All Forum Posts by: Morgan Gutierrez

We always appreciate when we get feedback about our deal whether it is if the ARV is elevated, the repairs are off, or if there is something specific about an area only a local knows; or even how we presented the deal.

We want our investors to see the profits, otherwise they wouldn't buy our deals - as y'all are mentioning here. Occasionally we have 80% deals, more for our buy and hold investors that have a longer term to make their money. But our goal is to have our purchase price at at least 70% - repairs. We understand you are taking on the risk and need to reap the most profit! 

I'd recommend start looking at different deals. Find a market you want to invest in and get on some list. Start analyzing the properties. When a property comes your way that is a good fit for your criteria wether you decide to flip it or hold it, then take action. While doing this, network with lenders and people who use the strategies you are considering. Also, listen to podcasts and read books. The real teacher is experience, but having the theoretical knowledge to apply is better than figuring it all out as you go.

I would not try and start with building from the ground up.... 

For your first flip, I would recommend seeing if you could partner with someone who flips a lot of properties in the area. Yes, you will give up some of your profit, but it will teach you a ton and could really help save you in the long run!

Congrats on getting started!

I would recommend asking any contractors to talk with their most recent finished project as a reference. This can give you insight as to their most recent quality of work and the relationships they build with their clients. 

You will want a contractor, or multiple contractors, that you can build a relationship with and use over and over again. 

Having a great listing agent is also important. They can help you understand what is selling in your area and give you insight on paint, fixtures, styles for your flips in an area. 

Off market properties have a higher likelihood of giving you the returns you are looking for and the purchase price you need to make the numbers work. Wholesalers and sometimes realtors can help with this. 

Hope this helps!

 If you do not want to spend the time or money to source off market deals, you can work with wholesalers and some investor friendly realtors also can help you source deals. True, just because it is off market doesn't mean it is a good deal. You are likely to find them under or around 70%-repairs purchase price though. 

Evan made a great point with the types of deals to keep a lookout for on the MLS.

I hope this helps!

If only we had a crystal ball...

I think there will be more people buying while the rates are lower. There have been people renting after selling waiting for prices to calm and rates to decrease. I think the prices will stay fairly stable. Some areas may be receiving multiple offers again especially if sellers are not increasing prices. 

Send me a connection request 

or

Call or Text ‪(832) 953-4823‬ if you want more information

You can view the pictures here: https://drive.google.com/drive/folders/1voKwgn5d_Dy-raIGh7K4hQ8ApsMWjnYp?usp=sharing

West Monroe, LA 71292

1.98 acres 

Lot Value: $40,000

Asking price: $37,500

Property has:

aerobic septic system

city water

electricity

2 storage buildings with electricity

2 bed 2 bath manufactured home that could be remodeled or removed 

If you are referring to the classic 70% repairs, here is some insight I hope is helpful. 

This is a general rule to start at, and used for average priced homes.

You take the ARV of the house and multiply it by 70%. This is is to give you a 30% spread for your holding cost, selling cost, money cost, and profit. Then you subtract the repairs. This gives you your MOA.

Example: House ARV: 100K, Repairs: 25K, MOA: $45,000

100,000*70%= $70,000

70,000-25,000= $45,000

Now when you are looking at homes that are more expensive (450K+) you may not need to use the whole 70% because the cost of your money won't change depending on the price of the house.

This is just a baseline guide, similar to any of the other "rules". It depends on the house, location, market information, rental rate and amount of repairs. There are other factors that could go into play as well. 

Feel free to reach out if I can be of more assistance :)

Good luck!