All Forum Posts by: Wesley Davis

The market all over the coast of SW Florida has been going off with many people moving from the cities (New York, Chicago, Atlanta, Etc.) because why sit in your 1/1 500sf apartment, as you work from home when you can work remotely from the beach or have a yard your kids can play in.

For all investors looking for deals in this area please PM me. I have grown up in this area and have been in the construction industry for over 10 years. I would love to help find the properties you are looking for at the correct price point. 

I plan on showing the seller different options depending on how fast they need to sell. As a wholesaler, we will have a generic assignment fee that will 100% be disclosed to both the seller and the buyer (at the beginning of the deal). It will then be up to them to proceed forward with the deal. I am not trying to make 20K+ on a single-family house. This will give the seller more money to help them in whatever bad situation they are in while also piquing the investors' interest in the property. 

@Steve Morris

Haha, thank you for returning to air out your grievances.

Growing up in this area I have respect for the people living hear and on top of that I am soon to be a licenced architect. As an architect, your only goal is to protect the health, safety, and welfare of the people. I am also currently taking the course to be a real estate agent. I do not want to swindle anyone as our main goal is not to be only a wholesaler. This is a way for us to gain some honest capital to then buy and hold properties.

I will keep your notes in mind as we move forward. Thank you 

@Jay Hinrichs 

Thank you for your comment and we have run across that as well. As a result, we have an ongoing conversation with our attorney to make sure we are checking all the boxes. If the result is that we have to go through a brokerage that is 100% ok as both my business partner and I are taking the required courses to become an agent and affiliate ourselves with a brokerage. 

As a secondary option, we will be searching for deals similar to a "wholesaler" but will be conducting business under a brokerage. Like I said before we are trying to be honest and legal. No reason to work the system if we have the means not to. 

@Joseph Cacciapaglia @Deb S. @David Emanuel

Thank you for your feedback. It seems that the largest pressure point is the construction rehab estimate which directly reflects on the deal. After doing our initial research we used the 70% rule which has the main component of estimating the repair values. So we created an excel spreadsheet that calculates those values based on our inputs. For example, when replacing a kitchen we have it based on a linear foot. So if the countertop in 15' long then the associated costs of upper/base cabinets and countertop and fixtures are included in that gross price. But if you do not need new base cabinets you uncheck a box and it removes that cost. I hope that makes sense. 

Our goal is to have the most accurate rehab estimate possible. 

As a follow-up, One thing that seems unclear is what to provide in the "listing" to the investors. I see @David Emanuel mentions having a video walkthrough. As an investor, outside of pictures, location, and sq ft is there anything else that you like to see.

Also, I see the pros and cons of posting the listing price vs having a bid on the property between multiple investors. As bidding may lead to more money for the wholesaler is seems annoying from an investor standpoint. Any thoughts on that?

Thank you for all of your help!

After reading several articles about wholesaling one thing seems to be consistent, wholesalers have a bad rap. Why is that? 

I am looking for stories/information on what creates a good wholesaler and a bad wholesaler? While I am new to wholesaling (SW Florida) I am not new to the construction industry (10 years). 

For those wondering, I do have a formed LLC and all the proper contracts through our RE attorney. I will be conducting honest transactions with the goal to help both the seller and the investor.

Thanks,   

@Andrew Pensch @Phillip A. Baker

Growing up here I have seen the shifts of neighborhoods over the years. Whether it be snowbirds or single-family houses there are plenty of deals out there even in a hot market like it is now. I am a Principal at Sunarc Group, and soon a licensed architect, where we handle all things real estate. Due to covid, we have postponed the start of our meetups but we would love to connect. 

Check out our website sunarcgroup.com and sign up on our investor's page. I know this sounds very promotional but we enjoy building our network and helping people out that are new to the area. 

A lot goes into calculating construction costs. Such as type of construction, what type of foundation, do you have to elevate the property due to flood zones, quality and type of materials used, quality of construction, time frame, just to start. What I would suggest doing is finding a local builder and talk to them about what you are thinking (bring pictures). They may be able to give you a better ballpark answer. Depending on how hands-on you want to be with the project or how custom you want it to be you could visit a local residential architect as well. 

Hope this helps

I agree with @Stephen J Davis proper screening of the tenants is number one. Educate them and show them you care about the wood floors. Your worst enemy here is moisture, so yes make sure your HVAC system is working properly and make it clear to the tenant that they notify you of any dramatic changes to the floor or noticeable water damage. But at the end of the day, you must be prepared for the tenant to ruin anything on the property. If you love those floors and don't want to lose them cover them up with LVT or something that doesn't absorb moisture.   

Hope this helps.

@Ryan Gallagher sorry to say but rejection is inevitable. That being said that is a good thing. The first one will hurt but after the 10th or 100th, you will become more resilient. I would suggest start by calling the owners of the properties you are least interested in first. That way when you get to the properties you really want you will know what works and how to adapt. Now go make that first call!