All Forum Posts by: Jon H.

@Eli Echavarria  Best of luck to you Eli

@Shirley Smith  Good plan!  In this business there are so many successful investors.  Why reinvent?  Just be a copycat and customize to yourself.  Speeds up the process and gets you where you want to be!  Podcast are an excellent source that.  Wish you the best!

@Jonisha S.  What was your score?  JK LOL :)  Congrats.  I remember those moments up until passing felt great to finally have it done.  Good luck on your endeavors!  

@Ashley McGrath  Those numbers look good as long as their conservative.  For instance other similar houses are renting at 1,850-1900.  Do you know the neighborhood and what type of jobs are backing your tenants?  I don't see any property management fees.  Even if you're planing on managing yourself you should call around to have that lined up in case you need it.  

Your maintenance/misc % will be entirely dependent on condition of the home. Primarily mechanical's.

Who pays electric/gas/oil?

Jon

@Jared Garfield and another great post.  Was there supposed to be another "0" in the 35,000 :)  I feel volume is more scalable.  I hear a lot about Georgia from "The Real Estate Guys Radio Show"

Sent you a PM

@Jared Garfield  Nice post.  3,000+ deals Awesome.  Money yeah sure of course I envy the experience.

@Frank Costanzo Which marketplace are you referring to? MLS, FSBO, Craigslist? If it's listed by an agent contact the listing agent for that property.

@Myles Ngumezi  Go to yellowletters.com  owned by Michael Quarles.  You'll find everything you need there!

@Mike Hanneman  Absolutely agree!  I think this strategy is best utilized in markets with high demand.  High demand like we're experiencing in the Seattle region.  I'm sure it can be done anywhere with the right acquisition price.  

I think it increases your buying pool from a wholesaling strategy but decreases able buyers from a retail strategy.  It's the middle ground little larger profit than assigning little less than retail.  Little bit more work than assigning little less work than retail.   Little more holding time than assigning little less holding time than retail sale.

It makes more sense the larger the spread on the property.

@Aaron Litzenberg

I'm going to jump in here because I have a house that I might utilize this strategy on.  I have already been doing this (at a lesser scale) and considering this strategy.  I think Dave and I thought of it around the same time LOL He just had the resources to do it more easily.  Oh and he's been in the buis for a minuscule 44 yrs.

Option 1

The house could be assigned for a good sized profit.  It would leave an excess amount of equity in the property for the next buyer.

Option 2

Rebuild the bedroom wall roof, install siding and windows for around 25-35 and put it on the MLS. Listing on the MLS will expose the property to a lot more investors that meets a return for those type of buyers. Lower return than wholesale buyers. Prehab will net me a little higher return and hold the property a little longer. It would be sold to a cash buyer and close quickly. Equity in the property would meet the investment criteria for cash buyers buying on the MLS.

Option 3

Complete rehab and sell to end user at full retail.  I pay buyers closing cost and wait for buyers conventional/fha funding.  Nets me the most money.  Close in 45 days It's a much longer turnover and I don't really enjoy being married to my properties for longer than a couple months.  I will opt for option 1 or 2 over 3.  

Prehab=Another strategy that can be used on the right properties.

The reason for prehab is partly to appeal to that larger pool of cash buyers who use the mls for purchasing rehabs.  

That's my take,

Jon