All Forum Posts by: Bob Okenwa

So you spent 20k on a program that got shut down by the FTC and are looking to spend another 20k despite being already owning property and having done so for 2 years?

Save your money and find a property. Endless education just delays moving forward. I understand that some people benefit from courses and seminars, but book learning never supersedes experience IMO. You've already started so I'm not sure where the need for extra education comes from.

You'll learn more from doing deals and doing them often than anyone can teach you in a classroom. Find local meetups, ask questions, and network. Maybe you can find a mentor and do a JV deal of some sort where you front or lend the money in exchange for mentorship so you can earn and learn simultaneously.

@Tommy Feraco Jr

If you're concerned about having multiple offers accepted and not having the capacity to close on more than one, then negotiate each deal separately and get a verbal agreement before submitting a formal written offer.

One option is to call the listing agent or seller and explain your offer and situation and make a verbal offer. Ask that they get back to you as quickly as they can as you are an active buyer looking to close a deal quickly and have other properties you are interested in.

Do this with all of the properties you're interested in and be transparent that you will follow through with the best deal and that time is a factor.

I don't care for making multiple offers unless at the same time unless I'm prepared to buy everything I'm offering on. I wouldn't want to mislead any sellers or pull the rug out from someone who thought I was offering in good faith and not just shotgunning offers all over the place with the hopes of seeing what sticks to the wall. 

1. Responsiveness. Time is money

2. Market knowledge

3. Guts to tell me I'm wrong and why I am wrong. Would rather be wrong 100 times and not find a property than to be told everything is great and make a mistake.

@Baylen Sparks

I can go on and on about this and that about what's important but that would be long and drawn out. The most important thing is to have a knowledge team on the ground in your area of choice.

The second most important thing is to do your homework. Be sure you know the area well so you can speak to what your goals are and what your buying criteria looks like.

I'd suggest reading David Greene's book on long-distance investing. That should get you going in the right direction.

@Bryce Jamison

I think it all depends on where you live. In Phoenix, a 1996 build is practically brand new when compared to a WWI-era home in Cleveland or Pittsburgh or some other Midwest or East coast city.

While I agree that older homes come with more problems, buying something newer may not work as the price will be higher and won't cash flow as well.

I'm of the mindset to buy what fits your budget and investment goals. Many newer investors have to start somewhere and older more-beat-up homes are cheaper and can help someone get their foot in the door.

As for appreciation, this too is location dependent. I've seen 100-year old 1300sf houses in Phoenix in the historical district sell for more than new builds twice their size in the suburbs.

@Jeff Rogers

It's on you to do due diligence. Your inspector didn't inspect the roof and that was OK to you. If you were really concerned about it, you would have hired a roofing specialist to check it out and not let that slide.

Fix the roof and keep it moving. Things like this happen. If there is anything that gives you concern going forward, hire the specialist to check it out.

@Juan Zamora

There is not enough information in your post to say exactly what kind of offer one should make. Not all markets are correcting at the same rate or with the same velocity. 

Did they pay cash or hard money?

What does the local sub-market look like?

How many other projects do they have?

What are the closed comps looking like?

What is the ADOM of the comps?

What do the active comps look like?

What do pending comps look like?

 You have to find a number you're comfortable with. After all expenses, I like to see $300/mo cash flow. I consider deals that don't hit that number, but only if it makes up for it in other areas such as being in a better location or needing rehab.

@Peter Shafik

Find the agents for these buyers. Look at properties that have been recently sold (within last 6-12 months) and are now up for rent. Find the buyer agent and reach out and let them know you have a deal and would like to know if their client would be interested. 

The goal is to reach out to enough agents to build relationships where they take your deal to their list of buyers and you can have a network of agents finding buyers for you.

It'll take some effort and time, but can be beneficial down the road.

@William Luke Laity

If you can hold to 70% of ARV-rehab you'd be in pretty good shape on most deals. It isn't as easy to find such deals these days, you really have to go out and create them.