All Forum Posts by: Arpan Patel

What do you mean by virtually? If you mean you look on the MLS or Zillow and try to wholesale from that I think you are wasting your time. If you mean you are doing mailers and talking to sellers over the phone if they call and strike a deal then I'd say you are at a disadvantage to those who go and meet the prospective sellers. Lastly, if you mean virtually in that you want bird dogs on the ground who can find and negotiate contracts you find a way to dispose of those contracts then that might work. There was a podcast not so long ago about a guy who spends about 5 hours a week on his wholesale machine - mind you that was after years of running is successfully and building a system behind it. If you are set on doing it virtually I'd suggest taking a look at that podcast and getting in touch with that podcast guest. You may be able to learn something for him if he is willing of course.

As far as where to start, start by analyzing deals in your local market with the BP calculator on wholesaling. That will make sure you don't forget any numbers. Analyze 100 deals and you'll have a pretty good understanding of your market. I hope this helps!

I agree with the others above as far as the split. I think that is too little. I'd suggest a 50-50 split but to get to your actual question of where to look, have you tried Albany/Troy area? College town in Troy and Albany there is pretty stable work due to the capital. RPI kids pay pretty decently for rent and the units aren't the most expensive to obtain. Maybe worth a look. i was looking for my cousin and it was possible to find a 2 unit for about 50 that would be worth 150 if you did about 50 in repairs and would rent combine something like 2k. Could be great deals up in that area. Just a few thoughts and I hope that helps

You will also probably need some document work from a lawyer and some initial application fees to Hard Money Lenders. You may also need some funds for incorporation. If you are getting private money loans as well you will need some funds to get an attorney to draft you a promissory note document as well. If you are taking on partners then you will need an operating agreement - most Hard money lenders want to see your operating agreement as well. Then there are some state specific stuff you may need but you will only know that as you move forward. Cost for getting started in IL are about 300 for filing fees for corp, 1000 for operating agreement, 500 for promissory note, 1000-2000 for initial application fees for Hard Money Lenders, depending on how you write your contract you will need Earnest Money for the deal you lock up, and lastly you may need to get a survey as well which can run from 250-450. You may or may not need a survey because the seller can provide that, or your lender may not require that but something to consider. This is all for single family mind you and it may vary from state to state. I was just quoting what I know IL start up costs to be. I hope this helps!!

I'd say keep them as they are. Maybe take a credit line against the 3 family after you purchase it or however you'd like to do that (maybe a subject 2 transaction would be worth your while or just try to take his name off that same mortgage and insert your own) and use those funds to purchase another property and flip off that line with some hard money as well. Those two properties are pretty good as they are so I wouldn't really do much besides a HELOC. With your experience with rehabs maybe partner up with a real estate agent to round out the skills you may be missing. They can find the deal and know what it needs material wise to make it stand out in that market and they know what to price it at to sell. You know construction and logistics and you can handle that. You both can come up with the money. Just a thought

Brie Schmidt is doing a lot of great stuff up there. She has been on a couple of podcasts as well and runs a meet up. Try getting in touch with her. She is super nice and very helpful. I don't know Milwaukee but last I heard she had about 60 or so units up there in I believe just 2 zip codes so she is crushing her local market. I hope she can help you!

furthermore, maybe see why there are so many flipper in your area. Maybe that is the ideal strategy around you and you may need to travel a bit further to get to a good rental destination. Just a thought

Some that I would ask are:

1) How many other real estate investors have you worked with? What are their strategies and how many deals are the processing

2) Are you also familiar with asset protection concepts? (I understand they are not an attorney but can they work with one to create the ideal set up for your business)

3) What types of structures would you recommend for my strategy of _________

4) What are your normal filling fees for these different structures?

5) Are there any odd rules or fees that I would incur with this strategy?

That's probably where I'd start. There is a tax book on BP that is pretty good and you can kinda see if your tax professional is familiar with the concepts in that book.

There are also great books in the BP book store for that. I would also suggest checking out the podcasts that center around property management. There is also this site that Jorge Garifuna (fellow BPer) put together that has all the books mentioned on the BP podcast. You can search through and find the books others have recommended on property management. I hope that helps!!

@Carlos Flores: That person with experience will go a long way. What about if you partnered with that person but your financials would get the loan and he would be the experience part of the team. That way, that other individual can be the operator and you are the financier. Maybe even look at a different HM altogether versus the one that your friend with the experience already has access to. Just a thought

Those numbers can work but I agree about the lending being different after you have exhausted your FHA loans. Also, I think 100 a month positive cashflow is more realistic which would put you at 84 units. Few different ways to get there and your set up approach to the units can still work just with different amounts. Maybe take down a 168 unit complex and split with an investor if you manage it. Probably too big to bite the first year but in year 3 or 4 after you have some management experience and the ability to turn assets around, maybe start taking chunks off at a time. Hope this was helpful!