All Forum Posts by: John Chapman

I had one unit deliberately flush an entire box of unused feminine hygiene products down the toilet in order to clog the sewer line.  

@Andrey Y. the truth is that 24K is a decent amount but not "alot" for an SFR of decent size. I think the house is about 1800 square feet so it was like $13/ft. As I alluded to me in my first post, I made the typical rookie mistake of looking at the home and ignoring that many items were on their last leg. (It drives me absolutely nuts when I see yahoo wholesalers pitching "rental" make readys or claiming that a home is "rent ready" when the home is pretty much worn out and only has a few years left.) Yes, the kitchen was passable, but it was going to be a gut in 5 years. Compounding that mistake, however, was that the home shifted significantly (despite being repaired numerous times). I had to redo all flooring, leveling etc.

Again, I'm not saying you can't make money here.  I have done very well, but it's been by buying at a discount, being very conservative with repairs, accounting for cap ex, getting repairs done cheaper than the other guys (I own, for example, a commercial snake, line locator, camera, etc.), rehabbing with an understanding of durability, and, if I'm being completely honest, quite a bit of luck due to an appreciating market. I know guys that were doing this for ten years before I started who never got the benefit of the appreciation and had horrible returns.  

I don't think your painting with too broad a brush @Jay Hinrichs . First house I ever bought, I had to dump $24k into it after 7 years. I had the foundation "fixed" when I bought it but that doesn't mean anything down here. Lifetime warranty on the work and all that silliness doesn't mean anything. (In fairness there was also a bit of deferred maintenance that, as a newbie, I simply ignored and I ended up paying for it.) Don't even get me started on how many sewer lines I've had to replace. Bottom line is that I'm still comfortable buying here but it's only at a price point that takes into account the significant repairs I know I will encounter over the long run. If you think

I'm sorry but Jay is right. I've been here over nine years, and cap ex is a killer when combined with property taxes. You need boots on the ground to win here as the structural issues are really significant. Also, the last 5 years have been very unusual so all the people who have "won" in this market (myself included) should not be patting themselves on the back. If we had experienced only normal appreciation as opposed to the steroided, Hulk-type appreciation (which is not sustainable) then we would all be singing a different tune.

Wow, that is a really vague and open question. It's almost up there with, "How do you get rich?" Can you provide more information as to what you are seeking to accomplish? I promise you'll get more helpful advice.

I'm sorry but the advice you have received above is generally nice, but misguided.  I am in your market so I will give you my two cents.  The simple truth is that you are failing, and what you are doing is really going to hurt you in the long if you don't stop doing it.  

Our market is nuclear hot, which means that if you have anything even resembling a deal (and it doesn't even have to be one), it will sell in a heartbeat.   Your statement that you "have put many houses under contract since then, but have not sold any," means that you are not locking down real deals.  (The only other alternative is that you are somehow failing to market the properties, but in this era of Craigslist, bandit signs, etc, I'm skeptical this is the case).  

The fact that you are locking down deals  you cannot sell is destroying your reputation in two ways.  First, you are backing out of deals, which kills your reputation on the sell side.  Second, you are offering junk to investors, which kills your reputation on the buy side (meaning no one will take you seriously).  As big as DFW, it is still a small market, and word will get around.

I don't think you are trying to do anything underhanded, but the results you are sharing are why there is such a strong (and often negative) emotional response to wholesalers in general. It is not a matter of putting more money or effort into your endeavor. It is not an issue of getting a better buyer's list. It is not an issue of paying some guru to "train" you. You need to reassess how you are evaluating deals (ARV, repairs, etc.) Do something to get more experience in real estate so you can recognize deals. (Maybe get your license or jv with someone on a rehab.)

I'm not trying to be mean but rather provide the blunt feedback that you need to hear.

I don't understand these silly threads in which a single, vague question is posed.  Every time I open one up it is really annoying ("Oh great, another one of these threads.")  I think the forums are much better served by concrete questions/observations that allow users to share their specific insights and experiences.  I also can't stand that these one-sentence posts capitalize the words like they are a title in a book. 

One word: insurance.  Just notify your liability carrier and be done with it.  As a plaintiff's lawyer this is a joke of a potential lawsuit.  Probably will go nowhere but some schlep lawyer might pick it up and try to shake you down. Nothing to worry about.  

I'm sorry but you really have not even come close to making enough offers.  Four offers is nothing, particularly for listed properties.  Also, the fact that you offer over list price is almost irrelevant.  Here in my market (which is very hot as well), agents routinely price a listing just a little low to generate a feeding frenzy.  

Also, you gotta ditch the conventional financing (I'm assuming you've got a financing contingency as well).   You will need to offer significantly more than a cash buyer (of which there are many) in order to interest a seller.   

Not trying to be discourage you but rather to manage your expectations. 

Um, that's not really a limiting criteria you've put out there.  Kind of narrows it down to about a 1/3 of the US. Perhaps you can provide more detail about what you're seeking to accomplish?  I promise you'll get more targeted responses.