All Forum Posts by: Mark Wilton

Thanks @Dan Voykin, I'd like to own it for Cashflow after rehabbing it. I'm pretty comfortable with this size of rehab as I manage the systems for a rehab company including Scope creation, Project Management etc so feel I can get that side of it done.

The part I'm not as sure of is once we convert it to a rental and the numbers to ensure cashflow there. After running it through the Analyzer it's looking about $100 a month in the positive. Just needed some reassurance I guess.

Hi all,

As usual thanks so much for the continued support.

I have a deal under contract. Typically I rehab properties, working for a large volume company and manage the rehab systems.

The latest deal I have doesn't work within our Rehab model but am looking to use it as my first Rental would love some advice, as there is obviously alot more that goes into Rentals than Rehabs. I've also included two rehab options. Do I make it nicer to achieve a higher ARV or a rental ARV and achieve significantly lower ARV.

Numbers:

Purchase - $168,000 (Very small chance I could make it $165,000)

Full Rehab (Achieving Maximum ARV) - $78,000

Rehab Quality ARV - $320,000

Rental Rehab - $65,000

Rental ARV - $270,000

Rental Comps - $2000 - $2150 per month

Taxes - $4300

Insurance - $900

I'll look at 10% Vacancy, 12% Property Management, 12% Maintenance and 7% Cap Ex.

Tenants will typically pay for all Utilities.

Area is brilliant, close to Chicago itself in a desirable area.

I'm looking to partner with another Investor that will potentially buy all Cash - Purchase and Repairs.

I feel this could be a deal but could also use some reinforcement as to whether I'm on track or to let it go.

Anything else I've missed, please let me know.

Thanks everyone,

Thanks everyone. Our seller wants to net a certain amount from the Sale of his home so in order to make our ROI target work, more of an Equity Split offering is what we're starting to work with. The thing I love about REI is the incredible network and fast learning curve. I appreciate all of the input

Hi all,

I've been working primarily in Rehabs and am trying to get started within the Rental industry however am needing a little push in the right direction around rental comps.When it comes to Rehabs, I'm comfortable running my own numbers outside of the MLS for ARV but would like any tips or tricks for consolidate Rental Comps analysis.

I understand there is Rentometer.com etc but want to steer clear of that with my due diligence. Am I best just stepping back from my Rehabs for the time required to visit Rentals in the neighborhood, call newly rented property etc and speak to other landlords in the area? Is there a more reliable consolidated data portal than Rentometer?

Thanks as always!

Hi guys,

So I'm incredibly close to locking up my first Owner Finance deal but have questions about approaching my Private Investor for the Rehab costs.

Typically I'd say to my investor that they'd be secure by the note on the property but considering the Owner still holds Title in this case, how can I reassure my Investor he can be secured to a point and not in a second lien position.

Hi all,

This is a bit of a two part question, I'm currently contracting to a large scale rehab company as a business consultant and am 1099'ed. My end goal is to purchase rentals and build an extensive portfolio. 

With this in mind, There is an opportunity for me to take the leads that don't meet their requirements for flipping and have them wholesaled to me for buy and hold.

With my experience in structuring the workflows, down to the details of efficiencies, of a rehab business, my plan is to rehab the rentals and refi them into long term cash flowing properties.

Onto my question - As I'm 1099, am I better off being patience and building 2 years of tax returns on 1099 income in order to finance a loan and build that way?

On the other hand I'm confident I can put together a great package on the right deal in order to present to an investor friend of mine that could fund the purchase and rehab. In this case should I'd look to provide 50-60% of the deal to them on an approximate 3 year hold into to get me to a point where I can refinance out.

Am I even slightly on the right track here?

As always, thanks for all of your help

Thanks everyone, it's certainly exciting to a part of the community. @Crystal Smith, I can definitely shed some light on the differences between the sports. 

Hi all,

Another newbie here from the large and freezing market we call Chicago. My name is Mark and am a New Zealander based in the Chicagoland area with my wife and son with twins on the way! Eek. 

I've been in and around Real Estate Investing for a couple of years now, networking, reading, learning and, most importantly, trying to take action.

I spent a good part of 10 years prior to that, listening to my father talk about his rental, how REI is the best way to build wealth and, of course, about a book we all know and love - Rich Dad, Poor Dad. Sadly enough though, it took his passing for me to realize that this is definitely something I need to focus on. The enormity of the opportunity in front of me, represented by the size of the Chicagoland market compared to my small home town in New Zealand, only further excited me

Bigger Pockets was introduced to me, only recently, from a buddy of mine that I met through networking. I've since listened to close to 25 Podcasts in the last two weeks and am hooked. I have a long commute to the office so can get through one each way. A great motivational listen for the morning and a way to bring the spirits back up after a hard and testing day.

I started after my first REI Expo with a goal of 10 Rentals in 10 Years which is the primary focus of each and every growth step that I take. Rehabbing was a starting point for short term cash flow in order to raise money for purchasing rentals. As I learn and grow, it is starting to become apparent that 100 in 10 years is achievable. I'm yet to jump into my first rental, primarily due to analysis paralysis and past deals being under contract falling through due to numerous reasons. I completely understand, especially as I continue to listen to and read BP, that taking action and just getting into the market is what is going to leap frog me towards my goals.

I completed my first rehab project last year that was a medium scale rehab which provided great returns and got me hooked on making a living and eventually retiring on the proceeds of Real Estate Investing. It made an incredible 58% ROI and sold for $35k above our initially conservative ARV. I was able to do this deal through a small startup rehab company that offered a mentoring program. They partnered on the deal and was a huge learning curve, one of which I've based a lot of my desired direction on.

I continue to learn and grow and am now employed by that startup rehab company as their workflow, systems and structure manager - Establishment Officer - ensuring that the Rehab Machine is as efficient, effective and profitable as possible.

Thank you to BP and I look forward to contributing to the wide world of REI.

Cheers,