All Forum Posts by: Luke Stair

Hello, 

I recently learned about wholesaling and want to gain a better understanding of this real estate strategy.  I have been researching it a lot and understand it's much more work than it's toted.  Not as easy as certain sites make it sound, otherwise everyone would be doing it.  Many of these sources have not been able to answer a few of my questions.  

1. What are the details of a wholesale contract?  (An example would be great)

2. Surveys, inspections, etc. are not part of this type of transaction?  This is the buyers responsibility upon completion of sale.

3.  If you're a cash buyer who have worked with wholesalers, what format/presentation do you want to see in a potential sale? 

Disclaimer.  I understand some people have issues with this real estate strategy.  I have a real estate attorney and have consulted with her already.  My goal is to gain information and a better understanding of this process.  

Thank you,

Luke  

Barry valid points.  Pretty much my same thought process.  The area that it is located in is prime as expansion is occurring downtown which is a mere 1.5 mile away.  The rent potential is great as the university is also expanding right into downtown.  

My thought is that if I don't have a quick turn around, I will renovate it and sell or rent and hold. I have not done a Buy/Hold cash flow analysis with intent to rent, but off the top of my head I believe it would be a good ROI.

I did put the offer in, haven't heard back yet, banks are slow, but ultimately had your same thought.  Why not?!  

Thank you for your input, it confirms my thoughts.  

Hi, 

I am looking at purchasing a house that is in rough shape.  The house is listed at 33K, 2 bed, 2 bath, $1430 SqFt.  After myself and a trusted repairman inspected the house, we concluded that it would require approximately 40-50K to repair.  The possibly only selling if for about 80k.  What he suggested was to offer $8500 and go no higher then 10K.  If I get it for $8500, then turn around and place it back on the market for 28k.  This area in my town is on the rise and investors are buying these properties.  

There is another investor who has has success with this strategy.  He bought a place listed at 43k, for $8500, after inspection it was too damaged to repair, so he turned around and listed it for 35k and sold if for 25K.  This was in a worse area then the one I'm looking at.  

Another piece of the puzzle is that I am limited on finances as I have replaced to HVACs on two of my units.  This would really stretch me then, but if It paid off would really put me ahead.  Always straddling the line of risk vs reward.  

I appreciate everyones input and advice from much more experienced investors than myself.  

Thank you.       

Greg I agree completely with what you are saying.  This is a business and I do want and will get to market rent, but I believe it is unwise for me to risk another vacancy right now.  Its a process for raising rent and getting the right tenants, Im doing almost all the work myself and do not have the financial means to have three vacant units, worst case scenario. Which is what we all have to prepare for right, manage risk.  I am not afraid of hard work, as I have worked my entire life, but immediately raising rent $100 after owning the property for two weeks, with one renovation underway and a vacancy coming soon, its not a sound business decision on my part.  After renovation is complete (2 weeks) I will be renting that one out for above market rent, then renovate and repair the other unit in October when it becomes vacant and rent that one out above market rent.  So that will put 2/4 units above market value in approximately 4 months.  Then this time next year, raise the other two up to market rent if not above.  Year and half for all four units above market rent, for the state of neglect they are/were in, seems pretty good to me.  I am green though, so maybe I'm off.  I greatly appreciate everyones advice and input.  I decided to go ahead and raise her to $575.  

That is my main concern.  I definitely do not want three vacant units.  I like the idea of doing a month-to-month and increasing by $25 to see where she is at.  I have not gone through the tenant prospect phase yet and think starting with one will be a good place to learn the ropes instead of two or three at a time.  

I'm not sure yet if she is a good tenant.  She has been smoking in the unit even though she is not supposed to.  I addressed this with her in person and she has seemed to comply.  So far I have received all tenant rents except for hers.  Being that today is a holiday its not late till tomorrow but still unsure.    

I just purchased my very first rental property which I am managing and running myself.  It's a multifamily complex and 3/4 units a occupied.  One unit is empty as I am renovating it, one of the tenants will be leaving in October, the other tenants lease is up this month.  I want to increase the rent for the tenants lease that is up this month because it is very low for the space they are getting (1,054sq.ft.) and well below the average for the area ($595-650).  I was going to raise it $45/ month.  This would increase the rent to $595/month.  My reasoning is that I just replaced both the front and back doors, have done many neglected repairs in her unit and will be putting in a privacy fence to give each unit its own private space.  I feel this more than justifies a rent increase.  My hesitation is I do not want it to push her out.  Greatly appreciate everyones advice.       

Thank you very much!  I'm excited for the opportunity.  I hope the resources within this forum will facilitate success in this new endeavor. 

My name is Luke Stair, I live in Clarksville Tennessee.  My main job is an Advanced EMT for the county.  I really wanted to get an investment started before I continue on in my medical career so I saved up money and just purchased my first investment rental property.  I have never done this before so it is a huge learning experience for me.  I plan to expand in real-estate investing by acquiring more properties to provide supplemental income apart from my primary job.  Im excited for this opportunity, and I'm excited for this forum and its wealth of knowledge and resources.