All Forum Posts by: Levi T.

You anweser your own question, blanket offers. We have a army of agents all with orders to put a offer on any property that fits that we want. They deliver a signed contract, we close on it.

Let's say someone has property worth $1 million as is. 9 unit 2B apartment building

We offer them $800k as is, even tho they wanted $1 million.

We know we normally spend about 10% of PP to get it to market rents. 

So we drop 80k into it, and raise rents to market, which is 150% above what is was earning.

The property is now worth 1.2 million, that leaves 320k in free equity, and a heck of a cashflow on rents because we brought them to market price by improving the property performance by 150%

Basicaly one of the first deals I ever did. Only expanded from there, now of days I would likely make a 600k offer in the place of the 800k offer I made back then. That's adds 200k or free equity and even more cashflow.

Who cares about CapEx if you can buy it so cheaply it does not matter.. cashflow will cover any future CapEx you may run into.

One more... 

Another property I know of, someone tried to buy it, deal fell apart at 300k, house was worth 600k. Guy I know tossed in a $160k offer, cash. Seller took it and ran. New owner put 100k into it and had it appraised for 800k, now AirBnB it. Timing is everything.

Sloppy rehab work, run don't walk away. This property will continue to nickel and dime you to death. Turnkey should be punch perfect... just buy a nice house on MLS and have someone put a tenant into it if you want turnkey

Did you have a tenant make such a claim?

Tenants say the dumbest things...

 Nope, your mindset is that we are making customized offers per property like you are, while what I'm really making is blanket offers that step over all possible problems by a wide margin.

If they accept our offer it becomes binding, with a single contingency, that the property gets a satisfactory appraisal at the our sole discretion. 

Diogo - No such thing, we make blanket offers based on a APN jurisdiction model that we have developed. Our average remodel cost is 10% of the purchase price.

@Diogo Marques Congrats and good luck. We make about 1,000 non-binding offers per month. Depending the season we get 1-11 accepted each month, sometimes more.

@Roy Gutierrez Yes, it's written into our lease that they have renters insurance for their things, as well as 300k in liblity coverage with us named as additional insured.

What amount of money in terms of deposit, application fees, and pet rent would make it worth your time??? That's the real question. It is what did it for me in the end. We pickup an extra $12,000 in additional income for pets per year, per 100 units. That's one extra phantom unit in rent per year, and no more damage than normal in the end. If you rent to a slob, they will trash your house if they have a pet or not. Require renters insurance that includes liability for 100k or more, and will cover pet damage. It's a win-win!