All Forum Posts by: Kyle McCorkel

@Bjorn Ahlblad

That’s hilarious thanks for sharing!

@Kyle Winey

I’d strongly suggest if you are a newbie AND long distance, do not try to buy at a judicial sale.

Learn the process for tax delinquent properties. First it goes to upset sale and anything that’s a remotely decent deal gets scooped up there. Then it goes to judicial sale. Yes the liens are wiped out. But it’s basically an auction and auctions are terrible places to get good deals in this market environment- tons of enthusiastic buyers overbidding. Not to mention the properties on the judicial sale list will be in undesirable areas, and will need way more work than you think.

Who do you think will put that money to better, more efficient use - you, or the government?

I keep tens of thousands legally, that the government would have otherwise STOLEN, and I sleep like a baby at night

Well *ahem* you could start with *ahem* reaching out to local investors on BP who might be interested

*ahem*

(DM me)

@Jean Moynahan

Hi, I’m from the area. I think you should sell it as is. Most realtors around here know nothing about multifamily values. Based on your numbers I think you could sell it for way more than those realtors are telling you. Plus it sounds like one of the realtors was more interested in “taking it off your hands” than listing it (pretty sure that violated their code of ethics…but I digress)

I love this thread and can totally relate. I never had any bad negativity but have experienced a ton of ignorance. To me it boils down to those with a scarcity mindset vs an abundance mindset. When I hear a relative speaking with a scarcity mindset it’s like nails on a chalkboard at first, but then I just tune it out.

Another comment was made that’s a good one: I now have my “old friends/relatives” and “real estate friends”. All my real estate/business friends have an abundance mentality and an enthusiasm that’s contagious. The first group….well, they’re just people I happen to see over the holidays

When I first got started I caught a lot of ignorant comments but now that I’m doing a few dozen deals per year people just don’t talk about it. I only bring up what I do if people ask…it’s a good policy to have.

Just did my first 3 1031 exchanges last year in PA! No big deal, saved (deferred) a ton on federal taxes and ended up owing a couple thousand in PA taxes.

I’m a big believer in not letting the tax tail wag the dog. In my case it was a great time to sell some dogs and buy some cash cows. The tax benefits were just icing on the cake.

Sucks though that now my CPA needs to keep 2 sets of books, one for PA, one for federal.

@Randy Bayo

As others have said you’re not even close. Rehab could be closer to $100k

Holding costs and closing costs (on the buy and the sell) could be $20k-$30k depending on your financing.

So you’d need to offer around $150k to make a half decent profit

In general, at least in my market, anything on the MLS that needs work is priced at ARV minus repairs. So I believe you said it's priced at $192k...add your $100k rehab to that and you're pretty darn close to your $300k ARV. So you need to negotiate the price down to cover your closing/holding costs and profit.

Side note: this pricing makes sense in current market. So many primary homeowners are desperate to buy any house, and they don’t really care (or aren’t savvy enough to know about) about closing/holding costs or profit.

@Cassidy Burns

By EOY 2021

24 wholesale deals (4 so far)

Acquire 3 flips (1 so far)

Acquire 20 rental units (6 so far)

@Steven Hershey

Congrats on your first deal! I’d be interested to hear who the sellers were (although that’s not appropriate to post publicly of course)