All Forum Posts by: Brian Sparr

Hi @Gina Nicolas -

I don't do a ton of tenant placement, but have used SmartMove in the past and was pleased...

Good luck,
- Brian

Hi @Ryan Groff -

I work with a local contractor that is doing new builds and additions for less than $130/sqft ... shoot me a pm and we can go into the details around your lot and what my guys are doing.

- Brian

Hi @Joshua Dean -

Until you (or someone on your team - agent, contractor, etc) are able to physically walk the property, any numbers you pencil in for the rehab are going to be a guess ... but that's ok.

You should be able to look at the photos and the remarks made by the listing agent to make an educated guess.  Does it need all new flooring?  Great - it's a 1500 sqft house and you know that your contractor will do it for $5/ft - so you ballpark $7500.  Does it need exterior painting?  Do you need to add a bathroom?  Etc.  Work your way through all the elements of the property and put some rough numbers to it ... then, plug those rough numbers into whatever analysis tool you're using and see if the returns are remotely close to what you're looking for.  If they aren't, move on to the next property.  If they are, you put it on the shortlist for a closer look by one of your team members.

If you're looking to do this long distance, the local team you choose is going to be crucial. ALL of your numbers are going to need to be verified - rent estimates, current value, rehab cost and ARV.

In my opinion, it's important for you to not just be comfortable running these numbers, but to truly understand what the metrics are telling you about the opportunity.  There is a very good chance that you, as someone just getting started, already knows more about investing than most of the agents that you cross paths with will.  Don't rely solely on their opinion ... instead, have them confirm or deny your estimates.

Wish you all the best!

- Brian

Hi @Matt B. -

In my opinion, the success or failure of the project is all about the team that you choose to work with. There are a lot of moving pieces ... identifying the property - having the vision for maximizing the ARV - estimating the rehab costs - negotiating to buy at the right price - keeping you in the loop as the work progresses - staying on schedule and on budget - maximizing the resale marketing and minimizing the overall hold time. A misstep on any of these items and your potential profit can quickly disappear.

Your agent and your GC are crucial.  Not only do they need to be excellent at what they do, but they need to communicate with you in the manner and at the frequency that is going to make you comfortable.  I'm walking properties multiple times a week and constantly sending pics and video updates to my clients.

The first one is the hardest, but it can be done ... good luck!

- Brian

Hi @Drew L. -

It depends on which state you're currently living in and which state you plan to move to.  I'd recommend going to the website for the state's department/commission of real estate for where you are planning to move and search around for their licensing requirements - there's generally a mention of what's required if you hold an active license in another state.

In my case, I held a CA license and wanted to also get my NC license ... I was required to take a test, but not the entire one - I was able to skip the "national" portion of the exam and only had to pass the "state" portion.  Then, I was able to petition the commission to waive 2 of the 3 required post-licensing courses.

Good luck!

- Brian

Hi @Terrance Coleman Brooks - what type of property are you thinking of getting and/or what type of loan are you looking for?  I know quite a few lenders in the Triangle - as well as other non-locals that are licensed to lend in NC - but without knowing what you're looking for, there's a good chance I could recommend someone that's unable to provide the type of loan you need...

Hi @Mark James II -

When you say the house has been stripped, what does that really mean?  Can you live in the house today?  Is there a functioning kitchen and bathroom and heat source?

My hunch is that the agent and lender both believe the house has too many health/safety issues in its current state for it to receive a clean appraisal with no conditions called out ... which means, no bank will lend you money for the house until all of those conditions get repaired.

So, they are pointing you in the direction of a 203(k) FHA loan - which is a special type of FHA loan for properties like this that need to be rehabbed. 203k loans include the funds for both the purchase and the repairs; however, the repairs have to be completed by a contractor.

The contractor needs to go first because their bid is handed over to the appraiser and factored into the appraisal to justify the full loan amount that you'd be getting.

Good luck with everything!

- Brian

Hi @Tzook Bar Noy -

Your best bet is probably to check out the Zillow API ... most MLSes have RETS feeds that they provide for their listing data, but my hunch is that you're going to have a very difficult time getting any MLS to give you access to theirs.

Good luck,

- Brian

Hi @Richard Gonzales -

Not knowing where the property is or exactly how the contract was written, it's hard to say for sure; however, nothing jumps out at me as being unusual ... run it past your agent to make sure everything is inline - especially to make sure the seller and lender credits are being handled correctly.

Congrats on the first purchase!

- Brian

Hey @Jack Yen -

Maybe there's somebody out there that has come up with a good system/model for handling bill backs, but I've been involved with it once and it was miserable for everybody ... tenants are never happy or completely agree with the split and the landlord has an extra task that needs to be completed each month.

If you've been doing this for a while now, you should have a pretty good idea of the monthly average for the property ... personally, I'd look to raise the monthly rent accordingly to help account for this expense before I'd try to do a bill back.

Good luck!

- Brian