All Forum Posts by: Kyle Reece

I'm a real estate broker and property manager in plattsburgh. I own a four plex in chazy just north of plattsburgh an a duplex in the city of plattsburgh. I do mid term and long term rentals here but wholesale in FL and AZ. Malone would be good for section 8. A few of the manufacturing plants actually bus works from Malone to plattsburgh. Short term is tricky if you want to do it legally. The local regulations limit the total days you can rent to 90 in the high tourist area like lake placid. NY is annoying to have rentals due to the laws being so tenant friendly. I'm looking to reposition my rentals across the lake in VT. A lot of demand over there and it's still close enough to drive to if needed. I just recently did some mid term arbitrage in Atlanta and it's been a headache being so far away. They are finally stable but it's expensive to find someone to do the small things. Unlike when the units are closer.

Since you didn't give an address or any information on the property as far as bedrooms bathrooms or size or amenities. All of which matters for LTR and STR rates, I am going to assume a 3/2 single family home. A DSCR loan probably wouldn't work with this property, the rental estimator on here for rentals around Duke run roughly 2,200, on the conservative side, and a mortgage payment for 80/20 loan would have a payment over $3,000. so your DSCR would be less then 1. Even the STR rates I saw on airdna were 145 average night with 66% occupancy. That only averages to just under $3,000 a month. This deal doesn't seem to work as a rental. Unless the layout if different then my assumption. More information would be helpful to give better advise.

Good Morning,

I'm sure where the comps your realtor pulled for you are at but this is what I found on propstream. These comps are assuming you are tearing down the house and building brand new.

1315 S. Alston Ave Sold for $721k on 8/18/22  3bed 3.5bath 2,195 sq/ft. 10,934 sq/ft lot built 1948 0.33 miles from subject

711 Willard St Sold for $860k on 12/9/21        3bed 3.5bath 2,282 sq/ft. 1,176 sq/ft lot built 2020 0.38 miles from subject

713 Willard st Sold for $888k on 6/15/22        3bed 3bath 2,282 sq/ft. 1,176 sq/ft lot built 2020   0.38 miles from subject

Was your renovation cost of $440k an estimate to rebuild the whole house? The price per sq/ft seemed low for build cost. Unless you were planning on doing less then 2,800 sq/ft. Are you paying cash for the purchase? You're holding costs for 6 months are only 6,300. Does that include tax, insurance, low payment (if you have one), possibly utilities? Do you have a backup plan if it your exit strategy doesn't work or if you need to hold longer?

Quote from @Eliott Elias:

You're talking to the wrong people! I come across people all the time looking for off market deals and I always send them to Net Worth. Wholesalers usually have a bad stigma because they usually do not close on the property, not true in Net Worths case! 

Not always the case, Net Worth Realty in Tampa made an offer on my wholesale deal. Only to change the terms multiple times, make excuses, and then ask for an extension to close only to cancel 12 hours after the extension was signed. No integrity, bad ethics, would never want to work with them again.

Quote from @Jay S.:

@Jim Ziccarelli Yes turnaround time is about 30 days. Down payment starts from 15%. Rates really depend on your LTV, your FICO and other factors etc. Let me know if you want any help. We have lenders which does DSCR in almost all states in US.

 correct me if I'm wrong but The One Brokerage does operate in NYS yet. I was told it wouldn't be till Q4 of 22'.

We have all heard on the podcasts that these really large buyers lists are pointless because you typically only sell to a hand full or a dozen buyers because most are tire kickers. How do you find or determine is some is a serious buyer? Criteria? CCC? 

Quote from @Susan Maneck:

But what percentage of the fatal dog bites were on the part of pit bulls? Therein lies the problem. Most of the pitties I know are sweet dogs if a bit hyper, but if they bite they cause more damage. I agree that little yippie dogs are more likely to bite but they are much less likely to cause any real damage. 

Your asking the wrong question. If you live in a small town with little to no crime and randomly one person murders someone else. So you have 1 murder all year. Well now of all crime the murder is let's say 20% of the total crime. But it was the only fatality of that year. So is your little town now a high crime area because your town now has a 20% crime rate that results in fatality? No.
"There are three types of lies. Lies, damned lies, and statistics" - mark twain

The negative stigma you give these "aggressive" dogs is part of the problem. The stats you give are out of context to make it look worse then it is. 

• 81% of dog bites cause no injuries or very minor ones. These require no medical attention. (https://www.coloradoinjurylaw....)

Fatal Dog Attacks states that 25% of fatal attacks were inflicted by chained dogs of many different breeds (https://www.amazon.com/Fatal-D...)

Over 30 breeds and dog-types were associated with dog bite-related fatalities (https://www.avma.org/sites/def...)

In 2016 there were 78 million dogs in the U.S. resulting in 4.5 million bites. Your chance of getting bite by a dog was 5.7% of that only 41 were fatalities. (https://www.caninejournal.com/...)

The problem insurance has with breeds is from the negative stigma, people sue people over stupid stuff because they can. If it has a negative public perception that will get them more money then even better. So the best buy to cry wolf if a dog bites you is to blame a pitbull. 

$530 million was paid by insurance to dog bite related claims in 2016. That is over 6.5 times the amount of dogs actually in the country at the time. Pitbulls are not the problem, my wife works in a vet office and I've worked install jobs going into people homes for years. I have never had a large dog bite me but little dogs, all the time. More lab bit incidents happen then pitbull ones. Pitbulls account for such a small amount of total dogs bites its ridiculous, the way people put them down and discriminate. I rent to my tenants they way I would want to be rented too. I screen my tenants enough to know how they would treat a dog. Mass hysteria is just a bunch of stupid people who cant think for themselves.

Quote from @Nick C.:

You could try to build a buyers list. This will take time and effort. 

Or you could spend that time and effort finding a lender. If the deal is good enough, why not close on it and list it on the MLS for top dollar? There's so much less stress this way; its legal, you're not dependent on a random buyer you don't know (who is probably another inexperienced wholesaler anyway), and you're not going to get backdoored.

The only reason I can think of not to close on a property is if the deal isn't good enough, and if this is the case you shouldn't be trying to sell it anyway. 

I don't have the money for down payment and closing costs. The wholesaling will help me build capital so I can't buy some of the deals myself.

I started wholesaling in the Tampa MSA last year OOS. I started off looking for a local investor that I could partner with that had the local knowledge and could visit the properties to make sure the condition matched what the seller said, get a rehab estimate, and take pictures. I found a local investor and deals started coming in, this first batch of mailings was just a proof of concept and a trial with the partner I found before going full bore. By the end of the year we were slated to make a profit of $60-80k split 50/50. However due to some probate issues, that got delayed and my partner and I had different ideas about how to handle sellers and properties once we had them under contract. So we parted ways, but that deal we were waiting to close finally did, but my partner kept all the money and tried to hide it from me.

At the beginning of this year I started up the wholesaling again under a business name and LLC to start building the brand. I was still looking for a local partner but with little success. I connected with a realtor from Bigger Pockets to get comps and pay him to visit the properties and take pictures/videos. Well I got a SFR under contract recently and could not find a buyer. I had two buyers make offers but none would sign a contract. The deal was a good flip or even a wholtel. At the end I found a new investor that said he had access to private money that was looking to flip. two days before closing and go radio silent. I know the deal was a good deal but I couldn't get anyone to buy or partner.

The first partner screwed me out of $40k that I needed to take to court, the second partner was stuck by analysis paralysis always worried about not getting the homerun deal and that if they jump on one, they may miss the big payday, so instead they never jump.

What am I doing wrong? Should I try to build my buyers list? Everyone keeps saying how hard it is to find a deal and if you have a deal buyers will come. Well I missed the memo somewhere. I'm open to any advise.