All Forum Posts by: Martin Neal

@Melanie Stephens Here’s one of many for me:

Back in April of 2019, I was looking at houses that I could potentially buy for the BRRRR method.  I came across a two bedroom house with a garage that was selling for $40,000. It was a foreclosure. My niche at the time was only townhomes. I went to see the property and saw that he needed a moderate rehab of $25,000. I've done this type of rehab before and was certain about my numbers. There were no two bedroom houses selling in that area and so I did not know how to properly evaluate the ARV of the property. I compared it to the townhomes that I normally invested in and estimated that it would be worth no more than $80,000-$100,000. This was a mistake on my part. I passed on the deal because it was not going to be a perfect BRRRR. A member of the same Facebook group I was in went on to buy that property. He sold it six months later and made a $65,000 profit because the ARV of that property was at least $130,000. This was an important lesson about making sure that I get the ARV right and I'm not comparing apples to oranges.

@Jacquelyn First it depends on your area. Some areas can require it and other areas can’t. My personal preference is based on the service and housing provider I choose to be. I always supply.

@Joshua Bailey make sure you're calculating enough money for repairs, rehab, etc. That will cause your CoC ROI to go down. Otherwise, go for it!

@Alex Kovalenko first red flag. Tenant dictates to you how and terms of their agreement. Run away.

@Bryan Cress needs a window to qualify as a room. If you can add a window. That would be awesome.

I would sue. You know they have the money and then I would ask the judge to freeze their assets. I feel like this is criminal too. In Illinois, our contracts has a spot for possession upon closing so for the seller to stay after the fact should be trespassing.

@Kaylee Walterbach always use license contractors. Any unlicensed vendors I used came back to bite me in some way, shape or form.

@Chase Yokoyama started with BRRRR, it fit what I was trying to accomplish and team I was creating.

@Kyle O'Donnell the combination of forbearance and evictions ending will open the flood gates. Have your cash and financing lined up for opportunities.

@DuBois Othero Toy if you’re ready to buy now, then do so. Just make sure your screening criteria is super strict during these hard times. I brought a couple of properties during Covid and plan to buy more as opportunities present themselves. In my opinion, I don’t see a light at the end of the tunnel for the moratorium ending anytime soon. Good luck.