All Forum Posts by: Doug Haisten

Yes I am.

I have started searching the MLS (Realtor.com, Zillow, etc.) for properties to wholesale, primarily to sell to buy and hold/landlords. BP actually has a calculator for analyzing properties. I look for certain properties, for now I am looking at SFR, and if they meet the criteria (say $150* cash flow (after all the bills are paid) and a Cash on Cash Return of Investment of 9%+ I will make an offer on the property. Is anyone else doing this?

This is an easy way to analyze 10 or more properties a week. I do this in addition to D4$. I also have a lead generating website (just a few months online).

Doug

@Wayne Brooks This area has lower taxes than most places but my expenses I am including is just over 46% of revenue.

@Joe Villeneuve I agree I would like to have a selection of buyers waiting for my call but I don't right now or at least in that area (I live and work 200 miles away but the house is inn the town where I grew up). What I do have is a guy who has bought 10 houses in the last 2.5 years (his last purchase about 2 months ago but he has other businesses), another buy and hold investor with 24 properties (his last purchase also about 2 months ago and he too has other prime interests), and long term land lord in the area with many many properties. He has been investing for many years. I went to school with the first and third investors. The point is these are a place to start pedaling this property. The time is short but after talking with the REA if I have to slip the closing a week or so he doesn't think it would be a problem. 

I REALLY appreciate everyone's questions, points of view, and suggestions.

@Karen Rittenhouse @Joe VilleneuveI am actually looking to assign this. I offered with 3 weeks to close. I hope to find a buyer in 3 weeks. Have been told investors look to pay 50 cents on the dollar but I don't really know what that means for income producing properties. I've be been told by others its all about the cash flow with not as much emphasis on what the ARV of the property is. I reference again the webinars BO puts on almost weekly (did I say I am new) on buying rental properties and the examples given are usually very close to the ARV. These properties are justified by NOI/Cashflow and COC ROI. These are in scenarios where I would buy the houses to keep not to wholesale. I modify the analysis to include my fee and "pan for gold" through the MLS as well as other leads I get. I have been crossing my fingers on whether the broker/agent will let me have the "esca[e clause" (and I hate to have that in my contract" and the 3 weeks for me to find a buyer. So far so good.

@Brian Pulaski Let me ask this, do the numbers I posted, regardless if from MLS, make sense, a good deal? I can't say why some other investor has not seen this except, as has been said, you don't find deals on the MLS and they don't look there. However BP's @Brandon Turner gives webinars about every week on searching for properties on the MLS looking for deals for rental properties using the BP calculators. Of course 80% or so of what I look don't have good numbers but I have found 3 or 4 that have good flow and COC ROI.

Perhaps very good points. BP actually has calculators for wholesaling rental properties found on MLS but lets look at the numbers:

With me making $4000 there is a $186/mth Cash Flow (that's after all expenses and mortgage payment), 12.47 COC ROI, CAP Rate 9.4%.

With a buyer taking a 80/20 loan, DP of $10,400 PITI roughly $222 month

My offer: $52,000. The house has been on the market for almost 4 months. Investor would buy from me at My Offer + $4000

Expenses: $342/mth (not including a mortgage note, including Vaca, Repairs, Cap Repairs, Mgmt etc.)

COMPS: $60K (from realtor)

Rent: $790-$800 (as told to me by a property manager) but I am using $750

List for $62,500 (Tax Assessor valuates at $55,200)

My offer: $52,000

3/2/1433 sq ft, built in 1958. The house is vacant with some renovations done. No extra work required for a rental. In a nice neighborhood, big yard and with a shed in back. Neighbors’ houses on all sides are similar, well kept yards too.

I have found a couple of properties on Zillow and Realtor whose numbers look good for rentals that I want to make an offer on these houses are of course these houses are listed with realtors. I don't want these houses for myself but to wholesale. I don't have a ready buyer. How would I write my offer?

Doug

I watched a dozen or so BP webinars Brandon gave on the much ballyhooed "calculators" and final upgraded to Pro to have access to these calculators. I posted several analysis "to the community" for review and comment and received little to know helpful criticism. I even posted asking if anyone on BP uses the calculators and not one person responded. I should have asked that before I spent $400 upgrading to use the "calculators". When I noticed a few issues where the calculators appeared to not be functioning properly (no information is provided with the calculators, you get just what Brandon uses in the sales pitch every week (like Carlton Sheets). I notified BP via a link they provide for making such a report and got a pathetic response. I was told I should pose the question, of the functionality of the BP calculator, to the community. I sent 3 or 4 analysis' to "customer service" as requested over a period of about 3 months after a chain of emails and never received any direction or support. I checked one of the calculator using a method Brandon himself promoted before the calculators and that method found the calculator to be wrong too. 

I have been a member of BP since 2005ish and it pains me to write this. I have been embarrassed with clients and may have lost deals because the calculator can't seem to determine how much a down payment would be or how to calculate a COC. I am disappointed the calculator I used may or may not work but more disappointed at the anemic to non existent the customer service/"support is. I have asked for a refund but probably the only thing that will happen is this not get posted and a refund not given.

Douglas Haisten 

I am marketing/working an area about 200 miles from where I live. What's the best way to "deliver" and offer to the property owner? Is there a generic offer letter?

Doug

View report

*This link comes directly from our calculators, based on information input by the member who posted. I really need someone to look over my shoulder on this wholesale rental deal I need to present to the property owner (PO). The ARV is $93K, the property is rented to the same family 5 years and needs little repairs. The PO is asking $69.3K. I did the analysis based on the my buyer would use a loan to buy the property. The loan is based on the ARV. The rent based on what is currently being paid but per Rentometer the rent should be $100 MORE (should be $725).