All Forum Posts by: Jonathan Greene

What was your extensive research? There is really no data on this so most of the numbers are just proposed. You will get better answers here. It also depends what you mean by experienced. How many flips is experienced? I would say anyone who has done 5 flips is experienced and that success rate should be closer to 90% and up. Beginners I would say, meaning first-time flips, are below 50% for sure because you never hear from the failures again.

Welcome. It's not a fair partnership if you the tap the equity of their property to use together if you aren't brining any capital to the table. If this is your first investment and your first property, the quickest way to fail is to create an uneven playing field. If you both don't have capital, you don't have a partnership to start. Instead of rushing to buy, go together to as many real estate investing meetups in your area and learn together for six months to a year before you figure out how to place money into the field.

Just get a second set of sheets for each property so the turnover isn't pending the same sheets going back on the beds. This will also help them last longer together as a pair in each unit. Then you can take them off-site yourself so you have time until the next changeover or create another option for the cleaners that they go back and finish the sheets and store them so their changeovers will be easier as well.

To me, cash only is just cash. Second to cash in the bank is HELOC cash because you can use it however you want (you just have to see it already in an account). The reason hard money is not cash (although some think it is) is because there is still an appraisal attached to it. Anything that has a contingency is not cash.

Listings here will say cash, hard money, or 203k only if they want all three. Best practice is to ask them if they consider hard money cash.

When someone who is not an electrician wants to do electrical work and you choose that because it's cheaper, don't you already know the answer? The potential liability from having someone do a job they are not licensed to do far outweighs the cost-benefit. With that said, a lot of people take the cost-benefit, but no one can argue it's a smart choice, just a frugal one.

You are only talking in theory and not giving enough information. Why do you think you can just split a single-family into two units? No one is going to allow that and construction-wise, it is usually not cost-feasible for the output rent on such a large property. It's also unlikely that you can convert a single-family home into a community center (not sure if you mean an actual community center or co-living space). To do Airbnb, you would have to furnish to the nines and add tons of amenities so it is group accessible. Think $150,000-$200,000 in set up on that. Why are you looking to buy such a big house to rent, the numbers usually won't work unless you go nuts on the design.

The most important thing for you to learn as a wholesaler is repair costs. If you are able to lock up deals and you mess up the repair estimate (like most wholesalers), no one is going to buy it and you will be buying too high. If you build a buyer's list and you send them deals where the repair costs aren't close, you will lose them. Everyone says to find properties and build a buyer's list, but neither matter if you can't calculate the repair costs and also get access to a friend or colleague who has MLS so you can do a proper and real ARV (the other part where all wholesalers fail). Good luck.

If you pay $300,000 for a property and it rents for $3,000, that is 1%. But the 1% rule is an old metric. Now.75% would be very good in a lot of markets although you can hit the 1% in some markets. You have to watch out for properties that hit 1% or higher, but have cap ex and tenant issues.

If you are interested in turnkey properties in Memphis, look up MidSouth HomeBuyers. They are one of the oldest and most vertically integrated turnkey companies in the country. And they are super nice. Ask for Liz Nowlin.

I don't think Danbury is a big house hack market, but I could be wrong. Yes, long-term rental clients sometimes don't want short-term rental next door to them, but you are the owner and landlord and set those expectations up front so it's on the table before they lease. Are you saying you want to STR rooms in the unit you are living in? That's not a great strategy for Danbury. If someone is coming to Danbury for STR, I don't think they are going to want to share bathrooms and kitchen. You have to know the market before you build a plan and I don't think this market supports your intended plan.