All Forum Posts by: Richard J Shannon

Hey Jerry,

What a great checklist and reply. Thank you very much for taking the time to lay it out there.

Per your advice we followed up with the daughter. 

We had a much broader conversation this time. My wife and I had a chance to get to know much more about her, her situation, and the impact this event is having on their family. On the business side we walked away with some new information. Her brother is the executor of the will, also an attorney. They've been getting daily calls and letters by other motivated investors trying a variety of tactics to get an offer under contract. She's a bit exasperated by it all but repeatedly and without provocation made it clear that she would be getting in touch with us once the brother comes to town to handle the legal aspects of it. She mentioned that the offers they were receiving seemed low, but that they'd have to wait and see. At this point I haven't been the first one to set a price anchor.

The neighborhood gossip seems to think they're looking to get what they paid: around 82K. It's our hope that by the time we get in touch with the son, the siblings will have actually gone in to the house to see it's current state. Hopefully it will become clear that they probably won't find a cash buyer ready to sink 4 months into a rehab at that ask. Either way I'm eager to put my negotiation skills (thanks Chris Voss) to good work. I think 50k would be a fantastic, 55k would be great and 60k would be good, and that's where our range ends. Either way we're expanding our deal search so that the outcome of this particular deal is less impactful. In other forums they call this avoiding one-itis.

@Joseph Ghobrial Thanks for the vote and reply! Let me clearly state that 920K is a goal, not our projected 2019 revenue, lest the first sentence of our introduction later bite us. We do screen printing, embroidery, and a wide variety of other printing, promotional and marketing products and services that overlap with REI in varying degrees.

Thank you @Jennifer Hitchcock I added you to our circle. I'm still learning the ropes, I didn't even know that was a thing.

Hey Guys,

if this is the wrong section for this please direct me to a better fit! This is my first post after my intro, so no one curb stomped the local flavor of etiquette into me yet. 

By some fluke, a seemingly good deal came our way, it's a messy home, little bit of hoarder action, ugly on the outside, outdated, bad roof, in probate and I'm not sure how to edge out the "We Buy Ugly Homes" people, how to put a solid offer in, or how to navigate the probate process. I have the daughter's name and number and made contact and they are motivated, but gridlocked.

The deal:

Presumably the ARV is 150K, The neighborhood gossip thinks the high bid is 50k from the sharks, should I sell our family story and beat them on humanity and come in a bit lower or be safe and go higher? I ran the numbers and it seems like a good buy and hold option at 50-55k with 30k in repairs, a 4 month rehab window and a rental rate of $1200/mo. Smaller garageless apartments 200 yards away are $1100, this is a SFH.

In my limited lurker knowledge 85k all in seems pretty safe if the ARV really is 150k, even if we're off and the deal runs 95k all in and the house doesn't value at more than 135k we're at the 70% rule and can get our money back out while holding and cash flowing. Please step in if I'm naively missing something.

The Process;

How do I go from looking at this gorgeous mess to owning it? I have an article by Sharon pulled up and I'm digging into some forum keywords now on the topic. My normal tendency is to research in silence, I'm trying to break that habit and reach out before I think I've got it all figured out.

Good evening everyone,

I represent a national, international, intergalactic consortium of real estate moguls with knowledge to rival the Library of Congress and assets under management larger than most GDP's. /s

I've been waiting for far too long to make an introduction that way.

My name is Richard Shannon, the extent of my knowledge has been growing up participating in a half dozen rehabs that my family spearheaded. So I'm like a kid who's dad was a heart surgeon so he thinks he can do a double bypass. I run a small business out of Central Florida.

I first heard about bigger pockets from Brandon Turner's book, (and about a million more times from him since), I had it going through headphones while walking around Disney and it was the most exhilarating thing about that trip. It planted a seed, that took a several months to grow. I consciously put this endeavor on ice to focus on the business, and opted to settle for educating myself on the industry and process. After several months there was no way to stay on the sidelines any longer. I'm excited to be here and to learn from the combined life experience and wisdom available, as well as to meet and add value to as many of you as I can.

My goals are pretty simple but far from easy, 

I am going for 200 units, cash flowing at least $100/door with 12% COC ROI.

My primary business is going to hit $920k in sales annually.

And we're going to employ, engage with, and learn from great, motivated people. 

Like many of you before me, I'm here because of a decision to do whatever it takes to outrun an average life focused on keeping our head's above water. This isn't the first step, and I'll be drop dead before I let it be the last.

Thank you for taking the time to read this, I look forward to meeting you,

Richard