All Forum Posts by: Tony Kim

I'll gladly take your money for deals you are funding at 100% and charging me no points on.  Risk free for me, huge risk for you.  I can walk away from the property with none of my own money in the deal and leave you holding the bag.

 Jay, spot on...every time Than Merrill or Robert Kyosaki or one of the guru seminars comes through town I get flooded with calls since Im the agent in the area that works with investors.  I typically dont even answer calls from unknown numbers for about a week when I see they have a seminar. Their enthusiasm wanes within a week then my phone goes back to normal.  The ones who do have the enthusiasm after a week, if they still get in touch with me and want to write 5 offers a week, I tell them cool, I'll do that for $350 per offer.  That usually makes them go some place else.

A lot of people in this thread bragged that they got properties way under what their agent said was too low.  That doesnt show me that a strategy of lowballing is a viable strategy...that just shows me that they hired agents who dont know how to value a property. Ive got 4 deals in the last year where we purchased $250k, $100k, $100k and $100k under list.  On that $250k under list we started $400k under on our offer. This was not lowballing, this was determining what the value of the property was as determined by the market, and creating a strategy to get the price to within the range of reality.  Like @James Wise said, it isnt me or anyone else who determines what a property's value is....the market determines that, plain and simple.

I had another client earlier this year, he wanted to write an offer on a property listed at $413k. He wanted to come in at $400k. Doesnt sound like much of a lowball right? Well I told him that the property was going to sell for nearly $100k more than that. He thought I was crazy. It sold for $517k with a $15k subsidy.  I dropped that client, as I do with all clients who think they know better and dont want to deal with the reality of the market.  The guy had done 1 flip, so he thought he was an expert and thought I obviously had no clue what I was talking about. Well the market proved me right.  Im not perfect by any means, but most of the time, in my market, Im mostly right on what something will sell for. The times I am wrong are usually when the purchaser is an overseas investor who are just trying to buy a hard US asset to get money out of China, and they dont necessarily care about even getting within $50k of the assets real value. They just want the money here and in something tangible.

So here we have 2 examples. $400k under list was not a lowball. On the other property you could have offered $75k over and it would have been a lowball.  People need to learn to value properties completely independent of what the list price is. The list price might, or might not have any relation to what the value of the property is.  It could be spot on, way under or way over.

I like the way u think. Yeah I definitely don’t want to be priced out of California. Or more specifically OC/LA area for that matter. And I almost have the down payment needed on a 3 bed 2 bath condo. and so sick of the rent increases, I just want to be locked in with 1 payment. What about property taxes? I hear those go up too but by how much? Nowhere near ($1200 a year/$100 a month) which is what the rent increases are doing.

 you need to work harder to make sure my SSI is not gutted.. or reduced we are counting on you guys and gals to pull us through

@Jason G. Will likely be around 50% of gross profit after all team member compensation, marketing, education expenses, other overhead, etc. in 2018. 

Our gross profit #s are taken from net flip/rehab profit (after all interest expenses, realtor expenses, closing costs, rehab costs, etc.), gross wholesale profits, without taking marketing, team member compensation, other overhead out.

Glad I read this thread. I was looking at Memphis but I’ll stay on the west coast =)

Any areas in Memphis (Zipcode) that you feel are worth evaluating?

Here is the main issue.. again for some reason todays investor at least on BP has it pounded into their head that appreciation is gambling and that cash flow is everything.. I would really like to know who preaches that or where these folks are learning this and why they bite on it.. is it because of the once in 200 year melt down in 08 to 2010.. ?? At the end of the day cash flow while nice for the small investor. the only way they really get financially free is with big run up in appreciation or they hurry their behinds off and get the houses paid for.. So they have true equity.. I mean look at all the big SUPER SMART syndicators we see on BP.. and their deals were is the money made to make the nice 15 to 25% IRR's that folks are investing in their deals for.. ITS made with a raise in value caused by a serious raise in rents and for appreciation and market driven lower of cap rates..

I for one cant figure out why anyone buys a property with no expectation of appreciation and does not care about it.. you need it to come out on top when and if you exit..