All Forum Posts by: Robert Adams

Maybe consider partnering with an experienced investor in the area. You can still make a profit and eliminate a lot of the risks of not being there because you will have a partner with boots on the ground. You can also cut your costs and leverage for other deals. You would also be able to leverage that partners local network for Realtor, contractors, etc.

Have you considered partnering with someone that has experience to help with the no experience part? Then once you have experience going out on your own.

I would explore financing options that would cover the rehab costs. This will allow you to leverage more of your cash for down payments. Good contractors are hard to come by as I am sure you know. Hopefully others in your area will have some connections for you.

I would recommend the cash for keys coming from the current owner and then you compensate the seller for that cash at closing when they deliver an empty house for you. If they can't/won't do that then I would go the cash for keys route yourself after the fact. Be sure to no only account for the cost of the cash for keys but your additional holding costs while you have to wait to get them out. Best of luck.

 I'm always looking for deals as well. I'll reach out to your friend also. Thank you.

Investment Info:

Condo fix & flip investment.

Purchase price: $188,000
Cash invested: $200,000
Sale price: $234,000

This was a bankruptcy sale. Had to have the trustee and court approval in order for the sale to be finalized. The property was partially redone with flooring and some of the stainless steel appliances being able to be reused. The rehab budget was low and and had a quick turn around time. I had recently sold a model match in the same community that I had also remodeled so I had a sold comp at $237k.

Investment Info:

Condo fix & flip investment.

Purchase price: $195,000
Cash invested: $207,000
Sale price: $237,000

This was a super quick close, 3 day escrow!! Seller had to move out quickly to relocate out of state. Unit was in decent condition so we did a light remodel and relisted. It took a bit longer to sell than normal because inventory rose temporarily and we messed up our own comps because I bought a second model match unit in the same community a few weeks after the first purchase for $188,000. We did end up selling both units successfully though for decent profits.

Investment Info:

Condo fix & flip investment.

Purchase price: $275,000
Cash invested: $294,000

Seller was behind on pay HOA payments and in risk for losing the property. Had equity but couldn't access it. I had a good relationship with the listing agent and was able to structure a below value deal (beating out iBuyers and other investor offers). The property was in horrible condition, pet odor, lots of deferred maintenance etc. I provided a free rent back for 2 weeks so the seller could get her funds and relocate. I also released my EMD after contingencies so she has some cash to work with in the meantime. The property is a 2 bed 2 bath with a den and a 1 car garage. I intend to add a closet to the den and make it a 3 bedroom adding value as well as remodel the entire unit. After a rehab budget of $20k, I will relist for $369,999 which will be the cheapest 3 bed, 2 bath, 1 car garage in a 2 mile radius.

What made you interested in investing in this type of deal?

ARV potential

How did you finance this deal?

Self Directed IRA Funds

How did you add value to the deal?

added 3rd bedroom and remodeled unit

What was the outcome?

Remodeling now and then selling

Lessons learned? Challenges?

Knowing the sellers needs will win bidding wars.... It's not always just about the price

Feb marked 3 months in a row of the market picking up. We are seeing signs of higher demand even though rates remain high, months of inventory decreasing, multiple offers becoming very common again, and consumer confidence increasing.

We are expecting these trends to continue as the news headlines continue to shift and report much more positive market conditions. As elections get closer we will likely see consumer confidence start to become more uncertain due to the political climate and then resume again after elections are finalized.

ibuyers and hedge funds are also ramping up acquisitions which is further pushing demand and lack of affordability.

If/when the Feds do lower rates we will see a temporary improvement in affordability, however we do expect that small window to close quickly as lower rates will bring a lot of pent up demand back into the market which will push home values higher and cause affordability to worsen.

With all factors considered here in the local Las Vegas and Henderson market we are encouraging buyers to buy sooner rather than later while they can get lower prices and seller concessions and then if needed refi later when rates come down and they have more equity.

The market is currently shifting AGAIN and inventory is disappearing here. We are under 2 Months supply, DOM is shrinking, multiple offers are back. 

Consumers are getting used to the high rate environment and realizing the market has bottomed out here in the Vegas market.

I am predicting values to actual go up here locally in the next few months which once that data comes out will only further fuel demand.

It is also important to note that even while I have heard from many agents across the country that their markets are feeling similar up ticks that local markets supply and demand does vary so make sure you are analyzing local data not just national.

With all that being said I am still investing and have adjusted my buying formula again. Now I can offer stronger offers as I do not need to factor the values decreasing though out the flipping process.