All Forum Posts by: Patrick Ellis

Daniel,

That's great that you secured some funding. Now you need to decide what kind of investing you want to pursue. Because each may have different requirements for funding. 

Bigger Pockets is a great place to begin learning about the different investment strategies.

Good luck.

Patrick 

Vanessa, I was once involved with a similar situation over in that area.  The owner was emotionally invested in the property and didn't want to consider the buyer or investor side of purchasing a tear down. In that situation, where the home was unsalvageable, the comps need to be run as land-only. Which, in their case, were about $100k lower than what she had hoped.  It's kind of like trying to sell a car with great wheels. But the rest of the car is damaged beyond repair.  At that point all you're really selling is a great set of wheels and some scrap metal. 

I tried running the property through the investment channel. But nobody wanted the property at the price she was asking. The only advice I could give her was to let me list it on MLS and seek a retail customer. But she claimed she had already signed an exclusive sell agreement with a realtor friend. At that point I needed to walk away.

I would try convincing your mom to list the property on MLS. There are some cheap listing services like Zillow. Even if she only pays the buyers side of agent fees, it's still better than being stuck with the property when she wants to move on.

Good luck.

Warren,

I ran the comps and Chris is correct. The purchase price of $143 is pretty accurate for that property once all the work has been done.  I've also heard pretty good things about MemphisInvest.  So, I guess the question you want to ask yourself is whether you want to pay what seems like retail pricing for the property.  There is some value in purchasing from a company that has done the rehab for you and set the property up as turn-key.  But you are paying a premium for that service.  Other contributors make good points as well in that you have limited exit strategies when you purchase a property at retail. 

Hopefully you got enough information from these posts to make an informed decision.

Good luck.

P.

Chelle,

Please give me a call to see I can help you with this.

Patrick 

Hi Stephanie, feel free to reach out if you want to talk. I am a local Dallas agent.

Patrick 

Check with Henry at PowerStar Realty. Can't put numbers on here. But you can look him up.

The typical model for wholesales in Dallas is 70% of the ARV. Unfortunately, people are buying them at that margin. So, the wholesalers aren't feeling any pressure to do better. Since the rehab numbers are typically understated, the buyers end up exiting the deal with very little profit.

As Rigo says, their is always a new batch of investors out there willing to pay top dollar. 

Denny, I hate to say it. But you are absolutely right about realtors.  As one myself, I can't tell you how many times I've run comps for an investor only to never hear from them again.  It's simply not worth a realtor's time to do the leg work only to have the investor disappear with the info. 

My suggest is to create a relationship with a realtor where they benefit from the work.  Having a a good agent on your side can be very beneficial. 

Let me know if I can help.

Patrick

Mara,

I'd be curious to know where you got the house. Was it from a wholesaler?

Hi Rich and Jessica. I am a local Real Esate agent in DFW. Please feel free to reach out if I can help.

Patrick