All Forum Posts by: Christian Marin

Welcome to BP Jose. You'll find all your answers here and won't have to pay for a guru class. I've learned so much just from reading forum post and blogs.

To find out if a property is a good deal you have to find out what similar homes in the area are selling for, then work backwards and deduct the minimum profit an end buyer would want to make, holding and reselling expenses, rehab cost, closing cost and then finally what you would like to make. The final number will be your max offer price. When you go to negotiate start at least $10k cheaper. Make sure the asking price is close to that max offer price so you don't upset the seller with an extremely low ball offer and waste each other's time. This is for a property to flip of course. Buy and hold properties are a little different.

Bobby,

Yes, it will. If you are looking at a duplex then you have to find another duplex that has sold for your comparables. Also 1950's and 1990's is a big difference. There's different building codes and designs. I go 10 years +/- on my comps and if I have to I will go up to 20 years +/- but I will compensate on the ARV for the difference. Maybe look to see if any triplex sold or go back further in your search, you can also expand your search radius.

When I calculate my ARV I use 1/2 a mile out in all directions from my subject property without crossing and major streets, or lakes/rivers. I search back 12 months and look for homes that are 10 years old +/- and 300 sq.ft +/- I then look at each property to see if they were remodeled and not a foreclosure or short sale. I then take the average price per sq.ft of those comps to find the ARV. If my ARV comes in higher than the highest sold home then I will give it the highest sold home price for ARV.

Wow congrats on finding a great deal. Our business model is first person that hands me a check or wire's the deposit gets the property but there are times we get multiple people at the same time that want to go see the home. We just do a group showing with everyone. Once the showing is complete we have each buyer give a silent highest and best offer and the highest price wins. 

@Javier Osuna

I work with Realtors all the time. Don't let the fact that the seller has a realtor stop you from going after the deal. The listing agent will be paid their commission by the seller So you don't have to split anything with them. With any property you find you'll have to analyze it to see if it's a deal so if you have a home listed for $50K and you know it'll be a deal at  $40k then tell the agent your offer is $35K. The seller will most likely counter back and you can too. If the seller accepts your $40k price you can now add your wholesale fee to your end buyer (your profit). This scenario benefits you in the fact that if you let the agent know they will keep both sides of the commission if you get it at that price the agent will help you more than if he wasn't going to. I have agreements with multiple agents where they keep both sides of the commission and it's awesome. I get a heads up on properties before they list them and I usually know what price the seller will accept. I've even had an agent get me a Fannie mae property for $25k cheaper than the list price. Why wait for the listing to expire and lose the deal to another investor? Sellers will be motivated whether they have an agent or not.

@Brandon Turner

 I've used hard money for about half of my wholesale deals. Here in Orlando we have lenders that will lend to buy and hold properties and vacation rentals not just flips. One of the investors I work with bought a vacation rental in Kissimmee, 5 minutes from Disney for $153,000 and only had to put down 20% with the hard money lender we recommended and he got a 15 year balloon. Another lender I spoke with said they'll soon be doing a 30 year loan. 

Pine Hills is a high crime area but it also has the highest investment returns in Orlando. I know multiple investors that own over 20 homes each in Pine hills. As long as you have a great property manager and you account for a higher expense due to some months not getting paid you will earn a huge return. I'm talking about 17-22% annual Return for homes between $30-70k. If your investment strategy is more conservative than the east orlando, seminole county área will be best. Lower returns and higher priced homes but you have a higher chance of collecting rent every month.

Trent, I just replied to your other post but yes central florida is a great area. In Kissimmee you can buy a 3/2 SFR for under $100k and expect to rent it out anywhere from $900-$1400 depending on the are. I currently have 1 in kissimmee I can shoot your way and you can see what I'm talking about.

Central Florida is one of the best markets to rent. You can easily get anywhere between 12%-24% ROI here in Orlando. It's also a great market for rehabbing right now. Still have a lot of foreclosures but prices have risen really good. Are you thinking about investing in Orlando?