All Forum Posts by: Jackson Pontsler

@Kaden Murdock that same arguement isn't exclusive to Real Estate but to the Stock Market and any investing asset.  Your job as a real estate investor is buy properties that make sense!  No one has a crystal ball.  You never know when the market will peak or hit rock bottom.  If the market was to hit rock bottom ever 15 years then you wasted 15 years of finding deals that will work now.  

I saw people 5 years ago make the same mistake. Waiting for the market to correct. We may be starting a correction maybe 20% however the people that invested 5 years ago made more than 30% ROI becuase they bought deals that worked then.

The advice I've given every rental investor is to find a deal that will cashflow strongly enough to weather storms.  If you can't find something then you have 2 options.

- Invest somewhere else

- Save up more money to make the investment cashflow.

On a side note I know that In Utah and particularly Salt Lake City right now things are hard to come by but because something doesn't meet the 1% rule doesn't mean you shouldn't invest.  Personally I have only seen the 1% rule met once cause it was a quadplex in West Valley.  But there are deals that will cashflow with a strong enough margin to weather storms.  

Keep your head up, keep learning, and decide which path you want to take but if you are waiting for the market to correct and you aren't an expert at every single indicator you might as well learn how to count cards and go to Vegas.  I hope my message was more empowering rather than belittling because that wasn't my intention.  I only want to echo that the time to act is now before interest rates and appreciate are higher than they are today. If this was helpful please let me know.

Both are fine in all honesty as a flipper if a wholesaler is coming to me with a deal all I care about the purchase price, and if I can walk through the house to estimate my repairs.  Your profit is not important for me.  You could be making more than me and thats alright if I'm meeting my profit margins.  That being said if you have the final price out there you've figured your assignment fee and it looks more professional than just leaving the space blank becuase its more obvious you don't know what the house is worth, how much to fix, and what it will sell for.  I would like to point out that peoples minimum profits are calculated and measured differently some look for a quick percentage I however have a whole excel sheet to analyze the complex deals.  Furthermore some people are happy with 20k if its is a really easy and quick turn around project however if you come to me for a house that has 100k repairs then 20k profit makes not sense because it is too much risk.  Contracts are important however if you want to be the top wholesaler then get your numbers right first.  I hope this help if it did then let me know.

@Jared Smith if the numbers look right then it would potentially be a deal.  I've done deals with wholesalers before however as a rule of thumb I never never never accept the numbers that the wholesaler gives me.  Sometimes they are made up more as a whim and tend to be optimistic rather than realistic.  Look up your own comps see what houses around the neighborhood with similar sqft are selling for and see how well the houses are.  Are you looking for a quick fix or do you have to put in all the bells and whistles to get that 200k price?  I would also quickly call a mold remediation company and get a quote it is subjected to change base on the severity but at least you have a good starting point.  For the rehab I would project 15k-20k to really make it good and have some buffer regarding that mold.  Also if an inspection had be done on the property previously the wholesaler may have it and be willing to share it.

@Joe Gracyalny what @Russell Brazil said is exactly how we do our buisness as a flipper however if you have already been using an agent I would quickly check if you signed an exclusive agreement with that agent.  We do use these but make them property specific or with some proper lawyer wording the property the agent shows/ brings to us.  My point is if you already signed one with your previous agent then he/she has a legal case to a comission on the property, even if it was brought by another agent.

Welcome to the world of wholesaling.  I understand that you may want to hide how much money you are making from a wholesale.  The only way you can accomplish this is called a double close where you actually purchase the property for a number of hours.  Otherwise with a simple assignation addendum you will be able to assign the contract but it will be made apparent how much you got the property under contract for.  Personally speaking as a flipper I don't care how much you make.  You can be making more than me but there has to be enough meat on the bone for me to jump.  If you are expecting a flipper to jump at a full gut for 20k profit good luck (maybe if it was a light rehab).  However if your deal meets my profit criteria I don't care if you make 200k profit.  Let me know if this helped.

@Will F. I totally agree with you regarding rentals and buying sound deals from the start is the key to weather the storms however this inventory being still so tight its hard to find those these where the property is cash flowing decently from the start.  Just curious how many rentals do you buy a year?  It might be a good bench mark for me to know whats realistic

The question is rather broad however you seem to have most of what I look into when looking at rentals.

For me its:

Property taxes

Insurance

Water and Garbage

Vacancy rate 10%

Maintenance 10%

Management 10%

I would strongly recommend management in your budget if case you move.  You don't want to be selling mulitple properties at the same time.  Also how sure are you that each unit can be rent at 1100?  I know it depends on the size but there isn't any info in the post

Hey @Chance Gurr I recommend John from paramount tax.  Great guy has many investments himself and has helped us for the last few years maximize our returns.

@Dee Deeksha if you are looking for new construction the areas are South Jordan, Millcreek by 500 and 33rd and West Valley of all the places I would recommend the Milcreek because of its proximity to downtown, sugarhouse and the university.  My wife and I just bought a house we are currently separating and with a lot to build a new house because the area is starting to appreciate due to Sugarhouse and Downtowns appreciation.  This is why we did our latest investment in that area.