All Forum Posts by: Nik S.

@Dominique Mitchell

I check loopnet daily. I’ve bought a few properties that were listed on the site. You’d be surprised what you can find. The good ones go fast and even faster in this market!

@Tracie Janoska

Certain areas / buildings can do great with S8 tenants. I have about (25) S8 tenants in apt units. They are just like the financial responsible tenants. S8 tenants trash units and no recourse? Try “regular” tenants...good luck recouping damages from them! S8 tenants don’t want to lose voucher status so in essence they are in better behavior to avoid breaking their lease. There’s a waiting list to get S8 vouchers in a lot of cities.

You screen ALL S8 tenants as you would for regular tenants. Same rules apply. No discrimination.

I like C+ areas / C+ buildings and mixed tenant categories (S8/Financially Responsible). Keeps my occupancy 90%+ at all times! Oh ya, guaranteed rent on the 1st never hurt either!

You’ll have problems from a variety of tenant classes just avoid D/F properties, section 8 or not! Invest in areas where you feel safe!

@Russell Brazil

Can’t agree more! It’s said that one should never fight the lenders rate but perhaps negotiate the covenants. Also choosing a lender that’s better to work with and one that has a solid foundation in the industry is best. Never be a (1) bank investor either. In the end, some banks just won’t do the deal Bc of your good history either.

@Jeremy Parker

Yes because selling at $240k (-) commission/fees (8% aprox.) is $19k. $240k-19=$221k NET proceeds. Subtract your costs, you left with $16k. Funny I read a pro-flipper shoots for 7-12% of ARV. It does depend on the $ size of the deal as well. 10% of 1m home sale is great profit where as 10% of a 100k home sale is 10k. My minimum profit goal is at $18-20k.

If your numbers are solid and $205k is your all in cost and ARV is $240k, margins are too tight and it's not worth your time and investment. Shoot for 10-15% of ARV on the profit spread. If you can't hit that, the deals not worth it. Also I always weigh in what it takes to get the profit. I sub out all work on flips and still consider the complexity of the rehab even if I can hit my desired profit number.

@Remington Lyman

Always hurts when things happens like this but consider it cheap education. Part of the game. Keep moving forward. As you keep hitting your goals you’ll look back at this and laugh! Live and learn! To the top you go!

@Wilson Linder

I successfully executed this recently on a deal. When you purchase the drop down LLC, you don't inherent any liabilities from past LLC. You also start fresh on the depreciation schedule.

@Derac Shaffer

Your approach is one way to get started! It’ll be a hustle but if your fiancé is for it, go for it! When you scale up to slightly bigger homes, hopefully larger profits will be there....then it really makes it worth it. Hell, once you’ve saved enough “extra” flipping cash, you can do some of the work and hire out the rest if you need a break. Maybe do two at a time :-)

Good Luck!

@David Nacco

Most don’t have a clue about Rolex and Pateks value play. Risk free fun :-) My green dial 116508 is up 15k from MSRP, purchased in summer of 2019. At one point it peaked 30k over msrp....and it’s “just” a watch. You can liquidate a luxury watch in 5 minutes. Welcome to the real world of buying the RIGHT luxuries.

There’s a certain new AMG vehicle right now that dealers are selling over msrp, some 25-50k over msrp. Can’t wait to get mine at msrp in a few months lol!

@Heather Russo

You will have employee(s) who manage and or clean. It’s 24/7 business. Depending asset class / location will tell you clientele. Family has several motels. It’s definitely not too passive as you have to collect books daily etc. Is there drugs/prostitution in the area / motel? Smaller motels are generally cash oriented business with some CC usage of course.

Owner operated motels do pretty well on a CoC basis. You'd be surprised at the profit on smaller motels. I remember people mentioning that they never see cars at some of the motels owned...I laughed because they were always full, the guests didn't have vehicles :-)

I’d recommend only buying motels where the city grants the property as “extended stay”. Meaning guests can stay longer than 30 days. I’m not sure of the guests the motel attracts however a lot of motels I am familiar with have guests that generally want to live there however it’s illegal in many cities.