All Forum Posts by: Andy M.

@Christy Barton I wouldn't say that you are doing anything wrong, some areas that will be your average, especially when the price point of the homes is usually lower. I wholesale in 3 states so I get to see the perspective from a couple different markets. But I can promise you this, if on a deal by deal basis you seek to maximize instead of thinking, "what is a wholesale fee?" then your average profit per deal will do up. I know that is what happened to me over the past 3 years. Just my .02. :)

@William Manzie as a professional wholesaler I'm here to tell you that the answer is AS MUCH AS THE MARKET WILL BARE. Every buyer has different criteria, and your job as the wholesaler is to find the best buyer for you (i.e. the one who will pay the most). This isn't a popular answer with flippers. Flippers will always be buyers for your wholesale deals, but landlords pay more. Oh, and sometimes developers pay the most. :) 

I know that wasn't the answer that you were looking for. You wanted a formula of some sort, so yes, to most flippers 70% of ARV - repairs is what they want to pay, but definitely remember that that is not always in your best interest. Inexperienced wholesalers just shoot for a certain fee, experienced once ask what the market will bare.

This video (https://youtu.be/UdPegwsbTqM) is a GREAT example of maximizing a wholesale fee. I got a 45k wholesale fee on a property that would have probably only yielded 10-15k more if I had gone though all of the time and trouble to flip it. I'm not sure what my buyer saw in the property, but he paid me top dollar so it made best business sense to wholesale it rather than flip it.

p.s. I'm not a heartless professional wholesaler who over inflates values and lies on repairs,  and I don't prey on new investors, but if the buyer is a "big boy" I don't try to get in his head and determine why he would pay the price he pays.

Hope that helps. (oh, and Marina is also a good person to ask. ;) )

Hey @Richard Dunlop, I just noticed your question. I looked at the listing when we sold the property and here was the exact square footage we had listed. 809 upstairs, 1440 main, 1320 basement, so the total was 3569. The county records had the main as around 1200 but when we had it appraised before we listed it the appraiser did an actual measurement which we used. 

@Seangy Sum thanks for your kind words on the video. I'm glad to hear it inspires people and helps them want to push forward. Life in the real estate investing world is often a roller coaster with pretty high high's and often low low's. Sometimes it is hearing/seeing another's success that keeps us going. Keep on cranking! :)

Good point @Rob Beland, did I ever get involved? I did. The problem was the majority ruled in this case. When I first started out as an owner they only allowed a certain amount of rentals (25%) and I was in compliance. Then the HOA did away with that and allowed anyone to rent their units. Once that happened the total number of rentals in that complex jumped up really fast. Because of the number % of units that were rentals the condo's couldn't get FHA financing, and I think even conventional financing was tough. Also the majority of owners didn't want to increase HOA dues to cover capital improvements and their was lots of differed maintenance. Very frustrating situation to not control my own destiny with my income property. Again, those are just a few of the reasons I hate condo's as rentals.

How many condo units do you have as rentals? What has been your experience? 

I know, I know, "hate" is a pretty strong word, but it's true, I hate condo's as rentals. I reluctantly bought a REO condo 3 1/2 years ago and had it as a rental up until last week when I sold it and I couldn't have been happier to get rid of it! Here is my reasoning: It's all about the lack of control and being subject to the HOA. They can dictate EVERYTHING! They (HOA) even have the power to tell you you can't rent your own property! Oh, and besides that, you are subject to their fiscal responsibility (or lack thereof). What if your HOA isn't putting away portions of the monthly dues to pay for capital improvements? That's right, you could have a big assessment coming your way and you don't even know it.

I do a weekly video blog called "From the Trenches" and this week (view it here:https://youtu.be/Zcx0cplVObw) I talk about my condo rental experience and what I learned from it. I share about how I got the condo, what I did with it, and how I got out of it.

So what do you think about condo's as rentals? Anyone happy with their condo rental?

Hey @Isaac Garner PM me and I'll get you pointed in the right direction. Welcome to BP. :)

@Shane Clevenger I agree with @Jeffrey S. Breglio going to the local REIA's here in Utah will get you what you are looking for. Jeff is a good guy to talk to and learn from and he is frequently at a couple of those associations. You will definitely meet people there who are where you want to be, just go talk to them and see where it goes.

Oh, and a good way to get a "mentor" is to find someone who you want to learn from, then go make friends with them and then say, "how can I help you"? This is an approach that most people don't take and it will bare fruit. ;)

@James Touhuni I just want to second what @Jim Henderson said about the local Real Estate Investor Associations. Those are great places to meet people in your backyard who are doing deals.  Keep reading and learning on BP and in your local market. Welcome to BP.

Hey @Dave Jeltema welcome to the Utah BP family. :) If you haven't been to any local real estate investor associations in Utah you should definitely check those out. Salt Lake has one, Utah Valley has one, and both of them have luncheons that are good where you can meet fellow investors and network. Lots of good resources her on BP as well.