All Forum Posts by: Roi Ford

Welcome Matthew, 

Bigger Pockets is an excellent place to seek advice, learn and grow.  Where outside of California are you thinking of investing?  

I completely agree.  Some of these deals look tempting, but right now its a hard pass for me.  

Is anyone still investing in flips in the current climate? And If so, where?  I am still getting deals from wholesalers in the Las Vegas market, but I have been extremely skeptical about pulling the trigger because rates are so high.  

Let me know your thoughts...

@Niecy Smith

That’s a loaded question. But in my opinion, no. In fact a license can limit an investor, and most investors with licenses know this.

As an Investor, you have more freedom, and flexibility in your offer strategy, especially if you are flipping homes on a regular basis.

Meaning, in Las Vegas, NV if I want to purchase a home from someone at wholesale; and let's say that property has an ARV of $325K, but I want to offer $200K, that would seem fair to most. But if I know I can actually list and sell that property on the MLS in As-is condition for $250K I could run into problems later. Possibly even a lawsuit, major fine or loss of license. Why? Because it's implied that you are the expert, and may have used your expertise to take advantage of someone who didn't know better.

Simply because when your “Licensed” your held to a code of Ethics that Investors are not subject to.

On the other hand, Agents have an advantage, because they typically have more resources and additional streams of income at their fingertips than Investors.

But if I had to do it all over again, I would have focused primarily on investing.

Hope this helps.

@Nathan Gesner

Vegas is the same way. So, as an Investor and Agent I always caution other investors to tread lightly concerning Airbnb. They have started cracking down here, and the first investor to feel the pain was fined $60k

So, if it can happen, it will.

You can absolutely invest in short term rentals here, but will need to follow the rules.

@Jordan Robertson

Hi Jordan,

Sounds intriguing. I’m interested. I sent over a colleague request.

@Fadi "Rock" Roukoz

Yes, absolutely. It's the one of the oldest, tried and true methods for entry level multifamily investing. And yes, yes, yes to starting with FHA financing. The down payment is nice and low.

Just make sure you make your money on the front end when you buy. Meaning, negotiate the lowest possible purchase price.

The downside to FHA and the low down is the potential of being over leveraged, however, if you negotiate a low purchase price, this can help later on down the road.

I say go for it.

@Christian Perez

Hi Christian,

That definitely a loaded question. Or should I say questions.

1. I would definitely set up an LLC. It ads a layer of protection for your business.

2. Do you have a mentor? If not you should consider.

3. A good Tax Accountant can help you with structuring your LLC. One who is familiar with real estate investing.

4. And you will need a good agent to help you find properties. But your agent will need to be an REI Agent, someone who understands real estate investing.

5. I believe the Las Vegas Market is good for investing as long as your looking to buy and hold. I don’t think flipping houses right now is wise. Too much uncertainty.

6. Investors purchase properties remotely every day, but do you have a team in place, and know where your going to buy.

7. Have you selected your purchase criteria and know your business model for investing.

I love your questions and post.

M

Hi Marissa, 

I am a Property Manager here in Las Vegas.  I would love to interview for the job.  If your interested in speaking with me at all, let's connect.  

I have been involved in over 400 transactions in my career.  Either my own, or for a client.  I have worked with multiple investors over the years, and read book after book.  And... the real players, the investors who fix, and flip, buy and hold, house hack, etc, strictly go by the numbers.  The numbers are the determining factor for all of their investments.    

Condo's are like any other investment, they can and do increase in value over the years, as well as equity. The only issue I've seen here in Las Vegas, is the HOA monthly dues. As you can imagine, Las Vegas is riddled with condo developments, which include high-rise, low-rise, high-end, and entry level properties.

Some of the HOA fee's can be upwards of $1500 per month for a high-end condo in a high-rise development. On the lower end I've seen these fee's as low as $150 per month. Whatever the case, if you are not able to charge a high enough rent to cash flow then like any other property, its a bad investment.

But you mentioned that your numbers are good as far as you're ROI, so I would go for it.