All Forum Posts by: Dave Morrow

Hey Pros.....need imput.....I have 25 rental properties? All single family....now at age 70....I’m beginning to turn my properties over to a property manager. As of right now he has 8 of my properties @ 10%. He finds new renters, qualifies them, collects rents,...etc. Most properties rent at $650 each. How should I go about asking for a reduction in his fee % on next 8....and so forth? Thanks in advance for any imput. Dave Morrow....Sweet home Alabama!

Just now saw your question...thought I might weigh in on another possible direction.  I have 20 Rental Properties and am doing Fix and Flips(Completed 5).  If you've never done a fix and flip, another way to "get your feet wet" would be to offer to one of you closest investor friends, one that knows you and knows you will follow through and do what you say.  Then have an attorney write up an agreement that makes the investor the owner of the property but you take care of finding good deals, providing contractual work needed. oversee all aspects of the deal through to selling it. At closing, you take a percentage of the profit.  That's something I actually just put together.  I will take 35% of the profit at closing.  Then if this works, you start partnering and take a percentage of ownership of the property when the project is completed and property is renting and cash flowing.  Just some thoughts...It's one more way to "wade in the investing water".

Hey Pros....Dave Morrow here.  I would like to hear your imput on something.  I have an investor that wants to make money investing in Real Estate and has the money but not the time.  So I made him this deal.  I find the house,  help get the deal done using his money to buy the investment property.  Create the Fix and Flip Proposal.  Using my contacts for the Flip work and manage the Renovation using his money.  I then get the house on the Market and get it sold.  I told him I would do all of this for 35% of the profit when it sells and closes.  I also go to the attorney's office for the purchase Closing and The Selling Closing when it sells.  All he does is put up the money.  We paid $64K for the property.  After Repairs and Reno of 20K....we should have 84K in it and be able to sell it for $104K with net profit of about $16K.  My commission would be $5600.  Should be able to do it within 60-90 days.

Is that a fair deal for him and for me.  Should I charge more or less.  

I hate to admit it. .but I don't know how to do the analysis with the formula you mentioned. Is it one of the Bigger Pockets tools. I'm new to avaliable tools out there. Thanks much for the input. Dave

Where is 8.3 Cap Rate considered to be on a scale of 1 to 10? Just curious?

If I buy a house  for 33k...already rents for $525 month-$6,250 annual income. No fix up required.  After  annual P & I, taxes, & insurance total cost of $3500. That's net $2750 / $33,000. I get 8.3% cap rate. Am I doing this correctly? 

Thank all of you so much...gives me lots to think about.  Am already 66 years old...and kinda retired but love Real Estate.  I stay plenty busy and have a total of 17 Rentals...Have recently been flipping and love that also.  Only do one at a time and take four months for the project.   In our market if I can buy one for 40k and spend 40k Rehab and sell it for around 100-105k that seems to work...most are smaller homes in the Historic Areas of Tuscumbia, AL.  3 a year puts about 60k in my pocket to pay bills, live comfortably, play with grandkids, and travel.  Maybe that's the best of all.  But...I only got into real estate investing when I was in my 50's.  It was the best thing I ever did....quite by curiosity...but it works so well...why stop?  I encourage all the young and older people who truly want a passive income to get going....It can work anywhere, for anyone, at any age.

Hello...this is Dave Morrow...new to Bigger Pockets Pro, but not new to Real Estate.  Want to make the most of where to go from here with the following:  I have 9 Single family Rental Homes and have been paying down the mortgages at a local bank for 10 years.  I'm in a small(75,000 Population) market in northwest alabama.  Rent rates grow slowly...pretty much $600 month for the average home that I own. 

Total current appraisal of these 9 properties is $650,000.  Bank will let me ReFi at 20 yr Amz.  at 85% of appraisal with a 5 year Balloon. At 85% that would be $552,500.  Payoff of current Loan for these 9 is $379,00.  That would leave $173,500.  What's the best route to take from here.  Just looking for imput and ideas on how best to proceed or is there a better way to go?  Thanks, Dave