All Forum Posts by: Wayne Kerr

This is simple - If it's something I need to understand myself I've at some point always made my own spreadsheet - doesn't matter what it is. If you truly understand what it is you're doing, you can make your own. 

If you can't make it, then you don't understand what you're doing...and you probably shouldn't be doing it. Again, very simple concept to understand. 

I agree with most of your post - but you completely lost me here. 

The government does in fact rob you every step of the way. Half the reason I started investing in real estate - to save on taxes...AH but they still find a way to get you...passive RE investor?! Lets put income limits on what you can deduct! Stimulus checks...nah we need income limits on that too! But lets send billions to Ukraine! 

I paid 45k in FICA taxes last year, and 8k state tax on top of that. Schools still suck. Roads still suck. City still floods. Didn't get a penny from the stimulus checks. Crimes still as bad as ever. In fact...if you don't get this shot we'll have you fired from your job! Let's actually fire the nurses first! 

We still have one of the best governments in the world relatively - but they completely f*ck the upper middle class every step of the way.

 Agreed 100%. Killing 2 birds with one stone going this route. 

So you have the right idea but the numbers are not realistic 

It would look something more like - 600K (ARV) you'd buy at 350-400K, you'd reno for 80-100K

In my area its something like - buy for 75-90k, reno for 30k, ARV around 150K, rents for 1100-1200. These are LTRs not flips. I typically end up with $ left in the deal but it'd be less than if I put 20% down buying at market price.

The BRRRs typically need a large rehab - this is just the nature of the beast. 30k rehab on a 600k house really isn't much. We're talking basic cosmetics (I'm assuming this is a nice house and not a small downtown condo)

It's still hard for me to do in this market - the last house I paid 130k for, rehab will be 30k and it'll appraise for 175k or so, so I have a little equity built in. Reason I did it this way - house popped up a few streets from where I currently live, 500 sq ft bigger and I can turn my current house into a rental (refinanced it at 115k at 3.25% back in 2021). Now I did make it a lot nicer than it needed it be - for a rental I could've put 10-15k in it and called it a day, and it would've been a nice rental. But I did all new appliances, granite countertops everywhere, stained cement flooring, new doors, electrical box, recessed lighting, big backyard shed, gutters, paver patio etc...you get the idea

If someone is asking you to send them deals they need to give you some specific criteria such as size, type, location, price etc

You will then set up parameters to send them properties that fall within their criteria. If you come across anything special or different you can send that to them as well. Not your job to run their numbers - you are not a mind reader. You simply provide the information and let them make the determination. 

As a realtor I would think you have some access to information/deals that the rest of us don't - those are the types of deals investors really want. 

This is a tough one - what would it cost to fix/replace the unit?

I'd probably go ahead and do that if it makes sense (a couple hundred dollars won't kill you) and then I'd increase their rent when it's renewal time and get that money back plus some

Why not just make your own so you really understand what you are doing and seeing what effects what?

Wow that was a lot and all over the place - from loan types to your personal job...

You can do a DSCR loan, no doc loan, HELOC or something like that. Talk to a different lender - commercial/business type loans is what you'll need to look into since your income on paper is low. You may be able to put down a higher percentage to qualify for something more expensive as well.

You're not going to be able to just go around and put 10% down on a lot of places until you run out of cash. Sounds like an absolute trainwreck waiting to happen anyways. That whole post just sounds like a trainwreck honestly. 

We don't know about your personal life and your personal job - do what you think is best. 

 Ok - easy enough. I'm trying to figure out the big catch on Sheriff's sales? I guess it's the lack of inspection...you can mitigate risk somewhat in your offer price. But this seems like a decent route to maybe pick up a property or 2 a year 

We have quite a few gurus that sell courses and they all have that one "secret" to get you all the best deals! 

Marketing seems to be the big thing now. Convince someone that they can do it and market them your class - they are essentially selling dreams to a lot of people who don't want to put in the work themselves.