All Forum Posts by: Brandon Vukelich

@Eduardo Nieto I agree with Chris. I suggest you birddog deals for another wholesaler until you learn the ropes. You should also plan to invest in your education by reading books, taking a course, etc. There are tons of videos, forum posts, podcasts, etc. that help educate you on the process. Learn how to negotiate, estimate rehab costs, understand ARV for your market and be aggressive on networking. Good luck in your journey.

@Myles Hendricks if you plan to treat it as a legitimate business, invest a few hundred dollars in your own purchase & sale agreement and assignment contract, written by a licensed attorney in your state. A good real estate attorney may already have something they can offer you or update as needed, without reinventing the wheel. But you generally don't want to use legal docs from other parties without having an attorney review for your protection. Please keep in mind that you are not selling candy bars or an Xbox on Craigslist or something, you are transacting in real estate that comes with a lot of liability. Don't be cheap and look for free crappy docs online. Best wishes in your journey!

As a recent tourist to the area (first time), my family and I were a bit disappointed with the beach/touristy area of Myrtle Beach. Looked like it was a great spot back in the day but felt like an area that has gone downhill over the years. If we returned, we LOVED the vibe in Surfside Beach and Murrells Inlet. I would absolutely pay a premium to rent a nice home in those areas rather than a condo in Myrtle Beach. BTW, we're a family of 4, no pets. Also wanted to mention, it didn't feel like much of a drive to Myrtle from those areas, so we didn't feel it was a pain in the butt to drive north to Myrtle for all the mini golfs spots, etc. I agree with the other comments regarding condos. I believe an HOA would pass restrictions on STRs quicker than an entire town, plus you're susceptible to HOA due increases or special assessments.

You need to treat it as a business, not a job. So mindset should be as a business owner and a real estate agent.  These are my favs over the years:

• Rich Dad, Poor Dad
• Cash Flow Quadrant
• Miracle Morning for Real Estate Agents (or just the basic MM book)
• Never Split the Difference
• Profit First
• Crushing it in Apartment Investing
• The 10X Rule
• The Millionaire Real Estate Agent

I agree with Allan.  Plus if you are planning to syndicate the deal, how do you plan to present a positive outlook to investors? I wouldn't invest in your deal if you shared figures about any stats going backwards. There is a reason investors and big syndicators are investing in hot markets with low caps, because those areas are growing and highly desirable locations.  I've been to St. Louis a couple times, I can see that it struggles in a lot of neighborhoods.

We closed our 3-unit STR with hard money at 6.875%, amort over 30 with a 2yr PPP in March 2020, right when covid hit. We rode it out, staying cash flow positive, mostly by having longer-term tenants in place. We're back to full STR and cash flowing much better and plan to re-fi in FEB 2022 right when our PPP drops. Point is...hard money can work (longer than preferred) if the numbers work. I didn't think the rate was too bad for a STR property. Best wishes on your investing plans!

Ditto to Bruce's comments.  Every deal is negotiable.  1) Build a commission into the purchase price (or not) and have seller pay you/your firm at closing or 2) Have a buyer agency agreement where your buyer is responsible for compensation at closing.  Every state and office has docs related to agency law and how you can legally be compensated.  Definitely run it by your owner/lead broker.  My recent example, a wholesaler brought me an off-market 4plex that he had under contract for $660k, his assignment fee was $25k, so $685k for a buyer.  I presented it to one of my clients and said it would be around $700k.  They assumed they would be required to pay me (my firm) 2.5-3% but I didn't feel they needed to pay that much. I offered a flat $12k. (They're good clients.) So they are into it at $697k which is a good deal in our area.  The role is that I'm representing the buyers.  Seller is unrepresented, on their own. Hope that helped answer your question.

Don't forget that you run out of depreciation at some point as well.  If you don't cost segregate, you are done at 27.5 years for residential rentals, commercial property is longer.  If I recall correctly.  I'm not an expert on cost seg/tax strategies but wanted to highlight that one as well.

Not quite but definitely trying...

Offer sent on behalf of a potential GP partner on 87-unit deal in MS. Found via BP member introduction.

LOI sent on a 24-unit near Phoenix, AZ. Off market lead via local broker.

Working on LOI for 52-unit deal near Tulsa, OK. Off market lead via local broker.

Working on LOI for 16-unit near Boise, ID. Off market lead via local broker.

Something has to click at some point.  God willing. :)

@Tim Clark I used to own a PM firm. Our insurance company encouraged us to restrict the top 10 most dangerous breeds. Regardless, you should require tenants to have renters insurance with min liability of $250k or more. Check with your own insurance agent. A dog bite on another resident, guest or vendor is going to be an issue. Side note, we charged a min $50 fine for pet waste (poop) found. You shouldn't be surprised that there are dog owners that don't care and will leave it as is.