Skip to content
×
Pro Members Get
Full Access!
Get off the sidelines and take action in real estate investing with BiggerPockets Pro. Our comprehensive suite of tools and resources minimize mistakes, support informed decisions, and propel you to success.
Advanced networking features
Market and Deal Finder tools
Property analysis calculators
Landlord Command Center
ANNUAL Save 54%
$32.50 /mo
$390 billed annualy
MONTHLY
$69 /mo
billed monthly
7 day free trial. Cancel anytime
×
Try Pro Features for Free
Start your 7 day free trial. Pick markets, find deals, analyze and manage properties.
All Forum Categories
All Forum Categories
Followed Discussions
Followed Categories
Followed People
Followed Locations
Market News & Data
General Info
Real Estate Strategies
Landlording & Rental Properties
Real Estate Professionals
Financial, Tax, & Legal
Real Estate Classifieds
Reviews & Feedback

All Forum Posts by: Pavel Sakurets

Pavel Sakurets has started 48 posts and replied 316 times.

Post: 150 Flips in 2014!

Pavel SakuretsPosted
  • Investor
  • Minneapolis, MN
  • Posts 332
  • Votes 74
Originally posted by @Chris Clothier:

@Pavel Sakurets -

We will close 580 "flips" in 2014 for lack of a better word for what we do.  Just as I am positive that @Justin Williams is flipping his number exactly as he states.  We buy, renovate, market, rent and mange - then sell every one of those deals.  We have tremendous overhead, but we also have a very healthy margin.  That is basic business 101.  The two numbers you are talking about do not have to adjust hand in hand.  Doubling your business does not require that your costs/overhead double as well.  Through efficiencies in every facet of your business you can hold down your cost of doing business as you grow. 

Justin - Looking forward to your continued update on this post and definitely looking forward to hearing how you hit your goals and your business grows.  @K. 

@Account Closed undefined

 - it was great to see you in San Francisco this past weekend even though I did not get to spend much time connecting with you.. There were so many great people in the room and I loved your comments above....so many of those people were in that room because they WANTED to be there sharing!  Many are no longer in need of new markets, clients or ideas...they were sharing as a lesson for everyone around them.

Chris, I take my hat off and salute you for doing that many flips. May I ask you what is your average flip purchase, average rehab cost, average time from purchase to the sale and average sale price? And what are the 3 best ways how you get your leads that you buy houses from? If it's too much to ask, please forgive my Belarusian curiosity.

Post: I'm surprised that from all the people on BP nobody knows the answer

Pavel SakuretsPosted
  • Investor
  • Minneapolis, MN
  • Posts 332
  • Votes 74
Originally posted by @Wendell De Guzman:

Here's how you do it if you hate driving for dollars. You will NOT get all the list of vacant houses - only vacant houses as a result of foreclosure

Step 1: Buy a preforeclosure list from a list provider

Step 2: send these people postcards

Step 3: the postcards that get returned to you (return to sender) are your VACANT properties (they abandoned their properties because they thought they had to since the bank is foreclosing on them)

Step 4: contact the owners through skip tracers

Step 5: buy the properties (you may need to do shortsales for properties with no equity)

Step 6: pay ME $50,000 for this priceless advice (LOL)

Wendell, you are number one on my list for the advise, thank you, great idea.

Another great advise that I got was to get this info from usps, my guys will contact them tmrw

Post: I'm surprised that from all the people on BP nobody knows the answer

Pavel SakuretsPosted
  • Investor
  • Minneapolis, MN
  • Posts 332
  • Votes 74
Originally posted by @J Scott:
Originally posted by @Pavel Sakurets:
I do not want to drive the neighborhoods or have my employees doing that either. Sorry, but it's a low skilled work. 

Then hire someone who is "low skilled" to do it.  Or contract it out to someone on Craigslist for $9/hour plus gas.

Scott, if you had a chance to read the thread, I posted that since I'm a licensed re broker and I can't pay to anyone unless that person is a licensed to drive neighborhoods and look for vacant properties because it's against the law in MN and I could loose my license.

My agents found vacant properties in St Paul in Mpls by contacting cities.

Post: I'm surprised that from all the people on BP nobody knows the answer

Pavel SakuretsPosted
  • Investor
  • Minneapolis, MN
  • Posts 332
  • Votes 74
Originally posted by @Hattie Dizmond:
Originally posted by @Pavel Sakurets:

 Dude...the answer has been given multiple times, by multiple people, in multiple ways.  That service doesn't exist.  How do you expect some web service to give you a list of vacant properties?  It isn't like people take out an ad that says...HEY THIS PROPERTY IS NOW VANCANT.  Seriously, there is no service like that.  Why do you think Wholesalers still do Driving For Dollars?  Do you think we have nothing better to do?

I live in DFW.  I know of exactly 1 city out of this Metroplex of almost 7 million people that has a vacant property listing.  That listing is entirely based upon reports from the community.

The best prospect would be Listsource, who might be able to give you a listing of properties with no utility service.  That doesn't mean they are vacant, unkempt or available.  It just means there is no or minimal utilities.

If you are so adamant that this should exist, I suggest you create a service like that.  There's obviously a demand!

Thank you for your post, we found vacant properties in Mpls and St Paul through county records, thus the list does exist!!!

Post: I'm surprised that from all the people on BP nobody knows the answer

Pavel SakuretsPosted
  • Investor
  • Minneapolis, MN
  • Posts 332
  • Votes 74
Originally posted by @Account Closed:
Originally posted by @Jay Hinrichs:

@Joel Owens 

  I think that's a great point and I know I always wonder why there is such an aversion to getting licensed .... So many of these folks on BP if they would just put the same amount of energy into becoming licensed and specializing in one aspect of RE would probably do much better than competing with all the folks that want to be wholesalers or flippers... Now of course some do well but 90% flame out...

It takes time to get established and get your bona fides going in 'commercial but once you do one or two of those nice transactions a year is a nice lifestyle and man the referrals and quality of folks you meet.. Would it not be much better to rub shoulders with those that can buy 1 to 10 million or up properties as opposed to chasing down ghetto dogs and the down trodden in these low end mid west markets  :)  As an example I got referred a nice 1031 buyer a few years ago exiting VEGAS at just the RIGHT TIME I sold them a 5 mil apartment in Portland they paid cash... I made 2 points so 80k 60 day escrow.. And we have been good friends ever since he has invested 7 figures with me in other endevours and I get to use his condo in Hawaii anytime I want.. So you can't do that selling hood rat properties very often... :)    Same with a very good Retail resale agent in a nice sized city like Atlanta.. I was just there last week and I am going to do some specs that will sell in the 700 to 900k range and the commish for the agent is pretty nice 20 to 30k on the list side or sell side... Plus broker takes no financial risk of loss...

Can't really disagree that 90% of wholesalers and flippers probably "flame out".  It might be more than 90%. Do you have any guesses on what percentage of agents flame out?  Or, how many make more than, say, $75K per year?  

 According to Realtor.com average agent makes 39k/year. I would estimate that less than 10% make more than 75k/year

Post: 150 Flips in 2014!

Pavel SakuretsPosted
  • Investor
  • Minneapolis, MN
  • Posts 332
  • Votes 74
Originally posted by @Bill Gulley:

@Justin Williams

After being here for years and having been around the block a few times, you develop skills to see right through rhetoric, questions being evaded, fluff and puffing. Newbies see sizzle and are easily impressed.

So far, I don't see any meat, what I see is defining or structuring aspects differently so that that they can built upon to influence the end result as being a successful result. It's a skilled marketing tactic.

For example, you were asked what the average profit was. Your reply was that since you did deals in different areas and price ranges that wasn't available. That simply evaded the question and was turned into an opportunity to advance your model in dealing on a large scale in various prices and locations. Well, the average profit should be known by any investor in any strategy off the top of their head, pretty simple ball park figure and locations and prices ranges have absolutely nothing to do with the average profit.

I really doubt you lack basic financial knowledge, you're a sharp guy, giving a high % as a margin and then saying it doesn't include debt service is just another example of not being truly forthright. I'd think you'd know pretty close to what your margin would be after debt service, but that may be something you don't want to disclose, and you certainly are entitled not to give your true financial position, no one has to do that. I'd say asking you might be crossing the line. OTH, giving a fantastic rate is pretty much puffing and then tempering that number with an unknown factor is again not forthright IMO.

Your defense swing comment, the detective work and being here for those who want to learn was a skillful one. Deny the accusation and reinforce with positive intent.

You'd know too if the majority of your business came from selling information or flipping deals, I'd say it's a very applicable question as this thread is about your goals and success, it's full of comments implying your success, you opened the door but brushed it off.

I'm not attacking you or your program or your method, I am calling a spade a spade as to this thread, that there really are no details to make any valid determination from. Evading specific questions and turning the question with load of conversation that promotes so other aspect is still evasive. It's guru spiel, it's the style and under the radar marketing I don't care for. There isn't one paragraph that is educational, it's all ambiguous, nothing specific and I'd guess we won't really get anything specific or measurable. The intent is to drive traffic to your site I'd say. Nothing wrong with that, that's why most are here, to generate business, but it's how they go about it.

If you've been around for two years with only 34 some posts, I'd think you've had plenty of time to know this site, how things fly by, that questions will be asked of those eluding to fantastic operational models.

As you said, no harm and no foul, again, I've not seen your program nor will I go there, it's not about you or your program, just more to the tactics in this thread that are clearly understood by those who can read the text as well as between the lines. But, personally, good luck on you goal of getting contracts accepted, hope who flip them all. :)

Oh, PS, I'm out of here, I'd say this post clearly pointed out my opinion, I'm not on any war path here, just suggesting you get specific or just slow the wagon down and stick closely to your original goal. Happy trails :))

 Bill, I was looking for a brutally honest person like you for a very long time. Thank you very much for posting this. I will not need to read the thread further, even though I was very interested by it. Thought that I found a guy who could flip 150 houses per year with only 15k in overhead per month :-) 

BTW, do you know anyone on BP that does over 50 flips per year or anyone that does over 50 wholesales per year? I want to learn from them, because I was flipping since 2002 and do not want to do that anymore (only flip now because couldn't wholesale them).

Post: newish member in Minnesota.

Pavel SakuretsPosted
  • Investor
  • Minneapolis, MN
  • Posts 332
  • Votes 74

Good point, the thing is that I want to enjoy my life while I'm still young and healthy, and not when I'm old, bold and toothless :-)

10 years ago I thought that if I wanted to retire at 50 and plan to live till 90, I needed to have 40 free and clear town homes, each worth 200k. So I could live of the cash flow and sell 1 town house per year when I get older. Guess what? I want to live a good life now and not wait before I get old. But everyone has own opinion of what they value the most and how they want to live.

Post: I'm surprised that from all the people on BP nobody knows the answer

Pavel SakuretsPosted
  • Investor
  • Minneapolis, MN
  • Posts 332
  • Votes 74
Originally posted by @Joel Owens:

Yeah I do not work on lower end stuff anymore. I did that years and years ago.

You work your tail off on a transaction for a low return.

100 doors at 10k a door is 1 million for vacant.

100 doors at 80k a door stabilized in a nice area is 8 million.

30,000 check versus 200k plus. No brainer.

Now if I am buying for myself or a syndicate I set up in the future then commission going in and out, cash flow once stable, and equity. Different return on my time.   

Agreed with you 100%, I would do commercial also all day long if I had enough of flow of commercial deals. I only own 4 commercial buildings, but do not want to own anything anymore. Just buy, fix and sell. And now doing residential deals because: 1. I'm used to them and they bring constant income stream (higher ROI than rentals).

2. not so convinced on apartment buildings and being a landlord anymore. Do not know about you, but I owned 50+ buildings in 2012 (mix of commercial and residential) and don't like it, too much work for too little $.

Maybe I can pick your brain a little what do you believe is bringing hire $/hr (buy, fix, refi and hold or buy/fix/sell)? Also what do you thinks about mini storages vs apartments, retail, office, industrial?

Post: I'm surprised that from all the people on BP nobody knows the answer

Pavel SakuretsPosted
  • Investor
  • Minneapolis, MN
  • Posts 332
  • Votes 74
Originally posted by @Account Closed:
Originally posted by @Pavel Sakurets:
Originally posted by @Account Closed:

In the future consider titling your thread with something less accusatory.  Telling us what we don't know doesn't exactly motivate us to tell you more.  That being said, a lot of people on this thread indeed "don't know the answer".  

As for "proprietary"? While there a few trade secrets out there, all the major RE mailing list companies sell vacant lists.  They claim they use the national "change of address" database and other specific filters, they claim to be up-to-date. Call a few, see what they offer and do some tests.

Vacant property, as others have mentioned, is not a great filter all by itself.  Vacant does not indicate distress.  Every property I've ever owned has been vacant at some point during my ownership.  I was not a motivated seller.  I aim for multiple distress or motivation indicators and I suggest you do too.  

There's also this thing called a US postal route carrier.  

 Thank you Marie Poe. I'm looking for properties that have been vacant for 6 months or longer. In my opinion owners of these properties could be motivated to sell.

What were 5 sources/types of motivated sellers that you bought properties from? 

I'm sorry for asking you a direct question, but I've been using BP only for 5 days or so, and maybe I'm too naive to ask people direct questions and expect honest answers, as some of the people indicated that I had to do my own trial and error process, which I don't want to go through if it has been done many times by others.

I hope to provide some valuable information in the fields of wholesaling building materials, construction, energy efficiency and liquor in return for your time, just to be fair that I'm not trying to get it for free :-)  One of my businesses sells cabinets and flooring to builders, second builds/remodels houses, third sells liquor/wine.

Tax defaults, HOA liens, code compliance citations and liens, debt issues/overencumbered, estates of deceased borrowers.

 Thank you very much for sharing. Please keep me in mind if you need ANYTHING (advise/opinion) from what I mentioned above in the future. Will be happy to help.

Post: newish member in Minnesota.

Pavel SakuretsPosted
  • Investor
  • Minneapolis, MN
  • Posts 332
  • Votes 74
Originally posted by @Mark Turnbull:

@Brandon Turner 

Thanks for the welcome.

You and Josh promote the Keywords pretty well on the podcasts, so they are already setup! But Thanks for the reminder  :)

@David Moore 

Sounds like you have a blueprint in Albert Lea that you are "rinsing and repeating"!   I hope I can find a similar one!   I know rentals are a slow game.....slow works for me.

I wouldn't say Isanti County is "chock full of deals", but it has a small population, with a high percentage of foreclosures.  I'm finding 1 or 2 potential properties every couple of months.  it's just a question of finding the "right" deal and putting the financing together. Hopefully by the spring I'll have my 2nd rental!

 Mark, I owned 54 rentals in the TC (nothing in North Mpls) single families, town houses, dupexes, 3-plexes, one 4-plex, 4 commercial buildings, own a construction Co, property MGMT Co, a warehouse that sells cabinets and flooring to contractors. Thus we buy materials from ourselves, fix/remodel/manage in house. After being a landlord for 14 years, I'm getting out. Reason: too little $ and too much work.