All Forum Posts by: Jason Eyerly

Network, network, network!

I've got the sales issue covered. I've added the newspapers to my sales plan as well. However, I've only spoken with two agents so far and I don't know if they are willing to help an investor or wholesaler yet. I'm going to two REIA meetings in the next couple weeks and I'm hoping to actually meet some potential buyers there for the deals I do find and cannot flip myself as of yet. Perhaps some people who can bring my leads as well.

Well with my knowledge of the financial markets I can tell you the Fed is tapering it's bond buying programs and interest rates will start growing rather quickly here. That being said I'd sell for the cash and use it as down payments on three other cash flowing properties while you can still get low interest rates, because it won't last through 2014. Then you have homes with equity you can use for purchases in the future, additional cash flow, three properties versus two. Something to consider.

Look really good if you ask me, but I'm no pro. You're getting this home basically at 50% off. That's assuming everything is right and proper here. Where did you get your ARV and comps from? On a deal this good I'd prefer to see the MLS information myself. Also, have you walked through with a contractor and had any bids on what the work should really total? One thing I've read a lot is that beginners and first time flippers tend to underestimate rehab. You seem to have a nice spread so you'd still be profitable if your renovations costs doubled, but this is something to consider.

Keep us updated and let us know if you seal the deal!

Jason Eyerly

EDIT: Now that I think about it, have you calculated your buying or selling expenses into this deal? How about holding costs? While they should be minimal since you have a private investor, they should still be factored in. You should check out some of the awesome spreadsheets on biggerpockets.com for a bigger breakdown and more detailed analysis of the deal. They're found here:

Depends if you want cash or cash flow. It's preference basically. Perhaps even a lease to own? This way you get your lump sum over a long time, and if they default, you get the property back and do it all over again. I'm personally looking to build capital and net worth initially, so I'd sell and use the equity towards a loan of some sort. You could sell and put $20k down on three nicer little to no work properties that are already cash flowing. Just my two cents. Keep us up to date!

Best Regards,

Jason Eyerly

I've had the untested idea of also taking a contractor with you on a walk through to provide buyers with an accurate bid report for any rehab. If they have all the details, and you have a deal, the money will come to you, and you'll close your deal!

Best of luck!

Jason Eyerly

Sounds like it's going to be a very tight spread. If houses in the area are not selling very actively, then finding a buyer will be even more difficult with a tight profit spread. I think it'd be best to move on, I probably would. It may be worth it to schedule a viewing on the property if you are serious or have buyers in line. Keep in mind you will then be looking for buyers who want a turn key property for a nice price to live in, and not rehab. I'd think if rehab was already done, there went most of the profit for any flippers or investors. Just my thoughts though, I'm definitely no expert.

Business is business but human morality also takes a factor. If I didn't know the guys situation and he just moved, I'd show him some leniency. He may end up a long term tenant and take better care of the property or something because you took care of him in a tough spot. It may cost you slightly to get paid late, so tack on a late penalty, but I personally wouldn't evict the guy immediately. If it happens again, start the process ad show you're a good person but... Business is business. That's my opinion.

Never count on appreciation to determine whether a deal is worth it otherwise you are gambling..Just my two cents.

ARV?