All Forum Posts by: Brad Bellstedt

On a side note, I find it funny that you can search by number of bedrooms on Redfin but not in the MLS. I tried to verify this info for you in the MLS but number of bedrooms is not a searchable filter for multis in the MLS.

Not in my opinion but I believe you check that number more often than I do. Do you think it's low?

Either the agent would not get paid (because you are not offering a buyer's agent commission, which is something to consider both sides of on your own) or you pay the agent 2.5-3% of the purchase price and just add that into your equation. As a wholesaler you may be looking to purchase for 70% of its fair market value minus your profit, minus the investor's profit. Just subtract another 3% of what YOU are going to sell it for (not the ARV) and now you have you MAO.

You should add the location to your title. I think you'll get more responses that way.

Hello! My name is Brad and I am also here in Las Vegas. I will DM you with some more details. 

I think you're right. For pride reasons, I have to mention that it's 2.5/month but yes, I believe you are correct. (I have a partner I split 50/50 with) That money will go further as a marketing budget than any ROI of the above mentioned list. Thank you for weighing in.

Hello Josh! I too run the numbers on a lot of SFR's here in Vegas and for the most part you're going to find 5 and 6 CAP rates unless you can get the property at a pretty serious discount or if you are willing to self-manage the property. I'd be happy to double check any of the math you've done. Never hurts to get a second pair of eyes on it.

I currently own one rental property myself that falls just short of the 2% rule but I didn't buy it that way. It was purchased as our primary back in 2009 and the rental market rates have caught up to the almost 2% rule. 

From what I've been seeing over the past year is that the BRRRR strategy seems to provide for the best return. You can buy a property that won't qualify for conventional/FHA loans due to the condition on a significant discount (because of the lack of demand for such a property) rehab it, rent it, and refinance it back to a healthy return on investment. One of the last ones I ran was showing a 9% cap rate. Of course, I could be off in my repairs estimate but the initial math on that one is promising enough to take a more in depth look and that's where I am finding the majority of higher returns.

It IS possible but to get another loan that requires the borrow to occupy the residents, you will need a letter of explanation for why you can no longer live in the first property. (Ex. property 1 is a two story and you need to live in a 1 story now)

Also, those HUD homes are open to non-owner occupant offers after a certain amount of time. I believe it's 90 days. So if you wait, you may be able to purchase this property as a non-owner occupant so long as you have the funds for the down payment and closing costs.

@Steven Edwards Absolutely true! I don't mean to give the impression that we are cutting our advertising budget. Quite the contrary. I've been considering doing some wholesaling through DMM, and creating a website and optimizing the SEO but I'm looking around for other options that are less labor intensive. The wholesale/expansive marketing route is the one I've put the most time and effort into (of the list above) but was curious if a 10-15% ROI with MUCH less work involved is a viable solution. But you are correct that working this angle from within my current business may be the most rewarding both monetarily and non-monetarily.

@Bob Daniels I should clarify that I don't consider research and learning as "work." The relative comparisons in my mind are direct mail marketing (as a wholesaler) or house flipping. Both require a tremendous amount of tedious and mundane "work." I don't mind research and the thrill of finding the deals, but I am trying to avoid having another "job." So to clarify, I mean more passive than being a wholesaler or flipper.

@Matthew Paul Although that IS a pretty easy way to make some quick cash (especially on the strip with drunk tourists) it's not quite as consistent as a monthly rent check/mortgage payment.

@Steven Edwards You're not wrong! We've been steadily working on that and it reflects in our numbers. I made about $75,000 total before expenses which is up about $20,000 from the year before and $100,000 is the goal for this year. It's not a very "safe" investment though. I believe (and could be wrong) that If I give my money to a hard money lender or crowd funded real estate company the likelihood of seeing a return is greater than it would be to pour that money into systems and marketing.