All Forum Posts by: Shawn McCormick

Hi @Dustin Fike Welcome to BP and REI. We have a pretty active community in Orlando, you have plenty of local resources as well as right here on BP. I would recommend joining CFRI, the local chapter to the National REIA. There are great resources there (although we are meeting online for now). Lots of local investors, agents, wholesalers, trades, lenders etc there to help guide you.

You have a BHAG there, reach for the stars! What are your first steps to move that forward? Do you plan on taking some baby steps on the way or right to the multi family/mixed use? Would love to hear more about your ideas. Reach out if I can be of any help. Good luck.

Hi @Gustavo Lotuffo You managed to pick the top 3 markets in all of Orlando. There is a lot of room for growth due to the amount of land available in Winter Garden and Lake Nona/St. Cloud (not so much in Windermere!). So your idea of appreciation is certainly valid. However, cash flow continues to be a tough get in so many large markets across the country right now for the same reasons. I'm losing offers for my clients left and right even with over ask offers, no contingencies, short inspection periods etc. 

Builders are also slowing things down due to high material costs and availability. Some have gone to even ask buyers for highest and best on new construction!! Others are only releasing a few lots per month to curb the demand.

There are some areas where you can still pick things up fairly readily, but as Tyler mentioned, it will be well outside the Orlando area.

Happy to dive a little deeper into this if you want to jump on a call sometime. Just reach out.

Hi @Jim Williams Welcome, you're in a great place to learn. Also consider joining CFRI, the local chapter of the National REIA. Although it's all online right now, the content and learning is still good. When we start meeting in person again, it will be a great place for you to network with other local investors. In the mean time, let me know if I can add any value to your plan, happy to talk some strategies with you.

Hi @Kory Broussard I'm currently working with clients in that area that will be commuting to the Space coast for work as well. They want to be closer to Orlando with less than an hour commute. Reach out if you would like my perspective and possibly help you as well.

Good luck!

@Alex Schroeder Hi Alex. The brokerage I work for is Global. I would be happy to put you in our system to get a referral for you in Dayton. I can personally vet the agent to make sure they understand your needs as an investor. I live in Orlando and currently also buying in Ohio (Toledo). Reach out if you would like to connect.

Hi @Chris Collins. I see a few holes in your calculations right off the bat. No Vacancy? No Cap ex? For that purchase price are there rehab costs that will need to be considered, where is that money coming from, are there loan costs involved for the rehab money? Taxes are quite low. Closing costs?What type of property is this for that price with no HOA (not a condo or townhome I assume..)

Happy to talk thru some of this if you like, feel free to reach out.

Hi @Ana Plasencia I work with many investors in this area. I have two STR under contract and just closed another....all BP members!! These are in 3 different communities that will all perform well.

There are a lot of variables when considering this. I would be happy to have a chat with you to discuss my experience and see how else I can help you. Reach out anytime!

Hey @Troy Anderson. Just a couple of years ago, the 'rule of thumb' was 65% of ARV minus repairs. Depending on the area, you could get away with 70-75. With the market so good and sellers being more educated about cash offers (because they are getting offers from so many wholesalers, I-buyers and realtors and now know they can bid them up). The margins have decreased and wholesalers are often putting out deals at 85%.

IMO, that is not enough room for error, let alone profit. Even if you are a contractor or it is more of a lipstick flip, 15% margin just isn't attractive. That doesn't mean people are buying those up like crazy, they are counting on appreciation during the flip.

I am a realtor and on my last flip, I had the absolute max ARV at 190-193,000 when I started the project. It took four months and I listed it at $229,000 and got it and it appraised. I was blown away and I was 100% sure of my comps. So I won on that deal because the market changed that quick while I was flipping.

My advice would be to build your buyers list and lock up deals as low as you can, add your fee and test the buyers to see what they think. There are motivated buyers needing to put money to work and if they are willing to overpay, than you win. I don't think that will work in the long run, you need to build your reputation as a wholesaler that puts out good deals with good margins so your buyers have confidence that if you bring them something, they could make money from it. If you always put out deals that your comps are not accurate and your repair estimates are out of wack, you won't sell deals.

Good luck out there, it's a tough time to be strictly a wholesaler.

@Michael Baum. So I don't work for the PM, but the way the structure it is if you want to book a stay for your friends or family and block off holidays or whatever..instead of the PM taking 20%, they only charge $50.

The 20% is for them to do everything, market, manage, maintain, book, clean etc. And if you get the right one, they should be able to get you more $ per night, more nights per month, keep on top of regular maintenance issues by doing spot inspections to watch for wear and tear etc that would be missed or unreported if you self managed..causing bad reviews...causing lower bookings. IMO the 20% more than covers itself, even with one unit.

Yes, the tour operators will generally go for 7-9 bedroom homes. If they have a group of 300 cheerleaders or tourists, they want them all to stay in the same community and deal with one company that manages enough homes there to accommodate them all. They will usually pay a premium to make sure that happens. they don't want to be dropping off guests at 3 or 4 different resorts and trying to keep track of all that and dealing with several PM companies with all different rules, pricing etc. 

Hi @Matt Brazis. Money is easier to come by these days and no offense, but with 55k, you will likely be lending on a flip and only for the rehab portion. This means that you will probably be in Second position and won't have much protection. Just a thought