All Forum Posts by: Chad Shultz

@Candice Scales:  Don't worry about being new.  Everyone starts somewhere.  I prefer to use just my name on a mailer envelope, so it is more likely to be opened.  Like Jerry said, a "marketing mail" from a business is more likely to be tossed in the trash.  It also depends on who you are marketing to.  If you are farming foreclosures or people in general, consider using an oversized envelope that looks more like a birthday card or card for an occasion.  Those are also more likely to get opened.  Someone in foreclosure likely does not want to hear from anyone "official", so a letter that looks like business may get tossed, because they are ignoring the lender or someone similar, etc.

@Candice Scales: Your LLC can still protect you, even if you don't have the name on the mailer. I find, using a personal name garners a better response, however, when I put pen to paper on a deal, I always use the LLC, or a Land Trust owned by the LLC. If something legal comes up, requiring your protection, it is the contract and the names on that contract that generally be involved, etc. Buying from someone is not likely to get you into a legal problem anyway. It is selling to the next person that you need to be more careful with.

@Bernardo Marquez:  I would say: Always be concerned, on any deal.  This keeps you at the top of your game.  The last thing you want to do is get complacent, or just follow the "crowd to the exit", only to realize it is a cliff they are walking off.  You can find some excellent deals in "sketchy neighborhoods" as you put it.  If you are looking for flip opportunities, I would try to avoid the areas where it is almost exclusively rentals.  If you are looking for a hold, rentals are probably better.  That said, one of my recent projects, meant as a flip, sold to a buy and hold investor who immediately rented it.  It all comes down to the "buy".  If the price is right on the purchase, you will likely turn out fine.

@Sarah Cowns:  

Good morning. I current am the leader of the Volusia Chapter of CFRI. (CFRI is chartered by the national REIA.) The main group runs out of Orlando, with six sub-groups: Volusia, Brevard, Orange, Osceola, Seminole, Lake. The Volusia meeting is last Thursday of the month, in Holly HIll. This month, it will be Sept. 30th. If you are a guest, or non-member, it is $10 to attend. However, that will be credited if you decide to join. Right now, we have the normal yearly membership and/or a 3-month trial version. More information can be found on the site, but BP doesn't allow posting links, so I sent you a connection request and can send through there, if you want to connetc. I would be happy to chat further.

@Jennifer Williams:  Thank you for the comment.  I am not sure why all the photos I posted don't show up in the forum article, but I have a few other finished pics on my profile, if you wanted to see the end product.  Cheers.

It is often said, "You make your money when you purchase, rather than when you sell."  With that in mind, if you buy right, there almost isn't a bad spot to stay away from.  However, you can certainly improve your chances at success by focusing on areas that may be better than others.  Personally, I stay away from areas with heavy rental occupancy, if I am looking for a flip.  I like to focus on areas where the home prices are just below the median sales price.  Generally, these properties have good room for profit and you tend to risk less, since you can enter the project at a lower cost.  For example; most of the properties I do will "retail" for $200k to $250k.  In my market, that is generally the "middle-class" income or blue collar and lower white color neighborhoods, etc.  I will usually purchase these in the range of $110k or less, do full rehabs at a cost of $40k - $60k, then sell at a price near the median.  I find there are more people looking for homes in the median price range, than there are people looking for $400k and up homes, etc.  If you are going to potentially make $40k - $90k on a flip, why not do it with $150k total invested, rather than see the same profit with $300k invested.  Lower risk, same result, more potential customers to buy your product.

Investment Info:

Single-family residence wholesale investment.

Purchase price: $183,000
Sale price: $225,000

Quick "Whole-tail". We bought this as a wholesale and wound up selling it on the retail market to an end user for under retail finished price. All we did was take trash to the dump and mow the lawn twice.

What made you interested in investing in this type of deal?

The hot market allowed up to do a quick turn on this property, making it irresistible.

How did you find this deal and how did you negotiate it?

Found as a probate project where the heir just wanted to get rid of the property, because he lived out of state.

How did you finance this deal?

No lender money was needed for this deal, we used our own cash.

How did you add value to the deal?

We mowed the lawn and threw out trash. No money invested.

What was the outcome?

Held the home for 29-days and made a good profit.

@Rachel Hutcherson:  I sent you a connection request.  

Rachael: Bigger Pockets doesn't allow me to include contact info. The Volusia Chapter is last Thursday of the month in Holly Hill. The area REIA group (General Meeting), over six county REIA chapters meets first Wednesday. This month the general is via Zoom, so you can attend from anywhere. If the email above shows up, send me a message and we can connect.

Investment Info:

Single-family residence fix & flip investment.

Purchase price: $62,900
Cash invested: $57,000
Sale price: $181,500

Bought a "burn out" home that had a rehab started, but the owner ran out of money. Inside was open studs when we bought. We completed the renovation and rebuild with all permits. Property sold for highest price in neighborhood at the time.