All Forum Posts by: Allan Rosso

@Mary Quinones, a decent rule of thumb to use is the 70% rule. You take the estimated ARV (after repair value), multiply it by .70, then subtract the estimated repair amount. For example, lets assume the ARV for that property is $126K:

(126,000)(.70) = 88200. Then 88200 - 20,000= $68,200

Using this, you would make an offer of around $68,200. However, when using this rule, you still need to make sure that your offers are competitive enough, so you don't miss out on deals. As far as this property, it's been on the market so long, it doesn't hurt to try.

@Mike Hicksjr I believe the single most important thing to get started in wholesaling, is marketing! If people don't know you want to buy their home, then you won't ever find those deals. If investors don't know you have homes to sell, then you won't have anyone to transfer the contracts over to.

@Ryan Wanner, get in touch with @Taylor Brugna. He's a tax strategist/CPA, and a real solid guy. 

Hey @Nathan Ku, I have the same bank as my tenants, so we linked our accounts together to where they can transfer money straight into my account as they would between their own accounts, but don't have the "rights" to withdraw money. You may still be able to do it even if you don't have the same bank. I think that's something worth looking into.

@Byron Enamorado have you found a replacement multi-family unit in the area you are interested in?

@Bob Razler I don't think there's a "better" thing to do. I feel like that would depend on each individual situation, and that investor's strategy. For example, my next VA loan, I plan on looking for a "plex", thus I must have the intent to live in it or I could get into trouble. The next step after that, my wife and I will buy another plex using an FHA loan (most likely through my wife this time). Thus, once again, I must live in that one. Of course, I don't plan on living in my rentals forever, these are just stepping stones I must take.

As far as the second part of your question, I really don't know much about it. I think that would be a question for a competent tax strategist. @Taylor Brugna may be able to help you with that one. 

@Nick Reynolds I believe that if you've already had the house over a year, you would be charged long term capital gains tax, which is less than the short term capital gains tax you are charged when you have it under a year. If you don't want to wait the full two years to move forward in your business, it may be a sacrifice you could consider making. There's always ways to lower the taxable profit amount as well, which you do by finding all the claimable business expenses you've had. 

@David Acra, not a problem. There you go, with buy-and-hold for multi-family in mind, write down the list of things you plan on doing, how you plan on doing them, and what you have started doing already towards reaching those goals. Then study your lists before going in. Try to have an answer ready for any question they might ask, before they ask the question. This will definitely build credibility. 

@David Acra, honestly the best way to open to the conversation, in my opinion, is to just say exactly what you're trying to do. Do you plan on doing fix-and-flips? Buy-and-hold? etc.

@Luis Angel Lopez, I definitely agree with what @Matt K. said about working with houses worth 16k. With those numbers, other costs will eat up your profit, and you may find yourself in a hole.

However, cheaply priced houses with LOTS of value are definitely out there. For example, what if a person has owned their house for 20 years on a 30 year mortgage? He/she passes away and leaves the house to the children. The children live out of state, have their own lives to worry about, and don't care for the property. This home, with 20 years of equity built up will sit abandoned waiting for someone like you to find it. You contact the out of state owners about the abandoned house they are taking no initiative to sell, low ball them, they just want to get rid of the property so they take your offer. You find yourself owning a home that may need some repairs, with lots of equity built up. 

Houses like these are out there, but it takes work to find. That's why I said be patient to find the right house, and make sure you do your research on it. If you can find a real estate agent that is investor friendly, maybe even an investor themselves, that will go a long way.