All Forum Posts by: Levi T.

I do wholesaling as overflow or unwanted inventory, as I do higher volume of deals in bulk I don't want to cherrypick one SFH at a time, but other investors do, so I always know single unit deals that want to be sold, and investors who want in on a unit like that, so I wholesale it to that investor for about 10%. Saves them time of trying to find a deal and they are already 70-80% below market value.

Depending your cash position, I'm in what they call NOVA market, Norther Virginia Area, it's around DC. Things are really good in this area, some parts are priced out like your market, but there's a lot of great deals once you get out of capital hill. I only do deals in the 40-70% to market value, but it's higher volume at $500k to 2 million per deal with anywhere from 10-40 units each round, all SFH and a few apartment complexes. Hit me up and we can talk cash requirements, otherwise, I also have a bunch of SFH that just don't hit the volume I personally need as I deal in bulk, so I normally wholesale them to investors that just want a unit or two per round, most in the 70-80% market value.

Welcome, I would put down as little money as you can, always. Drive your deals down in price as low as you can, and run your numbers like the property will operate under worst case scenarios forever. First few years is a learning curve, and in real estate mistakes are costly. Congrats and good luck!

Next time don't send it out as a word document.

Call a tow truck, problem solved. Just drop a notice on the car a week before doing that. Tenants call you about bs that does not have to do with repairs, charge them $35 for the call. If they call you about their personal life problems, tell them to call someone else, the cops, or you will charge them for the calls. Tenant don't pay rents on time. Evict them and get a new one as quick as the courts will allow it. We file for eviction on the 5th day and have them gone by the 5th of next month. It's business, tenants don't need to be chatting you up, just like they don't chat up their utility companies. Your provide a service, nothing more.

Check rents on Zillow or something, it don't take much to get an idea of comparable units in your area. I've done the yearly rent hike game, then stopped when I figured it cost more to turn a unit than the small gains I made from hiking rents. Tenants will up and leave when you do that more times than not, they just don't have the cash or see value in move because they don't love the property. then you get reset in most cases and lost more than you gained in cost. I finally decide to just set the price and hold till the next tenant moves in, unless the market goes way up. Recently the market jumped by 300mo in one region, so I will be adjusting to match the market on some popular unit, but most will hold till the market moves another 200-300, which it could from the sounds of things.

Commercial insurance that covers fires and liability, maybe loss rent and water damage from pipes. Enforce renters insurance that covers damages, including water damage, etc. Look at off loading as much of this cost to the tenant as you can. My lease includes damage insurance for each tenant if they want it or not at $9.50mo that I cover in the lease, it goes on top of their personal renters insurance. I then have fire and liability insurance, and only hire licensed and insured contractors.

@Scott England @Darren Eady, I just wanted to see what others where doing. I don't do them to much, but when I do, I'm asking 30% from partner for 20% cut, or 100% for 50%, or some combo like a percent of cashflow and total capital returned, or capital plus some percent of net equity as they are just cutting a check and enjoying secured cashflow I've developed. Most my deals are well below 80 LTV, case in point, current deal I'm working is 63 LTV, if I had gotten my opening offer we would have been 42 LTV, hardly ever happens, but once in a while it does hit below the 50. Thus why I don't do them much due to bank being more than happy to fund them. Most deals are in the 1.5-2m range.

I 2nd the private lender/capital avenue. Bring in a partner for your next gig to cover the down payment, or chip off some of your current property for cash, and use that in the next deal.

@Chris Martin Interesting, would be cool to see if the incoming workforce will drive them prices up to higher prices that you see in the metro areas like we have here in the DC regions.