All Forum Posts by: Dan Miller

James,

Thanks for the tip. Where is the search function?

Dan

An avid real estate investor who is a friend and serving as one of my mentors, made me aware of a couple plots of property in a gated retirement community in Arkansas. He has owned a few properties here, one which he sold for a nice profit of about $15000 after 15 months and another which he still is holding. He has a solid network down there with a real estate investor (essentially a wholesaler) and a RE agent. His wholesaler told him of these two properties, which are neighboring lots on a cul-de-sac, next to an already built home. the one that I'm considering is on the end of the cul-de-sac and will ahve no neighbors to its left (its common land that cannot be built on by rule of the association). It's also .85 acres, when the average property is about 1/3 of an acre, so it's big.

This community has about 10 golf courses, tennis, fitness centers, several large lakes, and lot of other amenities. Basically, it's a high end retirment community, and it's fairly large.

The lot I'm considering can be bought for 40k, and teh wholesaler told me that he would retail it for 50k (he got it for 32k), but since my friend has done business with him multiple times, and he knows we're investors (and he can immediatly sell the property), he will sell it for 40k.

My friend has told me that he generally holds the properties for about 12-18 months and sells them for profit (since they are purchased below market value). The RE agent serves as his eyes and ears locally, as we're both in different parts of the country.

My friend is a trustworthy person, and he has been very successful in real estate. As a result I trust his network and team in Arkansas. Plus the baby boomers are retiring, so retirement properties will continue to be in demand. The selling points on the lot I am considering are that 1) it's more secluded (cul-de-sac) and 2) is larger than most properties in the village. Lastly, it is about 1 mile from a Top 5 golf course in Arkansas.

If you were offered this deal, what questions/information would you seek to determine if it's a good deal?

I am a new investor, looking to wholesale. I have lots of time and some money, so wholesaling seems like a great place to start, and I'm in the process of educating myself and learning a system to do so. I'd love to find out where the investors in the DC area are investing. I know PG County is big. What about DC proper or Northern VA? What are the hottest zip codes where investors are active (i.e. what are currently considered the ugly neighborhoods, but not the war zones).

Thanks,
Dan Miller

Thanks, Jon.

So just for clarity, you simply recommend going with 50% of gross rent, which incorporates all of those expenses, right? Then adding to that the debt servicing and voila, you have your evaluation of cash flow.

what would be included in operating expenses?

Here's what I am guessing:
1) Maintenance
2) RE taxes
3) Vacancies
4) Delinquencies
5) Any HOA fees

Are all of these built into the 50% rule? You can plug in actual #'s for RE taxes and HOA fees (if applicable). You can probably even estimate a vacancy rate by asking realtors and other landlords in the area. I think the big unknown is generally going to be maintenance expense and maybe delinquencies. Wouldn't you prefer to use actual #'s where known and then use a lower percentage as "remaining operating expensese" to determine cash flow?

I've never done this, so I'm just trying to learn. Please correct me where I'm wrong.

Thanks,
Dan

Is there a way currently to network by region within BP? I am hoping to connect with DC investors, agents, etc.

If not, one suggestion is to form a networking specific forum for major metropolitan cities, simply used as a means of connecting with others locally.

Just a thought.

Thanks,
Dan

Hi all,

I have posted several times already in other forums (and gotten a ton of great help!), and I introduced myself a few months back, but I wanted to do it again, as I think I have more clarity in where I'm heading now with RE investing (at least over the next 6-9 months) and wanted to share that.

I'm a newbie investor, focused on becoming a great wholesaler, with a longer-term desire to be a buy-and hold investor and develop more sophisticated skillsets (lease options, foreclosures, sub-2, etc.). I am based out of Washington, DC, and looking to connect with other investors in the DC metropolitan area. I have been to one local REIA several times (which I really like), and made some connections, but most of those folks are MD/Baltimore-based. Please PM me if you would like to connect and share info. Even more specifically, if you are in DC Metro (would love to meet people operating in the DC and Northern Virginia area).

I am seeking a mentor (willing to pay for that help of course) to learn the biz and get into it as well as a good network of other investors, and a team of advisors (RE attorney, RE agents, etc). Any suggestions in the DC area would be awesome!

Looking forward to exchaning info with investors on this site, and already appreciate the tons of advice I've gotten from everyone on here. Thanks BP and to all of the posters in these forums! You are generous with both your time and your advice.

Dan

As a new wholesaler, I'm still confused how I estimate rehab costs when determining the maximum allowable offer and the profit potential. As a new investor, I have no experience or knowledge of rehab costs, so it would be tough for me, at least initially, to just approximate.

I could see bringing out a contractor to provide estimates if a) I were going to go through on the deal and use that contractor from time to time; or b) was looking at properties individually and had time to go look at each one and bring a contractor out.

However, I assume that an effective wholesaler is putting a large magnitude of offers out there every week, most of which he/she has never seen personally. Second, I assume a contractor, unless paid, would not want to continue providing estimates if he knows that I won't be giving him business (since I won't be owning the property) .

Any advice here? This one is stumping me.

Thanks,
Dan Miller

I'm a new wholesaler and having trouble getting answers as to the popular investor zip codes in DC metro (DC, Northern VA, and MD). I've gone to REIA meetings and asked, posted questions on forums, etc, but can't seem to get much of an answer. Can you give me an idea as to how I can learn which neighborhoods to focus my attention on as I just start out?

Thanks!

Dan

If I live in DC and don't yet know where I'll do business (MD, VA, or DC or all three), would it make sense to set up an LLC in the district, MD, or VA? Is this question best answered by a lawyer or a CPA? I'm meeting with a lawyer on Thursday, but wonder if it's more of a tax question than anything else.

For a sole member LLC, if I whole properties in the two states and in the district, where would I end up paying taxes (given that I live in DC)? All 3 states/district? Just in DC? How does that work?

Thanks!