All Forum Posts by: Eliott Elias
Eliott Elias has started 12 posts and replied 9587 times.
Post: Prospective tenant does not have deposit until move-in day
- Investor
- Austin, TX
- Posts 9,861
- Votes 5,562
Do not move them in without a deposit paid. To be honest, they pose too many issues for me to even allow them to move in.
Post: Under $350k deal with positive cash flow
- Investor
- Austin, TX
- Posts 9,861
- Votes 5,562
Single family cash flows poorly. Look at four units and up. Try and target owner finance with below market interest rates.
Post: Cash flow - Is this a good property to invest?
- Investor
- Austin, TX
- Posts 9,861
- Votes 5,562
This property does not cash flow. The only reason it does with your numbers is because you put more than half down. Run your numbers with 20% down and today’s interest rates. You’re in the negative.
Post: Question for Fellow Realtors on the Listing Strategies in this market
- Investor
- Austin, TX
- Posts 9,861
- Votes 5,562
Listing it under market value. Buyers right now are extremely picky and are looking for a good deal.
Post: Need help determining where to get my first rental property
- Investor
- Austin, TX
- Posts 9,861
- Votes 5,562
You should be investing in your backyard. The greatest deal can turn into a nightmare just because of your proximity to it. I’ve seen it many times. A mediocre deal that can be attended to will serve you better.
Post: Wholesaling Book Question
- Investor
- Austin, TX
- Posts 9,861
- Votes 5,562
There are so many resources out there other than books that help newbies with wholesaling. Basically, any question can be answered with a short search.
Post: MEGA THREAD - Negotiation Strategies that you use as a out of state investor
- Investor
- Austin, TX
- Posts 9,861
- Votes 5,562
Quote from @Scott E.:
Quote from @Eliott Elias:
There is no better negotiation tactic than letting time pass by. The sellers motivation will grow on its own.
This might work when buying a car but it doesn't work when buying a good real estate deal. There is too much money out there waiting to be deployed. If you don't negotiate the deal today, somebody else will tomorrow.
In my experience, the best tactic is to figure out why the seller is selling, then craft your offer to cater to those needs. Do they care more about getting the highest number, or closing fast? Is it important that they work out a deal with a cash buyer? Are they one of those sellers who "just wants the house to go to the right person"? Once you understand their motive and their needs you can work out an offer that will be more attractive than your competition.
That is the difference between me and you. I am willing to walk away at all times. I do not create a false sense of urgency to buy. Ever.
Post: Is this a new trend?
- Investor
- Austin, TX
- Posts 9,861
- Votes 5,562
Quote from @Jay Hinrichs:
Quote from @Eliott Elias:
Short term rental landlords are doing whatever they can to squeeze out the last few pennies they can before they all go under.
LOL All go under really ?
@Michael Baum Mike you about to go under there at Lake C ? :)
STR is different market to market. Most single family investors who could not get loans based off LTR numbers qualified based on STR numbers. We are talking cookie cutter properties here. The majority do not hold unique STR property.
Post: General Contractors refusing to quote without them buying materials
- Investor
- Austin, TX
- Posts 9,861
- Votes 5,562
Quote from @Bruce Woodruff:
Quote from @Michael Smythe:
Sounds like they want to hide their markup on the materials!
Quote from @Eliott Elias
Red Flag. They are up charging on the material.
Really guys? Seriously? OMG, a business is adding a markup to their product? Stop the presses because that's never happened before, right...? 🤣
Lol, after many years in business a good GC will build up so many valuable relationships with Vendors, Supply Houses and Subs that they can't even be counted. I ordered so much lumber (For framing) from one local lumber house that not only did I get large discounts but I got free pencils (OMG) and free tickets to local NFL/MLB games, which I rarely used, I would pass these on to my Subs to further cement our relationships. This is how the Construction business works, people....!
What shocks me the most is how Realtors and Investors can be so f'ing clueless about this. It's different for a small investor or first time homeowner, but c'mon guys.....
Yes, I got discounts on almost everything from almost every Supplier or Vendor. Did I always mark up the price to the customer? No I didn't. Sometimes it was the right thing to do, sometimes it wasn't. And it depended on the customer a lot too.... :-)
Often times there was enough profit in the mark-up on the Sub's pricing that I could show the customer that they were getting materials at my price, a big discount. Everybody is happy!
Let me bottom-line this for you newbies out there - you should be happy that your Contractor is marking up materials and you should even encourage it. You want a good company to make a good profit on your job and be around in the future for more work or if there is a defect on your job that needs correcting in the future. Right?
Labor is where contractors should make the money. Not material that they pick up and drop off.
Post: General Contractors refusing to quote without them buying materials
- Investor
- Austin, TX
- Posts 9,861
- Votes 5,562
Quote from @Matthew Paul:
Quote from @Eliott Elias:
Red flag. They are up charging on the material.
Of course contractors mark up materials ... When you rehab a house and sell it dont you mark it up as much as you can ? When you rent a house dont you make a profit ?
No different than being a contractor .
Profit is not a dirty word
There is no issue with up charging if you disclose it.