All Forum Posts by: Tim West

@Mike Bassett Welcome to one of the best resources out there for new comers and experienced Real Estate investors alike. You will find a large amount of resources here to help you on your journey, and the best thing about Bigger Pockets is the enormous amount of support and feedback you are able to get from your peers. There is so much business to be had out there, and if you put your mind to it you can make what is now all theory turn into a reality. I found for myself, I had to stop reading and listening to pod casts, preparing myself for the perfect time, and instead just jump in head first! I still read and listen, but my most valuable lessons come from doing it for sure. There are things you encounter doing the ACTION that you never read about or hear in a podcast. There is a strong investor community down here in Pierce County, and everyone has been so willing to help that it is a great feeling to know we are not alone in this. Please never hesitate to reach out for any questions, because most people in here have been through it already and can give solid feedback from their experience. Good luck!

I am happy to assist you if you DM me. Talk with you soon.

There are plenty of nice off market deals in Pierce County, but you have to work to find them. Many neighborhoods in Tacoma are on the comeback, and there is still money to be made in flips all over. If you don't have the time to search yourself, or aren't having any luck, then the Wholesaler community is a good option.

@Brett Quelch Welcome to BP! Glad to see another local joining the group. I focus on the Pierce County area, so feel free to reach out with any questions. There are a lot of great resources on here, and the people are extremely helpful.

Thanks @Bryan R.! I appreciate the feedback, and I will look to line item the rehab costs when I go to market these. It sounds like having a contractor come in and give me some real numbers would probably give me the most accurate costs and put the buyer more at ease with the scope of work.

@Mindy Jensen Definitely not marketing here, just running the numbers by the pros. Once I get under contract, then I'll use those outlets and many others to market. 

@Mindy Jensen No worries, I didn't take it that way, and honest feedback is why I put this post to begin with. You're absolutely right on Property #2, as there are definitely many risks associated with non-paying renters, which is what I need to do more legwork on. I am working to meet the tenants, and to hopefully get an idea of their situation, as there may be something I can do to assist them through the transition. They are getting either bought out or foreclosed on, and either way will have to go somewhere. I just try to be compassionate and hopefully can assist making that transition more controllable versus an abrupt eviction.

Regarding the estimates, I leave that mostly to the buyer, as they are the ones that will have the vision and budget to determine if my Rehab costs are accurate or not. My "full rehab" comment is basically to bring the property to restoration that would demand the average ARV based upon the comps. Certainly, if you do a full gut and renovate the kitchen and bathrooms 100%, then you definitely could pay more, but you would also be able to demand more. That is why I would want the buyer to make their own estimates against these numbers.

I appreciate your feedback, and certainly will take your thoughts and comments into consideration as I determine whether I want to bring one or both of these under contract.

@James Marszalek These properties are in Tacoma proper, and on Property #1 I definitely have access, and I took a good amount of pictures of the interior to show any interested buyer the current state. The buyer would certainly have access to bring in their own team for estimates, as mine are strictly based upon a per square foot average. I do appreciate where you are coming from, and yes I am dealing strictly with Cash Buyers. Property #2 I have more work to do on, as I have to gain access to see the inside, which with it being occupied is always a challenge. Once I can see the interior, I'll have a better idea of what the scope will be. Property #1 is ready right now to go under contract, and then any interested buyer would have an opportunity to do a full inspection and contractor review to confirm their repair costs. (Truly, this property could be jut cleaned up a bit and then rented as is if someone was looking to buy and hold, since the inside isn't trashed, other than needing to be painted due to some graffiti on the walls). I appreciate the feedback James, and I agree with your comments.

BP Team,

I need some local knowledge advice, as I have a couple of properties I am ready to put under contract, but wanted to be sure my numbers look good to ensure I am able to do right by the seller and the cash buyer for these off market properties. Here are the numbers (my assignment fees have been included in the sell price already):

Property #1

4 bedroom/1 bath (2 beds upstairs, 2 bed and 1 bath main floor) 1,280 sqft

$125,000     Sell price to the Cash Buyer

$  20,000     Rehab estimated costs (this would be for full rehab)

$180,000     After Repair Value (based upon comps obtained via my RE Agent within 1/2 mi)

Buyer would of course be expected to pay all closing costs, but this is a vacant property, and the inside just needs some love. The roof appears in decent shape, it is on a nice sized piece of property with fenced front and back yard and detached garage with alleyway access in back. The outside definitely needs painted, and maybe some minor landscaping.

Property #2

3 bedroom/1 bath w/finished basement (There is a 4th bedroom in basement) 1,176 sqft

$147,000     Sell price to the Cash Buyer

$  20,000     Rehab estimated costs (this would be for full rehab)

$215,000     After Repair Value (based upon comps obtained via my RE Agent within 1/2 mi)

Again, Buyer would pay all closing costs, and this particular property has a renter no longer paying their rent (been over a year since they have paid). The roof appears to be in decent shape, and is on a good sized piece of property with fenced backyard, but no garage. I have not been able to get a solid look at the inside due to the renters, but based upon the outside I would say it will need full rehab.

Based upon these numbers, I would welcome feedback on these to see if this matches up with the types of numbers the market is looking for right now. I don't want to put them under contract if these numbers don't work. I used between $16-17 per sq ft rehab cost to calculate rehab estimates. Thanks in advance for your help!

It is great to see these questions vetted out so clearly on here. I know there is a ton of misinformation out there, and these forums really help to clarify some of the details that are otherwise overlooked in some of the blanket "wholesaling is illegal" examples.

@Marshall Hawley good luck to you, and glad to see you utilizing the expertise of the folks on here that have been doing it for a long time in this area.