All Forum Posts by: Matthew Morrow

 That's a great question. You can interpolate a little if trying to price rentals. 

For ours- if there was no solid data (in some markets this is common) - We started calling property management / leasing companies and comparing to similar units. And hate to say it, but Facebook / Craigslist and even the Newspaper classifieds could be useful.

Off market, direct to seller marketing. Use public records to filter property types and reach out to them via Skiptracing phone numbers or hard mail. Doorknocking is also highly effective but can take a lot of time.  
programs like Propstream and deal machine make this process extremely user-friendly, and if done correctly he will easily make your money back exponentially. 

Similar reasons to appraisers only using MLS data. This information is essentially peer reviewed and verified to remove any bad info. Zestimates can be wildly off and you don't want to base your entire business model on some computer algorithm that may have a metric wrong.

The Scripts Nathan references are fantastic. Many brokerages customize versions of these, but you’ll want to have something that you stick to and get comfortable with.  

And the Getting to “yes, no, and all in between” are just placeholders for having a true conversation And learning the business.  

This is a great problem to have, but leads are essentially worthless unless you turn them into something productive. I think you should start with getting a strong network and other investors in your area so that when these deals come around you can either form them out, take them yourself, or partner. Having a way to handle the direction of your leads could prove to be a very valuable skill when you become the person to connect others. 

BiggerPockets in itself is a wonderful resource to find people who might be able to help you out with these deals. Also try  Facebook groups, local meet ups and many more.

Hi Andrew,

All of the above suggestions are valid, just do your research and know the risks of each. You also may want to consider investing your cash with another investor / company for the term in some real estate deal that's not yours. This obviously has risks as well, but then your $$ will be making money in real estate and not tied up elsewhere. Also depending on your personal situation / investor credibility you may be able to invest in REITs or other Real Estate related funds of bigger companies. 

Best of luck!

Thanks Bob. We had an itemized list of capital improvements needed which we knew directly affected the value. Ironically several of these showed up on the appraisal. Offer price / seller assist was used to justify doing these within the first several months of ownership. 

All tenants remained in place with new leases, however we went about it with  advise we found here on the forums / podcasts. Each tenant was presented with a rentometer pro report showing market rent. (Each unit was under-rented by 30-40% at time of purchase and on MTM leases.) They were asked then to provide a number in which they were comfortable / capable of paying somewhere between where they were, and where we needed them to be. It was actually quite nice to see how realistic people were. We signed new leases at those numbers as to not rock the boat, but all leases had built-in increases over the 12 month period. Over the next few years, several tenants left on their own terms and we were able to take advantage of the downtime to renovate, and re-rent and market value. 100% rent collection rate thru covid as well. 

Thanks! Total cash invested was 150K including purchase (cash) and renovations. 

Sales price was 230K