment properties but I can't get around these numbers.  I think it would make sense to add to the portfolio as it seems like a solid deal that will likely appreciate, even if not by much, still some.

It's at 7% because I threw a seller financing option there as the sell own's it outright. Would look to refi within two years or just sell.

Thoughts?

Thanks everyone!

makes sense @Jeff Trevarthen and thank you @Zoran M. 

Hi All,

Quick question. We have some funding options available for a project we are looking into right now but wanted to go through a portfolio lender instead of convetional type lender to speed up the process. Lots are not interested in someone just buying and applying for a loan for such a short time period and they have the clause of "must be owner occupied". Does anyone have any strategies to get around that? Do you just say it will be owner occupied or do you call around other portfolio lenders that will lend on a short time period basis? Any insight would be appreciated because I rather go this route as opposed to going for a HML.

Thanks so much.

Kyle

Forgot to add rehab in there, which is a rough estimate of $100k.

@Bill GulleyThanks for responding.  Thanks for the questions, let me clear up the scenario.

After discussing with the seller, it was evident that she is completely OK and is prepared for the tear down of the house as it stood.  Given knowing her current situation, mindset, I was going to use that thought process as leverage in throwing the idea that the house is essentially worth the land that it sits on.  I should know more Saturday--could or could not be true.  Given that, the only interest I have here as an investor for this particular property is to get the cost of land+house that is currently there for $75,000-$80,000 without needing to tear it down.  With that in mind, I would build the relationship and let her know that for her sake, it would be better to sell the other lot off separately for her financial gain.  Again, knowing my real interest here is the lot with the house already on it, in rough shape.

Here are the numbers/ARV calculation for a prospective buyer if I were to wholesale for let's say $95,000 to a cash buyer.  

Purchase Price: $95,000
Closing Costs: $1,500
Holding Costs: $360/month
Time to Renovate: 10 Months
Time to Sell: 2 Months
Total All in Cash By End of Rehab: $201,180
ARV: $280,000
%ARV: 72
Projected Cost of Sale: 7%
Projected Profit: $59,220

Trying to get it a win win as much as possible for both of us.  I receive the lot with the house on it for 75, 80, 85 whatever, which is about 85-90% what the lot would sell for retail anyway in the area.  She would keep the second lot and sell it as needed.

Hi All,

I have an interesting scenario with a seller that just contacted me today.  In the beginning of my marketing campaign and getting out there, I would drive for dollars, get listings, find phone numbers using zabasearch and cold call people and leave messages.  Well one just called back today saying she had a house she was looking to sell. 

Here is the scenario

The house in question needs to be completely renovated as it was a house she grew up in, her father was 97 years old and recently passed away but never got to fixing anything.  I asked her about major things, electricity, septic, etc.  She said it would be a complete renovation and everything needed to be fixed.  She also mentioned that she had the town take a look at the land to see if they could be split into two separate lots, which it can be and was recently approved to do so.  I asked if she was looking to sell separately or as one and she said she had no idea, didn't care.  This is where I was thinking of opportunity and leverage with the lots in mind.  

What do you guys think of this strategy?

I was going to offer $75,000 - $80,000 for the lot as it sits explaining that the house is worth the land that it sits on, minus the demolition and cost to get rid of everything/clean it up.--barring the fact that I don't think I'd be able to renovate as is.  Given that, using the leverage of the other lot by mentioning that she could keep the other lot as is and sell separately, that way she gets more for her dollars as opposed to selling all together with the house as is, because in the area and given the circumstances, it wouldn't be as financially beneficial.

Guesstimate on numbers, as I am seeing the house Saturday

Purchase Price: $75,000 - $80,000
Rehab: $100,000
ARV: $285,000
Time to Complete: 10 Months
Time to Sell: 2 Months
%ARV: 74
Projected Profit: Around 55k

These are very loose ballpark estimates.  But do you think this is a good strategy or would you pitch it some other way or do something else with the land.  It's two 2.135 acre plots of land in an OK area, nothing special. 

Thanks for the insight.

@Joshua Dorkin P.S. If I CTRL+B something or bold a world, then space and CTRL+B again to unbold or go to the menu, never works, just keeps on bolding : ) Figured I'd submit a small change request.