All Forum Posts by: Wendell De Guzman

Do you want to go into flipping but you have no cash to buy your first deal?

Do you want to find a house to flip but your market is too hot?

Do you want to find good GCs - you've tried everything and nothing seems to work?

If you answer YES to any or all of the above questions, then I have an eBook for you:

This eBook also has links to over 3 hours of videos including:

• 2 property walk throughs (heavy vs. a light rehab)
• interview with a General Contractor on how to find a good GC and the tricks GCs and contractors do to steal money from newbie real estate investors
• how to estimate repairs from one who has inspected over 1000 houses
• how to find comps and find out what a house is worth when it's renovated done by a licensed real estate agent (but without using the MLS)
• interview with my listing agents who was able to sell my houses at 99% of list price in 30 days or less
• and many more!

Here's the link to download the eBook:

https://pcirei.leadpages.co/flipping-for-newbies/

 Yes - as others said, these numbers are on the low end. Typically, expenses are around 35% to 65% of gross collected income and they average around 50% (hence, the 50% rule).

35% is for properties that are newly renovated or renovated in the past 1-3 years in A/ A+ areas getting A/A+ tenants.

65% is for properties that are OLD (60-100+ yrs old) in the war zones getting the lowest quality/ highest risk tenants.

26% as others pointed out does not factor in:

- 10% for property management
- too low of a factor for vacancy (use 5% if the market is a hot rental area but otherwise use 10%)
- too low of a factor for repairs and maintenance (use 5% if the building has been renovated in the past 5 years or if this property is in A or B areas; otherwise use 10%)
- you should also factor in REPLACEMENT RESERVES or capex

 Dustin, I have a 27 house portfolio I need to fund. Send me a PM. Thanks!

 Calling on @Jerry Padilla

Do you need help analyzing your deals?

Tomorrow at 12 NN CST, in what I am calling a VIRTUAL LUNCH, I am going to analyze YOUR deal LIVE.

If you want to SUBMIT a deal and get an answer whether your deal is a good deal or a bad one, register here: (NOTE: if you have a really good deal, I might even help you either fund it or sell it)

https://app.webinarjam.net/register/34665/b751920c...

If you register above, you will get my Rehab Profit Calculator and Cashflow Analyzer for free as well so you can use those to analyze your deals. Here's a screen shot of these calculators:

Rehab Profit Analyzer (above)

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Cashflow Analyzer (above)

This deal analysis "Virtual Lunch" will also be simulcast through our Facebook LIVE event at:

http://Facebook.com/TheDiligentWholesaler

 I totally agree with David.

SFHs have a lot of advantages that MFs don't have.

The bottomlines are:

1. It does not matter what the asset type is - you can get bad tenants with SFHs and bad tenants with MFs

2. The key in any investing is that you KNOW what you're doing. The arrogance of these hedge funds led to their downfall. They think just because they have access to BILLIONS of dollars that they become good investors. To become a good investor - you need to KNOW what you're doing first.

3. Management matters - these hedge funds jumped in after that Warren Buffett comment about buying ten thousand houses but they failed to listen to the caveat he mentioned which is the need to manage these properties. SFHs are more inefficient to manage unlike having 20 units under one roof but MFs also need property management. A mismanaged 20-unit building is as problematic as mismanaging 20 SFHs.

1. Raising capital to buy a 27- property portfolio

2. Selling my 12-property portfolio to help accomplish #1 above

3. Finish the million dollar rehab project in Ravenswood Manor in Chicago

4. Finding enough good deals in a hot market

How would you like 12 houses that are renovated, rented - truly turnkey and they have equity on the day you buy them? If you can buy all 12 - I will give you a substantial discount. However, you can buy 1 house at a time as well.

They are in nice suburbs of Chicago like Plainfield, Evergreen Park, Oak Lawn, Bellwood, Homewood, Flossmoor, Elmhurst and Glen Ellyn. One is a condo near Lake Michigan.

Their prices range from $160,000 to $250,000. 

Rents range from $1290/month to $2,190/month and the cashflow on these properties average around $400/month.

For more information, please email me at [email protected] on which suburb you're more interested in and I will email you the numbers on it.

Below are the pictures of some these rental properties:

Glen Ellyn

Bellwood

Flossmoor

Plainfield

Cicero

Oak Lawn

Condo near Lake Michigan (Chicago)

Evergreen Park

Homewood

Elmhurst

 You can start in real estate with little to no money. Listen to my podcast and learn how I bought a $6M apartment complex with only $5,000 cash out of pocket - http://Biggerpockets.com/show65

If you're a newbie investor and you're afraid to make an offer on a house because you don't know if it's a good deal or not, here's what I'm going to do for you. I will analyze your deal for you and do it for free.

About me: I am an experienced real estate investor and been investing since 2003. I've done over 100+ deals anywhere from land, single family homes and multi-unit apartment complexes. My smallest deal is a $2,000 piece of land and my biggest deal is a $6M apartment complex (100+ units). I got interviewed here on BP on a podcast:

http://Biggerpockets.com/show65

Why am I doing this free deal analysis?

I see so many newbie real estate investors here on BP don't pull the trigger because they're afraid of doing a deal. Also, on the other extreme - I see some newbies buy BAD deals. Yes - there are calculators here on BP but sometimes, a deal is more than the numbers. There are other factors involved that can make a seemingly good deal on paper be a nightmare property. (Ask me how I know. On my podcast above, I bought a 36-unit apartment building that sounded good on paper but I lost my shirt! )

To get your free deal analysis, please put in the following info/ answer the questions below:

1. Are you going to buy-fix-n-flip the property or buy-fix-n-rent?

2. What is the ARV (After Repair Value) or FMV (Fair Market Value) of the property?

3. How much is the Repairs?

4. What is your Acquisition or Purchase Price?

5. How much are your taxes, insurance and HOA (if any)?

6. If you're renting the property, how much is the rent? How much are the expenses (see below):

  T - property Taxes
   I - hazard Insurance
  M - are you paying for property management or self-managing?
  M - maintenance and repairs (if you know it)?
  U - utilities (water, gas, electric - does the landlord pay for some of these and if so, how much are they?)

  R - replacement Reserves - how long has the property been renovated

7. Is the property in an A, B, C, D or F area? See below for my definition of these areas:

Based on your answers above, I will analyze your deal. Heck, if I like your deal, I might even help you fund it or even buy it from you.

Who wants to go first?