All Forum Posts by: Jessie Dillon

hi david! you may be able to find out what their monthly payment is and their interest rate on propstream, but you'll want to confirm it with them. first and foremost, will the property cashflow at least a little with their current payment and what you can rent it out for? get info from them on their avg utility costs & do your own due diligence on estimated taxes and insurance. find out if that's included in their mortgage payment. next, find out how much they NEED up front to move. what's the least they can walk away with at closing? anything beyond that amount plus their mortgage balance will = what you have to pay them over time. you guys can figure out amongst yourselves how you want that to look (size of monthly pmts, balloon payment if any, interest if any...). just keep in mind that the idea of sub to makes every deal seem really good, but it isn't if they won't budge on the terms. don't be afraid to walk away. hope this helps!

Just sharing numbers from different industry pros who work all over the country. I see you’re in CA; every well-known investor I’ve heard speak to reno numbers, has said everything is double in CA. Perhaps that’s why you think 25/sqft is crazy, and perhaps the investor who uses that number does do renter grade reno mostly DIY. That’s why I gave a range of numbers. 

hey i'm also in MA! love to see other people investing in higher cost areas. my husband is a licensed and insured MA electrician: patrick 617-459-9402. if you don't have background in renovations/rehab i'd honestly hire it out, FAST. it's hard to find a GC that you can trust who's available and won't drain your bank acct. get at least 3 bids for the work, have rock solid contracts, pay weekly based on predetermined work being completed each week, etc. use local FB groups to get recs for great contractors. hope this helps!!

hey! first off, what's the ARV? as in, what would it sell for if it was beautifully newly renovated? you might need a realtor to help you get this. i'd try to get #s from a few diff ones, and stress that you want to know what it'd go for if it was all newly renovated.

then x that number by 70-80%. 70% is safer. 80% is pushing it.

now, subtract the renovation costs. this looks like a gut to me. here are some $ per square foot that i've seen the pros use for gut renos: $40, $75, $40, $25, $65. bolded numbers are from heavy hitters in the RE world. so let's say $70. $70 x square footage of the house = rehab cost.

now minus holding costs during reno (tax ins util etc), and closing costs on both ends (front end to buy it, back end to flip or BRRRR).

once you subtract the rehab cost, holding costs, and whatever closing costs you'll have to pay on the front end (and back end if you'll flip or BRRRR), that's your max allowable purchase price. if you come to a price that's way lower than they're asking, you can explain how you came to your number, sometimes that helps bring them back down to reality. hope this helps!

hey valeria! welcome! if you haven't yet, check out the events tab on BP, meetup.com, facebook events, and local fb groups for investors in your area, and try to find a meetup to go to! i've found that it's tough to get someone to meet for coffee or lunch, who has a LOT of really amazing knowledge to share. going to local RE meetups is an awesome alternative to this, and you can meet dozens of people in one night! 

great question shaye! there are just pros and cons that have to be weighed. i'm a residential girl personally, because it FEELS more reliable to me (i FEEL like there's more demand & it's more recession-proof), but i'm basing that on no real facts lol. people love commercial because there are less emotions involved in tenant issues, you can set up your leases so that tenants are paying repairs/maintenance, it seems to be overall EASIER to manage commercial. there's a girl on IG named aviva that is a commercial realtor and commercial investor, and she shares a lot of helpful advice for anyone considering going to commercial. hope this helps!

hey anthony, awesome question!! here is the thing many don't know about househacking: it's not meant to cashflow. househacking is meant to at least significantly REDUCE your personal cost of living, so that a) you have extra money every month to invest in other properties, or b) your reduced cost of living makes you that much closer to financial independence (lower expenses = easier to retire). a bonus is that in househacking a multi you can get into "more house" (a more expensive asset) so you're getting that much more appreciation annually. if househacking eliminates your personal cost of living, that's awesome, and if you actually cashflow off your househack (usually achieved via STR or MTR), that's amazing, but COL *reduction* is still a massive househack win. for example, i used to pay about 1500/mo for rent in a 2/2 in a not so amazing neighborhood. now i live in an amazing neighborhood in a way bigger nicer/place and my portion of the mortgage payment (PITI) is $50-750 depending on who's in my guest room at that time. i also have a property worth over 600k that's appreciating for me! so here is my advice: get a nice multifamily that'll seriously REDUCE your cost of living, and use the MTR or STR strategy to maybe eliminate it completely or even cashflow.

definitely talk NOW and agree on a split and on exactly when the lead gets passed off to your partner. i'm in a JV partnership for wholesaling also, and i do the front end like you, and we have a 50/50 split. i think it's more common for the lead generator to get a little less than 50%. i provide value for my partner in other areas of his biz and invest a lot of money up front for marketing.

doesn't matter how many other people are doing it in any given area, if you're committed to doing it better than them. ;)

a) don't use linkedin for building a buyer's list. join every local investor group and have your VA comb the comments of the 'available property' posts for email addresses. you could also pull a list of everyone who owns multifamily in the area you're working in, and have your VA call them all asking if they want to get on your buyer's list for offmarket discounted properties in the area.

b) consider JV'ing with a wholesaler who specializes in disposition. where are you located? maybe i can help