All Forum Posts by: P.J. Bremner

@Tyler Wade

Yeah for sure, we are targeting homes with ARV around $250k - $350k so purchase price would be $200k - $250k most likely. For our flips, we will most likely use a combo of private money and hard money. What kind of price points were you looking for? And we are targeting the Pomona, Upland, Ontario area for now (Edge of LA and San Bernardino county).

@Tyler Wade

Welcome to BP!  Are you looking to flip in SoCal?  I am working on doing some wholesale and flip deals in SoCal as well, a little further East of you where it's not quite as expensive... SoCal can be ridiculous at times! lol

@Trina P. I have had a similar discussion with the owner of a very successful insurance brokerage in SoCal. For nearly all of the small-time investors an LLC would be cost-prohibitive in California because they are so expensive and don't really protect people the way they think it will. If you own two rentals and they are both under the LLC, lawsuit takes them both and you pay CA that juicey annual fee for the LLC. An umbrella policy would most likely cover a lawsuit and cost 1/4th of the LLC. He told me, "If the lawsuit goes above and beyond your rental policy AND the umbrella policy, then they can liquidate the rental to cover the rest, which is what they would have done if you only had an LLC anyways". He had suggested (possibly because he is an insurance broker lol) to have an umbrella AND an LLC once you grow your portfolio past a certain size. I think i agree with him though...

Also would love clarification on something: you have to establish an LLC in the state that the rental property is located? Do you also need an LLC in your home state? Thanks!

@Heather Boren

Welcome to BP!  I am interested in getting into the commercial market years down the road, it sounds like such a daunting subject... I would love to hear some tips and advice for breaking into that arena when you have a chance :)

Hi all!

Thank you for taking the time to read this and chime in, your opinions and advice are welcomed and appreciated :)

My business partner and I decided to start a wholesaling business in order to grow our flipping portfolio, but the deeper I go down the rabbit hole, the more I realize the wholesaling business could easily be THE business to focus on.  Regardless, we will be doing both.

We started out by getting a logo done (99designs did an EXCELLENT job in my opinion), building a web page, phone numbers and vmail setup, driving for dollars and we are sending out the first mailer this week.  We plan to target: Absentee Landlord, NoD (Notice of Default), Building Code Violations and Tax Delinquencies.  We have obtained contracts from other BP members who wholesale in SoCal and have a few title companies to use (we both are real estate agents as well).

Our KPIs are as follows:

- Mailers sent each month

- Conversion rate from mailer to call

- Conversion rate from call to appointment

- Conversion rate from appointment to deal

- Addresses obtained from driving for dollars

The main focus will NOT be on getting deals done, but reaching out to more people.  In my experience, the noobie investor/sales person/etc can keep up with the expert if he/she can solicit more clients.  Skill level will eventually increase and conversion rates will rise, but the best focus is quantity in the beginning.

Once we get a few deals under contract, we will cherry pick the flips that make the most sense for us based on experience level (what we can confidently handle) and profit margin.  

From there, we will be looking to expand and delegate tasks out to VA (virtual assistants), employees or partners.

Let me know what you think, tips, advice, red flags, etc.  Also, if there is anyone in the SoCal market who is already a wholesaler and/or flipper and would like to partner on a deal or two in the beginning, I am more than happy to split a deal and cut the learning curve significantly :)

@Sean Murray

I have been doing student rentals since 2012 and have yet to have a single vacancy.  My setup is quite different though, would love to chat if you and your father are still interested in putting a deal together possibly?  On a side note, I actually make MORE money when I have turn over...

@Chris Mason

I have not had any issues with that because for all intents and purposes, it is a regular rental regardless of how old the people living there are and the insurance company doesn't need to know who I am marketing the rental to.  I actually work with an Insurance broker that I know the owner personally, so i've ran several scenarios by him on this and he says there are no issues whatsoever.  The only concern he had, which was valid, was lawsuits.  If a tenant kills or rapes someone at the house, then liability will most likely be on the owner (God forbid, we hope it never happens!).  I've been doing this since 2012 and RARELY have issues.  Vetting is key here on that point.  I hope that is a helpful answer?  

@Brant Jones

Welcome!

I recently joined as well and not too far from you (Claremont).  I was actually thinking about expanding into redlands eventually for student housing.  Are there any other, smaller schools in that area as well or just U of Redlands?  Hope to hear from you soon and chat about investing in the IE!

P.J.

@Maggie Hawley

Welcome!

I think you and I are in the same boat.  I was trying to get into flips, but people were paying ridiculous sums of money on these dumpy properties.  It occurred to me that in markets like these, finding off-market deals or all-cash only properties was the way to go, eliminating those "investors" that pay way too much for properties and only have access to traditional financing.  I just sent out my first mailer this week, hoping that will pay dividends in the next couple of months.  Who knows! lol at least its fun.  What area are you looking to flip in?  In case I ever come across something in that area :)

P.J.

@Charlene Fajardo

Hey Charlene!

I'm just getting started on here myself, it's a lot to take in... but I think we are in the right place :)

So what kind of real estate are you interested in getting into?  And what area are you looking into?

P.J.