All Forum Posts by: Account Closed

Typically when I calculate a fix and flip property I don't look at cap rate. It is used for buy and hold rental properties- and in my case- multi family properties.

Fix and Flips depend on purchase price, ARV, and rehab costs. If you get a deal at a low enough price to be profitable and that matches your own specific criteria- that is what I classify as the most important.

@Branden Pfaff

Messaged you

@Joe Splitrock  @Aaron Junck

If a property is on the MLS I already consider it a less than desirable deal in most situations. Doing Wholesaling in South Dakota I find distressed properties that people need to sell as quickly as possible. Obviously not every deal is under 50K but they absolutely have come to me at that or less in the past. These are typically fix and flip or rental properties that need some amount of remodel but in the past I have found myself having to turn away from a deal from lack of interest from buyers in the area.

10% Cap rate is absolutely possible in Sioux Falls. I have seen it and dealt with it first hand on more than one occasion. I look for value add properties that are cash flowing from day one. Are the two of you finding deals strictly using the MLS? Would love to hear more about the process you take and if this forum could lead to mutual growth.

Hi @Will Fraser !

I appreciate your thoughts and I would have to agree most of what you are saying. We have all been guilty of following the crowd and doing what others before and above us have done that led them to their success.

My follow up question would be- We all want financial freedom and to live a better life for ourselves and our families through real estate. But to be a top 1%er more than just following an already traveled path must be done. Is it our simple and primal fear of failure that keeps most people from exploring outside their comfort zone- or is it people don't believe in themselves to succeed in anything else out there?

Not everyone was born to be a leader but I believe that everyone can step out from the crowd and take on a new lead in a unique direction if they choose to- but few do. I wish collaboration  in the real estate realm would grow and be used 100X more than it currently is. 

Not everything needs to be done by ones-self and I think that it takes a lot of hard work and the desire to grind every day for your goals. A mentor and leaders can help point individuals in the right direction but it is up to them to take the next step and really take their life into their own hands.

Thank you for your thoughts- and Happy New Year to you and your whole family!

Brady Aman

I have my hands in quite a few different Real Estate pots- but it seems like one thing is always the same.

"Where is it located?"

Its a Valid question but I have come to realize that it carries perhaps to much weight in the eyes of the majority of investors.

I live in Arizona and needless to say it is a competitive market. I moved here from South Dakota and many investors and property buyers I have worked with have been shocked when I tell them that in South Dakota +10% Cap rates exist in plenty for buy and hold rental properties and flip properties come available to me every week for under 50K. This got me thinking- why aren't more people doing these deals?

I moved to Arizona to expand to a 2nd market and currently operate in both markets but it is two completely different obstacles I face.

In Arizona- buyers are plentiful but finding a good deal is the difficult aspect of Wholesaling I face.

In South Dakota- Deals are plentiful but there is a massive shortage in people looking to pay for flips and cash flowing properties.

WHY?!? - Location.

I have people tell me they aren't familiar with the market and don't have the knowledge to make an informed decision. Ok- I get it- But in this business, the day you stop educating yourself and striving for more knowledge is the day somebody else passes you.

Why aren't more individuals looking to do deals away from the comfort of their home- if a property is cash flowing, makes money, and is appreciating- What's the issue.

We were all afraid to get into this business to some degree but once we start to get comfortable to many people are stuck in their comfortable bubble and won't step out to try and better themselves. I don't claim to know it all- or much at all really; but people who are serious investors looking for financial independence and a better life through Real Estate- I don't quite get it.

Would love to hear thoughts on this and why more people aren't investing in markets outside of their own. Obviously this doesn't apply to all investors but generally from what I have been seeing- this is extremely common.

Thank you and Happy Holidays!

The Real Estate World can be a dog eat dog world and I have ( on more than one occasion) have been told politely to hit the bricks by more than a few individuals. This always struck me as a surprise- If two or more individuals can work together on a project and have it be mutually beneficial for all parties- Well that's just good business!

South Dakota is where I was born and raised and it always had a small town , close knit community aspect to me as an adolescent and young adult. As I matured and enter the Real Estate field i quickly got a taste of the other side of the coin...

Just to clarify, I have partnered and worked with hundred of individuals in South Dakota and have had countless positive meetings and developed countless meaningful business relationships that I am truly grateful for. However, some individuals have the mentality that everyone in the world is trying to get an upper hand on them and they refuse to even have a conversation- which i find wildly strange. 

The planet is anything but butterflies and rainbows and it doesn't take a rocket scientist to figure this out- but I believe that their are more people out there that want to help mutually grow with you than watch the world rise or burn on their own. 

This isn't simply a South Dakota problem, in fact the more I expand and do business outside of my home state the more I tend to see people's walls go up and it be harder to build real relationships in the business world.

I would love to start a discuss on this, not just for my South Dakota peers but for a healthy Bigger Pockets community as a whole and promote the idea of collaboration and mutual growth. Bring the new decade in with more mutual growth and less toxic and unhealthy business relationships!

I have my hands in quite a few different Real Estate pots- but it seems like one thing is always the same.

"Where is it located?" 

Its a Valid question but I have come to realize that it carries perhaps to much weight in the eyes of the majority of investors. 

I live in Arizona and needless to say it is a competitive market. I moved here from South Dakota and many investors and property buyers I have worked with have been shocked when I tell them that in South Dakota +10% Cap rates exist in plenty for buy and hold rental properties and flip properties come available to me every week for under 50K. This got me thinking- why aren't more people doing these deals?

I moved to Arizona to expand to a 2nd market and currently operate in both markets but it is two completely different obstacles I face.

In Arizona- buyers are plentiful but finding a good deal is the difficult aspect of Wholesaling I face.

In South Dakota- Deals are plentiful but there is a massive shortage in people looking to pay for flips and cash flowing properties. 

WHY?!? -    Location. 

I have people tell me they aren't familiar with the market and don't have the knowledge to make an informed decision. Ok- I get it- But in this business, the day you stop educating yourself and striving for more knowledge is the day somebody else passes you. 

Why aren't more individuals looking to do deals away from the comfort of their home- if a property is cash flowing, makes money, and is appreciating- What's the issue.

We were all afraid to get into this business to some degree but once we start to get comfortable to many people are stuck in their comfortable bubble and won't step out to try and better themselves. I don't claim to know it all- or much at all really; but people who are serious investors looking for financial independence and a better life through Real Estate- I don't quite get it.

Would love to hear thoughts on this and why more people aren't investing in markets outside of their own. Obviously this doesn't apply to all investors but generally from what I have been seeing- this is extremely common.

Thank you and Happy Holidays!