You can post in either the New member or the wholesaling questions and answers forum, but a great place to start is The Ultimate Beginner's Guide to Wholesaling. I do a lot of it myself so let me know if you have any questions.
Racine, WI · Member since 2016 · 7 posts · 0 votes
10y
Hello everyone, I'm new to this wholesale business and I would like to know how and where to began at? Please some one steer me in the right direction.
Investor · Honolulu, HI · Member since 2016 · 362 posts · 93 votes
10y
Man, @Chris Jackson you are an inspiration and I hope to one day replicate the success that you have created thus far. Thanks for keeping up posted with your progress. I look forward to reading about it.
Rental Property Investor · Arlington, TX · Member since 2012 · 788 posts · 640 votes
10y
Wow! Congrats!! I noticed most of the homes look older. Are you getting new electrical, hvac and plumbing put in before renting or perhaps most have already been upgraded? Love the original oak floors.
Investor · Southold, NY · Member since 2016 · 173 posts · 154 votes
10y
@Rocky V. no most don't require that level of rehab. Sometimes plumbing replace and new roofs. New boilers every once and while. New electrical panels sure.
We pick the gold not the turds. We will do full gut rehabs but its gotta be around 5k purchase price for that. Our goal is to find the ones that need 1 day to 2 weeks worth of rehab to get rent ready.
Also you will notice this isn't HGTV world where you overdo all the rehab and make no money (heh haha)
This is strategic reno to get in get out , not take on huge cap x.We will pay a premium for a new roof and new boiler so that we can do rent ready reno and get cash flowing with a solid SFR that will cash flow for years without a capx surprise in 3 years.
Also, we know when we have 1 day to 3 years left on a roof. We check with tenants after heavy rain, if new roof needed then we replace. If not why do it now? Everything is strategy choices. We are good landlords and are very responsive. Filtering the turds from the gold is the time consuming part but we keep the pipeline full to filter out the turds.
You can post in either the New member or the wholesaling questions and answers forum, but a great place to start is The Ultimate Beginner's Guide to Wholesaling. I do a lot of it myself so let me know if you have any questions.
Investor · Southold, NY · Member since 2016 · 173 posts · 154 votes
10y
@Brett Snodgrass lets connect. I would like to talk to you about buying criteria. There are certain GEOs that have the ratios of all-in to rent price that we are looking for.
Racine, WI · Member since 2016 · 7 posts · 0 votes
10y
@Brett Snodgrass thank you for the lead, I will definitely look into it asap. Also I'd like to connect with you for future references thanks once again.
Investor · Southold, NY · Member since 2016 · 173 posts · 154 votes
10y
@Eric Moehrle thank you. We are financing these with both personal funds and mostly private debt investors. We also have a hybrid equity/debt investment model which I believe to be quite unique to our company after speaking to some folks in the industry.
The holistic approach is pretty much a BRRRR model but with a few unique twists we add for some sizzle unique to us. :)
I have one BRRRR under my belt and I came out ahead on the deal. I already have a cash offer on another property and I'm waiting to hear back. I want to scale up like you have done and I was wondering how you went about it. I know that's a broad question but any advice on scaling up to more deals per year would be appreciated!
Investor · Evans, GA · Member since 2015 · 190 posts · 103 votes
10y
@Chris Jackson...you are still tearing it up. Outstanding! I'm working on the refi of a recent cash purchase myself. So, when will you hit 10 properties?
By systems I am not referring to some SaaS solution you buy and then evs is alright and humming. A system could be a paper and pencil, as long as your system organizes a lot of activities repetitively which allows you to handle more volume. You need to be able to have a system of organization that allows you to scan lists of things and move items, properties, to-dos into various other prioritized lists.
Whats in the pipeline?
What happened to these offers?
Where is the rehab number on these 4 properties?
Do we have an investor lined up for the next 2 properties?
Do we need to market more for more properties, more investors, more bank conversation for refis?
Is the LLC created for that property closing in 2 weeks?
Is there a renter lined up for the property that will be reno'd in 2 weeks?
Is the water turned on for a vacant property?
You can say "oh shouldn't the PM handle that?" but come on thats not fair to them, when you are closing 8 properties in 8 weeks all with various level of rehabs you need to be johnny on the spot for your PM too. Is the water authority ready with the auth forms, yes/no?
Need a great team to execute all of these tasks. That takes time. Workload distribution and accountability.
Investor · Southold, NY · Member since 2016 · 173 posts · 154 votes
10y
@Jade S. thanks. We are at 14 SFRs already. But the first ones took a bit longer and more spread out as we were fine tuning our system to be able to handle the pace we are at now. The 4 in 4 and 8 in 8 which was just really 4 more 4 in 4s is just a way to produce predictability. Now we can project how we need to get to 30, 100
Our multifamily experience has really helped us here. We are experienced multifamily owner/operators for years adding a new model to our portfolio and opportunities for our investors in search of solid yield.
These are part of our SFR portfolio we are building up this year. On pace for 30 by the end of the year.
Keep the momentum going folks. Momentum is so critical. Plus we are in contact on a 60 unit in Atlanta. Busy busy make hay while the sun shines
Quantity is only part of the story. And it's not necessarily good. Consider the case of little to no cash flow or appreciation potential. What's you average purchase price? rental rate?
You are correct. However we would not be continuing to build our SFR portfolio if the numbers were not shaking out for us.
SFRs normally do have higher risk for a capx and/or vacancy event to create 0 or negative returns for the year. We try to mitigate those risks as best as possible on purchase and capx portion of rehab. In our case quantity helps us because of our strict purchasing standards. If one of the SFRs does exhibit subpar performance it is lifted up by another SFR that is performing beyond expectations. That's where more of a multifamily lens is applied.
Appreciation is not depended on in our model. We are more long-term. After refi, principal paydown is our friend and helps mitigate any potential future decrease in value. Appreciation is certainly welcomed. :)
Would be happy to discuss the number granularities through direct communication channels.