All Forum Posts by: Leigh C

As long as you aren't lending to owner occupants it isn't too difficult to get through the paperwork.   Though, i don't believe it is a good idea in most cases.   Seen so many get stuck with really bad loans because the broker didn't know or care.     Foreclosures take about a year in Fl now a days without them fighting it too hard.    I still see 2009 cases coming through the sale.     

10-12% is about the going rate for small HMLs.     I've seen larger companies offering 6-8%.     You might want to consider using crowd funding sites for real estate, i rarely see deals I'd do myself though.

vision properties is one that does it....

just remember, you get price...or you get terms.    Rarely both.

Help me with the math?

640,000 Purchase

13,000 Closing costs (2%)

70,000 Rehab 

4,000 holding costs (utilities/taxes only)

21,000 (6% interest rate on the money for 6 months)

835,000 sales price

50,000 realtor commissions  (6%)

17,000 closing costs (only 2%)

-----------------------------------------

20,000 net.      And that is assuming your 70k actually lifts this house to sell for 835k.    1604 Victoria Pointe that looks pretty nice and is bigger on a corner lot is for sale at 819k and has been on the market for 7+ months now.

I work the entire state.    About 100 houses a year....   I also use to live in Vegas and completely understand Florida is about 6-12 months behind what you experience.    

As for 10% cap rates, i kinda doubt it.   They paid 155k and are renting it for 1475.     We were into it for about 100k.      From the looks of their pictures they put another 5-10k into it after they bought it.      Even at our price using the "50% rule" you are only at 6-7%   Limited experience with rental costs...the idea of having so many tenants gives me a headache.

The big boys are all working those areas.     Though i do believe a small landlord will always do better than them.   I'd suggest working a smaller area that you aren't competing with them to purchase.

We sold one in Jacksonville a few weeks back and the hedge fund actually replaced brand new carpet because it didn't match the color scheme they wanted.     They made me want to rent from them since it seems like they just don't care about the bottom line and they wanted their houses pristine.    

this is your broker's job

HAHA i so have you beat!

I had 4 pit bulls back me into the corner of a garage once growling at me.    The owner left them in the barn to fend for themselves.    

I pulled out my pocket knife and was prepared to try and fight my way out ( I actually have 2 years animal shelter experience) and right before i went to make a move I looked the alpha dog in the eyes and told him to "sit the %#@^ down".    He did.    The others backed away as i moved back to my truck, went to the local pet store and bought myself a bunch of treats and 5lbs of food.    Came back and tossed it outside my truck window till they all were too stuffed to eat anymore, then animal control picked them up without any issues.   I carry some sort of treat on me now whenever it's a rural location.

My carpet guy has a 50 dollar snake removal fee that he has gotten me with twice already.   In Florida it's not really a big deal.

realtor.com

I have a simple rule for all wholesalers that I run across.    Lock the property up in a contract, send me the address and price.    You have 3 chances to pitch me whatever you want, if they all suck I block you from further contact.    If i want something and the price changes, you instantly get blocked.

Over 200 properties purchased over the last 2 years, zero came from a wholesaler.     Typically they take a so so deal and then add their fee onto it dancing on the line of "is it really worth doing".   I have a theory that my personality may hinder me working with them though.      I lack patience now a days for stupidity.  

Spoken like a true wholesaler...as in most of your sales pitches marvin, i'll pass.