All Forum Posts by: Dustin P.
Dustin P. has started 17 posts and replied 523 times.
Post: How Long Did it Take... ?
- Realtor
- Tempe, AZ
- Posts 541
- Votes 442
1 month for first wholesale deal, 5 months for first flip
Post: What is the normal going rate of earnest money?
- Realtor
- Tempe, AZ
- Posts 541
- Votes 442
1% is normal, 2-3% if you want to make your offer strong along with waiving contingencies
I'm almost always offering at least $5k
Post: Questions for Arizona purchase
- Realtor
- Tempe, AZ
- Posts 541
- Votes 442
@Owen Brown I want to second Keyt Law for LLC formation
Post: What are some of the biggest challenges investors face?
- Realtor
- Tempe, AZ
- Posts 541
- Votes 442
100% Contractors
Post: Are there really this many bad deals?
- Realtor
- Tempe, AZ
- Posts 541
- Votes 442
@Antonio Cucciniello Why didn't you jump on the one at 10%?
Post: Feedback for first investment property
- Realtor
- Tempe, AZ
- Posts 541
- Votes 442
Congrats Eric! Where is this property located at?
I think getting a property that cash flows in Phoenix right now is a step ahead of a lot of people (as a traditional buy/hold anyway). A lot of deals don't cash flow and people are in it for equity gain through tenant paying down mortgage and appreciation. I also think we are going to continue to see steady increases in rent.
Have you calculated your IRR on this one? I'm guessing it will make it look a little better than the COC return makes it look.
I do always figure in 5% for expenses even on fully renovated properties because stuff happens. You'll send people out there for something small so $100/mo for expenses should be expected. I like the low vacancy number though, if it's a new or rehabbed property in Phoenix it will rent in a day. No Capex seems appropriate for a new build that you only plan to hold onto for 5 years.
I also self manage, but I think you'll want to factor in at least 8% for PM just in case (Maybe you move and can no longer manage the property yourself, etc)
Factoring an extra 13% for the above two mentioned items is another $225 a month so you're still cash flow positive
Advantages:
MLS use
Easier to network with other agents for pocket listings
Finding deals on the MLS
Being able to list property / monetize the lead if they are not motivated enough to sell for cash
Protects you in case of the whole legal vs. not legal to wholesale without a license debate
Set up searches to learn the areas you are looking in and have your finger on the pulse of the market
Disadvantages:
Cost money
Takes time to study for tests, pass tests, submit paperwork
Must disclosure at all times that you are a licensed agent
Originally posted by @Alex Verdugo:
As an agent, don't you have a legal responsibility to submit all offers to the owner? Then it would be the owners decision to reject the offer.
You are correct. An agent has to submit all offers to the seller unless specifically directed not to in writing.
If the agent has it in writing not to submit offers below a certain price then the agent should definitely still tell you. It's still an offer, you may come up on it, maybe the seller will reconsider down the line if they don't get the offer they're looking for, etc. The agent should not just ignore you. I would hammer call the agent, call from different numbers, etc. until they finally answer and then just be nice about it. The no response at all thing should not fly.
What do you think ARV is, what do you think repairs are? I don't know a whole lot about the Tucson market but if it's an actual single family house that seems very low.
Post: Sister now feels unsafe: Peeping Tom Situation
- Realtor
- Tempe, AZ
- Posts 541
- Votes 442
Originally posted by @James Wise:
Originally posted by @Jimmy M.:
Hi, Looking for advice for my sister to get out of her lease before we contact the landlord again. Here's the situation: For the past few weeks, around midnight once or twice a week she thought she heard porn being played by a neighbor very loud and very clear. She took videos, contacted the landlord, let him know how unsafe and uncomfortable she felt with this going on. Landlord responded but did not do much or offer much guidance. Fast forward to last night. A neighbor next door sees a guy outside her window masturbating and playing porn on his phone. This is clearly the situation, someone had followed her and was doing this deliberately outside her window. A police report was filed, they took down all the information, and they think it actually is the same person who had been doing this all over Chicago.
The unit is a 1st floor studio in a 10-20 unit building in Chicago near Wrigley Field.
Our goal is to now contact the landlord with a clear and concise request to terminate this lease, as she no longer feels safe there.. She is going to be staying with us until we find her another apartment that is not on the 1st floor or Ground floor. My brother is a lawyer and has offered to step in, citing clear negligence of safety after multiple requests. What we are really looking for is guidance on how to best approach the landlord to just have the lease terminated so she can move on past this horrible experience. Any guidance or thoughts?
My initial idea is to try to handle it nicely, if he has another building that feels safer and not a ground floor, she would entertain looking at units there to not cause him financial harm. I don't think in good conscious she would sublease this unit now.
Thoughts welcome.
Bummer situation but this sounds like a police matter to me. It sucks your sister has this problem but that doesn't make this problem she has the landlord's problem. If your sister owned a home and this happened would you expect to be able to get the seller to buy it back?
This. It's an unfortunate and gross situation but there isn't a whole lot the landlord can do. I think letting her pay a lease break fee and leave is very generous of the landlord to be honest. What happens if the stalker just follows her to her next destination?
There needs to be a restraining order filed and cops need to get more involved.
Post: What are your thoughts on co-wholesaling?
- Realtor
- Tempe, AZ
- Posts 541
- Votes 442
Co-wholesaling is the dumbest thing I've ever heard of. You're taking a (probably) already tight / marginal deal, and then trying to squeeze more out of it by doing absolutely nothing.
The person who acquired the deal likely had to invest a lot to get it. Whether that's marketing dollars on letter campaigns / online marketing, meeting with the owner, getting it under contract, or by building relationships with agents / probate attorneys for the lead, it takes a combination of time and money.
And then you want to make an extra $5k by just blasting that person's deal out to the masses and hoping that you get a bite. Now maybe it's a sensitive family situation and one of the random people you blasted the deal out to is knocking the door, maybe now the seller refuses to close because they are being harassed, maybe now you just blew the deal up for someone.
The larger a blast list, the worse the deals IMO. If you have a good deal you don't need to send it out to 20,000+ people for it to sell