All Forum Posts by: Nicholas Bravo

@Nicholas Bravo I have never hear of the 85% rule, 85% of what? Is it list price, asking price, after repair value of a fixer upper, market price of a property in good condition, market price of a property that need significant repairs or the assessed value. All of these would bring different results.

You also didn't say what are you going to do with the property. Will you rehab it, hold it for a rental or wholesale it. If you are wholesaling it who are you selling to and what are they going to do with it.

I've had several people tell me that a deal isn't worth it if one doesn't make minimum $25,000 on it.

I never heard that one either. Again what kind of deal. If I am rehabbing I would want at least a $25 K profit but if I would quickly flip a deal I am very happy with 10K. I bought a house for $2500 and sold it for $5000. I was happy with that.

Flipping the properties. I would like to eventually buy my own home and also have rentals. Right now I have no money at all, literally living on a friends couch at the moment.

I've been told to get people to agree to sell at a minimum of 85% of what the property is worth. I've only been doing this for a little over a month.

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Originally posted by @Joshua D.:

@Nicholas Bravo

I personally would never use 85% of the List price. May have no correlation to weather you will make money or not.

I use the ARV vs the purchase price. that is all that maters. For me I want 50% purchase price over ARV but i am buying houses at 50k and selling for 100k. In a higher pricepoint market you would be fine with 75%. I cant think of too many places where I would want to buy at 85% ARV.

Good deals are hard to come by... you have to hunt and hunt and hunt. How many offers have you made? 15-30?

You should be able to find a good deal within that offer range if you are doing it right.

Finally I would be very cautious before sending "MIKE" thousands of dollars for education that, with the proper time and drive, could be found on bigger pockets for free.

Unfortunately on craigslist the Purchase price is always ARV as listed on sites like Zillow. I don't mind making only $5,000 on a deal but I just want to make sure I'm not owing money after the deal is done. I've got a few skinny deals in escrow. Most people don't no how to negotiate, so I make an offer, they say no, and do not offer a counter even though I ask if they have a counter offer.

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Most people don't seem to know how to negotiate price. Also, all the idiots who don't categorize their real estate properly.

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I'm confused and frustrated at the moment. I've been told that one should try to get the seller down to 85% or lower of the property value. So far no deals from that. I have gotten some skinny deals where I'm gonna get less than $10,000 profit on each. I know Michael Quarrels and others heavily promote the 85% rule but I'm not sure how to get sellers, especially on craigslist to drop prices that much. I've had several people tell me that a deal isn't worth it if one doesn't make minimum $25,000 on it.

Yeah, I'm using Mike's model and am paying closing costs, fees, etc. Paying all cash, etc. But still can't get people to bite. Personally for me at my income level, I'd be stoked to make $5,000 on a deal. I get how that's not feasible for most. I've been doing the direct marketing off craigslist and do plan to re-enroll in Mike's Gold Coaching Program when I have the money to do so. But for now I need some advice, encouragement, and real world knowledge so i can start making money.

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Awhile back I fell for a scam while trying to learn real estate. I didn't know what I was doing, did not do my due dilligence, and did a short stint in prison. I want to get back into learning about real estate investing, do some deals, and make some good money. I'm not the kind of person who's happy doing the 9-5 job, and do not think that just because i made a mistake I should be punished the rest of my life for it. Of course I have $300,000 that the state wants me to give them, and while to a great degree it was a victimless crime I do want to make money the right way.

What challenges will a felony record bring in regards to doing real estate deals? thoughts and opinions welcome.

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All Forum Posts by: Nicholas Bravo

Nicholas Bravo has started 2 posts and replied 5 times.

Post: 85% or less Rule? Minimum profit amount.

Post: 85% or less Rule? Minimum profit amount.

Post: Craigslist ?

Post: 85% or less Rule? Minimum profit amount.

Post: Felony record affects business?