All Forum Posts by: Matt Dunlap

beyond, "How much will you give me?", what other questions to distressed owners ask?

do they ask:

what company do you represent?

What will you do with my property?

thanks in advance!

EDIT: Title was cut short...

FTC claims house flipping seminars featuring HGTV stars are total SCAMS

https://www.housingwire.com/ar...

"According to the FTC, some of Zurixx’s unsatisfied customers have tried
to obtain a refund from the company, but the company allegedly required
some consumers who received a refund to sign an agreement barring them
from speaking with the FTC, state attorneys general and other
regulators; submitting complaints to the Better Business Bureau; or
posting negative reviews about Zurixx."

Did the tenants abuse the unit? I say this because I don't think you can charge for normal cleaning and carpet cleaning, that's just part of turnover.

Since you are new landlord, there is a landlord association in Oakland and can provide good information for the bay area

http://ebrha.com

I was a little misleading... Initially I wanted to buy as a rental unit, but when the agent told me it could not be rented, I thought about buying it and doing seller financing... I would never rent a unit in a complex where rentals were not allowed. You're right, Tons of legal issues with that.

This is very similar to a lease to own option, but structured as seller financing, because Lease to own is still renting technically.

ARV goes down scenario. I have thought of this, and it is risky... I have no problem with the buyer backing out, and giving the unit back to me. I would just do the seller financing again, or sell. The buyer is actually paying the same as rent in the area, so even if prices go down, I don't think rents will decrease that much. It would make sense for the buyer to keep making payments even if they plan to not refinance in the future. We are coming to a recession??? maybe??? and condos get hit first in recessions, so the chances of the price going down are probably pretty high. The question is, how much will they go down, and for how long?

Its sounds like you are expecting leads to come in from the brokerage... and that's probably not going to happen, at least right away. I suggest starting now, and putting together a database of your contacts (sphere of influence) and start contacting them by phone, email, direct mail... Tell them your new career and see if they know anyone that needs help.

The brokerage will pass their leads to the agents that have proven themselves to close. They will not give leads to someone that does not have any track record. You have to go out there and work like you are your own business. Also, brokerages aren't lead generators.. they are there for legal support, and desk rentals.

Your split will be 50/50 most likely. Depending on how many homes you sell in a year, you will get more of the split.

Seasonality does matter a little. Home sales go down in the winter, BUT use that to your advantage... Target a market that can take advantage of it, maybe first time buyers? then in the spring target homeowners when it's the best time to sell.

Good luck, it's a hard but good career.

I ran across a condo that actually cash flowed in CA. I called the agent and she said the complex was maxed out on rental availability, so this unit could not be rented, must be owner occupied.

Creatively, I'm thinking about buying it and reselling with seller financing. I will have a higher cashflow since I will not have to pay HOA, or any other expenses, but I have to put in more of my money, and I will be limited because I do not control the condo.

Hoping to get some help with analyzing this deal. Any advice and criticism about my numbers is welcome.

Condo is offered at $195,900. Rent in the area is $1,600, HOA is $390. With ~$5,000 in repairs, would be worth $210K

As a rental

• I purchase with 30% down (cash invested ~$58K)
• Cash flow: $440/month
• COCROI: 8.32%

As a Seller financed

• I Offered owner $179K (Cash)
• $5,000 repair costs.
  
• list the condo for $210,000. In the case that someone does not want to buy with seller financing, we will profit $18,000 for the flip
• financing offered: 0% down, 5% APR, 5 year mandatory refinance with bank.

The new owner will pay $1,290 + $390 HOA for a total payment of $1,680, (compare that to $1,600 average rent in area)

I will cash flow $1,127 (compared to $440 if rental)

At 5 years, when they have to refinance, the payoff will be ~$192K, adding the P&I from the last 5 years, the total return would be $261k

Join Our Group at meetup.com: https://www.meetup.com/Tri-Val...
This is our first (of many) meetups for Real Estate Investors in the Tri-Valley Area. From rookies to hardened pros, everyone is welcome.

Discussion include:
1. How we are finding and analyzing deals off the MLS.
Send us a request to get on the deal newsletter. Get our deal analysis of homes for sale sent to your inbox.

2. Current market conditions and if recession coming?
Many professionals think a recession is coming. What is your opinion and how are you preparing for the short term future.

3. Goal setting.
We are following the BBBBR (NOT BRRRR) to achieve $1M in passive income within the next 10 years. You can read more about this goal in the "Millionaire Real Estate Investor".
BBBR = buy & flip, buy & flip, buy & flip, buy & flip, Buy cashflow rental apartment, repeat.

You should join us if you're:
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McKays offers food and Drinks.

We mainly focus on the Bay Area investment market. There are hundreds of deals in the Bay Area. Yes it is expensive, but the returns are much higher. Join out group, find a partner and make a deal... you can do it!

I think Dean Jackson is one the smartest real estate marketers I've seen. he has a podcast called "listing agent lifestyle" and his real estate website is gogoagent.com. I would take the money you are spending on nextdoor and spend it on his ideas.

I've been marketing my wife for years and his program gets the most leads. It consists of hyper local neighborhood farms where you offer home sales reports. 

The live auctions here are a pain in the ***. There are usually around 5 possible properties, but most don't actually make it to auction and the one or two that do sell for a high price IMO. You sit there for hours for nothing. I think the large teams send the rookies to the auctions and they call the investor if the property auction happens.

I find that auction.com is a good place to get practice properties for analyzing, like Brendan always says

Doesn't auction.com list all the auctions? I thought they do all the foreclosure auctions now. I just looked up Wood County, WV and see a few.

We have bought 1 from auction.com - Here's the secret. Bid on all the online auctions with reserves. the reserves are usually market price (too high for investors). Bid what you think it's worth. After the auction doesn't reach the reserve a few times from relistings, they might call you and offer the property to you.

That is how we got our deal. We bid our max but got outbid so we forgot about the property. A couple months later they called and said we were the high bidder. I found out those other bidders were fake. Auction.com bids on behalf of the banks.

We bought our 5 unit at a sheriffs auction. Which is only posted in the sheriffs office, so basically only criminals know about them. That auction was on the courthouse steps and there were only 2 other bidders. We only knew about it because it was our friends apartment.