I look at plenty of offering docs and when an agent tosses together a pro forma and again their expenses only come out to 25%, then you know it’s rather unrealistic which makes the asking price rather unrealistic.So if you are a wholesaler prepping emails to send to investors, if you are saying 30% expenses then depending on the deal they won’t take you that seriously because your pro forma is unrealistic.

I would put it into multifamily.  10% COC is unrealistic here in Central Oregon in my opinion or at least my abilities, but I think you could by something with under performing rents and then over the coarse of a year or two raise them so you are getting 10% on your 450k,  That would be using leverage.  

Offering memorandums that have unrealistic stuff like 4 to 5% annual rent growth and costs of 35% I laugh at.

When you're evaluating different turn key companies, in general, the ones to avoid are the ones that: Don't allow financing or a finance contingency (it can be a good indication they are selling above market value)Don't allow for your own independent property inspectionAre not realistic with their pro forma's (i.e. they don't include vacancy or maintenance projections or use unrealistically low vacancy factors)Require you to pay for any renovation upfrontSell only in cheap. low end neighborhoodsDon't accurately represent the neighborhood/property classificationDon't have consistent rehab standards for all properties

The ones I see most with investors are:1) Not having enough cash to handle expenses and rehab2) Unrealistic expectations on returns (especially in a hot market like Austin)3) Lack of patienceKeep us posted on your plans and I’d be happy to connect if you would be interested to talk in more detail about our current market.

When you're evaluating different turn key companies, in general, the ones to avoid are the ones that: Don't allow financing or a finance contingency (it can be a good indication they are selling above market value)Don't allow for your own independent property inspectionAre not realistic with their pro forma's (i.e. they don't include vacancy or maintenance projections or use unrealistically low vacancy factors)Require you to pay for any renovation upfrontSell only in cheap. low end neighborhoodsDon't accurately represent the neighborhood/property classificationDon't have consistent rehab standards for all propertiesWe've been active in Indianapolis since 2010 and would be happy to help.

All had unrealistic expectation on price.

all cash2. larger than traditional EM3. as is no inspections.. just look at it when your making an offer and know what your looking at.. 4. be realistic.. on what kind of returns are happening in the market place you may be unrealistic.. 5. go find them off makret do your own direct mail or drive for dollars type gorrilla marketing if saving 5 to 10k is that important.

You keep looking for the "perfect" deal, chasing an unrealistic standard that you can never meet.

While it is true we all felt awesome and really smart for buying assets at 40-50% of their intrinsic market value, it is unrealistic to plan for another time like this.