All Forum Posts by: Max Williams

There isn't much forced equity here in my opinion. $216K cost (excluding closing) for a $230K ARV is really skinny. If you were to list the property to sell it, almost all of your profit would be wiped out. Appreciation is hoped for (we have no control over it) and should be considered gravy. Forced equity or buying at a substantial discount is real $$$ today. Remember, you MAKE your money when you buy.

Are you sure about the rental potential? $2K seems like quite a bit for a home that size / value. My market has similar numbers for the same size home and the rents are closer to $1,400-$1,500 even in the better parts of town.

Homes in this price range don't normally give you the most bang for your buy and hold buck as compared to lower priced homes. If cashflow is important, I would rather do 2 homes @ $115K than one at $230K. Your thoughts?

I was confused about "property being created at $85.00 a ft.." What is the After Repaired Value (ARV?) Are you going in with any equity?

Thanks guys for the good feedback on this topic. @Frank G. My first small campaign of 250 Yellow Letters will hit mailboxes tomorrow and we will see what type of response it brings. I like many of the posters, think that it could work both ways. Since my leads are all 55 years or better, I will stress to them that I am a licensed professional in the business and don't want to take advantage of anyone and am not running a scam. I read another thread where the Sheriff investigated a Yellow Letter complaint. I guess it was a slow crime day.

Hello BP Real Estate Pros,

I am considering a Yellow Letter campaign (for personal fix & flip investing, not brokerage) but don't want to kill the effectiveness of the "guy next door" feel with the required disclosure of my licensed status. How have you addressed this (your letter verbage) if you have ever used Yellow Letters for personal investing? Did you find your approach effective ?

Some sellers may feel more comfortable working with a licensed pro since it reduces the potential in their mind of someone being a "fly by night" scammer. I imagine disclosure could be used to stress that "I know what I am doing and have a license to protect" in the letter.

Your thoughts?

Thanks
MAX

One other thing to consider with a stack (all in one) unit: If one half of the unit breaks and is not worth fixing, you lose the whole thing (washer and dryer.) The stackable front load machines are the way to go as a result, as stated above. You may be able to find a shop that sells refurbished front load stackable units with a warranty through a local REI club or on Craigslist. Good luck!