All Forum Posts by: David Collier Jr

Hey @Deonte Berry, you'd need to be more specific in knowing which projects exactly your considering undertaking in the rehab. J Scott's Book on Estimating Rehab Costs is a great way to get an understanding of costs (which vary from state to state). Im into a pretty big rehab on a duplex which will probably end up costing me $50k. New plumbing, new bathrooms, flooring, tree removal, new porch and columns, paint, impact windows, the list goes on and on. 

Read his book and go online and research the specific projects your considering undertaking. That should give you a good base of knowledge to start estimating but by no means will it get you to the final #. You'd be hard pressed to find a general answer on what rehab costs are. If anything go to the home with a contractor. Hope that helps. 

Hey @Reinaldo Lopez, im here in the S-FL market. I get any MF that comes on the market from Hollywood to PB County under $1.2 million. Rarely do I see "deals" but that doesnt mean offers can't be made. Right now driving for dollars is probably the most productive. 

If you are on an email alert and see a good deal come in gotta make an offer site unseen full price if the listing price makes sense. Thats how I got mine. Turns out there were many cash buyers right behind me but I had locked it down first site unseen and it was only 5 mins from where I live. No time to look at a property when a "deal" comes onto the MLS.

Before I found that I did have success making contact with owners driving and sending letters. Just couldnt come to price agreements. 

Hey @Madeline O., I purchased a duplex as an owner occupant here in Pompano Beach in a good area for around $300k with an FHA loan 3.5% down + around 3% closing costs. Got into the deal for less than $20k. I also had my Realtor assign me back her side of the commissions so my out of pocket was actually lower but that is unique. I am licensed and she was a friend.

Strongly recommend buying a multifamily and living in it for a year as you can get in with your $20k, then refinance and buy another. If you buy something that needs work and can get to 25% equity via forced appreciation you can pull the cash out when you refinance. If you bought right your cash flow should cover the note. 

My advice is find an area and learn the market rents at first glance (not the rents listed but what it can command). You have to be able to know if a deal makes sense right away if it's sent to you on the MLS. I made a full price offer site unseen within an hr of list because I knew it wouldn't last. Turns out I got my place under contract hours before cash buyers came in with interest. Anything on MLS that makes sense will go fast.

The ones that are listed too high make an offer at the price that makes sense. A "no" is better than a won't know. But get your lending strategy sorted first. That will allow you to know exactly what your out of pocket will be to close the deal prior to. 

I can recommend a lender if you need one. Hope that helps! 

Hey Kim, in my opinion, from a management standpoint 16 doors in one location is much more preferable than 16 doors in four separate locations. One note, one payment, one tax bill, one insurance policy, one property to maintain, one tenant lease and easier in regards to record/book keeping. 

@Ned Carey indeed there is thank you! 

NOLO Partnerships

@Ned Carey and @Nicholas Lohr

I am currently working on educating myself on building a successful partnership and the different strategies to consider as I have access to private money and verbally interested partners. 

Is there a resource you recommend to people like myself and @Benjamin Bleasdale more so than others on this topic? I have read many forum posts as well as Branon Turner, Anson Young and J. Scott’s books. I am curious as to whether there is a resource providing sample partnership outlines/breakdowns. 

@Juan Carlos Castillo

I own a duplex here in Broward. Step one choose a single target area, maybe two. You can't cast a wide net here in Broward as one mile can mean B+ to D neighborhoods. If you are using the MLS as a lead source my advice is to find an area or two and get yourself to a point where you can instantly tell at first glance if a deal makes sense. I say that because any true "deal" that comes into your inbox (get onto an auto email with your criteria from your Realtor) will be gone within 24 hours. Get it under contract and negotiate later. You won't have time to go see a true "deal" on the MLS.

For my first purchase I made a full price offer site unseen within an hour of the property coming onto the market because I knew it was a deal based on my understanding of my target area. Don't pay attention to what the current or sellers estimated rents are. Most times they are too low or estimated too high. Get to a point where you know exactly what the units should rent for based on location and size. Use sites like zillow, Hot Pads and Pad Hopper to learn market rents.

I also did some "driving for dollars" mailing owners of properties of interest. I had success with that as well but the properties weren't exactly what I was looking for. But it does work! Do not get analysis paralysis but also don't jump into a deal just to get it done. Run properties through the BP calculators religiously to sharpen your tools. I ran more than I can count. Eventually you will be able to run the numbers in your head or quickly on paper. 

Lot of areas here in Broward that are up and coming so do some research and hop in the car. Hope this helps. 

Morning Mariela, I use Rob Wolfe with Wolfe Construction 954-540-3530. He is working on my duplex and my best friend's full rehab/remodel currently. I know him personally not just professionally.   

Full disclosure he is very busy so the job isn't something that would be done ASAP but that is the case with anyone good right now. You can mention my name if you decide to have him bid. Hope that helps. 

Hello BP Members! I have a situation I am working through and was wondering if anyone had any advice to offer. 

I purchased a duplex w/ 2 large black olive trees. Under prior ownership, Hurricane Irma caused the tree to list and crack a concrete slab porch and damage columns on that slab supporting a roof overhang. Both of which require complete replacement. Long story short (4 months later) the city has finally approved the removal of the damaged tree after certified engineer reports and arborist evaluations. 

However, the city is requiring I meet mitigation requirements up to the appraised tree value of $7,900 either by planting new trees in equal value or payment into the "tree fund" of that value or the difference. I can not plant $7,900 worth of trees due to limited space which means a large check will have to be stroked.  

My question is, if as the result of a wind event/natural disaster, a tree is damaged and requires removal to repair structure and remove risk, can the city require the full mitigation be met to the appraised value OR because it was the result of a natural disaster do lessor mitigation requirements apply if any? 

I find it hard to believe that after a hurricane/tornado/etc, a city goes around hitting residents with mitigation costs/requirements (which homeowners does not cover) if a tree on their prop was damaged as a result of something beyond their control and now requires removal. 

I understand this may vary from muni to muni.. The city in question is Pompano Beach, FL. 

     In March of 2017 I came across a website run by a couple of successful real estate investors and mentors disguised as average Joe's (and of course their amazing team). I spent countless hours watching their webinars, reading their books/forums and mastering their calculator tools. Using the skill set acquired from the invaluable tools and resourceful community I had my first investment property 12 months later. That website was @BiggerPockets .com. 

     More detail on the deal is below but I wanted this post to be about two things.. A thank you to the Bigger Pockets team/community and motivation to anyone trying to push forward into their first deal. To everyone at Bigger Pockets, this deal and the many more to come are 100% due to the amazing job you do providing people like myself with the education, tools and confidence needed to successfully navigate the RE investment space. For that I thank you. Your hard work is helping others, bottom line. 

     To anyone with the desire to get into RE investing, searching for somewhere to begin that journey, you are here. That is however only one step. You now have to decide to dedicate the time, effort and energy. Everything you need to know is right here but it is on you to invest in yourself. Set your goals, formulate a plan, dedicate the time and most importantly TAKE ACTION (that was written on my BP book marks). Turn off Netflix. Ozarks is a great show, yes, but the cartel is not forcing you to build a casino so shut it off. And stop the mindless social media thumbing!

     I have been self employed since I was 20 years old, always taking steps and learning along the way. So taking action for me was just how I've always figured things out. Nobody cares if you mess up so neither should you. That is exactly what you will experience. Learn as you go. Analysis paralysis is a real thing with medical doctors and everything (jk). With that said, you don't want to get into the wrong deal just to call yourself a RE investor however the tools on BP, when used correctly, will keep you from doing so.

     I analyzed countless deals in my very competitive market and offered on many. When the right property came up I was able to make a full price offer site unseen within minutes of listing because of the skill set I had acquired over constant repetition and market analysis. Know your market! Ignore current condition and rents to a degree. Know exactly what an asset can/should be.  

To the deal.. This is a 3/2 and 2/1 duplex in a very up and coming area (can even see project in background of photo). The closing process took 3 months due to code violation liens not only on this property but others owned by the LLC. I learned that when an entity is selling a property and that entity owns other property with liens, the liens extend over the entire portfolio. Im assuming same goes for private seller?? The closing was arduous but all that translates into is more education. I had many reasons to walk away but knew the deal made sense. If it was easy everyone would do it! Now working on my next..

Duplex 3/2 (large backyard) + 2/1

$299,000 - $3,000 in repair credits

Realtor commission assigned to me at closing: $7,100 (my girlfriend was my Realtor and I am licensed as well)

Current rents: $1,300 / $1,100

Rents after remodel: $1,800 / $1400

Estimated cash flow: $150 per door

Rehab budget: $15,000

Loan type: FHA 3.5% down (I will occupy 3/2 for one year then ReFi)

Realtor: Morgan Marziali - Whitaker Realty 

*Review inspections but don't let them panic you. Also, pay $275 to have the pipes camera inspected. 

TAKE ACTION TAKE ACTION TAKE ACTION