All Forum Posts by: Doss Mann

i just ran MLS comps and for the subdivision, your looking at about $55 a sqft avg for he last 6 months.

@1689 sqft ( i think thats what you listed in the maretplace) your selling right at the value. Rent ready repairs will be at LEAST $5k if it is currently occupied.

A $105k ARV is in the $60+ sqft range. That neighborhood has not sold above $60 since mid 2000's. we know what went on back then.

No deal for me for the following reasons:

$100k sale price Example with $400 mcf.

Paying $100k cash for $4800 annual cashflow is not the return I seek.

The last i was told by my lender was you cannot cash out after 4 properties so that option is out.

Conventioal = 20% + CC+ $5k repairs =about $30k oop with $4800 ACF is better but i want my oop money back from the CF in less than 3 yrs tops.

HM wont even begin to come close until the sale price is $75k or lower

I get more and more emails from whoesalers trying to sell houses at retail. These are not deals. Either they use the wrong sources for determining ARVs or they want way too much in fees.

Good job on finding a seller and working a contract, if you dont close the deal or make any money you still gain experience you wont get from any book, seminar or forum.

Sellers can be motivated to the max but if there is no equity it has to be creative/complicated.

Values are an appraisers opinion based on the comps. They decide which comps to use and its not an exact science.

Appraisers that work for investment lenders seem to be better at determining ARV ( after repaired value) based on what you tell the appraiser you plan to do to th property. Knowledge of rehab costs is important here and knowing what appraisers give more value to.

MLS is what appraisers use for values and what you should use to verify comps before making any purchase decisions.

Free webistes are only good for looking at pictures and seeing whats availble for sale and lease. Their values are garbage. Their formulas are based on real data but with irreleant combinations.

Those sites have valued my properties with $30,000 differences between sites.Thats a huge spread when they are only worth about $100k.

Dont believe wholesaler prices, dont use free websites for determing value.

Verify, double check, project worse case and use the lowest avgs. If its still profitable then its a deal.

Don't get down yet, I want to hear more!

I met with and was approved as an credited or whatever investor with another company to be introduced to other investors putting together deals. The company would then get some sort of broker fee, and then the group I am sure would get better terms.

The further I looked into it the more I saw that my cash, input and control would be taken away with limited options.

That's when I decided I need to learn more about who are the key players in the deals and who are the leaches. How to structure, finance and operate the asset. Until then I will look for more houses.

I cant remember exactly if it was $35,$32 or $37 a gallon and if I paid $8 or $10 but the savings was enough to make the clerk even double check.

Unless 3 different Sherwin Williams stores have a rack in the back that says "Give this to the LU members" I think its legit.

Or they had the codes wrong on 7 different occasions.

If I bought the paint from the LU office that would be different.

I think you had a bad run and maybe were too trusting.

In every business someone has to make money and take their cut. Some more than others.

You cant convince me otherwise about the savings and discounts I have received. This is cash in my pocket. Buying $35 a gallon paint for $8 really adds up when you buy 30 gallons over the course of a year.

Your right about the good deals being presented. I like to learn about the bad ones. I want to hear about yours. I might actually know someone related to you or your deal. A co-worker told me a similar story of a recent apt deal that didn't turn out.

The negative feedback and bad deals seem to always be from the multifamily partnerships.

Start a new thread and break down your deal and partnership and what caused it to fail or why it was dissolved.

I want to know to learn , not criticize. I'm sure others want to hear as well.

Its not a speech but more of an attitude, mentality and thought process. probably sounds similar because its the same info in every book and class on management, leadership, success and personal development I have read or attended way before I started with real estate. They probably read the same books.

I have not done any multifamily deals yet, I'm not ready yet. When I do I won't with LU or any of the other companies that pitch to sell success. I met with a few others and decided that's not the route for me. Too many middlemen getting taking their cut. I will learn what i can from them and others and do it myself or with my own contacts.

You have to take it for what is worth, I feel their vendor list and all the vendor class/meeting/pitches contributed to me making good choices. LU is not my only source of info, experience or associations.

I consider myself more an eagle than a parrot , and I can fly with any flock to learn how to better build my nest.

I hope your bad experience doesn't ruin your real estate investing. If anything you paid to learn what not to do, use that experience to go out and crush it!

You have to see through the hype. Joining a gym will not garauntee you will become a bodybuilder or fitness champion. You have to use the tools and experience provided to make your own right decisions at the rit time.

I joined the basic level, used my previous knowledge and experiences, combined with theirs and others and have had nothing but success almost 2 yrs later

Do your research, project worst case, expect worst case, communicate, establish expectations, goals, exits plans A,B,C,D,E and F. Make informed desicions.

Failed partnerships is no ones fault but the partners.

$38k out of pocket not counting cc with a cash flow of less than $200 a month???

Search harder, look deeper, make more contacts and market yourself. Find a great deal!

There is no equity capture to cushion your value. Your paying for the equity and probably more. If cash flow isn't positive over the PI note its no deal for me. You can not escrow taxes and insurance to have more flexibility but you still have to pay the pipers at some point in the year.

And this might be your only deal since your debt to income might drop to negative. Most lenders credit 75% of rent. I didn't do all the math of your numbers but just glancing at it looks like it will lose money on paper.