All Forum Posts by: Rob U.

This will get you close. Remember, most county assessors either have the info somewhat incorrect or their websites will be nearly impossible to figure out correct sq footage, especially for unfinished areas. I suggest you always have an assessor come out to take measurements. Its free and accurate

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Quote from @Jesse LeBlanc:

I fire clients regularly. I CANNOT stand when someone isn't transparent and or tries to hide anything from me. That is usually the last time I work with them. ANY client that is like that to others will likely be the same way to you at some point. So I steer clear of them and instruct my team to pass those people along to me to handle.

I also have nothing more than my word and all of our 80+ all 5 star reviews. Anything less than that is either because the client never clearly understood the loan type we offer or something we did wrong. Only the first can be corrected, but us making a mistake and getting anything less than 5 star review is stricly unacceptable in my eyes and my team also has a strong sense of ownership in their position and loyalty to my company. I always make sure to help the team but also support them while giving them room to make the position theirs, get them to realize they are part of the company, not just an employee. I make sure that they help in creating new systems and processes, always asking for their advice.

I'm a leader, not a boss, but they see and hear far more than I do so I'd be an idiot not to listen to my team.

I think as you grow and expand, you too will do the same whether as a Transactional Lender or anything else you do. Sounds like you have a badass mindset and exactly what you need to succeed! :)

@Jesse LeBlanc

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Chicago, Illinois

Quote from @Tanner Pile:

Quote from @Rob U.:

I'm considering a flip on a land lease. Here's the details. Price 135k, rehab $15k, ARV $190-210k. HOA $700/mo!!! In/out in 2 weeks for rehab.

Obviously the HOA is keeping values in this neighborhood down because an owner would have a mortgage plus another $715/mo for the HOA, which only covers use to a community center but nothing else.

Besides holding costs, is there anything else I should be concerned with for a flip on a land lease?

Antelope Ridge off Powers and Barnes. I was working on getting the seller down from $135k to $105k, she resisted, so I'm moving on to my next deal. Thanks!

Where is this location at? When I help buyers in COS and they see $700+ HOA and I explain the land lease scenario they don't consider it an option.

0 Votes

Colorado Springs, Colorado

I'm considering a flip on a land lease. Here's the details. Price 135k, rehab $15k, ARV $190-210k. HOA $700/mo!!! In/out in 2 weeks for rehab.

Obviously the HOA is keeping values in this neighborhood down because an owner would have a mortgage plus another $715/mo for the HOA, which only covers use to a community center but nothing else.

Besides holding costs, is there anything else I should be concerned with for a flip on a land lease?

1 Vote

Colorado Springs, Colorado

All of real estate is predatory. Sellers are absolutely predatory towards buyers whether the buyer is an end buyer, landlord, flipper or wholesaler and they will gladly sell you their home for more than it's worth while conveniently forgetting to tell you about any issues the property has. You can count on that as fact. This is why inspection periods are required. Real estate is all about due diligenge, knowing values, knowing repair costs, knowing market trends and current market conditions. Real estate is about knowledge and negotiation. If a buyer wants to pay $89k for something you paid $30k for, that's they're business

1 Vote

Quote from @Kevin S.:

Thanks for the advice, Rob. Good to hear from someone who actually did BOTH for a LONG time. Would your opinion change if all the RE was handled by professional PM company? This will remove all the factors you mentioned such as managing, keeping with the landlord laws etc? Thanks.

That would depend on the market you're in and your AGE. If you're under 65 or so then you can lever up on the RE and let the tenants pay off the mortgage
1. Cap rates in most markets are pathetic and not much more than the 10 yr T-bond, future "appreciation" is baked in to the RE markets. Thus, to make a good return, and decrease the risk of a long-term flat market, you'll need to use leverage in RE (tenant pays off the mortgage), so you'll make money irregardless. If you can't leverage the RE and cash flow from day 1, then it's a hard pass
2. Important: you'll need to find a good property manager, this will make or break your RE investment. So you'll need to cash flow after PM fees, taxes, insurance, repairs, vacancy and the mortgage pymt
3. The best way, if you're dead set on owning RE rentals, is to find a property in a good neighborhood that will attract GOOD tenants... from a wholesaler. You can find them in Facebook real estate wholesaling groups. Have them add you to their list of cash buyers. When you find one well below market value that needs work, you can put some money into rehab, then rent it, and you'll have instant equity and a higher cash on cash return
4. For stocks, in this environment, I would only own large cap companies with a solid history of increasing dividends year after year, and reinvest the dividends which decreases your cost basis over time. Decreasing the cost basis protects principal
5. You could do a 50/50 mix of stocks and real estate (depending on the real estate market you're in). In CA, not likely, in OH, then yes very likely, for example

1 Vote

I've been investing in stocks for nearly 30 years. Real estate for 10 years in multiple markets. Both with great success.

My 2 cents...
Put the money in a dividend growth portfolio like VIG or FDVV, 70% US, 30% international, set it and forget it and go about your life.

Real estate takes a lot of time to find and manage properties as well as to monitor all the changing landlord laws. It's way more work and long-term (over 30 years) you're actual return from RE vs stocks won't be much more unless you're constantly selling and optimizing your RE portfolio and giving up your free time and your lifestyle in the process

5 Votes

Quote from @Anson Young:

Timothy, this is certainly a pretty huge question.

My first reaction would be: it depends on marketing method. If you have ONE method, of course these numbers are easy. If you have several, it changes based on each method, of course.

I'll go through one of mine, the big hairy elephant in the room: direct mail

1. $4400
2. 10
3. 5.7

Of course, once you know your KPIs, you can always work on streamlining each one to effect the others. There are easily another 10 KPIs you could track based on these, and a few other ways to spin the non-closed appointments into other revenue methods (like listings, etc). Follow up spins off its own KPIs as well.

It cost you $250,800 per deal???
$4400 x 10 x 5.7

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2 years have passed. How’d it work out? What problems did you have? I’m very interested in hearing your story. I’m considering buying a meth house in Colo Springs right now, a sweet deal

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Thanks guys, much appreciated!

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All Forum Posts by: Rob U.

Rob U. has started 2 posts and replied 15 times.

Post: Valuing Basement Square Footage in Comps

Post: Transactional Funding: ins and outs, ups and downs, seeking advice & insight!

Post: Flipping homes on land leases

Post: Flipping homes on land leases

Post: Has anyone heard of Scott Jelinek and his Slow Flip strategy?

Post: What to do with $1,000,000.00?

Post: What to do with $1,000,000.00?

Post: Wholesaling Conversion Ratios

Post: Buying a meth house.

Post: Skip Trace from Google Street View?