All Forum Posts by: Noah Applegate

Quote from @Evan Polaski:

@Noah Applegate, honestly I would skip the agent side of things and go straight to a real estate attorney.  My guess is 99%+ of agents have no familiarity with off-market deals or the real nuances of the laws, they do exactly what their brokerage tells them to do with appropriate checklists and pre-written forms/contracts.

 Thanks Evan.  That is 100% true of this contract.  As a rookie myself, I didn't realize how terrible the contract was, but the contract is only abut a page and a half.  After talking with others and seeing how robust contracts are supposed to be, I realized that these wholesalers really don't know much about protecting the buyers or sellers, just themselves.  

Quote from @Peter Mckernan:

Quote from @Noah Applegate:

Thanks for the information peter. I will call the real estate board. After reaching out to the wholesaler if they basically just threw their hands up in the air inside it's not our problem. The contract says I can't hold them liable for anything. Potentially I have a case with the seller as I've asked her point blank if there was math in the house and she said no drugs.

 This is the challenge buying off market from a wholesaler.. Some states require them to be licensed as a realtor, so they need to disclose more stuff to you, and it depends on that state too as Chris said above. For example, California has a TDS and SPQ, basically tells the buyer exactly what is going on with the house, and the seller needs to disclose or the buyer can come after them for damages.. 

The second thing I will say is that you as the buyer have to do your due diligence throughout the whole buying process, even to go to the property and make sure a tenant is vacated prior to closing the deal.. 

The best thing you can do now is see what your state requires from sellers and wholesalers, and if there is some coverage by the state for liability on the wholesaler, then you can go after them for these issues and even the seller. I would contact your local real estate board and see what answers you can get from them and also call a local trusted realtor. 

Help, I purchased a townhome from a wholesaler.  I found out after the purchase that it was a frequented drug house.  Tenants told me seller had tried to sell to investors before but after meth test came back positive they were going to drop the price significantly.  I have not had the chance to test it for meth myself, but All things are pointing to math contamination.  This was not disclosed to me before the purchase and now I'm finding myself in a situation that could end in serious financial harm to myself.  Do I have any reports with the wholesaler or owner of the house?  Can I "u buy" the house?  

This is my first flip and I'm using a heloc on my own primary to fund the project.  

I've been using flipper Force and it's pretty good. I was using builder trend as a contractor, but that was more focused on contractor client and subcontractor relationships. It was also $900 a month and very complicated. For me, it feels like flipper force can do a lot of the important things I could do on there as far as tracking schedules and scope of work. Anybody else using something that's good?

Quote from @James McGovern:

Wholesaling is different all across the United states. Foreclosure auctions is the primary means for me to acquire. Maybe it is because I have not met a world class wholesaler.

 I wish I had the cash to be able to purchase at foreclosure sales.  How long did it take you to build enough reserves to purchase in cash? Do you use hard money for that at all?

Quote from @James McGovern:

Am I alone in finding that in today's market, wholesalers tend to be able to bring properties at the same price points as you can find by shopping at foreclosure auctions?

Hey James, are you saying that wholesale prices have gone down or up?  I'm finding it hard to get a good wholesale deal myself in Colorado.  After hard money and buying/selling costs, I'm having a hard time getting my numbers to work

Quote from @Dan H.:

Quote from @Todd Goedeke:

@John Underwood one of the greatest myths of all is that the way to wealth in the STVR business is owning properties. STVRs is a hospitality/ management business . It’s not a business based on RE appreciation. It’s a business based on generating high net cash flow from a property. The building is a means to an end. It’s not the RE making the money ( other than buying/ building at favorable pricing). It’s the business housed inside the building that makes the money. High quality hotel brands are owned by investors and  triple net leased to management companies. Investors don t invest for RE speculation they invest for cash flow.

There are thousands of investors who are professionals, small business owners , professional athletes, entertainers , high 6-7 figure incomes who buy RE to benefit from its cash flow. They don t need to speculate on the “ maybe” of RE appreciation when they can earn a passive 17%+ tax free return from their leased STVR property/s.

 I suspect this is true of most markets in WI, but not true of most vacation markets. 

My STR properties have appreciated over $1m each. Because I have extracted value via refinance, my cash flow is modest. If I make a little cash flow and the property appreciates over $100k/year I am very content (which has been the case in recent years).

Different markets, different approaches.   They can all work but it is important to recognize there are differences in markets.  

Good luck

Dan H, curious to know what markets you are in

Hi my name is Noah, I'm a licensed GC in NOCO.  Our company has flipped 5 homes in Northern Colorado over the past 5 years and I've gained a lot of XP through other people's risks.  I've also built dozens of additions, garages, and new Builds, including cabins in the Cameron Peak fire area.  I've decided to take my experience to the next level and venture into flipping houses myself and hoping to see it become more full-time in the future.  

Investment Info:

Single-family residence fix & flip investment.

Purchase price: $158,000
Cash invested: $35,000
Sale price: $250,000

This was our first house Hack that we added value to. I renovated the basement and most of the main level. We usually had around 3 other people renting for us and sold the house a few years later as the largest sell price in that neighborhood to that date.