All Forum Posts by: Dustin P.

Personally I would  not purchase that course. Plenty of free information out there

@Dan H. Great post and I love that you gave examples of you buying at the top of the market and being ok

I think it's funny that people will put money in the stock market based off historical returns, but think that expecting cities with high appreciation to continue appreciating is gambling

@Maurice Blackledge Great job, looks like a great deal!

I love what you said about being prepared and running the numbers and having an offer ready in 4 hours. Speed and confidence gets deals done!

I'm not a fan of partnering personally. Especially if you're taking on all the risk

@Maxine Kunimura

Gotcha. I'll echo what others have said in that I would not waste the time/money trying to get a contractor out there for an offer that likely will not be entertained.

Put yourself a rehab sheet together and work on estimating rehab items yourself. You can always call individual sub-contractors (Roofers, electricians, tile workers, cabinet guys, countertop guys, painters, landscapers, HVAC techs, etc) and just ask over the phone for at least a ball park estimate of what the costs are. A lot of contractors are hesitant to give numbers that they will be held to but ranges they can usually cover. For example, a tile worker may lay tile for $2.00 to $3.00 per square foot for floor tile, maybe $15.00 to $20.00 per square foot for shower tile. You can estimate the cost to tile a shower by just doing the math and then adding in material cost. Then if you plan on paying a GC just add his markup (May be 15% to 30% depending on your market and the GC and how busy they are).

This isn't a knock on you but I think in general a low of newer investors expect everything to be laid out in front of them and with a lot of the markets being red hot right now that's just not how it works. You'll be trying to run your numbers when a red hot deal hits the MLS while a more experienced investor will be at the house already, estimating rehab costs and filling out his offer. The more prepared you are the better you'll be able to jump on good deals!

@Maxine Kunimura Send the offer first and see if they would even entertain it before wasting the time getting bids. Maybe they'll meet in the middle somewhere.

Also, how did you come up with the $210k offer price if you don't even know how much work it needs? What's the ARV on the house? Did you just throw a number out there?

@Felix Vargas This is very general but I'd say

1) Good deals can be found from others (Agents, wholesalers, bank sales)

2) Great deals you find yourself going direct to seller

Obviously very general, but you get the idea.

Let's say you get a deal from a wholesaler for $200k and you can put a little bit into it and sell it for $300k. Depending on your market, that's probably going to qualify as a good deal

Now let's say that the wholesaler got that deal direct from the seller for $170k. Let's say you found that exact same deal yourself, $170k to $300k, that is now a great deal

One thing you have to consider is the time factor and volume. Would you rather do 2 great deals a year, or 10 good deals? How much extra time and effort and marketing dollars will it take for you to find the great deals?

@Logan Reinard It's going to depend on area but I would look for new build comps in the area. Then estimate the cost to build (This will be different for every market, here in Phoenix it's around $100-120 per square foot). Then back out your holding costs, selling costs, and profit margin. 

Scrape means getting rid of the house that's on the lot and building new. So let's say you have an area where new builds get $300/square foot. Build a 2500 square foot home and you should have a house that sells for $750,000 on average. It may only cost around $300,000 to actually build. Plus obviously the cost of the scrape/demo, permits, holding costs, selling costs, etc.

Here there are areas where builders are paying $300-$400k for homes with good sized lots and scraping to  build new.

Obviously this may not apply in areas where the cost to build is too high for what the comps actually bring

@Andrew Schuster You bet feel free to send me a message

It sounds like syndicates may be a good option for you. Specifically in the Phoenix area I know of

@Ben Leybovich

@Sam Grooms