All Forum Posts by: James Hiddle

You might as well call hedge funds hedgehogs as they're hogging all of the properties.

Ok bad joke "takes a bow and exits stage left" :)-

George I want to throw this at you so that you understand that even though something can cap at 10 or 11 doesn't mean it's a great deal. If the complex is in a very bad neighborhood I imagine you'll find a ton of 10 caps but you'll also run into vacancy problems as well as damages up the ying yang as you'll be dealing with extremely poor quality tenants.

You can find a great deal that caps at 7% in a pretty good area and it would be a ton better than a 10% cap in a crappy area in the long haul.

So don't limit yourself just to 10 caps. There are good deals out there that cap less.

I use the 50% rule!

It depends on how much it's going to cost you. Have you gotten a quote on how much it will cost to get rid of it?

I've seen caps in some areas going 6-8% and I've seen caps going 9-12% and even some lower than 6%.

As someone mentioned it's all location/market based. So in regards to the agent he's probably right that he's never seen anything above 8% in his area but that doesn't mean they don't exist in other areas.

If you want 10 caps you need to start looking for them.

You don't have to be a road scholar but you need to know what the hell you are doing before jumping into anything.

I mean would you jump into the ocean if you didn't know how to swim?

Jeremy Gonzales define "full service wholesaler" as I have never heard of that term before.

It's nice to know what the estimates are so you can correctly evaluate a properties potential profit margin even before you speak to a buyer.

When you go out of the way for your end buyers you create rapport with them so they would want to purchase more property from you.

It sucks because:

1.Too much back taxes unless you can get the seller to pay those off
2.According to the OP the house is in rough shape with foundation problems,plumbing and roof which is going to be quite expensive

Unless those comps come in pretty high which I have my doubts this looks like a no deal IMHO.

But I guess we'll wait until we find out what the comps are.

The deal sucks move on.