All Forum Posts by: Calvin Lipscomb

I see it a bit differently. In my business model, it takes more time to analyze deals than to run comps. I’ll do that all day long for someone, but I ask investors to do their own due diligence. Each investor has their own individual strategy/strategies and numbers they need to hit. Learning each person’s strategy and comfort level intricately, then hunting and analyzing deals that hit that sweet spot is more time-consuming than checking comps. I often wonder why investors complain so much about agents, but I think it could be because they don’t (or can’t) explain the numbers they need to hit, but then agents are expected to deliver the perfect deal on a silver platter at a discount. In my experience so far, investors call me asking about a specific deal, then disappear after I give them the details they want. I can’t be helpful on the buy side if someone isn’t able to communicate to me exactly what they need in a deal, and I’m no longer willing to find and analyze without building a relationship first and knowing the investor is funded and ready to pull the trigger. I do realize that most ‘investors’ who contact me cold are either just out of a get rich seminar or have HGTV on all day, so I get it. And i wish I had time to hold their hand, but i just don’t.
On the sell side, a savvy agent can an investor’s best friend. Professional photos, drone shots, video-and not just a slide show of the still shots, marketing across thousands of websites and platforms, negotiating to meet and hopefully surpass the needed numbers... the list goes on.

This is still the biggest mystery in the REI universe, at least to me. Honestly I think 'investor-friendly' means nothing more than low-cost & affordable, at least for 90% of the investor population.

Maybe there is a bit more to it.  

I found one, purely by accident, that added serious value by paying for services that she knew I would need, like unlimited professional photography and staging. The staging part especially, because I would have almost certainly blown that off -- she just did it. And we sold the place $15K over the original ARV so it worked. Never even had an open house -- we had multiple offers before the weekend even rolled around.

She offered to cut her commission to 2.5% instead of 3% but I told her she really didn't need to do that.  She did it anyway.  So I am promoting her all over town, so make sure she gets her discount back in spades.

On the buy side, man, that's tough. You can find one that will set up a couple of automated searches for you in the local MLS and keep an eye open, but those are so rare that they eventually just forget about you. And you have be pretty specific as to what you are looking for.

Don't expect them to run comps, find another way to do that on your own, they just don't have time.

@Calvin Lipscomb I think the main thing you want out of an investor friendly agent is the ability to run numbers wit you and give you honest feedback on what is a good deal and what is not. I deal primarily with investors in the near southwest suburbs of Chicago, and I like to build relationships with my clients to the point where I can tell them to walk away from a bad deal. It is all about the long term relationship in this business. 

Hi BP,

I have the opportunity to do something I've always wanted a gut rehab in the Lincoln Park neighborhood!  I found a property but it's completely gutted and I don't think the rough in is done either.  Anyway, I'm trying to gauge how much condo quality rehab is per square foot in Chicago on the north side.  The building is set up for 6 units 2 3/1 and 4 2/1. Any help is appreciated.

Sorry guys, the Great Flood of 2016 in Baton Rouge, LA has definitely delayed my progress on this project. I'm grateful that this property did not flood (had another property that did) as I'm just about over the hump in getting this bad boy refinanced. Here are the numbers as I just got an appraisal value in.

Purchase Price: 75k

Renovation Amount: 30k

Appraisal Amount: 170k

I'm pretty excited I was able to create 65k in equity. I was highly leveraged going into this deal as I used a lot of my own cash and credit lines to tie this deal up as banks can move really slow when you don't have the relationships in place.

Now I just have to figure out a way to tap into this equity and leverage it as collateral for another deal. Based on my readings, some banks only allow 70%-80% LTV which if 70%, this would only allow 19k to be tapped. I'm going to exercise every option I have to see what's the best move here (more to come).

There's still some outstanding items I need to finish up so that I can place a pending tenant. I'll be sure to get some more pictures posted.

I have to admit that I originally decided to focus on apartments (1 deal which seems to be dead for now and the other going through long strenuous negotiations) but the flood events created some good deals that I couldn't pass up. I have 2 single family homes under contract that would be great fit for my portfolio. However, after these are renovated, I'm going to divert my focus 100% back on to apartments.

Joseph

Hey Calvin.  The sponsor makes or breaks the deal, not the proforma on a sheet of paper.  A bad sponsor can easily mismanage a good deal.  There a lots of good deals but not the same can be said for people.  Invest in people first...the deal is secondary.

I agree the numbers should make or break the deal regardless of the experience of the syndicator. I would also require something beyond the numbers regardless of the experience of the syndicator and that is a thorough vetting of the syndicator's background and character. I want to know I'm dealing with someone who is honest.

Hey guys,

Just wanted to thank everyone that spent time answering all of my questions(some pretty bad ones too) to this point. I just closed on my first deal yesterday. 

I know this means that I'm still just starting on this journey, but I feel like it's a pretty big milestone and just wanted to share it with y'all.

Jay Hinrichs would there be any good reason in your opinion for a seasoned syndicator to bring in an inexperienced one in this way?