All Forum Posts by: Damon Armstrong

Do you have any end buyers lined up? Does it fit their criteria? 

If so, and your investor is looking to fix and flip, tell him what the repair costs would total out to be, which sounds like 10k max, I heard here on BP that's a rare number for repair costs but I guess it's possible. If you can add up all of the expenses the investor will have to pay including purchase price, and it comes out at 70% or less of 225k you could assign it accordingly. In this case you want to be sure your investor will spend no more than about 157,500. That is 70% ARV rule.

If your investor is looking to buy/hold, find out rent info, tell him about the needed repairs and those costs also. He doesn't have to spend money on those repairs because you said it is in living condition, but if he chooses to he can. I would try to get it to my investor for as little as possible with a decent profit. To me that's the plus about selling properties for buy/hold.  As long as it fits their criteria you can work with it. 

With all that being said, make sure you have a solid buyers list before jumping into leads. 

Hope it helps, and best of luck!

Derek, with all so respect, I believe you're asking too many questions that have been answered multiple times already here on BP...when you have such broad questions, do a little of your own research first. Then when you have narrowed down very specific questions and can't find a more direct question, post it on BP. People willing to help, will be turned off by the fact that you are clearly not taking the time to do your own research, but just asking for answers. I'm not directing this specifically to you, because I've done it and a lot of people do. I guess it just takes someone to tell you "hey people aren't going to respond if it looks like this guy isn't doing any research, because if he was he would have found multiple posts already about the topic". I've had it happen to me, too, and I've learned the more specific your question the higher the response rate. There are plenty of started discussions on the out of state wholesaling topic. Again, I encourage your will to learn more, but perhaps take it up on yourself to look for it instead of asking for it. Besides you'll get your information much faster. Make sense?

Which career do you emphasize more, your investor side or your license side?

@Bryan L. 

Like I said I didn't know if a precedent had been set on that kind of situation. I was just putting myself in your position and saying what I would do. Sounds like if your getting paid for good and bad deals you have a pretty good partner and system. I wish I could get paid for both lol. 

@Account Closed 

I'm sorry I'm a little confused. Is your partner the agent? You wholesale deals that work to this agent, and if it doesn't work for wholesaling then he still accepts them to work with as an agent. Is this correct? 

If I were in your position, and were able to make money off of all deals, good or bad, I would wholesale the deals to him that work, and for the ones that don't I wouldn't ask for more than $100 per lead. I say this because you are going to make money regardless. If you come up with 10 leads a week and wholesale 3, you still make $700 dollars that week off of almost no additional work. I guess it depends on how you are determining if it doesn't work too. How far along are you into the deal before you realize it doesn't work? If you're at the end of the process and spent a good amount of time on it then maybe $100 is not enough, but if (somehow) you know right off the back that it won't work I wouldn't ask more than $100...

@John E. 

@Account Closed 

I know someone wholesaling much bigger apartments than 50 units...so it is definitely doable. I don't imagine it being "easier".  If you have a reliable list of investors who have the money to purchase it, all of your homework is done, and the numbers make sense, it will work. But as far as being "easier" I highly doubt it. I'm not sure what your market is like but as a wholesaler you need to find comps. How "easy" will it be to find a comp in your market that compares accurately to the 50 unit apartment you are describing? How "easy" will it be to build a buyers list that have the money to purchase these sorts of investments? How "easy" is it to estimate the repairs on a 50 unit building...It's the same process as any other wholesale property. Which will make it equally difficult, at the very minimum. The guy I know does these types of wholesales but not as often as your typical property. The profits are larger, which makes it worthwhile, but it definitely won't take LESS work, therefore, not necessarily easier. If you have the experience to understand if the numbers make sense or not, why not put in a little extra work for larger returns? Wholesale 4 smaller properties for 40k return, or just one larger property for 40k return...in a sense, making that 40k off of such a large building would be easier than making 40k off of your average sized building, but it doesn't mean the process will be easier. This is just my intake on the matter. 

Ok thank you for your help. This will help me in the future, too. 

@Bryant Cheely 

It would not be a primary residence, but a rental. The owner is using it as a primary residence right now, so that is his numbers. How much do you think the taxes would vary for the owner of the rental? 

@Bryant Cheely 

Ok thank you. Thats what I thought but with the total assessment value at $10,585 I wasn't sure if that had anything to do with it. Sorry if there was any confusion with the first post, apparently copy and paste was not a good idea lol. Thank you for your help.

@Brie Schmidt