All Forum Posts by: Rick Turman

Morning guys,

If I obtain an answer to this, i'm sure I will sleep better at night. I have been playing with the BRRRR Calculator, and it seems the more I edit to play with the purchase price, my COC-ROI and or Monthly Cash Flow seem to be a bit out of wack. Long story short, I will post two images below. I cannot fathom how I have a higher COC-ROI with a lower Cash Flow after refinancing. Thoughts?

Hey all!

Old thread, but just curious to see how this went?  I am looking at a property to put an offer in, and you can clearly see the paint on the wood siding could be blown off by some high winds :-).  Can you tell by just looking at the paint if it's lead based?  I am not a paint connoisseur however these small tricks may help soften the blow on a make or break decision for anyone.  Thanks everyone, and @Josh White if you are still a frequent user on BP, let's connect.  I'm in the Findlay Area and always driving through your neck of the woods.  Cheers!

Good morning BP family!

So I decided to make my own spin on Brandon Turner's Four Square Method of Analyzing Rental Properties by incorporating it into a "FILL IN THE BLANK" template.   

With this being said, I've shared the link through my One Drive so that someone else who finds it useful can download it and try it out.  

If you have excel, google docs, or Open office on your IPAD, and are hesitant about that deal on your prospected property, run it through this template and find out what your COC-ROI will be year end.

Those fields that are gray in color have been locked as they are hard coded with formulas.  Simply plug in your Income, Expenses, and a few Cash Flow items and let the template do the rest.  I hope you enjoy it as much as I am.  Always trying to make things simple, better, faster.  Build that system!

If you like it, and found it useful in any way, please vote on this post so that I know that another fellow BP member benefited from it.  

Thanks everyone, and  have a wonderful holiday weekend ahead!

All the best,

-Rick

Four Square Method of Analyzing Rental Properties

After researching everything on BP, it all comes back to Sending out yellow letters.  I thought there may be a better/easier/faster way to this, however the grind and the hustle is what generates the best of profits long term in any given situation to become successful.  If it was easy, everyone would be doing it.

I will start researching the best of ways to become a step ahead of other investors (Competition) by cold calling, yellow letters, and door knocking, just need to obtain that list.  

I knew it would come down to this, just didn't know how soon.  

Has anyone had success doing this on Pre and Pre Pre-Forclosures?  How have you failed vs how were you successful?

I will be documenting everything and will report out what I find to help others.  Thanks everyone for this treasure trove of information, and for not allowing me to follow into the trap of realtytrac.com!

I like all these ideas and tips.  I have ventured off into looking at lists for forclosures but stopped there after seeing how many were available and thought to myself, "Self?"  There has to be an easier way.

Has anyone used the Forclosure.com website through the Market place on BP?  Any success?  Stay away? What type of advice do you have on it, and how to do you as an individual use the features to your benefit?

I saw the fee of 39$ or something a month for full access to owner's addresses, information but how much of it is actually legit?  

Just putting some feelers out as I am looking for a distressed home in this area to either fix to flip or BRRRR.

Thanks! 

So I confess.  I didn't realize that I hadn't provided a final update on this property.  The short of it was, we turned the property in 2 months, and had pretty close to a full asking price offer within 3 days on the market and within a week and Earnest already submitted, the buyer wanted to bail because according to the neighbor told her I didn't know there was termite damage :-).  There are rarely Termites in our region and we had that whole place gutted.  O well, we made 500$ on that bail and continued on to the next offer.  

Within 4 days from relisting from the last bail, here came our next offer which was a Cash buyer, and was about 5K less than what we wanted, however they didn't ask for help with closing, and wanted a fast close so we accepted.  

We had roughly 57K in Renovations, bough the property for 68K, and sold for $165,500.  After holding costs, Commissions, and closing costs from the purchase, we turned around $25k in 2 months. 

With all said and done, just wanted to thank you all for your comments and support through the process.  Properties are getting swallowed up fast out this way, so it's time to move into Rentals!

See you all on the flip side!

Morning guys,

Updating everyone on this progress as I forgot to mention the property came back online to the HUD site. Within 24 hours, I provided them with a new offer despite the mold remediation and dropped the offer by 10K with Seller paying 2K closing. Total offering of 68k. HUD accepted and now I am currently in Escrow. Closing should be ready for a nice early Christmas Present :-) Thanks for all the words of wisdom, and stay tuned for more updates. Happy Thanksgiving!

@Greg H.,

That's exactly what I had in mind.  Re-bid when it comes back on hopefully 10% or so cheaper.  It's been on that site for over 180 day's or so.  So it should be past the 95, 85, 75% discount that I have I hope they allow me to put in another offer since I backed away from the past accepted offer.  Will let you know the outcome.  Thanks Greg!

@Jerry W.,

I'm not quite following you here. Do I notify HUD through my agent to drop the offer 15? Can I do this before they receive my contract and if they don't and EMD funds are in transit to them, worst case is they keep my EMD correct? EMD was only 1K. the value was over the 50K mark so it made for the 1000$ EMD.

I've put a lot of thought into this for the past few days, and yesterday would have been my 2 business day cut off.  I even sent an email to my agent to rescind my offer on that property.  If this is easy as re-submitting my offer prior to accepting the contract, maybe I can catch them before they pull it.  Or should I let it run it's course and re-submit? Sorry for all the questions, just think I may have let this one go, but there will be others.   Thanks Jerry, and thanks @Greg H.!

So the quotes did not come in until this afternoon which cut timing real close. According to HUD, you have 2 business days to get the Executed contract and a copy of the EMD in their possession and well, today would be 2 business days. But i'm glad I stalled.

I may have siked myself out but redoing my numbers over and over again.  After looking at the quote from the least expensive bid to mold remediation, it looked as if half of it could be eliminated by my demo crew as there would be no need for it to be removed by the remediation crew.  However after running these numbers and re-running comps, i'm going to play it on the safe side and step down. 

I decided to rescind my bid for this property with HUD. I know 15k may be a good profit but it would be real close. You're always winning if you're making a profit however, I would like to see my family more than I did with the last flip, and I am not going down that road again. Who knows what else we would get into once we started.

Time to continue looking and move forward on this venture as this may not be the one, but the one is out there and I can smell it.  Thanks everyone for reading and commenting along the way.  Cheers to success!