All Forum Posts by: Gregory Childs

The best advice I can offer:
1. Go to where the RE Investors meet and ask "specifically" what people are looking for.
2. Go find that "specific" deal for them and get control (get it under contract) - usually a $100 earnest money deposit is required.
3. Go back to the meeting and find out what someone will pay you to flip the deal to them. 500, 1,000, 1,500, etc.
4. Do it again.
At some point you will have enough of a track record that people will pay you to do this for them. Just search BP for "bird dogging" and you will have all the information you will ever need.

Greg

You say you want to do something else with the money - but how much $ do you need? Work a deal with a local investor where you will carry back a significant note on the 10 properties. You get some spending money (down payment), they get a performing investment protfolio (without having to find conventional financing) and then if you decide you want to exit completely you can always sell the note once it has seasoned a little.
The details are in the negotiation - find a win-win for someone locally to get into your portfolio.
Greg

Good list Brian

Also, begin with the end in mind...

What are you trying to achieve, what risk are you willing to take, how much time can you afford, what are your strengths, what are your weaknesses.

If you are risk adverse - try wholesaling a few deals first

If you risk tollerent - buy a property type that is selling in an area you know and understand; that the numbers will return a minimum of 25% cash on cash. We prefer 30%, but that is not always achievable unless you know where to look. This way you have a decent cushion if you underestimate on some of your numbers.

I would encourage you (as Brian does) to find a GC to work alongside you (unless you are a rehab king). I would also advise an inspection - so you know upfront what the buyer will nitpick when he/she does their inspection.

Have a plan of action that you follow (project plan) and don't get emotionally involved - you are not rehabbing it for you.. design it with a specific buyer type in mind. Build your marketing around that buyer.

Time is your enemy - the longer the rehab, the bigger the chance to run into issues. Get in, get done, get out.

Ask for help - find a local group of investors that you can talk with (REA) as you hit a brick wall. This is a business, so talk with business minded people - not your next door neighbor, friend, relation.

Understand your exit strategy - intice buyers to use your lender, etc. Give them something for working with you - rather than against you (make your closing contribution, downpayment assistance, etc conditional).

Reward those who help you - if your GC does a great job pay him on time. If your realtor does a fabulous job buy send them a nice gift. They are key players on your team and need to be treated well if they do a good job.

FYI, as soon as the property is under rehab start looking for the next deal - it will take your mind off of the current job (stress relief) and it wil make certain you are focused on your business.

Greg

Agree with the above.

As we buy out of State a lot, we have actually been looking into a "construction consultant" to manage the rehab process. We have been quoted about $250 per draw request.

Our average rehab runs $20-25K; we probably average 3-4 draw requests during the project; so the cost will be around $1k per project. The consultant will review all the contractor bids, making sure that the pricing is inline and that the rehab will comply with local regs, and then they will do a physical inspection before each draw request is granted.
We haven't engaged yet - but are probably going to test this on our next project.
The selling point is that they consultants can help us keep the projects within budget, scope and time. Which can be a challenge when you have a bunch of rehabs happening simultaniously.
I'll let you know how it works.

Greg

Wow! Just reading this thread is like going to a class at Flip University. What great feedback! Way to go BP contributors!

Ouch! We just finished rehabbing three properties in Phoenix and hope to get them under contract this weekend.
The thing we liked about Phoenix is that employers like Charles Schwaab were expanding their operations in the market. It gave us a good indication of a sustainable economy.

Tampa has been through the ringer over the past couple of years - from what I understand the rental market has been pretty depressed and the quality of tennant pool has diminished considerably. If you look at the economic trends Tampa has taken a big hit.
However, the economic makeup of the employers in the Tampa Bay market is very diverse - Raymond James, MacDill AFB, ValPak, Techdata etc.. so it will come back. Also, the "investor tallent" down here is pretty strong so there is some good leadership within the REA's to take advantage of the trends.
However, I am buying out of State.. so that says something!!
Greg

Jon,
You got my post exactly - I am really trying to work out where the current "economic impact" and the cash-flow equation works best. Sometimes short term gain = long term pain. A robust economic base for a community can support cash flow over time.
Thanks,
Greg

I was wondering where the best potential for "sustainable" cash flow properties. We are currently looking at Indianapolis and Phoenix (SFH prices are low, economy is OK, and rents are reasonable). I was just wondering what other markets in the US have the potential for sustainable cash flow on rental properties over the mid-term.

Not sure if this is too general a question - but interested in all of your insights.
Thanks,
Greg

I would be interested as long as the properties aren't in war zones - decent resale or rental income once rehabbed. My email is in my signiature.
Thanks,
Greg