Successful experience sharing

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Dear all, I have been stuck on my 1st investment property for a while. I have been working with my realtor to source SFH for several months. Either the properties I am satisfied with went too fast or my realtor recommend me the low coc return ‘nice’ home (1-2% coc return). He is a nice guy but i guess he is too conservative. I told him for me cash flow first and then appreciation, but things still go on the same track. Could you share how did you make your first successful case as a foreigner and what’s the tricks to commute with realtor? Appreciate it in advance.

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@Brandon Zeng the good ones will go fast.  In our Texas market it is not unusual for them to go within a day or two.  You may need to figure out a way to act quickly.   We try to see them same day and write offers the same day for our clients.  Often within hours of them coming online.

Your realtor may be trying to keep you out of trouble and reduce your pain and return. You need to ask them #1 if they have investment properties and what kinds of returns they are getting. Everyone has a different philosophy as to what works. For me I don't always think COC is king. That's me. I've seen many different approaches work.... high COC often means in my market older properties....like 1940-50-1960s...and in class C neighborhoods. Vacancy might be longer, more turnover, more evictions, more turnover repairs....but rent vs purchase price for your COC might be higher....than for example newer, nicer properties, in better school districts.

One of the posts above suggests working with wholesalers. In my market that is probably not the way to go in my opinion. That's because I often see "wholesale" deals that were bought off MLS, and now marked up. The prices are way to high, the repair costs estimated way too low, and the ARVs unrealistically high. So be careful there. Extremely careful. The overwhelming majority of the "wholesale" deals in my market are substantially overpriced. Don't be fooled by "off-market" deals. When the wholesalers are blasting out thousands of emails and have 20-50 people show up for the viewings, they're not really off market are they. They're just not on MLS....which will be the easiest and fastest way for you to see property, and also give you the best chance of getting a legitimate sale with the right title work in place.

What market are you in?   How fast can you analyze and write offers?

@Bruce Lynn it’s great to hear your insights in the market and thanks for your remInder on the Wholesale deals. I totally agree with you. I understand my realtor’s philosophy but as a foreigner I need to make a big down payment for each deal, I can’t continue the game without a good cash flow. What coc return do you usually consider as an acceptable level? My realtor usually helps me to run the renting data, WIth that I can analyze the rest pretty quIckly. But I have a challenge that my lender needs 45-60 days to process the mortgage. I am lookIng at North Dallas and Fort Worth right now. Do you have any suggestions how I should move forward? Appreciate it!

@Brandon Zeng    one is to change lenders who can do it in 30.   You may have a tough time in many cases getting seller to wait for 60.  Sometimes it might work, but often it won't.  Faster you can close the stronger your offers will be.

Are you putting down 30%.

Especially in Dallas-DFW area you have to be really careful with wholesale.  I think I am on most of the bigger wholesaler lists and really haven't seen a deal in 2-3-4 years I don't think that came through on the blasts.

So I don't think it is up to me what COC is acceptable....it is up to you. Everyone is different and has different options.

Everyone has different risk tolerances...different headache tolerances.

You can probably improve your COC by either going to older properties in South Dallas, South Fort Worth or going more rural....some of the smaller cities just outside the big circle around DFW, but that does add risk....pretty much back to basic economics.... higher return = higher risk..... lower return = lower risk. Smaller cities might be places like Gainesville or Decatur, Bowie, Waxahachie, Midlothian, Aubrey, Collinsville, Whiteright, Bonham. That might or might not be an option for you.

@Bruce Lynn Yes Bruce, the DFW wholesalers have outrageous markups & bad stretched numbers. New Western & Net Worth are the big ones & the worst. Some of the small wholesalers are decent before it gets blasted & marked up on a big buyer list!

@Brandon Zeng

Hi I'm Charles... I'm not a foreigner but I've worked with investors from other countries..... from what I've noticed most investors find their own deals and don't rely on the realtors to do so.... last guy I worked with literally purchased a home in my market for $5k.... networked with me as the boots on the ground to find a quality tenant and lease to own that same property for @ $600 for 7 years! Idk about you but that's a great investment in my book.... good luck on your journey!

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