All Forum Posts by: Ben Roberts

Hi Jason Hopkins ! Welcome to BP

Does anyone know how I can get in touch with Steven Washington?  I've tried internet searches, looked at show notes, looked on BP.  His website hasn't been updated since 2013.

@Michael Quarles

Thanks AJ Singh Will do!

Thanks for all the advice. I definitely don't have 20% to put down. Need to wholesale a few more deals, first. I could maybe borrow the down payment, hold it till the tenants are gone, and then sell it but that seems like a lot of work and risk for might end up being $6-$8k. My best bet might be to write the contract and assign it to someone. Thin margin, though. If any of you are interested let me know. I'd be happy to PM you with details.

Wow! Thanks for all the quick input. Curt Davis , I really don't have much to put down so I'm thinking maybe FHA 3.5% down. That's why my est mortgage payment is high. I don't know what normal protocol is regarding addresses but it's on Bruins Trace in Cordova. 4/2.5 2106sq ft. The roof was replaced last year. Hot water tank was replaced 3yrs ago. Alex Craig I'm not sure what the others are renting for in the area. I'll check it out. I know nothing about managing on my own and don't want to bite off more then I can chew. I figured 10% was high but rather figure too high than too low. Joseph S. and Douglas Skipworth I was considering just keeping it for a year and selling. I could use the cash to lit down on a better deal later, pay down some debt, ramp up marketing for some more wholesale deals. I'm not real sure where prices are headed in that part of town but they seem stable. This would be my first buy and hold. My guy says "This may be a mistake" but if all of the pros are telling me to go for it, I think I will. I can't keep talking myself out of every deal. Does anyone have financing suggestions?

I was approached by a friend with a house to sell in Cordova, TN, just outside of Memphis.  He owes $118K on the house, its a rental and his tenants just renewed their lease for $1,400/mo, and the property is being professionally managed.  All he wants is enough to pay off the mortgage and for the buyer to cover closing costs.  Rather than trying to wholesale or even "wholetail" the deal, I thought about keeping it for myself.  I know the home really well and it's in a nice neighborhood.  

If I've got the numbers right, its break even each month but the house is worth $140K-$150K. Probably closer to $150K.

$1400 Income

-$140 Mgmt Fee (%10)

-$112 Vacancy (%8)

-$210 Mntc/Repairs/Capx (%15)

-$915 Mortgage (PITI)

I know it's tight but do these numbers look reasonable?  Is there a better way to make some money on the deal? or am I trying to force something thats not there?

Fascinating discussion

@Eddie J. I'm in Memphis, so if you ever want some "boots on the ground" to take photos, check out a neighborhood, talk to folks, etc. please let me know.  I do this kind of leg work for other investors and would be more than happy to help.  

@Curt Davis Just wondering, when you said "You should stay at a purchase price including repairs in the $60k or higher range." why?  I know everyone has there own business plan, some folks like properties below this price point, others wont go near it. For some it's location, other's its tenants.  Just trying to understand your thoughts.

Thanks @Jose Flores. I spent a few years as a Sales Director here in Memphis.  Without going in to too many details, I spent a lot of time training sales staff on reading the client, identifying true needs vs smoke screens, handling/overcoming objections, etc.  When someone asks for my price for their home, it sounds like there are two reasons.  For the most part, they hadn't previously considered selling and aren't motivated.  On the rare occasion, they really want to sell but have either no idea what the house is worth or an unreasonable expected value.  It's identifying this second group and negotiating with them that I need help with.  I'm sure a lot of this will come as gain experience but this particular line of work is relatively new.

I sent out 75 yellow letters Thursday and had 4 phone calls as of Saturday night.  1 person wasn't interested in selling, one was interested in selling a different property, and 2 said basically the same thing "I'd sell for the right price".  What's the best way to handle this?  

I recognize that my biggest problem right now is knowing what to say and this seems to be the MOST common response that I get as a result of my marketing.  I'm in Memphis, TN, marketing to absent owners. My letters content is pretty straight forward "Hi <seller>, My name is Ben Roberts and I'm interested in buying you property at 123 Apple St.  If you'd like to sell, please call me back at xxx-555-xxxx.  I can buy as-is and close fast. " Then signed with my name and number again.

Any help would be greatly appreciated.