All Forum Posts by: Matthew Koch

Quote from @Chris Seveney:

@Matthew Koch

I will play devils advocate. Trying to wholesale a mls deal from afar is nearly impossible. Not trying to rain on your parade but guessing at rehab from a video walkthrough and not being in the market is probably not gonna get a deal done.

Savvy investors will see its on the mls and just wait for your offer to fall out of escrow then go in and lowball the seller.

 I appreciate the reply, the video was made by me and I was physically there for the walkthrough. Also, update for about the backend buyer, now. He estimates the rehab conservatively in 90k and he wanted a 35k profit plus 20percent and hold time of 6 months and he would want to buy it at 300k.... and unless the buyer is local and doing the work himself for the fix and flip then this wholesale deal to him is to narrow and dead for now.. maybe I could pull a hell Mary type of action and hit up a hard money lender and buy it myself and go from there but I'm thinking that also is impossible at the price I signed up for to buy it at 360k..... I'll think of something 

Quote from @Eliott Elias:

Just make the offer. What’s the worst that can happen, seller says no? Or lose out on your earnest money? Get em under contract at a price you won’t be scared to close on

Well I do understand where you're coming from and I would be out $100 for the earnest money deposit and I'm reading the contract and it states that this needs to be done and finalized by August 1st and I reached out to the agent and told him that's not possible because it doesn't allow enough time for inspection or appraisal people don't just have those kind of folks on retainer to jump in and do that thing unless it's a larger scale type of business than they're paid the expense to come out and do that thing at the drop of a hat So right now I'm going to be renegotiating the time for closing on this contract cuz even the back-end buyer I was talking to, I don't think could close in that time frame either....

You know how it said that knowledge doesn't mean anything unless you use it or put it to the test!?!?

well for me to be honest and transparent in this adventure of mine putting in offer ever for a house this time it's my first wholesale offer coming from the MLS and although I have watched and listened to almost 400 episodes of the podcasts for bigger pockets the state investing side of it and I ran my numbers through the whole sailing calculator to give to a flipper, I'm always unsure of myself, simply because I did my numbers conservatively not only for overestimating a little bit on the rehab but underestimating the ARV that way there's that wiggle room on both ends and by my calculation a process like this the end result is 20 grand for my back end buyer.

My question is if I go ahead and post the numbers, can I get a little reassurance that even though this is a slim deal for profit in the end that a deal is better than no deal and I just want to be sure I am correct on the numbers so I don't hurt nobody I don't screw nobody over and I'm completely upfront and honest about the whole thing Also if I may have missed something someone can suggest it but going through the pocket calculator it looks sound and good to me....

located in Kimberly Idaho 83341

eight bedroom soon to be four bath house monstrosity

MLS listing price 400k

My purchase price 360k

estimated ARV confirmed by local bigger pockets member Jeremy Orton of Keller Williams real estate and 15 years of agent experience, between 490k and up to possibly 520k

estimated ballpark rehab because the house is only 80% done and I have a video walkthrough to share if anyone would like to see it and some of the materials to complete it is already there on site in the house, Maybe 50k in rehab

agents commission $29,400

closing costs $1691.92 from agent

Holding cost is $7,500 for 3 months accounting for electricity water property taxes, insurance etc

I'm asking $378,400 

flipper profit is somewhere between 20 grand and possibly 49 grand.

I'm open to any and all suggestions and I'll look forward to hearing your feedback I have until August 29th to get this taken care of and sold to a flipper and I do have a back end buyer lined up I'm just waiting on a return call or text from him but I'll always want to have a backup b or c plan exit strategy.

thank you and I will be in touch.

Isn't there a way to own property out of state that I could use as an Airbnb or VRBO or HomeAway program? After that's established in theory couldn't I utilize credit cards that offer frequent flyer miles to then be able to make purchases earn miles and then travel for free to go check on set properties for inspections or any damage that may be done to the property and such to then write it off as a business expense for tax purposes? If so and that is true then technically in theory couldn't I earn enough frequent flyer miles to make enough trips for free, that compensate for the amount of money that taxes would need to be paid for by owning that property in whatever state I'm investing in for that Airbnb or home away property? 

Investment Info:

Single-family residence wholesale investment in Shoshone.

Purchase price: $105,000
Cash invested: $200
Sale price: $115,000

Long description and info in marketplace.
https://www.biggerpockets.com/real-estate-listings/for-sale-by-the-owner-a-single-family-home

What made you interested in investing in this type of deal?

It has the potential of a value add opportunity for a 4 bedroom 2 bath home when rehabbed and fixed up like new with relatively low rehab costs.

How did you find this deal and how did you negotiate it?

On Facebook, negations had not been on price as the home owner would not budge, but the sale to get it sold at asking price with a incentive to hold off on final payment for 8 months, was the bargaining tool

How did you finance this deal?

Earnest money

How did you add value to the deal?

Video walkthrough to show rehab scope of work. Also incentives to the owner of $500 a month for 8 months to allow the full payment be delayed until rehab is complete and appraisal can be done afterwards.

What was the outcome?

TBD

Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?

Asked questions to a fellow real estate, investor friendly agent, Austin Davis and yes I would recommend him.

Hey leAnna!

What I have found is if you go to the title companies like title one or alliance title, like here in Twin Falls, then they have purchase and sale agreement contracts there and someone at the front desk can help you and sometimes they're free sometimes they're pretty cheap. The idea is to get the contract and send what it says and how it is setup for what works for your business strategy on how to acquire said property from a motivated seller, then scan the contract into your computer and use an editing program like Microsoft word or paint them modify and update it with your business and company information then print it out and take it to an attorney or lawyer and have them verify it and he honest as to where you got the contract for your own use then, go get those deals done! 

More info on how to use those contracts here>>>>https://www.racinelaw.net/amp/...

To save a trip to the title company then use this>>>>https://eforms.com/purchase-ag...

I would point it though to not worry about the realtor contact unless you happen to be getting the licence otherwise we can't use it.

Good luck to you and wish you the best

Well hello there and welcome to the BiggerPockets community! 

I would suggest to set up your BiggerPockets profile with keyword alerts in regards to your specific area for California and your specific zip code so that you would like to learn in so you cannot only know the market but also put in keywords for the term rental property and do some searches through the podcast and find out who is investing in California and then reach out to one of those members. My personal experience as I've gone over 356 episodes of the podcast I've learned so much until I have an opportunity to apply that knowledge it's not doing me any good but I've reached out to some investors here where I'm from in Twin Falls Idaho and I've connected with some very interesting and helpful people that in my personal opinion is best for me learning all that there is to know about rental properties then I might ever find in a book. However you should definitely check out David Greens book for long-distance real estate investing which should help you with exactly what you're looking for 00s. Hopefully that helps a little and I'll look forward to your success and if you happen to have any other questions I'll do what I can to help you out

One thing that I can say in one thing that I do know in regards to my strong why to even listen to these podcasts and learn anything and everything about real estate is the same reason behind the idea for the opportunity zone. I want to be in a position that allows me to make my carbon footprint on this Earth as huge as possible however environmentally friendly as possible be able to help people 2 mm true that 20% of the bad that is out there in those neighborhoods that has to be a niche market to allow for the 80% to thrive and grow and improve for a market on any level on any Street in any City or for any part of the country at least that's my somewhat naive opportunistic ideas and I cannot be the only one that shares that idea or vision. 

well I have to admit that I'm definitely proud of myself for when I started this post in regards to what I was trying to talk about and convey is exactly the same type of concept that has been mentioned and talked about on episode 337 for the BiggerPocketst real estate podcast side of things. it absolutely blows my mind in regards to the theme in all the books that I've heard mentioned on the podcast and all the people that have been interviewed the very simple thing in life in regards to making it better for yourself and for those around you is simply the theme of giving. It can start on a small micro scale and something as simple as a smile that can turn somebody else's attitude or day around can affect other people in various ways. a relationship can get better if a little time and a little more effort is spent on improving that father to mother relationship child to parent relationship for spousal relationship just giving a little more time of yourself giving of your efforts and of course the monetary aspect of it also applies in a little bit that you can afford to give back to those who need it will eventually come back to you not to be expected but to know that it is the good and the right thing to do. this episode 337 talks about the micro movements of an opportunity zone that starts with the people that are in a medium marginal area that have money that are not the government set shoes to focus their efforts in one particular spot to revitalize places and homes in one market to the next and they get a reward for it from the government that is considered that opportunity zone that is what this episode is talking about. The entire premise is based on the simple fact that a little effort concentrated on one particular area such as people coming together and helping each other out can significantly affect the rest of the market and the rest of the other people which helps with prices which helps with attitudes which helps with other places to go despite the crime despite the drugs despite the gangs and the turf wars there is hope and there is an answer that would allow everyone to thrive when this opportunity cost type of procedure is implemented. 

Was looking into this property here in twin falls, Idaho, for the hope that our family can move in with a FHA loan and use the underground garage to create another 3 bedroom 1 bath space within that garage. I need to get more info on the additional dwelling can or can not possibilities but, was hoping that once a down payment is scrounged up then also a construction loan was successful then it would be a 7 bedroom 4.5 bath house. The issue is the arv and what else it can be compared to for confirmation of price for a resale value after we are able to move out after 1 or 2 years. The seller would consider financing but only with a sizeable down payment. Property is 570,000. I would also think that the other space on the land would be good for another duplex to be built as well and even more valuable for the land. So. My hurdle or issue is knowing what it can be valued at after the garage is made into another whole unit fully furnished with all electrical and plumbing. Also what the remodel will cost. This place is huge inside also that could be made into other additional bedrooms and being close to the airport might be a awesome air b and b outfit or just a good sale after the additions made. Any suggestions are helpful and look forward to hearing from ya all.