All Forum Posts by: Andy More

Jeffrey, I revised see below. I can close in a week and my title company can do title that quickly. I dont want people to think that quickly is 4 weeks and dont bother to call because they would rather wait around for a retail buyer. I want them to realize there problem can literally be gone next week.

"You also need to fix the part about selling at a discount off market value. Why would one do that. Market value is what it sells for." The reason I put that in their is because that is what i'm looking for. I'm looking for multi family to flip. If I didnt put that in their I assume I would have to sift through 100 people to get to 1 that might be willing to sell at a discount. On the other hand, if I leave it out then I might be able to buy at a discount when the seller thinks they are really getting market value. I may remove the selling at a discount and see what happens. I was just hoping to pre-screen these people before they ever contacted me.

I'm looking for multifamily properties to flip, not necessarily that cash flow.

I will put my phone number in add.

Jeff B, thanks for grammar corrections. Never been my strong suit.

"If your interested in selling your multi family rental property FAST and are willing to sell at a discount to the current market value then I am interested in buying your rental property. I am a local Columbia resident, I am not a Realtor and am looking for property for my own personal investment.

I can guarantee a quick and simple closing.

Looking for property up to 500k.

Any numberuld rather wait around for a retail buyer. I want them to realize there problem can literally be gone next week.

"You also need to fix the part about selling at a discount off market value. Wh

I just sold my most recent purchase and plan on starting to look for another property. I'm sending direct mail to multi-family owners with equity but in addition to that I figure it doesnt hurt to put an add on craigslist since its free. I"m not a big fan of flowery language are sales gimicks and prefer to just get to the point. Although, if something different works I'll try it.

Critique my add. Is there something I should add or subtract? Any suggestions for a heading and what section in craigslist should I post in?

"If your interested in selling your multi family rental property FAST and are willing to sell at a discount to the current market value then I am interested in buying your rental property. I am a local Columbia resident, I am not a Realtor and am looking for property for my own personal investment.

I can close in as little as a week on most property.

Looking for property up to 500k.

Any number of units in any condition considered.

I prefer property in the southern half of Columbia.

If we come to an agreement on a price I can promise a quick and simple closing.

If your interested in getting an offer on your multifamily rental, give me a call or send me an email via Craigslist."

I wanted to give everyone the rest of the story.....

This is a follow up post to the below post I started back in September 2010.

http://www.biggerpockets.com/forums/88/topics/55498-flip-why-wont-this-work-?page=1

I sold the duplex today and everything worked out better than anticipated!

Here are the details, some figures are estimated but very close.

175k sold price(all cash, no appraisal or inspection!)
-$785(purchase closing costs, paid cash)
-$0(sold without a realtor!)
-$564(my closing costs on sale)
-$20(repairs, burner on stove didnt work, fixed myself and had to buy a couple parts, unclogged two garbage disposals at no cost, fixed non working gas fireplace at no cost)
-$140(previous landlord paid culligan $40 per month for rented water softeners)
+$5,250(GROSS rental income for 3.5 months, no vacancy)
-$175(homeowner insurance for 3.5 months)
-$546 (real estate taxes for 3.5 months)
-$145,000(purchase price)
=$33,020 pretax profit!

22% return on 145k over 3.5 months. Annualized return 77%.

If I could earn 77% return on my cash every year I would quite my day job in a hearbeat. Heck, if I could get a 30% return on my cash every year I would quit.

I wanted to thank all the posters in my original post, there was lots of good advice that I belive helped me seal the deal!

On to the next one...

IF your numbers are right I would buy it ASAP and sell it ASAP for 180k and make a quick 50k+ profit.

However, what part of the country is the property in? 180k for a 700 in rental income is a 257 gross rent multiplier which is HORRIBLE.

Is the property listed with a realtor? With 70k in instant equity, why hasn't anyone else bought the property?

What are the rents and what are the selling for?

I dont believe in buying individual stocks in an attempt to beat the market. Something like 70-80% of mutual fund managers cant beat the market(S&P500) rate of return over a long period. I'm significantly less educated when it comes to picking stocks compared to them so I take the easy(and more likely more profitable) route and simply buy the market itself. Any time I have excess cash I want to put into the stock market I simply buy Vanguard S&P 500 index fund. Its cheap and diversified and I'm guaranteed to get the market return.

I believe that spending lots of time trying to beat the market is futile. The stock market is too efficient.

I prefer to spend more time on less efficient markets like RE where my extra knowledge and research will likely allow me to earn above average returns.

"Buy and hold properties build long term wealth, flipping creates short term bulk cash flow"

I hear this regularly. So why can't someone build long term wealth by regularly generating short term cash through flipping? If i flip 4 properties per year and make a total of 100k every year and save that 100k would I not be building long term wealth? That is like saying the owner of a payday loan company could never become wealthy simply because he only make short term loans.

The first rental property I bought was intended to be a buy and hold. After I purchased the property I realized how good of a deal I really got. I had a choice. I could keep the property and continue to rent or sell for a quick profit. I flipped the property. It would have taken me 10 years of cash flow to equal the amount of money I made by flipping the property. Also, I did zero renovation on this property!

It seems that if you can consistently find good properties to flip then your annual ROI on your money can be much higher with flipping.

I've never understood why people consider a flipping a short term strategy and buy/hold a long term strategy. If your a competent flipper and you can earn a higher ROI by flipping than buy/hold then why would you ever convert to buy/hold? The goal here is to earn the highest ROI possible relative to risk right?

With that being said I understand flipping is more time intensive and that alone could cause some people to lean more towards buy/hold.

Thats what I would do.

I did not filter by LTV on my first mailer. However my second mailer which i've got ready to send out I did filter by LTV. I think my second mailer should be noticeably better since I know everyone has equity and can sell to me at my price if they want too.