All Forum Posts by: Damir Kamber

Welcome @Brian Haley! Wholesaling is an interesting piece of REI. Probably single most important piece that has the least amount of quality folks doing it. Once you continue educating yourself further and start wholesaling some deals, remember two things: Do not over estimate the ARV and do not under estimate the cost of repairs. Even if you are offering the potential profit to be 10K versus 30K. Here to help if you have any further questions.

Cheers!

Damir 

Hi @Eric Cross! Good for you for finding a trustworthy partner, two minds are always better than one. Few things to keep in mind here:

1. You can simplify everything by just going 50/50 on everything. If both of you believe you each bring half of the value to the team, it's always the best option to go with in my opinion. 

2. What type of return is he looking for? ROI, Cap Rate and Cash-On-Cash should all have his expected percentage next to them in order for you to better understand his expectations.

3. You can get paid a finder's fee for finding the property, contractor's fees for all the rehab and monthly management fee for managing the property. You then negotiate a split for when the property sells.

Hope that helps somewhat.

Cheers!

Damir  

@John Dean, I recommend you take out a pen and a piece of paper and write your criteria down. Brokers are often the best way to find great deals, solely because they are in the trenches every single day. That being said, not all agents/brokers offer the same quality. One thing they do like is when their buyer knows exactly what they want. Your job as the investor is to spend their time wisely, as they don't like to waste it (nor should you waste yours). 

Good luck, let me know if I can help answer any other questions. 

Cheers!

Damir  

Hi @Matthew Bridges! I grew up in Gwinnett, from '97 to '08. Gwinnett has always been a great Buy-and-Hold county, not so much for flipping due to limited appreciation. That seems likely to change due to the recent political shift in the county. Seems like they are looking to start spending on new developments in many different ways. Duluth, Norcross, Buford, Peachtree Corners and Suwannee seem to be moving in a right direction. Are you looking for Buy-and-Hold or flipping? 

Cheers,

Damir 

@Matthew Kenny have you tried using the Fix and Flip Calculator in the Tools section? You are giving yourself a 50K spread and you will probably end up using a hard money lender. They will charge you between 3-5 points since it's your first deal, so your down payment is 3-5K if they are lending you the entire 100K. They will also charge you an interest rate somewhere between 12-15% so you are looking at monthly payments of 1000-1100/mo, plus all the other monthly holding costs like the utilities, etc. So right there you are at 50K - 4K - 4,500 = 41.5K - 9K for the agents when selling, you are at 32.5K. What are you estimating in repairs? 

Just some rough numbers for you, the calculator will give you a better idea if this deal is doable. Always do the numbers and the numbers will tell you what to do. 

Cheers!

Damir  

@Carolyn S. why are they breaking the lease? As landlords, we sometimes forget that we are running a business. With that being said, we are all human beings and things do happen. Your goal as a business owner is to reduce turnover and keep your unit vacancy to a minimum while keeping your customers happy. Since they are good tenants, as you described them, they should help you find new tenants and work with you in showing the property to all new prospects. 

At the end of the day, understand that you are running a business and your tenants are your customers. All the details in between are up to you as the business owner. 

Good luck!

Cheers,

Damir 

@Brad Pierce congrats on your duplex! Why are you looking to setup an LLC?

Cheers,

Damir  

@Hernell D. congrats on your first deal! It all depends on your personal investment strategy. You obviously know your end goal, which is investing in larger multis, where management is the key, as @Ryan Cox mentioned. We all have different opinions and ideas on what to do, but this is your future and your way of getting out of the rat race. 

Personally, I love partnerships because I'm a big fan of perspective, and with partnerships, different perspectives at the same table can create some magical results at times. Good luck with your next venture, and remember, everything comes down to YOUR personal investment strategy. 

Cheers!

Damir 

@Matthew Kenny congrats on your first lead! Do you mind sharing numbers with us, so we can better understand your deal?

Cheers,

Damir

@Erik Peddle which part of Atlanta do you prefer for your flips?

Cheers!