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All Forum Posts by: Philip Gephardt

Philip Gephardt has started 3 posts and replied 10 times.

Post: Recently Sold on Zillow disappeared

Philip GephardtPosted
  • Investor
  • Salt Lake City, UT
  • Posts 10
  • Votes 21

Up until a couple days ago I was able to run my own CMAs on websites like Trulia, Zillow, Redfin etc, but recently in the San Antonio market, the “recently sold” tab only shows dashes rather than price sold for. I’ve seen other markets do this.

I’m assuming some law was passed.

Two questions:

1) why would someone pass such a law?

2) Do the people who pushed for this law to get passed realize that if I can’t run my own CMAs, it discourages me from investing in that market in the first place? I’m not going to ask a realtor to run 10 CMAs a day, which is what I would do for myself. Usually when I find a property, I’ll run my own analysis, and then have my realtor double-check my work. Now I can’t.

Post: I need advice with my wholesaling business please!!

Philip GephardtPosted
  • Investor
  • Salt Lake City, UT
  • Posts 10
  • Votes 21
Originally posted by @Maurice Smith:

@Kelsey Gabhart If you have Propstream, you have a very powerful tool at your disposal. I use it for my business. Enter the address of the subject property. On the detail page, note the # of Bedrooms, Baths, and square footage. On the lower third area of the page, click on comparables. By default, it will return all sales transacted in the last year (emphasis on the previous 90 days). You have three primary options to select, cash sales only, MLS only, or both. I'd recommend the MLS option because it will let you know what people are buying at retail, and it will have the pictures submitted with the listing. Once you have done this, take these steps:

1. Adjust your distance filter to 0.5 miles

    Note: Ideally, you want homes sold on the same street or very close in that neighborhood. You have a map that indicates where the comps are, so be mindful of major highways, roadways, etc., that may serve as boundaries for the neighborhood. Also, certain areas will require you to expand the distance a bit (e.g., rural areas), but try to keep it tight as possible.

    2. Set your max beds and baths to the same as your subject property

      Note: This will ensure your returns are structurally pretty close. If you have many comps that are different configurations, the Comp analysis will still allow you to examine Price/SqFt.

      3. Next, sort your comps by sale price and examine the list more thoroughly.

        Note: If you select MLS only (my recommendation), you will have images. Look for the ones staged for showings or new hardwoods, updated kitchens, updated bathrooms, etc. Exclude the ones that were sold on MLS that may be fixer-uppers, for example, a SFH sold at 40K, because that doesn't represent what a comp would sell for after repair.

        4. Refine further if needed.

          Note: You want to have 5-10 comps available, if possible.

          5. Click Save Comps

            After this, run a Comparative Market Analysis and Comp Report. It will generate a PDF with all the Comps you selected, photos, and will provide a breakdown of key metrics, including, but not limited to, an estimated ARV based upon the Average Sale Price/SqFt, which is multiplied by the square footage of your subject property.

            Two other recommendations:

            I'd recommend reviewing the market analysis of the neighborhood/zip code, including the sales trends. They are informative and provide a lot of insight, such as how long the average property stays on MLS before it is sold in that area.

            Additionally, get familiar with the Real Estate cycle, for example, whether it's a buyer's market or seller's market, and how local factors affect sales prices. It can help you with decisions on slight adjustments to ARV. Furthermore, if you network with RE Agents in your local market, such as your local REIA or Hard Money lenders, you can bounce your estimated ARV off of them. In my experience, both types are very happy to share their expertise and experience and to help you learn. The local REIA is where you find individuals like this because that's what the REIA is about—bringing people with various sets of expertise and experience together to add value to one another's RE business.

            As far as repair costs, network with a local contractor and get a rough idea about what common fixes cost (kitchen, floors, bathroom, etc.), including what a full rehab would be. I have used a tiered method for some homes, such as light, moderate, heavy rehab, and used an estimated price per SqFt for others. I also occasionally use a guide that a contractor put together for RE investor, which is way more detailed and complex. You don’t really have the time to do that much analysis, though, and can’t unless you are walking the property. So, get good at estimating repairs and add 5K (depending on how it looks) as a reserve because you don’t know what you will find. If your offer is accepted and you are under contract, use your due-diligence period to have a contractor/professional assess the repairs needed, and concur or challenge your estimate. Use your best comp as a guide for your SOW. Also, know that an experienced end buyer will also do their own diligence, so you just need to be close, not perfect. The better you get though, the more professional respect you'll generate amongst your cash buyers.

            Hope that helps!

            Maurice hit the nail on the head, particularly at the end. Get your repair budgets close but not perfect, and ARV's as close as realistic as possible. To me, when I analyze 3-5 properties from a wholeseller, and the I know the ARV's are 15% off, I'll unsubscribe from the list. I can't be bothered wasting my time analyzing properties that are no where near their true ARV's or repair budgets nowhere near reality. Either the wholeseller is unqualified, or dishonest, either way, I don't want to work with them. Integrity is EVERYTHING to me.

            Post: Under Contract to sell properties - will have $500k need advice

            Philip GephardtPosted
            • Investor
            • Salt Lake City, UT
            • Posts 10
            • Votes 21

            @Jonatan Barbera I really appreciate the two cents. I live in Salt Lake City, and there’s basically no where in the state that I know of where rent will cover your mortgage. Flips are still possible here, but like most decent markets, are super competitive. So I’m trying to shop places worth renting, and other markets worth flipping.

            I’ve been doing everything from a distance since 2010, so I’m comfortable with it, but also my returns away from my home state have always been more lucrative than investing here at home.

            But I think you’re right, trust is the hardest thing to come by. Not just trust related to honesty, but also trust related to expertise. Is what they’re saying correct, even if honest. Expert agents, good (honest) contractors, and diligent PMs to me is the whole ballgame.

            I like the 1980 or more recent approach! That is some really sound advice.

            Thank you!

            Post: Off Market Property- What’s next?

            Philip GephardtPosted
            • Investor
            • Salt Lake City, UT
            • Posts 10
            • Votes 21

            Opening note: I am not necessarily saying this would work for every property, but it worked for one I bought earlier this year.

            I bought a property in Southern Illinois (I live in Utah) that was a cash deal earlier this year. I found a property on Zillow for sale by owner. I did my own CMA, talked to my property manager in the area, who ran over and said, "I think it will rent for X, and I'm not seeing any glaring issues". My numbers checked out.


            I've owned the property for about 6 months, and I'm happy with it.  My PM owned 100 properties in the area, and I trusted his judgement. But I did all the closing myself.  Because no one else was involved, I was able to get a great price by reminding the seller that we really only had to pay for title, and since it was a cash deal, we were able to close in 10 days.

            I went on one of those boiler plate lawyer websites (Maybe rocketlawyer.com, I can't remember), and did a boiler plate purchase agreement.  Ran the title, checked out.  Called a lawyer who wrote up the necessary docs, and informed title.  It was surprisingly effortless.

            In retrospect, ALOT of things could've gone wrong, but they didn't, and I had the property acquired in 10 days, and 20 days after my initial offer I had a tenant with good credit at $75 more than I was expecting :-)

            Post: Under Contract to sell properties - will have $500k need advice

            Philip GephardtPosted
            • Investor
            • Salt Lake City, UT
            • Posts 10
            • Votes 21
            Originally posted by @Paul De Luca:

            @Jake Fugman for Chicago

            Thank you Jake! I really appreciate it!  I'll reach out to Jake Fugman!

            Post: Under Contract to sell properties - will have $500k need advice

            Philip GephardtPosted
            • Investor
            • Salt Lake City, UT
            • Posts 10
            • Votes 21

            Thank you Kimberly!  I'll hit up Braden Smith!

            Post: What Agents have you worked with remotely, and in which markets?

            Philip GephardtPosted
            • Investor
            • Salt Lake City, UT
            • Posts 10
            • Votes 21

            Have you had a FABULOUS experience investing out of state, with an agent you loved?  

            Who was your agent, what was the market, and what deals did they help you do?

            I'm about to sell 3 properties over the next 6 months, and should be walking with about $700,000, (with the first selling in mid-January and is under contract now). I'd like to mix it up between BRRRR and flips.


            I know basically every decent market is competitive right now, but I don't mind the grind, I'm looking to connect with agents now, and hit the ground running in January!

            Post: Under Contract to sell properties - will have $500k need advice

            Philip GephardtPosted
            • Investor
            • Salt Lake City, UT
            • Posts 10
            • Votes 21

            Hey guys, I'm new to Bigger Pockets, but not new to Real Estate.

            I have successfully bought many properties in Arizona, Eastern Illinois, Central Florida and Salt Lake City from 2010-2013 with the basic buy and hold strategy.  Recently I rehabbed one property in Tempe, AZ which is now under contract closing Jan 12th (will be walking with $250k in my pocket), I am rehabbing another which will net me similar in March-ish ($250k) and will do it with a 3rd property in July (another $250k). I have managed to do it all remotely.  

            I'm looking to have this money go the farthest, and I am looking for any and all advice.

            I'd like to BRRRR properties that meet the 1% rule, and flip properties where the market has outpaced rents. I've recently read 6 books on the subject, but seem to be re-reading over and over two books: Long Distance Real Estate Investing (Greene) and BRRRR (also by David Greene) and as they say, follow the fire.

            There's a few markets that seem really intriguing to me, that I'd like to get my feet wet with BRRRRing and Flipping: San Antonio, Chicago, Cleveland, Pittsburgh, New Orleans and Louisville, KY. But I'm open to learning about any market where you can find 70% ARV deals, with limited time-on-market after repair (both for rentals and flips)

            I'm looking for the best investors agents in all these areas to get in contact with, and hit the ground running in January.  (I've got my guy in San Antonio who seems terrific), but need agents who grind to find deals, understand the 70% rule, and the 1% rule, can give ACCURATE ARVs and know of the best areas to accomplish these goals.  Agents that can give ballpark estimates on local rehab budgets, and get me in touch with local contractors and be excited to bring me deals.  

            Who are your favorite agents you've ever worked with?

            Post: I got my 1st virtual wholesale contract now what?😰

            Philip GephardtPosted
            • Investor
            • Salt Lake City, UT
            • Posts 10
            • Votes 21

            @Steve Morris Ah, Steve, the Nay-sayer in the group, there’s always one. I own six properties (5 buy and hold investment props that all cashflow and 1 personal home). Of all these properties, I’ve seen two in real life before purchasing.

            I did go a different route than our new wholesaler, and relied on agents that I vetted, contractors I vetted, inspectors I vetted, etc. I also ask for virtual tours from my buyers agents. Comparative market analysis wouldn’t change one iota whether I’m in the market or not. I rely on my agents in various markets to provide me with the best info at their disposal, get a team around you, and get to work.

            My process for flips goes: 1) find an agent (this is the most important) 2) find a portfolio lender 3) find a contractor 4) find an inspector.

            I’m not a real estate expert, these people are, and they also know the area.

            A good real estate agent can say, “that property is on the wrong side of the track”, or “my comps show that won’t sell for what you want”

            Finally, you make an offer on a property that your agent has conducted a video walk through on, and run comps. You put an inspection contingency.

            2) Inspect the property ASAP!!!!

            3) share the inspection with your GC, and get his estimate to fix up.

            4) run the numbers again

            5) bank will send out the appraiser. This is my favorite part. Banks are in the business of lending to "sure things". They will look at your numbers, and see if you nailed it, or they will say, "the ARV appraisal is far lower than your numbers indicate".

            This is different than wholesaling, but I have done this with properties for a decade and don’t see why, if you do your homework, a similar system couldn’t work for wholesaling (which is admittedly something I know little about).

            @Josh Rodriguez The answer is “yes”, they do consider rental income. But account for a couple things. 1) depreciation will offset your income 2) property manager, repairs and vacancy eat up more profit margin than you think.

            Depreciation to me was the biggest surprise. Let's say after repairs, capital improvements, property manager, mortgages is paid and vacancy, I notice my bank account climbing by $500/month. Hurray!!! Then at the end of the year the CPA put together my taxes, and while I'm expecting the return to say "you made $6,000" according to the IRS I made $2500, because I had $3500 in depreciation. THIS IS THE NUMBER A NEW LOAN OFFICER WILL LOOK AT :-) When calculating your DTI, they will look at $2500 NOT $6000, even though effectively, $6,000 is the number you feel in your heart.

            I own 6 properties (5 investment and my personal home). I own 2 homes cash, and the other 4 I have financed. I am also self employed. So when I am looking for new financing, I personally try to avoid the loan application process, and rather, I ask for an email as soon as I can, and I put together all the documents I know they want into an email draft, and then shoot it over to them with my goals for the loan.

            I don’t bother making my numbers sound better than they are, I instead just send my tax returns right over to them (along with mortgage statements, all bank statements, hazard insurance docs, profit/loss statements from my companies from 2020, lease agreements for new properties I own and a screen shot of my Fico credit score that Wells Fargo provides me).

            Laying out your goals is also essential, because sometimes that can help the loan officer determine what the best rate to give you. For instance: I recently refinance one of my properties to get money out to use to fix-and-flip the property I was refinancing and other properties. I was honest with the loan officers, and told them I was only planning to hold the loan for a maximum of 6 months, and therefore, I was looking for the lowest points, NOT necessarily the best interest rates.

            If you provide all this info up front, you can contact dozens of loan officers at once, and get a “go, no go” with their best rates. Then move forward with a couple loan officers that provide you the best rates for your situation. Happy hunting!