All Forum Posts by: Jonathan Newsome

Boom! I’ll admit, as I was reading many of the comment left, I began to feel more one-sided than the other and it wasn’t looking good either...

But then @Jay Hinrichs chimed in, and well, having had a few back and forths in the past with him (question-based) and knowing his rep, I can say I feel a bit more balanced reading what these guys are offering. Jay anytime you comment on someone’s post, I learn something.
Every. Single. Time.  

I’ll definitely be looking into the land entitlement game and seeing how to tap in. We’re already wholesaling land deals, but not at this level nor the way it appears that they’re doing it. 

I currently have a property I'm looking to structure and maybe I'm over analyzing but I'd love some feedback or another set of eyes on this. I'll include a snapshot of the numbers. Basically, I'm looking to acquire the property either sub2 (which isn't the issue) or out right purchase, but in terms of exit strategy if I purchase it out right then do the numbers look a bit tight to work as a fix/flip? 

Alternately, if I acquire this as a sub2, I was thinking of exiting as a Lease-option OR researching and analyzing the AirBnB approach...

As you can see, the mortgage balance and Heloc balance in the picture make this tight to run as a flip, along with an estimated rehab cost of about $40k.

Rental rates vary, as I'm seeing on propstream that rents can go for about $1,855. Rentometer is citing $1455 for rent. This is a 3bd/3ba condo in a VERY great location, which is why I was thinking AirBnB, but I'd need to deep dive into that realm to see if it would work. Based on the image and numbers above, what are your thoughts as a potential exit strategy? 

@Ryan Hayhurst

I’ve been having a few issues using Tenant cloud as of recent (within the past month). I’ve also tried contacting the support team via phone, but I’ve found in order to get ahold of someone there I have to “spam” call them quite a bit.

I’ve had trouble getting the PayPal api to link with the tenant cloud system. I then tried using Dwolla to reduce fees paid, but it appears as if there’s issues with that as well...

I may try out the cozy.co app or something else.

@Zeke Liston “with the right team”... I’d like to second that statement. The right team is super key for OOS investing. Also, I’d too like to recommend “Long Distance Real Estate Investing”, by David Greene, phenomenal book on the subject.

@Bryan Devitt great answer! I don’t know many that would have that level of commitment, where they’d personally fly out. Instead, they’d rather just not deal with it - that’s most investors that I’ve personally asked.

@Bryan Devitt and I totally get that. I heard plenty of that story... so with that being said, you’re not open to out of state investing are you? OR if you are open to out of state investing, does that mean you’d personally be catching flights for all of the properties that you’d be interested in or would you have a “boots on ground” personnel conduct that for you and save you the resources (time/money)?

@Jay Hinrichs thanks for Chiming in Jay, I’ve read quite a few of your posts and responses to threads and know that you bring experience to the table, not to say others don’t, im just a bite more aware of your reputation (from online of course).

I do agree that buying lower priced homes would be much different vs buying 200k houses. I also think it has a lot to do with risk tolerance and as others stated before the teams they have in place. I think I’m starting to see the pattern though.

@Simon S Marthinsen great write up and fantastic info! I knew there were a few out there that buy “like this”. I was simply posing this question so that I could hear both sides of the story and figure out what it is that makes one less “fearful” or more apt to buying without walking the property physically. Now, did you have teams or people in place to give you the information you needed to make the purchase or were these completely “blind purchases”?

@Joe Splitrock so what I’m gathering from most of these replies is, trust is a huge factor in this process.

Also by some of these replies, I feel that I am hearing from a lot of local/in town investors, not a lot of out-of-state investors. The ones that replied with, “ I don’t have to walk the property myself physically”, mentioned that they have teams or people in place whom they trust. Someone also mentioned that they might buy from a wholesaler if they had done plenty of deals with them before and trust them. With that being said, I guess the buyers on my list just don’t trust me enough or my judgment, but they sure as heck keep buying from me, kind of odd I suppose... maybe I should find people that I can build real relationships with and trust my judgement.

@Mary Mitchell and I totally get that. What I’m also just trying to figure out I guess is, WHERE ARE THESE INVESTORS THAT DAIVID GREENE MENTIONED!! Lol that wasn’t a yell at you by the way, it was to the BP forum 😁 . I think I may have 2 or 3 buyers that will actually BUY a property without having to physically walk it... and as I stated before, I know some aren’t comfortable with that for whatever reason it may be, but I think David G. Hit the nail on the head when he said it just comes down to fear, whether it’s fear of risk, fear of mistake, or fear of not being able to physically see/touch the property.. here’s another short paragraph from his book, “The whole thing just feels natural, doesn’t it? You have to walk the halls, get a feel for the layout. You want to be excited and feel good about a purchase this big, right? How can you know what you’re buying if you don’t go look at it? It’s just common sense to think that the risk gets bigger the farther away it is from you. The problem is, when I ask people why they believe that, or what they are basing this belief on, they usually can’t come up with many objective facts to back it up.” This then leads into the paragraph that I posted initially in my thread starter.