All Forum Posts by: Jackson Pontsler

As a flipper personally I don't care where my deals come from.  I like paying wholesalers or agents their money whether it be a fee or a commission; because if I've done my due dilligence I know I'm going to make money!  

Going back to the original question please disclose upfront.  I have no problem if you're making money if I know I'm making acceptable money to me (meets with my minimum requirements). 

Quick side note as the guy with the second place in line the picking get slim. Just as an investor may find a deal that isn't as profitable as what they are currently doing and wholesaling it off; an agent investor may get a pocketlisting and quickly scoop it up before it hits the MLS.

Go here: Utah buisness entity search.  Search to the buisness name.  click on it and look for Registered Agent.  If he's the owner he should be the registered agent and provide an address for that agent.

@Alexa Williamson and @Jaiden Olsen yes the REIAs do have fees but the networking events like tonight at club 90 in Sandy is free.  

There are some in SLC and some in Odgen to my knowledge.  Which area is good for you?

Yes you will find properties on the MLS where the rents will cover the mortgage BUT that doesn't mean it has a good ROI/cashflow. Having a good agent is critical to informing you when something good has popped up on the MLS (which is still rare). Otherwise you need to go and make your own deals i.e. marketing and find motivated sellers that will sell you their house at a deep enough discount.

The art of Real Estate investing IS NOT TAKING ADVANTAGE OF PEOPLE but SEEKING SOLUTIONS.

These individuals are looking at you to provide a certain service: Taking a property that needs to be sold quickly, as is, with repairs that need to be done, and all sort of crap that can come up.

With that being said your buisness is very unique and not for everyone.  You will be offering below market value for you services but that is to ensure that you can solve their problems.  YOU ARE NOT LOW BALLING, I hate courses that teach to only give rough estimates 30k for cosmetic, 60k for big and 90k for complete gut; these guys don't know anything about flipping!  

You job is to determine somewhat accurately the rehab costs, average holding cost for flippers, selling costs, and ARV of a distress property. Then you need to take account of your work and the flippers work. That is how you get to the price you offered.

THEY WOULD NEED TO PAY THOSE COSTS IF THEY WERE GOING TO SELL WITH AN AGENT!

But because they are using you and a flipping company to avoid the hassel the house is being sold below market value but it is still a fair value because: THE COSTS TO GET THE HOUSE UP AND SOLD ARE THE SAME; but because they are using you as a service you buisness deserves to make a profit, not ridicoulous but a REASONABLE PROFIT.  NONE OF THESE !@#!@#$ huge wholesaling fees really you charge a 25K finders fee while the flipper only makes 25k for a house that requires 60k worth of repairs!!!!!  Sorry got ranty with that last little bit.  

In summary NEVER low ball but due to the nature of our work we will be offering a fair price which is below market value.

Don't want to start a media war but this prompted my question.

CNN recently published an article:http://money.cnn.com/2018/06/05/real_estate/house-...

and the article states a florida investor made 400k on a flip deal. In the article they only mention the purchase and selling price. They didn't take into account for: REHAB COSTS, HOLDING COSTS and SELLING COSTS. These are pretty basic to any new REI but for those that don't know much it makes them see REI as predators preying on unfortunate people.

In my own efforts when talking with people and giving my company/brand a good rep I try to be as transparent as possible. Project rehab cost with more of an itemized list, projected Holding, Project Selling, and a conservative ARV. It seems to have worked and get people more open to working with me but I want to know if anyone else has done something more effective.

What do you do when you meet someone who views REI very negatively?

@Bradlee T. another tip as you try to tag someone here.  If you begin to type my name @Jacks.... you should see a list of names pop up, keep typing till you see my name then click on it.  It will tag me and the text will be blue not black like the rest of the regular text.

I'm personally not a fan of the mentioned tactic, and frankly it has given real estate investors in my area a bad name.  Which is my most agents don't want to work with investors here.  When ever I talk to someone (seller, agent, wholesaler etc.) I try to be transparent from the beginning with my own walk through estimate of the rehab if possible.  Make my offer with a 15-20% contingency added to my rehab budget.  Then during inspections if I find something big i.e. pipes, roofing, etc then I come back to renegociate.  Mind you i probably don't get as many deals but the people I work with like that transparency.

@Allan Anderton I'm a big fan of multifamily because its the best way to get bang per buck in any market.  As mentioned previously saftey in your investments come with numbers.  If I have 2 units and one is becomes vacant I still have half of what I expected to get meaning it will be a leaner month but not very hard with 0 income if I only had a single rental unit.  This princaple is then scaled where professional investors with 20+ units expect to have 1 to 2 units vacant at a time but they have been smart with their investments and that vacancy doesn't hurt them due to the other units being filled.

Furthermore duplexes are easier to manage if you buy one closer to where you live.  If you live in Sandy and have a duplex in Midvale its easier than having 2 single family houses in different locations say Cottonwood Heights and West Jordan.

The final part I would bring up is Multifamily units will be easier to be used for portfolio loans in the later games because it meets the physical definition of packaged real estate.