All Forum Posts by: Logan Vierstra

Hi @Ilana Dan. Congrats on realizing it's time to take action! It seems to me that you may be over-estimating the amount of knowledge you need to acquire before taking steps. If you wait to learn "step by step" exactly everything you need to do through the real estate process, it might never happen. 

My suggestion would first be to learn how to analyze a property. The only way to do that is practice. Brandon Turner does a good job explaining property analysis at the end of each one of his webinars. Watch a few of those, and then start practicing. When I started I used a habit tracker app to make sure that I analyzed at least 3 properties a day. Do that and in a few months you'll be able to analyze costs and ARV in minutes. I also use a habit tracker to keep the habit of reading at least 15 min a day and listen to 15 min of real estate related audio every day.

Then start making offers! Don't be afraid to hurt people's feelings with low numbers. It's inevitable that you will. But the experience you gain from interacting with sellers and brokers in different markets will provide you wisdom you'll never gain in books. (Not to say books aren't great too). 

Hi @Gabrielle Martin. I'd love to chat about what you're looking for! 

@Mark Gauger 

Do you have any suggestions on where I could network with some appreciation investors? 

Okay thanks Kenneth. 

Thanks Bruce. I appreciate the advice! 

@Bruce Lynn Okay that makes sense. 

Let's say I'm a broker being approached by agent investors who deemed it useful for them to carry their license, and they were asking me about sponsoring them as an inactive agent. 

What would be your thoughts as far as sponsoring those kind of agents? 

@Theresa Harris @Kenneth Garrett Hey thanks for the response. All of the above expenses are included. My example is assuming a cash purchase. So the cashflow is the rent minus all those expenses you listed. I agree the COC is poor.

The link I included shows a much more detailed breakdown of the deal. (If it doesn't open when you click it, right click and open in a new tab should work) 

What I'm trying to determine is if there is ever an investor out there, who would put cash into a deal like this in order to gain tax benefits. I've heard a podcast guest or two mention that some investors are less worried about the COC if the tax benefits they gain are good enough. Someone who has income they want to offset in order to save money in taxes and take advantage of depreciation.

Is there any type of investor out there who would buy a deal like this? 

3 bed / 2 bath 1400 sqft

Purchase price: $300,000

ARV: $360,000

Rehab:$0 (let's just assume)

Currently Rented at: $1900

Cash flow: $830/month

Cap rate: 3.3%

COC: 3.3%

blob:https://app.dealcheck.io/769836dc-6ff9-4d10-bb02-7ac89a49b773

Before anyone jumps down my neck, I'll mention that I do realize this would not normally constitute a good deal. What I'm trying to figure out is if there is any type of person with a lot of cash, that would do something like this because of tax benefits or some other reason that lower level investors would overlook? 

@Bruce Lynn Hey Bruce, that sounds like great advice if you plan to run a team of agents the way you described. Would your advice change at all if you were a broker being approached by investors with their agent license, who don't intend to represent clients, but just want a place to hang their license in order to gain access to MLS and lockboxes?

I am talking with an owner of a property in the Sacramento area that wants to sell their property. It’s an acre and a quarter. Surrounding the property is a housing subdivision that has completely engulfed everything but this property and the one next to it. The developers built the tract as if they were assuming these lots would be built on one day. I think it’s a no brainer that these lots highest and best use is to finish the subdivision and build 4 more properties on this lot.

I’m looking to make some connections with some developers around the Sacramento area that I could pick their brain on how to start the process on this to see if there's room for profit.