All Forum Posts by: Scott Lepore

In my experience, the number of showings determine if price is right.  Lots of showings equal fair price. No showings equals too high of price.  That's why I always price my houses a little below the comps.  It doesnt get stale that way and usually creates a bidding war (at least in Denver).  If you price high, its sits and becomes stale and unloved.  

Lots of showings and no offers mean something is wrong with house.  I had similar experience as you have now.  Comps were strong.  In my case I was getting showings but no offers.  Feedback from the buyers agents is very valuable (if you keep seeing the same feedback issues).  Unfortunately most agents do not leave feedback. I had a 25% feedback rate on last house I sold.  Realtors on here please take note!  So with my house the feedback was that the layout of house was what people didn't like.  It did not have a main floor bathroom and I could not realistically put one in. And laundry was in basement.  People dont like to lug clothes up and down two flights of stairs.  Go figure.  But others houses in area were the same so I didnt worry about it too much when I bought it.  Hmmm.  So I lowered price.  sold.  lost money.  Stressed out.  Lost sleep. Worked at maintaining positive attitude.  Read some motivational business books and moved on to next deal.  Cost of doing business.  Same as retail.  Clear out stuff that is not moving.  Re-invest money toward next deal.  Learn from it.  Hope that the next deal is a home run.  Or at least a double.  That's my 2 cents.

Thanks Jeffrey.  Great input.  Appreciate it.  

Hi Jeffrey,

On this thread we have heard the good and seems most like their franchise.  What is the bad and ugly?  I buy some of my flips from a HVA franchisee and he wants me to come on board for 18k and 3-5k a month marketing.  I have years of experience in flips so for me I think it would be more about leads and resources and contacts.  However I am NOT a salesperson by nature, although I am very honest and people seem to trust me and I have had good success with the few deals I have bought directly from homeowners.  But some have mentioned that you really have to be really good at sales to close the deals and get a good margin.  Thoughts?

 Tom, the house is in Aurora near Reservoir Road and Quincy.  Just a basic starter home.  It's a ranch with 950 up and down (finished basement). U/C at 320k.  

I think Jay Hinrichs is correct.  You just want an address and asking price and the rest is up to you. I have found most of my deals through wholesalers and have made good profits.  But even with the good ones, I would say 70% of their deals are not deals at their asking price (unless you have the inside track and first dibs I suppose, which I don't).  Also, sometimes they don't even know what they have and you can score that way.  I bought one a few years back from a wholesaler and 2 days later the neighbor knocked on the door and offered me 30k more than what I paid so I wholesaled it to him.  On another one I bought from a wholesaler I made 45k in two weeks on a 117k investment.  Not all my deals work out that well but legitimate wholesalers are an invaluable resource for me.     

Well I just listed a flip on Saturday afternoon and have had 37 showings in 2 days.  No, that's not a typo.  The new carpet is probably worn out already and will need replacing.  4 offers so far with more coming.  best one is 20k above asking.  When will the madness end.  I'm way nervous.  

Similar plans in Denver.  There was a segment on the news last night about legislation coming soon.  They interviewed guy that lives in a storage unit.  He said there are at least 2 other people living in same facility.

Maybe the fact that a large percentage of the population will have added many more years to their life in the next 5-10-20 years bodes well for automatic washes versus those hand held wands that hit you in the head with the hose.  Or maybe everyone will just go to the full service car washes.  I'm assuming you can value a car wash based off cap rates?  Is it the same as larger multi-family units where there is a standard/acceptable cap rate depending on the city?  I live in Denver where one day it is snowing and the next day it is 50 degrees and the roads are full of slush and mud so I always thought this would be a good market for a car wash.  Not to mention the whole universe is moving here.   

I am looking for a creative portfolio lender for rehabs to rentals in Denver. I talked with 1st bank but they want me to have owned the rehab for a full year before they will refinance me 75% LTV of the ARV. Otherwise they will refinance at 75% of pre-fix purchase price for refinancing sooner than a year. That obviously wont work and of course I am not going to hold the house for a year while paying hard money rates. If you live in Denver and know any lenders that might be more flexible please let me know. Thanks.

Mario, I'm curious what you have found with your research.  The idea of building a tiny home community appeals to me as well.  I really like the idea of owning maybe 10 tiny homes on one shared lot and having them as rentals.  I'm picturing a hip, diverse, clientele interacting in a fun, social, shared community setting.