All Forum Posts by: Luke Weber

Our inventory in Las Vegas, NV has dropped drastically over the last 1.5 months and is still dropping.  0.59 months of inventory and we are just starting our Spring buying season here.  This spring/summer are going to be CRAZY!

How much inventory do you have in your market?

I bought a 4 pack of condos and am doing full remodels on all of them.  Trying out some new tile designs as I push the market and build my own comps.  What do you think of the tile?  Yes or no?  These are for flips.

@Will Fraser I don't disagree with what you are saying, but a lot of it comes down to mindset and the ability to network and talk with the clientele.  I've met plenty of higher end individuals that are just as clueless as lower end ones can be, they just aren't afraid of the bigger numbers OR are just familiar with working with people in those arenas from past experiences.  So maybe my question is more, with the right mindset and social experiences, can be just as easy?  And this does go both ways, where alot of higher end living people, just can't do the lower end properties (even though you can make similar profit lines), they just don't know how to connect.  And of course alot of this is specific market driven when we talk about price points, some markets $300k is dirt cheap and in some it's top of the line.

I had a friend comment that he wants to start wholesaling, but wants to start with big deals with bigger assignments.  I honestly don't see any difference in wholesaling a multi million dollar house or a $10k fixer, the mechanics are the same, just a different seller and buyer base.

What are your thoughts?  Easier? Harder? Scarier? (obviously commercial does have different nuances so I am really asking regarding residential - although you can still wholesale commercial deals too).

Keep emotion out of it!  That's the biggest rule.  There will always be more projects, so don't pay too much for this one and get burned.  Keep making your offers and don't pay more than the max price.  Just because someone else is willing to pay more for it, doesn't mean you should too.  They may have a different exit strategy, cheaper money, less or more experience, etc.  Run your numbers and don't pay above what you set as your top limit.  NO EMOTION!

I do not recommend buying sight unseen for new investors (I've done over 500 deals and I still don't do a ton of it).  If you are going to trust someone else to give you an honest opinion, make sure they are not going to make money on that decision like a Realtor.  Lots of pics and videos and maybe a home inspection if you are newer.  Do your due diligence becuase once you have bought it, it's yours!  I've bought and flipped/rented in Florida while living in Nevada (among other states as well), and each location has its differences, not a lot of moisture in Nevada, but tons of it in FL as well as termites.  We had to replace an entire 2 story exterior wall of one property we flipped there (made over $50k on it).  Be cautious and don't get drawn into the hype and always keep emotion out of it.

Love my wholesalers who send me deals.  Even if they are awful deals with awful numbers, thats how you do more deals by getting them into your inbox.  I wholesale as well, but my primary business is flipping and I have bought hundreds from wholesalers, new and experienced alike.  Each year I probably help 10+/- wholesalers close on their first deals ever because they do need the assistance sometimes.  If you want to grow and scale, wholesalers are a great resource to do it whether you are flipping or buying investment properties.

I've let mine do that in the past as long as it is structural sound and they paint it to match.  If it is a hodge podge of garbage and a death trap (or they think it's another bedroom!) I tell them no.  BUT it should depend on how strict your city is for encroachments, permits, etc.  Usually anything under 10x10 is fine, but you don't want it blocking a pathway or anything like that.  The way I look at it here in Vegas is that it is a value add for my next tenants but with no cost to me.

If I was local to it OR I had very, very good and experienced boots on the ground, why not?  I've had houses in very nice communities broken into and vandalized just as I have had em in the war zones and I end up making a higher AROI in the war zones.

I stopped doing bigger flip projects that aren't as easy to get out of and have been refinancing anything that is long term and NOT taking money out, but making sure payments are as low as possible.  Went through 07-10 and learned alot.  Prepare for the worst, but keep moving forward at the same time.  Can just operate being scared and looking at the what-ifs?