All Forum Posts by: Sam H.

Thanks for your replies!! I can always count on y'all! I have read stuff on here everyday since I signed up. Facebook doesn't have anything on this site here. Jon Holdman I do not know how but it seems you manage to reply to most post on here that is pretty impressive! Thanks again everybody!

Jon Holdman With turn key rentals, do the investors pay the acquisition cost and rehab cost, etc. ? I was under the impression Turn key rentals are purchased rehabbed and then marketed to investors? I may misunderstand I have been reading and meeting people like crazy, but I have met only one man that is into turn key stuff.

Hey everyone! Lets say someone is wanting to provide investors with wholesale deals, while also offering the next steps in the process such as contracting the rehab work to get done, overseeing the competion of the rehab, and then marketing the property for sale or to rent out. What would this be called. We would find wholesale deals unlisted and get the deal flow, then instead of us rehabbing we would coordinate everything from the tear down and rebuild , as well as the final stages of renting out or helping sell it on the market. I know this idea is not new, but are there a lot of respectable services offered like this. Would there be a genuine market for this type of thing or am I overlooking something. Just a though I had thanks for your replies!

Thank you to everyone for your thorough information and insights on this topic. I have started contacting land lords from for rent signs, land lords from craigslist, and also networking with some local PM's that know people that are actively investing. I have also found a high level of interest from just talking to people ( whom I know, and/or complete strangers), When I get to talking about REI people just seem to want to know more and more. I have generated i would say at least 1 solid lead in a couple days just talking about my new found addiction. I need to develop a system to store all of this info I'm getting so i can easily access it when I need to but I think I am getting the hang of this! I am spending a lot of time talking to people, and from what I can tell that is the only effective way to get anything done. Thanks again for all your words of advice. I cant get enough of this stuff!!

The wholesale industry is covered immensely by books, and podcasts. I want to know from all of you experienced investors; What do you expect to know from a wholesaler, What is your expectation of the package contents for said property, What common mistake do you encounter that jeopardizes the deal, What quirks would you say wholesalers assume that are easily avoidable... Anyone that has "DO NOT EVER's" or "horror stories" or of course any encouraging and positive experiences please share! Thanks in advance

Today I took a small road trip down to little ol' Fort Wayne, Indiana to attend a REIA meeting. Adam Gerig spoke for a while on systems and technology that are available (for free or minimal cost). The presentation was very informative , and the message was well conveyed. At the meeting I had the pleasure of meeting several knowledgable, and surprisingly helpful individuals. I would definitely make a trip like that again, there is so much to learn from meetings such as that. I would highly recommend to any fellow "Newbies" , to step out of your comfort zone, and meet with people. So many people are willing to share such great information! I was very nervous initially ,but everyone was very welcoming, and I am glad I made the drive! They have an outstanding REIAssociation in Fort Wayne there, thanks guys!

Rick Bradd , well that is a nice finding of an error in my calculations! After the down payment the DCR should be about 1.3!

I have had my first offer accepted, The property was listed for 175k and our agreed offer price is 135k. Thats 13,500 a unit! The property is lower-income, I am willing to endure the process of transitioning the type of tenant my building attracts and this neighborhood is already in transition to re-building. Youth center being built less than a block away, and the city has passed plans to repair the surrounding area. Now to see how accurate the numbers really are, according to very conservative estimates, this seems like beyond an amazing deal, and honestly I thought my original offer would be disregarded due to the fact it was almost 50k under asking price. Don't be afraid to offer what YOU need to buy it for to make the numbers work for YOU! Here is what I came up with (conservative estimates)

EXPENSES AMOUNT

GAS $3,240
WATER $3,120
TAXES $3,810
INSURANCE $2,235
TRASH $600
MOWING $250
UNIT PREP $2,500
MAINTENANCE $1,200
TOTAL: $16,955

DEBT SERVICES
$135,000 12% INTEREST
$16,200/YR
$1350/MONTH

YEARLY MONTHLY
DEBT SERVICE 16,200 $1,350
OPERATING EXPENSES16,955 $1,416
TOTAL: 33,155 $2,766
1.11 DCR

OPERATING INCOME AMOUNT

GROSS RENTAL INCOME $58,200
(12% VACANCY) $51,216
OTHER INCOME $0
TOTAL: $51,216

NOI YEARLY MONTHLY
$34,261 $2,855
Cash Flow $18,062 $1,505

RETURN ON INVESTMENT
$33,500 INVESTMENT
$34,261 NET OPERATING INCOME
ROI: 102% ??? figures from NOI? Not cash flow right??

CASH ON CASH RETURN
$33,500 INVESTMENT
$18061 CASH FLOW
CASH ON CASH 54%

Thank you @Will Barnard , I will keep that in mind!

I have sent my letter of intent to the listing agent and he met with the sellers of a 10-plex I have been watching for a month or so. The sellers will be getting back to us tomorrow. I can already tell this industry is going to help form a great deal of patience. My offer was only about 80% of what they were asking. They did not ignore my offer though and the realtor said they were elated to have an offer, so I will have to wait and see. I will keep updated as I progress through this process. Partial seller financing may be an option also so we will see how it goes. Wish me luck!