All Forum Posts by: Jon K.

You're looking for a system like Batch Leads. As I pull lists, I upload them into that system. Like any other system these days it has a lot of features but I use it mostly to organize my data. I can see how many lists each property appears on so that I'm only mailing those that appear a minimum of X times. I can filter out things like active/pending MLS or recently sold properties. I can also see how many times I chose to market to a given property because I'll add a tag each time. I'll also go back and tag records as the homeowners respond to my marketing so that I can see what lists are performing and what lists aren't.

It does pretty much what you're describing in your post if you choose to use it in that way. Hope this helps.

Resources, experience, systems and networking. It takes time and they're not doing so from a position of just getting started.

I started out buying rentals off of the MLS, putting 20% down. Each time I bought one, because I was receiving cash flow, I was able to save up for the down payment for the next one a little bit faster. I was also using the BRRR method so I was able to get some of my capital back each time. I bought an average of one per year my first five years.

After rental #5 I decided to start marketing for my own off market deals as well as buying from local wholesalers. I also had more confidence, more resources in terms of private lenders who were willing to lend to me because I now had a track record, and good contractors.

By running my own marketing, I had access to a lot more opportunities and was able to start supplementing the cost of my acquisitions through wholesaling and the occassional flip which in turn expanded my network. I never scaled beyond a one-person operation but was doing an average of just under two deals per month over the course of about three years before I shut it down to focus on more passive opportunities and partnerships. I went from 5 rentals to 19 during that time.

I know others who are much better at systems, networking and controlling rehab costs than myself who scaled much larger, much faster, and never ran their own marketing.

Hopefully this context helps.

https://www.adventuresincre.com/glossary/average-rate-return
https://www.highradius.com/resources/Blog/accounting-rate-of...

Hello Devin,

You are missing something. The Average Rate of Return is calculated by taking your average net profit and dividing it by the total investment.

So in your scenario, the total profit is -$50 over a period of 2 years, giving you an average net profit of -$25. Divide that by your total investment of $100 and you get -25%, not 12.5%.

Does Cash invested include carrying costst?

Some pros:

- You'll have plenty of cookie-cutter comps so you should be able to get a very accurate estimate of ARV and/or sale price in the case of a flip.
- Your maintenance and repairs will be mostly limited to the interior of the property as the condo management will maintain the building
- You won't have to worry about tenants maintaining the grounds around the building

Cons:

- Condo fees may change drastically over time and it's largely not in your control
- Condo bylaws can be tough to work around. They may have rules about when contractors can come and go. They may also have rules that say you can't use the property as a rental during the first 12 months of ownership or at all. True story, I know an investor that bought a condo without reading the docs that he had intended to use as a rental and had to hold it for a year before he could do so.

I've novated two condos and both times it worked out really well.

Contact @Brian Valdivia at www.beltwaylending.com. He's local to Baltimore and will be able to give you the best options you can currenly get.

A friend of mine in Maryland is starting a GC business and has a deep roster of subs. He wants to focus on large ticket items for property managers: roofs, turns, hvac replacement, whole house painting, things like that. He asked for my help or advice in how to get onboarded as a vendor for professional property managers so I thought I'd ask here. I know most PMs already have go-to contractors for most things but I also know from experience that good contractors tend to get busy or scale to a point where quality suffers.

For the professional property managers of the world, how often do you get solicited by new vendors and what can a new one do to convince you to give them a chance? For what it's worth he's a landlord himself (19 units) so he understands the business pretty well.

@Jerry Sanford Considering your title says "learning about Wholesaling" are you asking how to find buyers for your deals? If so, it's as easy as networking. BiggerPockets, Facebook investor groups and local meetups are three good sources.

My advice isn't so much about partnering with a GC as it is partnering or doing business with a friend. In short, I'll never do it again unless the relationship began as a business relationship that later evolved into a friendship and even then I'd be very selective.

In my experience, over time, lines got blurred and our relationship evolved to a point where every conversation mentioned the business in some capacity. We'd be sitting at a bar having a beer supposedly watching the ballgame and would end up talking about work. Resentment happened on both sides where both of us felt the other wasn't holding up their end. I could go on but ultimately it very nearly cost me one of my oldest friendships. We were both relieved when we ended the arrangement and it took us a while to get back to the old ways.

Let me ask you this: What happens later on when you have enough experience that you no longer need your friend's expertise and also have enough experience to make larger margins in your flips? Now you're overpaying, maybe substantially, for your GC. How will it affect your friendship if you decide to go out on your own? Would you still use your friend as your GC and just pay him his regular rate (and would they be happy about the new arrangement)? What happens if you decide to stick with your partnership and now you're overpaying for labor? Will you begin to resent them or want to change the split? Again, how does that play? You're the money guy in this relationship according to another comment. What if you decide you can beat your flip returns in something more passive that is maybe lower risk because you're splitting profits but your friend now relies on the income from the flips as somewhat steady income?

I'm not saying any of this will happen, but it absolutely can. Best to think about it and talk about it now before you start down that road.