All Forum Posts by: John Chan

From my experience as a Realtor and an investor, there is never a problem when making an offer on a piece of property you want to purchase yourself. All you need to do is disclose the face that you are an agent.

Tracey,

What part of Ohio are you from? I quick decision on this property would be to PASS based on the numbers.

What is your investment goals? To hold for cash-flow? You can find much better deals than this one, regardless of where in Ohio it's located.

That house definitely looks amazing now. I, too, am curious to see some before pictures. Good job by the way!

You have to keep your mind open for all types of deals. Wholesaling can get you 20% returns quickly. Flipping, while higher risk, should command even more. I've had one rental property that I brought for 20k and realized 220% profit one year later when I sold it.

I don't limit myself. Besides, gross returns don't matter anyway. I focus on the net because it's what I keep in my pocket.

Max,

Sophisticated investors never focus on how much the wholesaler is making but rather on how much they can make off the deal. I'm a wholesaler and an investor. As a wholesaler, I've wholesaled a house where I brought for 18k and wholesaled to another investor for 30k, but that was a good deal to that investor because it fit his investment criteria. Always focus more on the deal rather than how much the wholesaler is making.

"The best mentors you don't pay for, and couldn't afford if you tried."

That truly is one of the best quotes I've heard in a while. That's going to go in my books.

Is this a bank-owned property on the MLS or is this from a wholesaler?

What are the expenses (taxes, who pays utilities, etc)?

I'm not too familiar with Memphis's market. I don't know the rental demand, or the demand for families buying single family homes in that area. But strictly going by the numbers, it's borderline OK, depending on the type of market.

$750 will get you a single story 2 or 3 bedroom with 1 or 1,5 bathroom in a decent working class neighborhood in Cincinnati. Those houses only cost 30-40k if you're buying right. I once brought a 3 family foreclosure for 20k and rented it out for $1,500. Pretty good cashflow.

You forgot an important factor: How much do they want for the property? Also, know how much the property is worth will help you determine if you can wholesale this property or not. Find recent similiar homes that have sold nearby to get a more accurate value. NOTE: The value of the property most of the time is different than the county asses value.

I started this thread to try and find out which creative acquistion methods investors think are best for a low money down method of acquiring real estate and why.

Out of all the methods (lease-options, land contracts, subject 2s, rent-to-own, seller finance, etc), what makes a particular method work better than another in your market? I know that around my market of Cincinnati, land contracts are much more popular than subject-2 amongst investors.

I know some of you current investors specialize in subject-2's, land contracts, etc so I'd like to hear some of your opinions.