All Forum Posts by: Peter Harker

I am doing this right now. In terms of going through a builder, I think there are a lot of variables to consider when doing this but for me I boiled it down to these two things. How long will you be in the house and will it cash flow when you move out? Is the area appreciating? This type of deal is not a short term quick cash sort of investment. Yes you are buying high, but that's why the area you build in is critical so it cash flows and appreciates. My goal is to house hack a new property per year for about 4-5 years so I can quickly get some rentals and equity. With only 5% down per year, I feel pretty confident I can accomplish this, plus it helps to know 2 other investors doing this in the same subdivision. Turn-key rentals can be good investments, and house hacking it minimizes the risk significantly. 

Now since i'm no pro at this yet, I do welcome other replies and perspective on this as well. 

Sean,

I know this post is way old but this topic was exactly what I needed right now. Same situation is going on with me with even the same ARV of $215k, but this guy wants $160k. Even if I could get him to drop to what he owes of around $150k the house still needs $20k in repairs. The price still seems a bit high as an investment property, especially to wholesale it like I'm trying to do.

It's nice to see that you were in that $120k-130k asking price to remind myself to move on from these non-deals. 

My guess is they make more because the property values are higher in their areas. The ARV's for SFR's in most of my area are around $150k - $200k. Is that a reasonable assumption, and if not I would also like to be mentored...haha!

Great discussion on this topic and just the forum I needed to read.

For all you double closers, how did you find the investor friendly title company to handle your double closing? I'm struggling with that right now since I've heard that only attorneys can do it in my state.

Also @Barton Wallace and @Ken King suppose your buyer is also a real estate agent who has access to the listings because many are, won't they find out eventually what your profit was? And by your reason for double closing in the first place (buyer not liking how much you're making on the deal) possibly jeopardize future business with that buyer? Just curious what your thoughts are on that.

Trevor,

@Trevor Thompson Thanks for you input on my post. I've always heard that if you are buying a bank owned property or foreclosure, then you will have to double close in Utah since they won't allow an assignment of contract. How do you avoid that?

I tried to find your part 3 but couldn't find it posted or access it.

Could you tell me that if I intend to wholesale only, then is going through properties on the MLS a waste of time? Or rather should I be focusing my efforts on the pre-market homes and finding leads through absentee owners? Everything I've studied about up until now seems like that is the most promising path to take.

I'm new to real estate investing and am getting ready to place some offers on investment properties to wholesale, but need to find a real estate attorney's office (so I've heard for Utah) to handle my double closing. I've heard that Guardian Law will do double closes but haven't been able to get a hold of them to confirm that they will handle my case, plus I would like to understand what the process is so I'm not going in blind. Does anyone know any other local offices that will handle my closing?