All Forum Posts by: Steve Sparks

Too many variables... use it as a guideline when purchasing. I have properties that run 8% and some that I am repositioning that are 75%. Every situation is unique. Just be true to your sense of value. never buy just to buy especially in this market. If you have to justify a purchase in any way..meaning "If I do the work myself I will save this amount of money" You are not making the right deal. This is a market where we as investors hold all the cards. If I am writing a check as the buyer the true equity of the property is undeniable.

Here is my take... Most who take classes are looking to "strike the gold".. as was said above. Gurus teach no risk, all reward and a walk in the park. I know many of them and some have more merits than others.. and some have none at all.

This is what I can tell you: I can barely turn a screwdriver, I have never painted even 1 wall and if my sink is dripping I am calling a plumber. That being said I work 70 hrs a week as a full time RE investor. Life is good and there is money to be made but nothing comes for free. There is no magic pill. I hire people to do my labor not because I could not learn it myself but because it is not the most efficient use of my time. I have nearly 100 units and spend my time on how to sell some and how to buy more as cheaply as possible. I spend my time on providing deals to my buyers that will make them want to buy more deals. I spend my time making relationships with sellers that make them think of me 1st when the need to dump an asset. I love what I do but there is no "secret" to millions!

All this being said I have never spent a nickel on "guru" classes.. but I am actually real close to making a deal with 2 of them.. one who can help simplify my processes and one who can help set up a private equity firm.. There is some substance to some programs out there. Just make sure the deal works for both of you.

Just a quick SHOUT OUT! to Vicki. You just solved a problem I have been fighting all week with my new computer and scanner not scanning to pdf. Thanks!

He can leverage them, it is just not my play. There are no rules against it.

Absolutely. Just picked up one in Mt. Healthy, not a war zone at all, for $14,900 with a brand new furnace occupied at $750 per month. 4 bed 2 bath ranch. They can be found. I'd probably sell it to you for 22 : ).

Here you could buy a couple rentals in working class spots (not the hood) that wouls bring between 750 and 850 per month each... no debt. That would be my play.

This is my game of choice. I echo what others are telling you. Every building is different and offering 50 to 60 cent of what you perceive the ARV to be is EXTREMELY dangerous. What I can tell you is I am buying them here at 10 to 30 cents depending on too many factors to name. There are enough of these out there that I can miss my estimates by 100% and still be extremely profitable. But I surely would never consider throwing out offers without knowing the building extremely well. The great part of this strategy is that cash flow can be created and sold.. but it is a high stakes game if you don't have the facts. You will never have ALL the facts as apartment buildings are full of surprises, but you have to make sure you have enough.

Jimmy,

Got your message. I will try to call you tomorrow. I think this thing might be a little over priced based on what I'm seeing here about 80 miles away, but asking price and dealing price can surely be 2 different things these days. The reason is the exact reason for your post..financing. I am finding here in Cincy the banks are much more willing to take a much lower cash offer than one with any financing contingencies.

Steve

Will,

I have a couple of C- buildings (90 units total). Roaches and bedbugs are always a problem. thing is with turnover new tenants always bring them in. Any suggestions other than control them the best you can?

Steve

Interesting deal. I reposition apartments in Cincinnati and live in Richwood KY. Not sure I can help you with the financing end, as I reposition and sell. My buyers seem to think US Bank has an appitite for these around here. It all depends on the strength of the borrower these days. I could be interested in collaborating on this if you need some help. Good Luck!