All Forum Posts by: Wes Johnson

@Shawn O'Gorman

I was only 21 when I bought my first one 🤷🏾‍♂️

@Shiloh Lundahl

Yea schools matter but the socioeconomic situation of the parents will trump any desires for upgraded schools.

Think of it this way, does having an all electric vehicle matter? Sure it does. Who wouldn't like to never have to buy gas again? But can everyone afford one? No. Just like in Maslow's hierarchy of needs, our basic immediate need for adequate shelter will trump our long term desire for our kids to go to better schools. Better schools only matter as much as the parents ability to shoulder that extra expense will allow it to be.

The number one factor is budget first and foremost. And the hard truth is alot of people will still send their kids to sub par schools if that's what their pockets dictate. So I see flips in some sketchy neighborhoods (not war zone just sketchy) and they still sell. Either to folks who want what they perceive as an updated home in the neighborhoods they can afford, or to other investors who will buy turnkey rentals in those neighborhoods. There's still money to be made in rehabbing homes in those neighborhoods. You just buy and sell at lower pricepoints but the margins are the same.

I don't think it matters as much as people's need to provide clean housing to their family does. If they have extra for more, great. But otherwise it's just seen as a luxury that low to low-medium income people will be glad to forgo and they make up the largest sector of potential homebuyers by the sheer number of people who meet that demographic.

@Jerold Smith i get you. you're saying for the right investor it would work but would that investor be you? would you buy it? I rarely recommend comparing a property to properties larger than it. it may only be 20sq ft but sometimes that makes all the difference and can change the ARV significantly.

I'm familiar with Crowley. Just sold one to another investor down there. 

what year built was that comp? how far away from the subject property was it? 

i don't see your ARV that high. it does go that high if you have a pool but the subject property doesn't. Your highest comp went for $205k when filtering at or below the subject property's beds, baths ,sq footage, year built and within a mile of the subject property. make sure you're not exceeding these figures while running your comps or you may not be an investor for long.

the listing doesn't have interior photos which usually means there's a lot of rehab needing to be done. I would estimate $30/sq ft until you get some hard estimates putting this rehab around $60k. 

that would make your MAO $89k if you're using the (75%)-repair rule and they're unlikely to make that kind of reduction unless you're putting like $10k or more down as earnest money and willing to do a quick close with only a 3 day option. So its possible you could get it but unlikely since its only been on the market 1 day. they'll probably wait and see what other offers they could get.

@Travis Biziorek

Well They're not very good at it. They just released their earnings report and they're home buying program is posting a loss.

No global corporation will have the local market knowledge to make flippers completely obsolete maybe the newbies and those who don't know what they're doing but the real flippers will adapt. They said the same thing about realtors "oh zillow is going to make the agent obsolete" yea right. Heck half the time their zestimate is more wrong than 2 left shoes.

@Laura Clark

I Hate trees on property. The roots eventually grow into the plumbing and /or your foundation.

Do the best you can to fit it in the budget. See what the cost would be to chop them into firewood and have them out into that shed as another perk for your end buyer. If you can't swing it, it's no biggie but I don't blame you for wanting to get rid of them.

@Jesse Kozazcki

It's not a hard money loan you're looking for since you're not able to put any of your own money in. There are 100% HML out there but even in those situations you have to put down a hefty deposit that'll be used toward the deal when you find one.

Sounds like you just need a partner. The partner brings all of the money and you bring the deal and manage it /oversee the rehab and scheduling. You essentially play the part of the project manager.

You and the partner will have to determine how the profits are shared and there's really no standard split for that type of arrangement. Just whatever you and your partner agree to. Set up an LLC and have an attorney draw up the partnership documents that spell out everything BEFORE you start any work or start offering for deals.

@Thuy Pham-Satrappe

My first property was in a flood zone as most properties in my home state of Louisiana are. There's no way around it where I'm from.

Aside from handling any apparent drainage issues there's really nothing additional you have to consider other than additional insurance costs. You'll want to maintain flood insurance from the NFIP. Obviously your end buyer will have to do the same.

@Keith Torsen

Idk man. Your cash flow is only 3k per year that's a little slim for my liking.

One of my first properties had similar numbers. hvac and plumbing got me the first year and I made nothing.

There's always going to be cap ex that you don't see coming. Only making 3k a year? I think there's better properties to put your money in. COC return can be misleading if you get into the property with a low enough downpayment.

@Rafael Davis

this is a sticky one. the  answer to your question of whether its legal,  is the answer most attorney's love to give you about whether something is legal or not: it depends. 

depending on the level of agency the agent/broker has been given he may be within his right. there are different levels of the representation agreement that can either increase/decrease the level of power given to the agent. Unfortunately unless you're willing to file a complaint or suit and it comes out in the discovery phase i doubt you'll ever know for sure.

as far as your next steps i think you should approach the broker and let them know you'd still like your offer submitted but approach it with honey not vinegar even though you may feel understandably slighted. just try some smooth talk and charm. You'd be surprised at what you can accomplish when persistence meets flattery. 

and continue to search for other deals and put as many low offers as you can. never get too caught up on one deal even if it's an awesome one. there's always another one. continue to churn out offers and you'll get the right one.