All Forum Posts by: Robert Williams

Hi Amber,

There are a number of different ways I would evaluate these investment properties as potential buy and holds.  First, I would not just take my agent's word on what these properties would rent for and instead would do some additional due diligence to establish the potential rental price of each one.  Try rent estimator websites like Zilpy and/or get confirmation of the rental prices from an independent source.  

Second, don't just evaluate a potential investment property based on the cashflow, but also think about the long term price appreciation potential.  Generally speaking, a home close to the DC Metro system would be more attractive to me (and also probably easier to rent out) because it will have more appreciation potential.  

Finally, as another responder has said, plug in the numbers for these deals into one of the rental calculators available for free on this website.  

Also, how familiar are you with the neighborhoods where these homes are located?  Make sure you understand things like crime rates, etc in each neighborhood since they will impact the rentability, quality of tenant, etc.  

-Rob

Welcome to BP, Valeria!  

Staging is powerful!  I have fully staged every house I've flipped and it makes a huge difference.  Staging is not magic, its not going to sell a crappy house.  But, it will drive a lot more traffic to a good house than if the same house were offered for sale without staging.  Staging coupled with professional photography of a home increase traffic and, for me at least, that's always led to getting multiple offers within a week of putting one of my homes on the market.  

Hi Mimi,

I've taken out builder's risk insurance policies with the following agent.  The quote you received is ridiculously high, in my opinion.  Six months of insurance on a standard DC rowhome generally runs me $600-$800.  

Ian Higgins, LUTCF| Managing Partner & Principal Agent| Licensed in MD, DC, VA, PACongressional Insurance Associates | 12505 Park Potomac Ave Suite 220 Potomac MD, 20854Cell: (240) 308-1380 | Business: (240) 912-4150 | Fax: (301) 540-0895Email: [email protected] | Website: www.InsureCongressional.com

The DC Property Tax database lists the owners for properties within Washington DC.  Here's the link:  https://www.taxpayerservicecenter.com/RP_Search.jsp?search_type=Assessment

Hi Ti,

If I were in your position, I would go with Keller Williams.  They have a proven training program that will help you gain the necessary skills to become a successful agent.  Moreover, I would try to find a very successful Keller Williams agent and see if you can join their team.  The benefit of being on a team is that it becomes a source of leads and mentorship for you.  My wife got her start at Keller Williams and she now owns and operates her own successful real estate brokerage. 

Sincerely,

Rob

Hi Krista,

Welcome to Bigger Pockets! I think being a real estate agent gives you a real advantage when it comes to real estate investing. You can leverage your expert knowledge of the market in a particular area to help you find good deals. Of the four flips I've done so far this year, three of them came from the MLS and only one came from a wholesaler. Deals are out there, you just have to recognize them when the come on the market, or, alternatively, look to see which properties have languished on the market and make those sellers a low ball offer.

Probably the easiest way to get money for rehab type deals is from hard money lenders.  Two that I've worked with in DC are Revitalending and Washington Capital Partners.  Hard money lenders are always going to insist that you have some "skin in the game" so you'll need to have some seed money of your own to put towards a rehab deal.  

I wish you all success!  

-Rob

You hit the nail on the head...just go ahead and contact them and see if they're interested in selling.  

Step one is to search the DC Property Tax database to see if they actually live at the property or if they are absentee owners.  If they are absentee owners, the DC Property Tax database gives your their current mailing address.  If they're not absentee, well, then you know where they live already.   

Step two is to reach out to them, whether its in person or via mail.  I think this really depends on your comfort level and whether or not you're a "people" person.  If you feel comfortable, go knock on their door and introduce yourself.  Tell them that you've been looking at houses in the neighborhood and really like theirs.  If you don't want to meet them in person, send them a letter.  There are lots of forum posts on "yellow letters" which will give you ideas for content.  

Hi David,

Welcome to Bigger Pockets!  I got my start in real estate investing by jumping right in and just buying a property.  I bought my first investment property in 2006 when mortgage companies couldn't give their money away fast enough.  I bought a place in the Columbia Heights neighborhood  of DC that needed a complete gut rehab.  I hired a contractor and worked with him to rehab the property.  The project took a lot longer and cost a lot more than I expected, but it provided some valuable lessons learned.  I found a tenant as soon as the renovation was complete.  I was a "buy and hold" investor for many years, steadily adding to my portfolio of rental properties in DC.  

A few years ago, I decided to take the plunge into fix-and-flip investing.  I sold one of my rental holdings to provide the seed money for my first flip and I haven't looked back since then.  I'm now doing flips as a full-time career and I love it!

-Rob   

Hi Cooki,

Welcome to Bigger Pockets!  I definitely think wholesaling is a great way to start.  Not only can you get started in wholesaling with just a minimal cash outlay, wholesaling also offers a valuable introduction to real estate investing fundamentals such as running comparables, determining if a deal is good or not, establishing ARVs, and estimating renovation costs.  

I'm a licensed agent and to me being an agent has been an invaluable tool in my work as a real estate investor.  So far most of my development deals have come from the open market.  As a licensed agent representing myself, I get 2.5% to 3.0% of the purchase price of the property at the time I purchase the investment property.  This covers my closing costs and therefore reduces my out-of-pocket expenses for a deal.  Representing myself also saves me another 2.5-3.0% on the back end when it comes time to sell a flip.  

Good luck!

-Rob

Hey Philip,

Welcome to Bigger Pockets!  You're background in remodeling project management is going to prove invaluable to you as you grow in your real estate investing career.  Your know-how when it comes to how to plan and execute a renovation project and contractor points of contact are going to make it a lot easier for you to get into any real estate deal that requires renovation.  

Good luck to you!

-Rob