All Forum Posts by: Jimmy Hodges

@Faustina Deguzman welcome to AZ. I’ve been living here for the past 34 years and it would take a lot to get me to move. There is a multifamily meetup on August 18th from 6pm to 8pm. DM me your email and I will send over an invite if your interested.

@Keith Shadle thanks for sharing. I’m glad to see you got out of your own way and past analysis paralysis. It’s encouraging for someone who hasn’t yet been able to do that. Congratulations on your first deal being a success and I hope you have many more.

@Sujata Vaidyanathan You should ask for the trailing 12 months financial statement (T-12) and a copy of their Rent Roll. The RR will give you lease amount per unit per month and show any vacancy for the month that the RR was pulled. The T-12 will show you month by month how much rent was paid so you should be able to analyze the numbers pretty easily to see if tenants have been paying their rent or not.

I would agree that many tenants have been paying on time as of late but that may change over the remainder of this year. With unemployment trends and the stimulus checks possibly ending at the end of the month we could potentially see both a rise in evictions and a fall in rents.

@Thomas Baylor It sounds like you are on the right track with the thought processes you have shared. Every property that has been sitting on the market for a long time has a reason why. Your goal should be to figure out the why which is what your due diligence is for. So keep it up and don’t be afraid to ask the question, it’s amazing what people are willing to share when you are willing to ask. Sometimes as investors we get so focused on figuring out the numbers that we forget to take advantage of this no cost easy step. And don’t rely on your realtor to know what questions to ask. Feed them the information so they can ask for you or see if you can talk to the seller’s agent or even the seller themselves. They may not come right out and tell you all the issues but it might give you a better feel for the place.

Just learned something very valuable today. Thank you for sharing. As someone on the lower end of the experience scale these are the kinds of things you don’t really think about. Learning from others so that you avoid costly mistakes is why I love BiggerPockets. 

Latest update... met with the home owner yesterday to make an offer on the property. We had a very good discussion but in the end it was left with "let me think about it". Good news is he didn't say no and I learned that I really need to work on my negotiation and delivery skills. I am still very confident that he wants to sell but my price was not what he was expecting. Admittedly, I was a little freaked out at the possibility of him saying yes because the next step is gets into the scary part. Not having a decision gives me a chance to work on the funding some more which I need to do. 

Still loving this crazy ride and will post again when I get his Yes or No. 

Hello BP,

Looking for a little advice. This will be a first time flip and I was hoping some of you experienced flippers wouldn't mind reviewing my numbers to make sure they make sense. I'm super nervous about this deal as I really don't know if I am missing any cost that will just wipe me out. I've padded the rehab based on information I know and estimates I could find but I don't know what I don't know when it comes to buying and selling numbers. I also worry about the market changing and if it does do I have enough headroom in the deal? Of course I'm planning on going in with a smaller purchase price offer but I'm sure there will be some negotiation. 

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*This link comes directly from our calculators, based on information input by the member who posted.

Thanks,

Thanks guys. That was it. Because I am borrowing the rehab and purchase price money it throws the numbers off. 

Does anyone know why this Flip Advanced Calculator would show negative Total Personal Cash Invested and ROI?

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*This link comes directly from our calculators, based on information input by the member who posted.

Thanks in advance,

Jim

@Pamela Sandberg thanks for the reply. The home own had to postpone our meeting. I have rescheduled with him for this Saturday. I’ll let everyone know how it goes.