All Forum Posts by: Mitch Messer

I don't know Steve Mayer of Finance holding Company.

I do know that no lender should be asking you for an origination fee until they ... actually originate a loan!

I would ignore/block those emails, if I were you.

Getting just $100/mo would definitely concern me!

Come even the slightest ripple (an increase in property insurance, an unexpected repair, etc.) and suddenly you're drowning in a sea of negative cash flow.

Also, are you including both professional property management and vacancy in your operating expenses?

Many first-timers don't, and then they are CRUSHED when reality bites down hard.

Trust me: I was one of them...

Be very careful!

Hey Mary, I've got a great CPA recommendation for you. I'll reach out with contact info.

Where in Oklahoma do you currently invest?

I'm active in Tulsa and have contacts working Oklahoma City.

Hey Hugo, while your request isn't unreasonable, you're not helping yourself at all here:

1. Investors work with real people. Your BP profile photo doesn't show a real person. Strike one!

2. Your BP profile is completely blank. Strike two!

3. You've contributed all of three posts to this community. Strike three, you're out!

If you truly want to be taken seriously in this business, you're going to have to put in a bit more effort.

(This is probably the only honest and serious response you'll get to this post.)  

My pleasure!

One last thing: I *think* I've found you on LinkedIn, but I'm not 100% certain without a matching photo. I'd strongly encourage you to make it easy to be found and cross-referenced across the social media platforms you use. BiggerPockets is great for real estate networking, but you're missing out if you don't leverage the sheer size of platforms like LinkedIn to start building business credibility. Your future self will thank you!

As a wholesaler, you're going to want to deal primarily with cash buyers for TWO important reasons:

1. You want to able to (double-)close quickly.

2. You don't want to be unable to complete a transaction because the investor-buyer wasn't able to secure financing.

@Jeremy Holden Are you looking exclusively for hard money, or would private funds work?

How much is being requested? How much renovation is needed?

Hey @Jacob Lileev!

The MAO formula (70% of ARV Minus Repairs Minus Wholesale_Fee) only makes sense for fix-and-flip deals.

For rental deals, you'll need to calculate the metrics that matter to a landlord, starting with Cash Flow and Cash-on-Cash-return.

To do this you'll need to estimate Income and Operating Expenses to get Net Operating Income (NOI). From there you'll need to determine Debt Service (if it's a financed deal) and Capital Expenses, to then calculate Cash Flow.

The Cash-on-Cash Return (CoCR) will just be Cash Flow divided by the All-In Investment (Purchase Price + Renovations + Closing Costs + Wholesale Fee).

If you're wholesaling these deals, I recommend you aim to offer your buyers a Cash Flow of no less than $250/mo and a CoCR of 10% or higher.

Hey @Derrick Sanford, welcome to BiggerPockets!

I've been active in the Tulsa market since 2021, when I lived there for a year and a half as a digital nomad under the Tulsa Remote program.

What's been your biggest obstacle to getting started?

Hey @Kris Patel, welcome to the wonderful world of wholesaling!

You're in this at waaay too high a purchase price! That's why it's not selling.

In most markets, your Maximum Allowable Offer (MAO) to a seller should be no more than:

MAO = (70% * ARV) - Repairs - Wholesale_Fee

MAO = (0.7 * 290K) - 40K - Wholesale_Fee

MAO = 203K - 40K - Wholesale_Fee

MAO = 163K - Wholesale_Fee

               - OR -

MAO + Wholesale_Fee = 163K

So, you'd need to get this under contract with the seller at under $163K to make any money at all as a wholesaler.

At $200K you're NEVER going to get any interest from experienced rehabbers.

This is also why you probably got no resistance or pushback from the seller. No one else was likely offering them anywhere near your $175K.

This is why.

You need to buy at a deeper discount.