All Forum Posts by: Alan Walker

I did 3 BRRRs last year.  Figuring out the right team to have for purchase financing, the deal, repairs and refi-financing is the key.  It's also about being patient.  I see too many folks with "deal-itis".

It depends on the deal. In my experience, if you find a great deal, then partnering on a rental at a specific percentage makes sense. The important thing to show in that scenario is what you are bringing to the table that is of equal value to the money/credit they are bringing to the table. For many people that want to do real estate, they don't want to find deals or get their hands dirty. If you can show them why its a good deal (how they'll make their investment back plus ROI), people are interested in partnering. Your focus needs to first be your value in the deal.

Thanks for the info @Steve Theobald.  So much is changing in the industry right now.  It'll be interesting to see where this lands.  In my opinion, sold data is an area for a realtor to bring the most value.  Keeping it private makes sense. 

I agree.  Depreciation is a big carrot for passive investors that have W2 jobs.  If they only own their primary residence, this gives them the opportunity to claim part or all of the depreciation each year.  It's also important to remember that money needed for repairs (outside of the reserve the property has) needs to also be put in 50/50.  When I partner, there is a clause that states that if one of the partners cannot contribute, the other partner can lend them the money or depending on the size of the contribution needed, capture some of the partner's equity.

As we move into the fall and winter, market inventory increases and homes tend to sit on the market longer and fewer homes sell. This can be a great time to buy investment properties. Sellers are often more amenable to negotiation in these circumstances since many of them need to sell for one reason or another or they would wait until Spring to list again.

Below is a chart (based on Utah MLS data for Salt Lake County), shows that October and December are the two best months in the fall to buy. For every home sold, there were 2-3.5 active properties on the market. There are typically fewer buyers and they have more options when choosing a home.

Investors, what’s been your experience in purchasing homes in the fall and winter?

All real estate is local in the end.  And even within the "market", there are various price points that experience different reactions.  Days on market are getting longer for sure, in almost every price point.  I'm not sure that means recession or getting back to a more balanced market.  Days on Market are still historically low and inventory is still tight (depending on price point of course).  Affordability is the number one issue we are facing in Utah.  We're pricing too many folks out of buying a home.  

I use Scott at SLCity for my listing photos.  Shoot me a text and I'll give you his number. Its usually under a hundred bucks.  All depends on the size of the place.  I would think given the size of your unit, it would be less.

I agree with William, the MLS is hot right now and deals are far and few between. If you price the property right, you could get multiple offers. Is the property in a state where a bank couldn't lend on it? How far into the rehab have you gotten?

I'm finding my deals through wholesalers that I've met at the different REIA meetings around the valley. I'm on a bunch of wholesaler lists but my best success has been developing friendships with people I meet so they think to call me before blasting out a deal. It's a people business.

Hey All, 

I'm hitting the limit of my current crew of sub-contractors on my flips and need to start building another team.  I have too many homes sitting empty waiting for contractors to get to them.  Where are you finding most of your contractors along the Wasatch Front?