Quote from @Joe Villeneuve:
Quote from @Sam Booth:
Quote from @Joe Villeneuve:
Quote from @Sam Booth:
Quote from @Joe Villeneuve:
Quote from @Sam Booth:
Quote from @Joe Villeneuve:
I can tell you what my minimal returns would be...and the method and form they take to get there.
If I were to put $50k in, all cash, I would expect to get at least $60k in all cash back at the end of the first year...and continue to have that property generate a minimum of 10% ($5k) in cash every year after that.
Hey Joe love to learn more how you source your deals. I am just getting started with out of state rentals. Thanks!
Some right off the MLS. I don't look for properties one at a time. I look/analyze markets for what the max offer is based on my needed profits and/or CF. Then I camp out in those (not one market, many) markets until one of those properties pops up. I analyze a lot of markets, continuously. Can't analyze too many, but you can analyze too few. REI's aren't buying properties, they are buying pieces of a market. Spending time on Market analysis is what most of the REI's day should be like. Market Analysis is so important, and can be very time consuming. So, I designed my own software to do this for me.
To get your cash back out, are you buying properties at 70% of market - repairs? Are these in B or C class areas or it this easier to do in D class?
You can get your cash back buying at AP. The strategy I use depends on many factors such as the specific Market, cash available, needed financial return (in dollars), and whatever strategy works for that specific deal, at that time. Depending on the strategy, some need repairs, some don't. A, B or C areas. Again, it depends on the strategy I use on that property at that time.
Not all strategies work on every property, but that's a given. The key is to learn as many as you can. This way you're far ahead of the game because you're not trying to force one strategy on every property you come across. I think this is a big reason why you see REI's having problems finding deals, and blaming it on the interest rate, or the global economic market at that time. Sure, those things influence deals, but they don't eliminate opportunities.
Interesting, what does buying at AP mean? New to some of these terms! Do you buy all cash so that you have access to some properties that only cash buyers can get (non Lendable properties?)
AP = Asking Price
Never buy all cash. Lowest down payment I can get accepted, never higher than 20%
I would like to learn more about your strategy. I try to buy below asking price if possible, or if it's been alot of days on market, but I only have a few properties so not a ton of experience.
