Rental Property Investor · Broken Arrow, OK · Member since 2016 · 1k+ posts · 1k+ votes
Purchased both properties back in Jan and sold both of them this week for combined profits of just under $35K. Also, signed contracts this week to purchase three more properties. On to the next deal!! #KeepGrinding
@Michael Ablan Myself, but use contractors, wholesalers, agents, etc. I had a bad partnership years ago in another business that ended in near bankruptcy after I gave up controlling interest to merge my successful business with two other partners. So, I'm very cautious about partnering, and will not ever do a partnership unless I maintain at least 51% equity and control. I could write a book on that subject!!
@James Bridgers No that part's easy. My approach is look at the deal, if the numbers are there, I just buy it...I don't have "analysis paralysis", I just buy it based on the numbers. However, I don't have the funds to buy every deal I look at right now, if so, I could be buying 5-10 per week right now easily.
The longest part for me was the first 6 months and the fact I only started with $30K saved up, so I did one deal at a time, and during the first 6 months was only able to do 2 deals, but then it started ramping up, more and more and snowballed.
@Brian Garrett Spending a lot in marketing and advertising. I get a lot more leads then I can buy myself right now, so I have a couple great wholesalers who I work with and provide leads to. They work all my leads for me, in return I get first right of refusal to purchase them once they get them under contract, and the ones I don't choose to buy myself, I help them advertise them to wholesale them. It's a win, win they save me a lot of time negotiating the deals, so I can focus my time on actually closing deals and flipping properties. Then they get additional leads they get to wholesale for profit.
@Brian Garrett Spending a lot in marketing and advertising. I get a lot more leads then I can buy myself right now, so I have a couple great wholesalers who I work with and provide leads to. They work all my leads for me, in return I get first right of refusal to purchase them once they get them under contract, and the ones I don't choose to buy myself, I help them advertise them to wholesale them. It's a win, win they save me a lot of time negotiating the deals, so I can focus my time on actually closing deals and flipping properties. Then they get additional leads they get to wholesale for profit.
Makes a lot of sense and is a great strategy. It seems the hardest part for most people, including myself, is finding good deals so the fact you have that all sorted out and have found a system that works is phenomenal. Kudos!
Ever considered BRRR? I know flipping can get stressful as I've completed and profited 5 last year. I've studied tax code and see some definite advantages in holding and utilizing BRRR. Ten years down the road I feel like you can be chilling on a beach getting paid by your tenants.
Purchased both properties back in Jan and sold both of them this week for combined profits of just under $35K. Also, signed contracts this week to purchase three more properties. On to the next deal!! #KeepGrinding
@Michael Ablan Myself, but use contractors, wholesalers, agents, etc. I had a bad partnership years ago in another business that ended in near bankruptcy after I gave up controlling interest to merge my successful business with two other partners. So, I'm very cautious about partnering, and will not ever do a partnership unless I maintain at least 51% equity and control. I could write a book on that subject!!
Have you shared your partnership story on BP? I recently spoke with another investor (both of us attend the same REI) I've known for a little over a year or so who asked if I wanted to partner. He feels it's a better way to get ahead. Short on funds is his motivation and if 2 put up half to purchase then do HML for the rehab. I didn't jump at the idea and sign away since both of us have never flipped a property. I've spent time reading tons over the past year and learned quite a bit on the analysis while doing other deals and I know he has not thought everything out yet. Anyway, I'm sure other son would benefit from the do's and don't of your experience.
@Daria B. If you're going to do a partnership, I'd recommend doing it with someone with experience. Two of you with no experience would not be as beneficial to you as working with someone with experience.
I'm not saying I wouldn't partner on individual deals if the right opportunity came up, I probably would consider it, if I knew the person, but I have zero interest in any partnership where I didn't maintain 51% ownership and controlling interest.
Where are you finding your deals? You seem to be coming across them quite easily and in abundance.
Bandit signs ;)
Where do you place them?
I don't, but in Southern California, they can be found in lower-middle to lower socioeconomic areas on telephone poles and often at freeway off-ramps My favorite iteration is when one company puts their sticker with a number on someone else's bandit sign :)
@Jeff Filali you still out there workin?? From what I'm reading in your thread is there are wholesalers and help me find deals? I am looking to flip the property but hold instead of sell.