All Forum Posts by: Chad Shultz

Alan, were you replying to me?  Your response was not quite clear.

Hello Alan,

I usually keep watch on Eastern Volusia area as that's where I prefer to do my projects. Sometimes I get several at once that come available, so I hand one or two off, depending on how busy I am. I currently have one available in a very desirable Ormond Beach neighborhood. It is a 3/2/2 about 1533 sq/ft. ARV above $400. If something like this might interest you, let me know and I can share more info.

There really is much more to your question than just a simple answer. There are so many other variables involved. Nobody can really give you a solid, definite answer without more info from you. I'm in Florida and my preferred way to do properties is in a land trust. Much better protection, easy formation, and they evaporate after the transaction is over. Your state may, or may not, allow them. Your best approach is talk with an investor friendly RE attorney, or attend your local REIA meeting and find out what the common practice is there.

George,

I would say you should start by getting to know people in your local REIA. You won't know what is best for you, until you know what you might like to do in real estate. Flipping, wholesale, renting, etc., are all different animals and different paths. You cannot just start everything "Willy Billy" and be successful. Find something you like and start there. After you make progress, move into other areas, until you have a nice portfolio of things going on. Remember: "He who chases too many rabbits at the same time, catches none."

 Katherine:  Welcome to the real estate investment game.  Yes, I said, "game."  Basically, it is one large game of "cat and mouse" that we all play on a daily basis.  Sellers want a certain amount and buyers want to pay less.  Each enters into a type of dance until a price is agreed on and the sale concludes.  However, as an investor, you should not get involved in this dance or game with sellers.  You should pay what you think the property is worth, not worrying about what the seller paid or what they may or may not make.  Stick to your formulas and your comfort zone and make offers.  Put the choice in the seller's hands.  After all, every offer you DON'T make will certainly not be accepted.  At least if you make the offer, you put the choice in the seller's hands.  Every seller will get to a point of motivation.  Whether that is price, timing or some other reason, they will all hit that point.  You want your offer sitting there and waiting for when they get to that point.  A you may write a lot of offers, but eventually, your timing will be right with the right seller and you will be successful.  Your job, as an investor, is to purchase properties at a price that is right for you and nobody else.

The contracts I use are simple and easy to understand, unlike most NAR documents. I tell people to speak with their attorney to verify everything is legit. I disclose that I am licensed and that covers it. Many times, in my state, investors purchase in a Land Trust, which I also use, but otherwise, nothing out of the ordinary.

Kameron,

When I buy properties for my own purposes, I rarely use a NAR style contract. I have an "investor contract" I use, prepared by an attorney I work closely with. In my state, you can literally write a contract on a napkin, if you like. To disclose I am an agent, I literally put a check in a box that explains my status.

As to your other question:  "Fair market value" is a perception.  As an investor, you want to buy homes below retail.  Typically, this means you are going after properties that are not perfect and turn key.  What a property needs to be retail ready is different for many people and the property current condition plays a big part.  Additionally, the sellers all have different reasons for selling.  If you can solve their problem, when many other cannot or will not, you are paying a fair market value.

The investment process is all about added value.  You buy homes in distress that most end users will not purchase and you add value by renovating the property, etc.

Hello @Manny Del Val. Congrats on your Daytona property. I just helped another investor close on a duplex, which is ready to be turned into a tri-plex. Talk about value add and cash flow. It is flowing $2800/mo as a duplex and his monthly payment will be about $1500 PITI. By finishing out the third space, he'll add another $1k/mo easily with no more overhead. His cash-on-cash is "off the hook". I love these kinds of deals. If you are in the area, or want to chat on the phone, just let me know. I have an investor background, so you are not just getting a typical agent. We can chat anytime.

When doing my flips, I usually paint different gray shades with accent walls having a color in the similar gray spectrum.  Something like a muted light gray all around, then a blue-gray or stone color as an accent in the master and other key areas of the home.  Usually buyers love it.

Thomas:  you may want to look into wholesale opportunities in your area. If you really want to make money with real estate without doing hands on renovation, wholesale will be easier than tax deeds and liens. I have bought and sold in both areas. For a tax deed/lien, you will shell out money up front, then own a property, need to get it ready and then sell it. In a wholesale, you find a property, likely have little to no money out of pocket, then assign it to someone for a fee.  There is much less risk and you usually have a time to get out of your contact if you cannot sell the contract. 

Get involved with your local REIA and connect with people who are actively doing these things to see how they work and how you can benefit.