All Forum Posts by: Tae C.

Hey everyone,

As one that has just begun to drive for dollars, I am a total rookie when it comes to direct marketing. Having said that, I keep on seeing a fairly common theme of making sure it's people with higher equity and those have owned it for a longer period of time. The latter point would seem to directly correlate with the former point, and I also get that typically if someone has only held the property for a year or two, more than likely that's not going to be a great motivated-seller pool in the big picture. 

However, I'm still trying to understand how the higher equity piece specifically plays such a significant role in the overall success of this approach. Can anyone give me a tangible example of the actual math behind why the higher equity owners are targeted?

Thanks so much!

Christopher, I am hoping I can get to that level of efficiency sometime in the future sooner rather than later for sure!  The whole coming up with my own initial scope of work aspect is the part I will struggle the most with. 

Thanks for all your input and advice Bob, I really appreciate it!

Thanks so much for laying that out Bob. The most obvious area of inexperience for me is the actual self-estimating of the rehab costs as I have very little background in that area. So I take it from your process, you are obviously experienced enough to come up with a detailed estimate on the front end when you yourself walk through the property. That's where it'll just take time for me to learn how to do that.  In the meantime, for starters, would you recommend that I take a contractor with me even on the first walkthrough given my lack of experience?

Hey all,

Been reading for some time, but first time poster.  Brief context, we've owned one rental property since 2014 - though I didn't know it at the time, it was in essence a rehabbed turnkey property. It's been a good overall experience, but not the margins I know now I should be aiming for. 

Having said this, as I've learned more about REI, I'm much more interested in the brrrr method as well as maybe a flip here and there. In fact I've made multiple offers in the past few weeks - they were all rejected except one that is in limbo on an REO currently. My question has to do with your all's usual sequence of events, namely when it comes to getting a bid for the rehab:

Scenario A: say it is a lead from a direct mail situation - do you submit an offer first thing once locked into a convo with a seller just based on your general experience of sq ft, ARV, general rehab for the size etc, or do you tell them that your offer price depends on getting a rehab estimate first, meaning you would also ask the seller to get access to the house during negotiations before an official offer is made?

Scenario B: say it's more of a standard situation - do you typically try to bring a contractor out with you during your showing(s) before making an offer, or try to bring contractors out to the property to get multiple bids after a contract is locked in during the "inspection/due diligence period"?

My realtor is fairly experienced with investment properties so he's been helping with estimates, but moving forward I will have to vet out other contractors. The other problem I'm running into is how quickly everything moves, especially from the MLS...all these factors lead to my questions above so I can move as efficiently and wisely as possible.

Thanks for your time,

Tae