All Forum Posts by: Dustin Frank

Teaming up with the wrong business partner

Matt M. PM me, I would like to go over the details.

I was contacted by an agent and asked to bring cash offers for a client of hers. Due to unfavorable circumstances, showings would be difficult and they would prefer not to list the house on the MLS or have an abundance of people stop by. I am trying to come up with an offer but I need to figure some rough repair costs and ARV first.

Some basic info on the property:

I had trouble posting pics to BP so I just threw a craigslist link up. You can view a few photos here.

It is located near 88th and Wadsworth in the Kings Mill neighborhood

2 story/ 5 Bedroom/ 3 Bath

Master suite "loft" 500 square feet

main floor/ 900

basement/ 900

some good things:

Roof is five years old

new windows on the top floor

new water heater

no signs of foundation settling

home is overall maintained and well kept "just very dated"

The expensive things:

paint trim outside of house

HVAC is working  but is super old

Needs painting throughout, with a room or two of wallpaper removal

needs wood floors installed on main level

carpet in upstairs and basement

new appliances/fixtures/countertops in kitchen

complete remodel all 3 bathrooms

entire basement is wood paneling

drop ceilings in basement "possible other option?"

Yard could use some tree and bush clearing as well as removal of a wooden fence.

If anyone is familiar with the area I would appreciate any input you might have regarding ARV or your experience with some of the repair items listed

Interview with at least three brokerages. You are probably looking for the one that has the cheapest commission fees. Most likely if you go this route they will provide little to no guidance in exchange.

We just a 1000 sq foot condo. New carpet, new wood floors, new paint, new fixtures, new bathroom, new countertops, new appliances. Took a tad over 30 days.

I'm a real estate agent out of Denver. I INSIST that all all my sellers get professional pictures taken. I find deals by looking at properties that have been on the market way too long. Most of these properties have crappy iPhone pictures with bad lighting. I would personally spend the money to hire a professional photographer "even a starving college student with photo skills" to create some great photos. You can use these same photos over and over each time you rent the place, provided it hasn't really changed.

If you plan on doing more than two or three deals a year you should absolutely get your license. Since getting my license I have been introduced to opportunities that I never knew existed.

You can go to DORA website and see how many people from each individual school took the test and then see what their pass/fail rate is ....when I got my license in Colorado, every school was around 60-70% pass rate, Except for Armbrust School of Real Estate. They had an 82% pass rate which was substantially above the rest. I went to their school which was slightly more expensive...end result is I passed the test with flying colors. I know of other people that failed doing the same thing but these are my personal results.

I have been contacting listings that are overpriced and have been on the market way too long...my conversations are usually less than 3 minutes and go something like this "I'm Dustin with HomeSmart....I like your property listed at 225, I have cash buyers that I would love to show this to but they want to make x amount of profit and would be willing to pay somewhere around x amount....I usually wait for there response which is anywhere from f#%$& off to "the seller won't take 175 but he would consider 185"....I would say I can get a 20-40 thousand discount on about 1/3 of my calls...I've never had one of these calls last longer than five minutes.

Patrick, Perhaps we can help each other. I love finding deals, talking with clients, showing properties and being on the front lines when it comes to real estate. With that being said I must admit my biggest weakness is marketing.