All Forum Posts by: Nereo Mendoza

Welcome to BP @Andres Luna 

I am also in Fairfax County but looking all around for properties with the proper "spread"

Good Luck

Nereo Mendoza 

Welcome Tiffany

I am close by in Fairfax County, you will find countless resources here in BP

@Tasha Mckoy is also here in the DC metro area and I think she can be a good contact for you

best luck

Nereo Mendoza

When you are looking for properties to acquire for wholesale, is very important to think like your buyer will,  think he needs to pay:

• The property (lets assume 95k for example), 
• You (lets say 5k), 
• Closing cost at purchase (lets say 2k if paying cash)
• Made the rehab (lets say 50k, asumming kitchen, floors, 2 baths, painting and no major surprises),  
• Pay his hard money or private lender (for example 3 point at start and 12% yearly can be around 3k and 5k for 5 months financing, assuming 1 month rehab, 1 month selling and 3 months waiting for closing ),  
• holding costs (utilities, taxes, insurance, etc can be 2k or more)
• Realtor commissions 6% (12k if it sells for 200k)
• closing costs at selling (around 6 to 8k)

If he closes for 200k he will be making 20k for all the risk and 5 months wait, if it takes longer than a month to find a buyer his profit shrinks paying financing, if the rehab budget goes up he loses profit or even money

So choose carefully your properties, if your investor buyers make money quickly you will sell quickly and more important last in this business, if your properties are not appealing to savvy investor maybe some new one will buy you and he will get in trouble and loose money and your reputation will suffer

Is not easy find properties heavily discounted in areas moving fast, that is why you are paid 5k  without putting any money or risk

My numbers can be wrong if somebody has a correction please jump in 

Excellent!!

We normally estimate 2% of purchasing price for closing costs (which can be affected depending in the type of financing) and around 4% on the selling price 

and 5 to 6% for the Realtors, depending on the market

best regards

Nereo 

Hello Michael 

I suggest you to look here in BP using phrases including "probate", i just tried and found some interesting stuff like this post 

http://beta.biggerpockets.com/forums/56/topics/984...

read a lot before jumping into this and I also suggest to run your number to asses if it will worth all your time and effort

best luck

Congrats, you did very well 

What about the other expenses?

• realtor commisions?
• closing costs at buying and selling?
• any others?

best regards

Hello Eric 

Welcome to BP, you will fund countless resources here

best luck

Nereo Mendoza

Great advice from @paul_timmins 

Dedicate a lot of time to study and learn , a little everyday will take you far 

Read the posts here in BP constantly

Listen to the podcasts here in BP

Take notes in a particular notebook or other place, this site is huge and at some point you will not remember were you read or hear it, so is good to have important things handy

Start looking around your local area, for distressed houses, to have an idea of the market use resources like zillow.com,  realtor.com, home.com, homesnap.com, etc. those are free sites and you will understand the real prices looking at recent sales (less that 3 or 6 months and less than a quarter mile from the house you are studying) take notes in a log, focus in an area you understand, don't look all over the city

Don't fall for the "9,998$ special offer just for you but we need to close in 5 minutes" of the gurus and the after sell "guidances"

Print some business cards, Meet people in your local Real Estate Investor associations, don't be shy, try to connect,  try to learn the ropes offering help to somebody, give value to them and probably they will help you 

and most of all be patient, this takes time

Welcome @Brian Beck

I am also in the Washington DC area, you will find countless resources here in BP

I recommend you also to go to the real estate investors meetings, look for them on Google, there you will connect with all kinds of people connected to the business in your area

best regards

I just read a very good post called "Baltimore Neighborhoods" with lots of good information