All Forum Posts by: A.R. Coningsby

@A.R. Coningsby 

Find a partner! 

If you don't have the experience you stand very little chance to bring that deal across the finish line. I have been there many years ago straight out of the bootcamp and let's just say the results were not that great (zero). Looking back I can only smile about my attempts.

You have two options: you can bring on an experienced wholesaler or you can hire an agent. In both cases make sure that the person is skilled and experienced in particular with FSBO's. It takes a while to get good at it and in the beginning your conversion ratio is not that good. You want someone who does 50+ deals a year. If it's an agent make sure you ask them how many FSBO's they call on every week and how many they end up listing. If the agent is an investor that's a plus, because then he/she can help you doublecheck your numbers. Most residential agents don't know how to do that.

Financially it's probably a wash - you'll have to pay both the agent and the wholesaler. You will be able to negotiate more with the wholesaler, maybe as low as 5-10k. The agent will charge around 6% for what's called a single party listing.

From the viewpoint of the seller it's probably better to go with a agent, as he will be perceived more professional, by the book and perhaps a little bit more as a neutral third party (although it's really "dual representation without designated agency" in my State).

If you want to go the agent route feel free to PM me I'll hook you up with someone local who has the necessary skills! Good luck!

@A.R. Coningsby this is a great find if the property is located in the area you want to be here in Broward... First you need to find out what the properties are worth in that particular area. What is the estimated rehab? Run your numbers with the BP Rental Calculator to analyze the property to see if the numbers work. Once you have put all of your numbers in, the calculator would tell you what you should be paying for the property. Keep in mind, with FHA the property has to be livable for all tenants. There can be minor rehab that need to be completed, but no major rehab. Also, make sure you check to see if the rents are under market; if they are under market, you should be able to increase the rents after you acquire the property and rehab it. Thanks to @Jake & Gino, LLC with Wheel Barrow Profits, they speak about RUBS, which you may be able to bill the tenants back for the water which could also increase your profits once the property has been rehab. When running your numbers, make sure you include the property management fee as well even if you decide to manage the property yourself. Great Find... Keep up the great work!