All Forum Posts by: Gregg Pauly

@Scott Glener Thank you for the reply. The 'research' point is well taken. I've been to Tucson a number of times but it's been a number of years at this point and am now trying to update myself on the changes that have happened. With the blending of the areas now, could you give me any insight into whether you believe a BRRRR strategy would be best suited for the SFRs in the UA area or if the downtown area would be more advantageous at this time? I'm wondering how much updating the downtown area and building the new children's hospital have helped to potentially create 'grounding' in the market, or maybe not at all. Thanks again.

Hello @Christina Gazeley @Scott Glener @Nathan Sprenger I'm a new investor in the San Francisco Bay Area and am considering investing out of state, namely in Tucson right now due to having my brother there as "boots on the ground". Currently, my research and interest is focused on the possibility of buying, rehabbing, renting, repeating (the "BRRR (is that enough 'R's??) around U of A and UMC to provide student housing. I was wondering if anyone might be able to give me some input about the soundness of my thought process relating to the areas I've mentioned, the student housing idea and the overall market in Tucson. Any help or thoughts would be greatly appreciated. Thanks so much for your time!

@Derek Carroll  That makes complete sense.  Being the 'boots on the ground' and providing quality  info is the package I want to provide to buyers.  It's been a huge learning experience so far and I really appreciate your approach and thoughts.  Thank you. 

@Bevla Reeves thank you for the consideration and encouragement.  Best of luck to you as well.

@Bevla Reeves  Any chance your friend would be kind enough to share how they used Property Radar to generate such an incredible amount of business wholesaling?

Update: I signed up for Property Radar and the same day went D4D using the property search "Equity" layer, in real time (thank you Ryland).  It is incredible!  As you drive you can see the % of equity each house has.  It was interesting because I've based previous D4D mailings on ugly-level of house - presuming that the owners have been in the house a while and maintenance has been deferred.  Doing the D4D using the Property Radar 'equity' layer, I saw that maybe only 30% of the ugly houses I saw had greater than 50% equity.  The resulting mail campaign will be much more 'surgical' than what I've put together previously...and hopefully with better results.

@Polar Prutaseranee I agree that CA prices can definitely be a bit excessive. It seems that those excessive prices are often generated via people's perception of value rather than actual land and building value. Because of this inflated perception, I'm a little concerned about going with the higher MAO as a rule. It would seem that a higher MAO could potentially lessen the ability of the flipper to have room to [financially] work with, thus reducing their profit and, in turn, minimizing their interest in the deal I'm presenting to them. Of course, I could very well be thinking of this completely backwards and would appreciate it if you or anybody else could give me a thumbs up or down about my 'theory'. Thanks so much for your consideration and I wholeheartedly agree that the best way to figure this all out is to go for it.

@David Gilson  Re: "...professionals that understand what the needs are and can effectively communicate the solutions for them."  That's a great statement.  Although I'm new to wholesaling, I've been in one form or another of customer service my entire life and agree that if we go by what you mentioned above, we can all come out on top.  Your input about using the generic assumptions and then communicating what those assumptions are is a great idea.  Since I don't always know details of each investor's financials and strategies, your idea sounds like it will go a long way toward providing a report that can be made sense of and respected.  Your input has been really helpful and thank you for reaching out.

Maximum Allowable Offer. The flipper that may be interested in the property might have a maximum allowable offer (ie 75% of ARV (After Repair Value) minus repairs) that I need to consider as I run the numbers to see if the deal will suit his/her criteria. For me, as it relates to my dealings with the seller, I need to know what my maximum allowable offer is so I don't over pay for the property. Hope this helps.

I'm a new wholesaler and am reaching out to the flippers in the audience as I try to figure out how to best arrive at my MAO on a property. Since flippers will be my customers, I want to make sure I'm providing accurate and realistic numbers that are solid so nobody's time is wasted and decisions can be made.

I'm most familiar with the ARV - cost of repairs - flipper's profit - my fee = MAO formula. I'm a bit skeptical about it's simplicity. However, it seems to be one that is used with frequency - but unsure of how it's received by flippers.

I've recently been using the BP Wholesale Calculator which is far more in depth than the formula above and includes data such as closing costs, agent commission and holding fees.  The data from this calculator seems like it would be more in line with what a flipper would need, to see if it's a viable deal.

When I take the same property and input the numbers using each of the two 'calculators' above, I get significantly different MAOs between the two. The 'simple' formula's MAO is higher than the BP calculator MAO.

Since my MAO is going to indicate how much or how little wiggle room I have for seller negotiations, I want to calculate my numbers as precisely as possible. Having said that, I don't want to over complicate how I arrive at my numbers either. Lastly, I want to provide good reports to my customers.

So,  'Simple Formula vs BP calculator vs other suggestions???  What do you think?  Thanks in advance for your thoughts.

@Bevla Reeves  Music to my ears.  Thanks for the inspiration.

@Paul Santos  100% agree!