Hello fellow BP members,
I am looking at a group called circle city homebuyers, they look to offer a few things (wholesaling, and lending to an extent). They have some seemingly good deals, but I was wondering if anyone out there might have worked with them before. They have a nice breakdown of estimated rehab costs, and expected ARV (images below). Can anyone point me in the direction of some great questions to ask, ways to research this on my own as well?
Thanks for your feedback!
I live in the Indy area but cannot offer any advice about Circle City. BUT, my two cents for anyone considering a purchase outside their own market is: Comps, Comps, Comps
Comps on recently sold very similar units within walking distance over the last 12 months,
Comps (multiple estimates) on rehab $,
Comps (educated expert opinions) on which way that particular neighborhood is positioned now and for the next 5-10 years
Basically, the same due diligence for a local buy just via longer distance :)
do you have any direction on where I could find information on where the neighborhood is headed in the next 5 to 10 years? This would be my first deal so, definitely don’t want to mess anything up. Or get too over excited and leave out important pieces of due diligence
Aside from comps, I'm not sure why you'd want to take on a $90,000 rehab from half a country away...especially being new to this. Do you have relationships with contractors here? Do they do the work? Do they guarantee it? How long will it take while your cash is tied up? Will you keep the house afterwards and rent it out? Or, will you flip it? If you flip it, who is going to sell it? How long will it be on the market with more cash tied up?
It's important to know your EXACT strategy before just looking at numbers.
Sorry, the numbers were more for a glimpse at how they layout their pitch. I prefer to do buy and hold, but I'm not against a flip. I have an agent I've been talking to for a little while who works with investors out in that area and will work with him at least to start. I stumbled across these guys a while ago in the forums, and their deals looks pretty good, almost too good, but that could just be my inexperience.
I listen to the podcasts quite regularly, but once I started trying to put everything in motion my enthusiasm might have run away a bit. So I've been trying to get feedback, guidance and maybe find someone who's done this before.
This first flip I'm going to aim to use hard money, so I am definitely in need of getting an entire plan ready.
Thanks for the feedback, and direction,