All Forum Posts by: Dave Passey

Hey @Joseph Ruzic

I do investing in the area also. What areas and kinds of properties are you looking for?

Hey @Tony Castronovo, as @Vijaianand Thirunageswaram mentioned you will need to give them the 30 ay notice if needed. If you are feeling that ethically you should tell them in advance, then there is obviously nothing wrong with telling the tenant that you are looking into selling the property. Until you are more sure that it will go through you could just tell them that is not a solid plan yet and that you just wanted them to be aware of what was going on. 

Tenants usually react in one of two ways. 1) They will want to leave. They may start looking for a place. They may even find one and want to move. If their lease doesn't let them, then you don't have to let them go. 2) They may just stay and see what happens. I find their choice really depends on how difficult it is to find housing in the area. 

You are responsible for everything that a landlord would be responsible for in any normal situation. It doesn't matter that they were the owner before they became the tenant. I would imagine that when they eventually do move out they are going to try to take some extra things with them because they are going to think they are theirs. 

I would look and see what is included with the house when you purchase a foreclosure. As far as that goes, I don't know what would be included. 

Definitely an interesting grey area!

We have used the MOJO dialer before and have liked it. We still use it at times. The biggest downside for us is that it is not linked up to our CRM so when someone picks up it seems like we are always scrambling for a second. 

I guess, what would be your plan for the property? It sounds like the town is dwindling and they are trying to get more people there, but the rental market can't be great when people can buy hundreds of abandoned places for dirt cheap and I would imagine that you couldn't really flip it either because no one currently really wants to live there. In the article it says that they think it will take $25k to fix it up, but then what do you do with it?

I have never looked into international real estate investing, but this doesn't sound like something that I would be interested in doing unless I was going to live in the house, which is what it seems like the town in trying to attract. 

A guy I work with that lives in Dallas has a property that he rents in Jerusalem (because he used to live there) that cash flows for him every month, but he is selling it because it is a headache for him. 

I have a house that can get off of the "Wick" streets in Houston. It is just south of Memorial Dr and west of Voss Rd. These houses are super expensive. The house that I can get is about 3700sf and was flooded in Hurricane Harvey. From what I see in the area, there are a lot of houses that have been torn down in order to build some massive 9000sf houses that are selling in the $4M range. 

The question I have is Who knows a builder that can handle a project like that or would be willing to spearhead it. I don't know people that do work in that price range and wanted to see if anyone could help me out. 

@Robert Grunnah

We are primarily focused on single family homes. We are a wholesale company for the most part. We do direct mail marketing to talk to sellers and we are talking to them and then qualify them from there. Then make the offers based off of them. 

Acquisition manager is a broad term and they could have very different roles depending on your investing style and goals. I work as an Acquisition manager for a company. It is owned by a friend and we have worked together for a long time so I don't know if I am the best example, but since I have been with the company we have hired on 5 other acquisition managers. 

1) A couple of them contacted us and were put through rigorous interviewing and questioning about personality and goals. We did put up an ad and got one guy from that. We had many applicants and only chose the best one and he has been awesome. One was referred by a colleague and unfortunately did not work out in the long run. 

2) There are many ways to compensate an acquisition manager which all usually boil down to some cut of the proceeds from the property. Percentages are based off of how much the acquisition manager has to do in the entire process. Some AMs only acquire the property. Some acquire the property and get it through the title work process. Some acquire the property, get it through the title work process, and sell to an end investor (if you are a wholesaler). All of these would have a different compensation structure that should be discussed with your AM and see what they want their role to be. 

3) I can't really answer this one because I am the AM, but I know that the business has certainly increased its profits significantly since hiring on AMs because the one hiring is able to focus on other important parts of the business. 

4) Once again, I am the AM, but I know the owner of our company has been able to step out of the company more and allow it to run independently and focus on other revenue creating opportunities. Basically it has allowed him to have fully functioning company without being present so he can go and make more money. 

Good luck and happy investing!!

This is always a tricky situation. 

Whenever I have something like this happen, our safe bet is to go low. You might not get the deal because of it, but no deal is better than a bad deal. 

Having no comps is tough because essentially the sales price is whatever someone is willing to pay for it. I have a house that I have under contract that we are about to sell and I feel like it should have been able to sell for about 50k higher than we sold it for, but the fact of the matter is that there were very few comparable properties and it is a higher end home. We are still going to make money on the deal, but it could have been a lot more based off of the "comps". 

The only reason we were able to get this deal to still work for us is because I contracted it low enough so that we were safe. 

Good luck out there and happy investing!!

Hey @Amadeus Hladun

Your first property sounds like a pretty typical Lethbridge rental. From the details you provided, it seems like you would be a good candidate for doing a BRRRR model property.

My family is from Magrath, I went to the University for a while and my brother currently lives on the the south side. I have looked at doing rental properties in Lethbridge in the past and found that it could be difficult to get a good BRRRR property. It doesn't mean they aren't there, it just means that patience is definitely going to be one of your virtues if you plan on investing in Lethbridge.

I always think that no deal is better than a bad deal. Be patient, but look diligently. Take a look at your goals and determine which investing model best fits where you want to be in 5, 10, or 20 years. Having the end goal in sight will help you determine if you want to pursue varying investing options. 

Good luck and happy investing!!