All Forum Posts by: Leo Lanza

Mo, 

1. The advantage to rehab project is it build capital more quickly. Whereas rentals maybe generate 30-500/mo in cash flow. My strategy is to build a massive income from wholesaling and flipping so that I can buy MORE rentals. Think of it this way you have $50,000 and you buy a rental so you end up with an extra $500/mo. Where do you get the money to buy your second rental?

2. It does NOT take 2 years to flip a property. In my area DFW, Tx I would say 4-5 months is average. 

3. Go buy J Scott's book on Flipping houses and estimating rehab costs. Read both.

4. My biggest mistake was screwing with the numbers so that I could buy the property. Leave the numbers alone. NEVER, buy a property over 80% of the ARV - repairs. Except for rental property.

5. Knowing my numbers are very accurate. 

6. I hate being poor. 

Best of Luck,

Leo

In Texas, you can but I would recommend you using an agent since it doesn't cost you anything. The seller will have to pay the 6% commision either way so don't not have an agent because you think it makes your offer look more attractive. 

ARV: $89,000

Rehab: $30,000

Price: $42,500

Rent: $900/mo

Description: This would be an easy rental in Cleburne, TX 

This is a 2-1-1 property. 

Call Leo 817-507-9497

ARV:        $230,000

Rehab:   $25,000

Price:       $185,000

Rents:     $2,300

Nice duplex in Wedgewood Sub in Fort Worth. Currently occupied by the owner on one side and vacant on another side. Property is in good shape and doesn't need to be very nice to hit $1150 a month rent. I have budgeted to replace the roof, slight foundation, and do some slight updates on both sides. 

Please, let me know if you need access since it's occupied we do not post the address online. 

Leo Lanza 817-507-9497

Honestly, your best bet will be to use a Hard Money Lender. Most Hard money lender will lend around 75% of the LTV, which is based on the ARV.

$250,000   ARV

x       70%   LTV

$175,000   Max they will loan

$180,000 Purchase Price

-$175,000 Max They will Loan

$5,000       You bring this amount to closing

Plus +$20,000 Repair costs held in escrow + $13,500 closing costs = $38,500 Total Investment.

Like J Scott said just ask them what number are they looking for. There's no point in them doing a little bit of work and expecting to get a whole lot more money. They might as well do the full remodel themselves then and get the ARV price.

Yes, if you're serious about investing it gives you a HUGE advantage. Otherwise, you're at the mercy of a realtor. You also have access to the MLS and you save 3% when selling/purchasing properties. Trulia, Zillow, Redfin are a joke compared to the MLS. The data you get from the MLS is so valuable! Never use a zestimate for a property value! They are complete garbage!

Honestly, the saving you will get from selling and buying property will be worth it alone. The average home price where I am is $200,000 so I save $6,000 every time I sell one of my properties. If I do 2 a year that's $12,000 saved in commissions! 

Hope this helps :)

Start throwing signs, going to 2x meet ups per week, postcards, letters, craigslist, bush buys etc.

Go to home-depot when they first open in the morning all the great contractors will be getting ready for the day. Also, drive new neighborhoods being built. These developments always have good workers. 

Why do you want to rewire the building? Does it have aluminum wiring? If so, you don't need to rewire you can pig tail with copper wires. I'm also a licensed journeyman electrician in Texas. The problem with aluminum wire is when it heats up the wire expands and contracts so over time it works its way free and touches something to start a fire. The solution is using special wire nuts rated for aluminum wire and pig tail with copper wires. Tell your electrician that and if he says you need to rewire the house he's trying to make money off of you. Unless it's a state law or something up there. 

If you're talking about rewiring the entire building all new wire plus panel. I calculate around $3.5/sqft plus $1200 for the new panel.