All Forum Posts by: Mike T.

First of all thanks to everyone who helps with this post. I am in month 2 of my first direct mail campaign. Today I had my first motivated call and would like some help on determining value.

I am in Tampa and the market is really rising fast in some areas. I do not want to get burned by buying too high, especially on my first deal. The location of this house is not in the optimal area for me. I have two different areas that are primed for population growth over the next 5-10 years. I know I can be more aggressive in these areas because if I am stuck with a rental, I am happy with the location.

I would prefer to buy and flip my first deal with my cash. But would probably stick it on MLS first and see if a hedge funds want to buy it.

Today I had a message from the children who inherited the house. They are in probate and said it was almost complete, they want to sell the house for 150,000 ASAP. They live in Michigan.

I know there a million questions I need to ask, but please help me figure ARV on following comps. All numbers are from MLS. The two most recent purchases do not show up on Zillow yet. This is a very small subdivision of 30 houses, all comps are within subdivision. All houses built in 91 and 92.

6/26/13 - 1460 sq ft, 3/2 Listed for 149,500 and sold FHA for 130,000. Pictures show very nice property, hardwood floor, granite in kitchen and stainless steel appliances.

6/21/13 - 1520 sq ft, 3/2 listed for 161,200 sold for 170,500 in two months. The house looks brand new in pictures. Again upgraded hardwoods, granite in bath and kitchen and stainless steel.

3/24/13 - 1244 sq ft, 3/2 - Paid 108,750 short sale, now listed for 1350 rent. Property is clean but has all original tile and kitchen.

Property for sale - 1345 sq ft, 3/2 not sure of condition but I know owner has lived in it since 1992. I am assuming it is not updated but children will say it is in great shape.

I know the first two properties have been rehabbed are fully upgraded. I can see they are also bigger, but there is a huge disparity with property 3. How would you work your 70% off these properties? Thanks for any suggestions.

J thanks for your quick response. I understand the financial analysis. It is s a very simple formula. I have looked at several lots that are in subdivisions. They are already zoned and have utilities. They are on 1 acre lots in more private subdivisions. All of the large planned subdivisions in the area are owned by builders or have exclusive contracts with builders.

My GC has done land developement and does want to tie up money for 12 months to work on the zoning, utilities and playing games with the city.

I have access to Mls so I can get rough ARV. Thanks for your input.

I know that this subject has been discussed in the past. I have been reading a lot of old post.

I have been looking for rehab opportunities it Tampa for the past 6 months. As values are increasing I have a hard time finding a deal. My partner is a GC and during the last boom spent his time building for Centex. As well as developing raw land into a subdivision and building custom homes.

We are trying to decide if it is time to jump back in. Any advice on looking at the climate of your local market would be appreciated.

I have had two coworkers sell their house recently in the area where I lived. Both sold for over asking within 24 hours. One sold his house for 170k, he bought it for 120k 15 months. So both of these individuals have purchased new construction. One is waiting 9 months for his house to be completed, the other is waiting 7 months.

My partner wants to find a lot for the first run. Last time he developed it took over ten months for all permitting and getting utilities installed, roads etc.

How should I run market analysis. I have two small areas identified where it is booming again. Both areas have large employers moving into the area. Both areas are basically their own cities located in suburbs of Tampa. It reminds me a lot of North Atlanta 15-20 years ago.

As far as lots available in the area. All of the large subdivisions seem to be builder owned. So you have hundreds of houses that all look the same. But there are some smaller subdivisions that offering one acre lots (I am guessing due to zoning issues).

What should be included in due diligence?

Should I find RE AGENT, would this still be a residential agent?

I can call all of the subdivisions and ask how far out they are scheduled?

Is there a DOY market for new construction that I should look at?

Any advice would be appreciated.

Brian

Welcome! I am getting started also and live in Tampa. I am pursuing a similar strategy to yours. The market is hot right now.
I have not attended a rei yet. But the ones I have found seem to be built around selling you a course.

I just posted week two results of my direct mail program. For a quick recap I am undertaking a 3 month campaign of 1000 absentee owners. I will send out 250 pieces a week for 12 weeks. I chose the standard mailing option to save on cost. I know the average mailing time is 10 days, but cannot be sure when my mailing will arrive at its destination.

The details are below
http://www.biggerpockets.com/blogs/4054/blog_posts/28251-week-2-results

Great job! I am coming across a lot of deals in Tampa at 80-85% arv. These do not meet 70% rule but I think I am going to start trying to get these deals to sign option contract and sell retail. We are in a hot sellers market properties are moving super fast.

Dev
I have been using the script Jerry Puckett put on his blog. I try to have more of an outline than a script. I do not want it to sound like I am reading. But I understand there is a science about asking certain questions in order. I have had more calls this week so it is getting easier. I am focusing more on responses than setting up the next question.
I guess spending my summer 9 years ago at Morgan Stanley as an intern cold calling all day may pay off after all!

First of all thank you to everyone on BP who takes time out of their day to answer questions from strangers. Because of all of you I have taken action and signed up for a 3 month direct mail campaign. It will consist of 2 yellow letters and then a postcard sent to 1000 absentee owners.

I have enough cash to run one rehab at a time, I will wholesale all other deals.

I will be providing an update every weekend. I am utilizing the blog instead of one long thread. Hopefully I can give some value back to those who have given so much of themselves.

Thanks

[url]http://www.biggerpockets.com/blogs/4054/blog_posts/28164-first-marketing-campaign

Hello my name is Mike and I live in Tampa Florida. I have been lurking for the past 6 months sucking in as much information as possible. I have listened to last years BP conference which is AWESOME.

I am an outside sales rep looking to try to make some extra cash so I can start creating passive cash flow.

The podcast are great and I start every Thursday morning by listening to them on my morning drive. I think the information is great but it is also an exceptional motivation tool. In fact after one of the podcast a few weeks ago I went ahead and pulled the trigger and signed up for a direct mail campaign. Mailing to 1000 absentee homeowners each month for the next three months. I know this is the beginning and I plan to reinvest all money back into marketing.

The calls are starting to roll in and it is very exciting. It really makes motivational the juices start to flow. Primarily I am looking for a fix and flip. However the Tampa market is very hot so I if I can pick up a wholesale deal it will be gravy.
I am committing to marketing to these targets for 6 months and will look to BP to help me on the roller coaster!

I do not have all the answers but it is time to jump in the pool. Thanks for everyones help.

This is an awesome discussion. I am in the middle of my first direct mail campaign looking primarily for a fix and flip for me. However I have come across a few properties that may become deals but are not in the part of town I want to invest in.
J Scott mentions the the MLS. I am in Tampa and people are paying crazy money for properties on the MLS. If I get a property under contract can I partner with a Broker and have them list assignment on mls as long as I disclose this to end buyer? Or do I need to buy property and then list it with broker.
Official Florida State contract has a section on contract assignment FYI.