All Forum Posts by: Paul Gabrail

One quick clarification.  Appraisals and value are often very disconnected.  Just because the appraisal was $4.5MM higher than the sale price does not mean it was instant equity.  We never look at appraisals when buying properties and I think anyone getting in the business should agree with that.  Can they be accurate?  Sure.  But typically we don't agree with appraiser values very often.

interesting.  that's dope. 

so you negotiated that the ONLY thing you paid for was realtor commissions? buyer paid for all other costs? 

how were the closing costs so low?  Realtor commission of 6% alone would be $13,800 and then with title fees and everything, it should be more than that . Still seems like a good deal but if that part isn't accurate, what else isnt?  

The work looks great!

I was at a Family Office convention in Miami on Monday and I was on a panel speaking about how I invest in real estate.  Another gentleman on the panel runs the real estate investing for a large family office out of New York City.  I was explaining how I don't buy markets...I buy income and revenue. 

Just before we were about to close the panel, this gentleman started to make the cliché statements that in order to be successful at investing, you must do what everyone else isn't doing.  Duh.  Everyone knows that.  Everyone says that.  But who does it?

If you are a contrarian investor, can you tell me how you are investing and where? I know where I am investing and I am quite sure my actions speak to contrarian investing.  But he labeled two markets he is in, and I just shook my head thinking "how is this contrarian?"

Thanks Tony! Yeah, that's one of the issues with hot markets.  So much competition and the inventory flies off the shelf. Just gotta do more hustle, which I am sure you're doing!

Tony, ha well we are doing these already.  I was just curious as to what others were getting and hoping for.  We actually expect higher BUT every market is different.  

Thanks for the comment! Do you borrow money to do these or all cash? I know you said cash purchase but i don't know if you meant that those would be the returns if you paid cash.

I am in Ohio and obviously the market here has its biases, but we have done quite well while others ignore us for the sexier markets.

Question for all you home flippers out there in other markets.  What kind of margins do you look for when doing a deal?  Please don't exaggerate.  I only want honest responses.  I know that's hard in a post like this but I am looking to get straight shooters.  Assume no debt.  I had someone recently tell me they made 40% on flips and then I found out it's because they use a credit line to pay for 80% of the down payment and they make 40% on their equity, which is only 8% on a non financed deal.

Also, what kind of work are you putting into the properties?  Are you buying full rehabs or paint and carpet kind of flips?

@Jonathan Johnson I understand that you view it as 10% but when you factor in inefficient 3rd party management, higher operating expenses and lower rent, it costs you way more than 10%.  Again, you're right, your time may be worth more than that, but then why not invest with someone in a property who can manage the property and be an owner so they have a stake in the results?