All Forum Posts by: Marwin Balibrea

Greetings BP agent/ investors,

I am a real estate licensee and I am having trouble with my marketing structure. I want to market to flip prospects mainly but would also like to market to potential listings concurrently.

One strategy I thought of is to just build my marketing campaign to target flip prospects (e.g. CASH FOR HOUSE) only and any leads that do not fit my criteria be taken as a listing, referred, or wholesaled. Aside from that, I'm all out of ideas.

So for those who practice both traditional real estate sales and investing how would you structure your marketing to have to attract both audiences?

Thanks a bunch, BP peeps.

That is very true. Switching hats does bring a whole lot of fiduciary and ethics issues. Perhaps then just separating them completely would be the best approach.

Not being able to switch hats does leave a lot of money on the table, which is quite distressing. 

This idea came from when I had lunch with a real estate broker. He does both. Where 30% of his business are flips and 70% are listings. However, his marketing campaign does only target flip prospects and he did mention that the majority of his income stems from the flips. I have yet to ask him how his hybrid business works in terms of the legalities of it all. 

Greetings BP agent/ investors, 

I am a real estate licensee and I am having trouble with my marketing structure. I want to market to flip prospects mainly but would also like to market to potential listings concurrently. 

One strategy I thought of is to just build my marketing campaign to target flip prospects (e.g. CASH FOR HOUSE) only and any leads that do not fit my criteria be taken as a listing, referred, or wholesaled. Aside from that, I'm all out of ideas. 

So for those who practice both traditional real estate sales and investing how would you structure your marketing to have to attract both audiences?

Thanks a bunch, BP peeps. 

@Jo-Ann LapinLooking at the tax records. Looks like the property has not appreciated. Current list price is 498000.

I use rentometer.com for rental comps. How do you mean about conducting a rent survey? Thanks Jo-Ann. 

 Hi Jo-Ann, it is actually in Vallejo. Sorry I did not mention that. What do you think your max offer would be given the information given?

Makes much more sense. Did not even think that lenders carried liability for those pre-approval/ pre-qual letters. When you say DTI won't matter, how do you mean?

I was concerned why the lenders I was working with did not give me a pre-approval. Only an estimate of how much I qualified for... Now it makes sense. 

Or maybe they just suck. They did seem reluctant on doing an FHA 203k.

I was curious about this as well. Thanks for the great info @Chris M. 

@Neil G

They could be selling for a multitude of reasons. My first thought was that the area is class C do that may have been the motivation but they have owned the property for twelve years. So perhaps just cashing out. Just pure speculation. 

I will be interrogating for motivation after I decide if I should consider it. 

Hi BP Analysts,

Been looking at some multifamily to owner-occupy/ house-hack...I'd like some insight on one property in particular if you guys would be so kind. I would like to know if it even makes sense to invest in MF or rentals at all in my market.

So here are the numbers as advertised in the listing with my own modifications...

Revenues:

1. GSI (monthly) = 4125 (3095 if occupying one unit)
2. Vacancy/ Credit Loss = 6% (this number I am not too sure of - just used Trulia)

Expenses:

1. Property Taxes = 6500 (not sure if this includes the special assessments)
2. Insurance = 2210 (listing advertises 1750 but difficult to get quotes for old buildings)
3. Maintenance & Repairs = 2000 (Note: building was built in 1947 - listing advertises $1,200 as maintenance expenses) (Also is this metric considered the CapEx or should I also have a separate expense for CapEx?)
4. Advertising = 300
5. Property Management = 8% (I will be occupying but I want to account for it when I move out)
6. Mortgage Insurance = 0.5-1% (I will be using FHA/ 203(k))
7. Misc. = 2400 (listing advertises 2400 miscellaneous expenses - not sure what these are...perhaps garbage, sewer, water, etc.? Seems high)

NOI is $29,298 (without PMI). Looking back, it seems that I should not include PMI into the expenses and include it in debt service. How would I input PMI into the debt service - just add into the interest rate? (e.g. 4.5% + 0.5% = 5% debt service with PMI?)

Add-Value:

1. Property seems to not have coin laundry - projecting an additional 200 (monthly)
2. Rehab may command higher rentroll - projecting 1150 per unit (rentometer median)
3. Appreciation - even though I am in California, I am discounting appreciation since it is MF and is less liquid

Notes:

1. Current owner bought this property 2004 @ 494000. Current list price is 489000. This reinforces my reasoning of discounting appreciation from my Total ROI.

2. Average to below-average schools.

3. Moderate crime rate. Class C neighborhood is what I would presume.

4. I am using @J Scott's awesome rental analysis spreadsheet with my own modifications. But don't know how to link spreadsheet to this thread. Hah.

Conclusion: How much would you offer based off of the information off of the listing and public information? I do have quite a few insecure numbers in this analysis but I did my best to round up conservatively.  Of course this will be owner-occupied and as such, I will be bleeding some cash until I move out. So that begs the question, should I even consider buying if I will have negative cash-on-cash return if occupying?

Gotta go to work, I'm gonna be late. Will update with more info as needed. Thanks guys.