All Forum Posts by: Michael Volek

@Daniel Kidd

What sort of seller concessions did you receive? Care to elaborate?

@Daniel Kidd

Very nicely done. You have found the perfect use for VA.

@Tyler Frost

Oh boy, all these naysayers...

Go back to the podcast, listen again, and take notes if you haven't already. They pull numerous lists, then SKIP TRACE to remove DNC's and Litigators and what's left is the numbers you text blast. Obviously check with your local laws. Leadsherpa is the program, it's like $500 a month. You can use it for one month, see how many deals come up, then see if the cost is justified. They mention what they say in the text, just copy and paste. Make sure you have a lead manager to set appointments and screen deals. With their proposed response and conversion rates, it's worth doing your own campaign. Just make sure you post your results here so you can convert all these naysayers as well. Good luck

@Lucas Mills

Would you consider being a private lender? It's about as passive as it gets, and you can make 8% easy on your money. Depending on your terms and how fast you're being paid back, you could recycle that same 100k multiple times a year each earning 8%. Obviously you can ask for more than 8%, just my 2 cents.

-Mike

Hi everyone, I just finished my first flip in Indianapolis, and I see a lot of folks are looking for an honest GC that operates with a lot of integrity. I worked with a man named Grady Selvaag of Creative Restorations and he went above and beyond for me. He helped me not only with quotes and pricing, but also certain pitfalls to avoid. He also showed me what the norm is in the area as far as finishes so I could know if I was over renovating or not. Mind you, this was my first flip and I live in Las Vegas and you know what they all say about long distance flips and how difficult they are. I couldn't have done it without Grady. PM me if you would like his information as I can't post it here. I'm sharing this because I feel like everyone should be able to work with a trustworthy general contractor. This guy is not out to get rich, he just enjoys doing good work, so if anyone is looking for an honest GC, just let him know Mike Volek sent you. -Mike

@Chris Gordon, you could raise another 700k with 2 or more partners and put down 33% on a 3 million dollar multi family for 33% percent of the profits, plus your fee for facilitating the deal. you could also flip said multi family or BRRR it. just an idea

@Cortez Dameron, most people get their start using their own name and credit. Banks will be looking at your own credit score and history to determine you are eligible for a loan. If you are paying all cash, then there's no need. However, the same applies for your business. To get a business loan, you will have to establish business credit, much like your own personal credit. If you set up an LLC with a business bank account, for example, your lawyer/bank/CPA will most likely be the best source of information moving forward. I, however, am neither of these.

@Chris Rivers you got some solid advice on this post. Like @Ola Dantis puts it, keep pivoting. We're at a strange point in the market, so the time you put into figuring the details out now will do you good in the long run. You may have to change up your strategy, but I'm sure you'll figure it out. Just an idea, but maybe consider Tampa. The market there is pretty nice, and the prices are much more favorable. I know you want to remain local, but again, it's just an idea. Good luck.

Hi @Kevin Rollins, by your numbers I assume you're using a conventional 20% down loan. Maybe you could speak with your bank and put down a little less? This will affect your ROI. Maybe even try to convince them to agree to sellers financing. Sometimes sellers will agree to that because they want more money in the long run, and no doubt they would make more through the interest you pay. It's worth finding out. You can find out more from @Brandon Turner's Low and No Money Down book, if you haven't read it already.

I agree with @Ben Wilkins about your maintenance and CapEx numbers. They do seem a little low but I don't know the condition of the duplex. If it were a new building, like he said, then I don't have to repeat it. If it's not new, and I'm curious no one has suggested this yet, but maybe consider sprucing the units up yourself. You can do wonders to a property by painting it, replacing carpet/buffing floors, staining or painting cabinets, etc all by yourself. None of this is outside ANYONE'S abilities, trust me on this. With YouTube, it's such a simple process, that's why you only pay $10-$15/hr for the labor. You would stretch your hard earned dollar and earn a nice return on it. You could increase the rent by $100/mo from this alone, which dramatically improves your investment. Combine this with having the renters pay for utilities and it's even better.

This brings me to my next point. Never, ever, ever be afraid of raising the rent if you feel it is justified. I'll tell you now, the renters you have now are NOT the best renters you will have. You haven't upped your experience with attracting quality tenants, and most bad tenants will be repelled through a proper tenant screening process. Truth be told, a better property will attract better tenants. Raising rents isn't a deal breaker for a lot of tenants, but if it is, you opened the door to attract a better tenant.

My last thing is this: you budgeted for property management, and that's fantastic. If you don't own any other properties, why not manage yourself for a year and collect that money? I mean still budget for it, but just pay yourself. You'll collect invaluable hands on experience and clear up some extra $$$ should any repairs be needed. Managing properties isn't difficult either. It's actually pretty simple once you know what you're doing. You can check out the Book on Managing Rental Properties, yet again by Brandon and his wife, Heather Turner, also full of invaluable information.

There's some pretty narrow-minded individuals on here that will try to give good advice, but maybe aren't the best to learn from. I would like you to re-run the numbers with all of this information and post what the new cash flow and ROI would be. Let's see if this is, in fact, a good deal or not. I look forward to the results. Good luck.

-Michael Volek

Anyone? Anyone? Bueller?