All Forum Posts by: Douglas Larson

Hi @Christopher Monsour

A 10% true net profit is a good benchmark for 350k to 600k sale price homes. Most flippers won't touch a deal if they can't at least make 35k. Low-priced homes and condos still need a minimum net profit because they still take time and energy, however, not many deals in SD will retail under 350k!

Over 600k or lengthy remodels may need bigger margins because of risk and holding costs. Many wholesalers don't factor in hard money costs and other holding costs but it all factors into the deal. Hope that helps.

I'd love to look at your deal. I've done several rehabs in SD and would like to start a summer project. Send me a private message!

Thanks.

With the way US politics are headed, I think I'll buy a couple acres, just to have a good plan-B. 

The price seems great at just $9 but I've never bought land off-planet before. Just wondering if I could get some advice! I've heard jobs will be headed that way . . . someday, and that eventually whole new cities will be created but I just don't know if I should pull the trigger on this one.

Any advice would be appreciated!

Hello @Dave Jeltema

Welcome to BP! Great job reading books and listening to "Brandon's podcasts." (Oh, you may want to give some credit to Josh Dorkin as well . . . He's just the owner, CEO and brilliant mastermind of all things BP.)

"Buy and hold with an occasional flip" is a great strategy, along with "house hacking." You sound like you are on the right track and a very similar one to me and many other investors I know.

You asked for advice . . . Local networking is key to success in this biz so I would recommend some of the real estate lunches and meet-ups in the Salt Lake area. Go to SLREIA.com and poke around. There are some other meet-ups and clubs too. I would stay clear of the ones that charge big up front fees. They won't deliver any more knowledge or results than you can get with BP and a few good relationships.

Finally, as you probably already know, the BP site is huge and already has almost every answer to every real estate question in the form of  and . Have fun!!!

I can't add much to the advice and perspectives above but I will throw in 2 cents. 

Some of landlording is science and some is art. I've been a landlord for 17 years in 3 different states. I tend to be very strict with screening, payments, late fees and violations when the market is good. However, if tenants are scarce and the economy is bad I tend to get a bit more flexible like @Marcia Maynard mentioned. The contracts remain the same, as well as the legal notifications, but sometimes I allow my "partners" to be the bad cop and I'm the good cop that allows for a late payment just once.  I don't know the Moab, Utah market but along the Wasatch Front right now it's a great time to find tenants! 

Now, here is the fix moving forward... In many larger towns, including Salt Lake City, there are some great resources like Rentler.com. For $8 per month for each property they collect my rents by ACH on the 1st of every month and it magically appears in my biz account by the 5th. No more checks in the mail or late payments!

Have fun and keep us posted on how things work out!

@Chris Duzan

I went to San Diego last weekend with my young boys on their Spring break. I got in a little surfing (with a wetsuit) and some sandcastle building. It's 11 hours by car. Less than 2 hours by air.  I lived in Hawaii for several years too and that's $600-$800 per person to fly, and about 8 hours with a short layover at LAX or SFO. We go to Florida about once a year too. I'm sure you'll be able to "scratch that itch" with a little creative thinking. 

There are some great RE investing clubs and meet-ups here in the Salt Lake area. Make sure to look them up once you get planted. There is great networking and cooperation. Here is  and I really like the lunch meetings for networking.

Above all, have fun!

Hi @Chris Duzan

Welcome to Utah!...soon 

I've been here for 11 years and I miss the SoCal weather but I really enjoy Utah as a community, recreation mecca and as a real estate market. It's been good to me!

SFRs near the U will be spendy but convenient. 20 minutes out will get you affordable but more diverse neighborhoods. I've got a rental SFR in West Valley and my last tenant was a UofU grad student and his family. Find the listing here or send me a private message.

Honestly, if you can visit the area you'll be much more likely to pick a spot that feels right. It's a tight rental market right now but if you've got good credit and don't smoke you'll be at the top of most landlord's lists, especially if you can sign a 12-month lease.

@Thomas S. said above, "So don't deny the service animal tenant your place because of the animal, deny it for the hundred other real reasons that are within the law."

That's exactly what landlords need to know. Thanks all for the great responses!

I had to add to my thread from earlier this month... 

This story in a Utah newspaper caught my eye: Fake Service Animals a Growing Problem.

https://ksl.com/?sid=39103033

If you connect with me and send a message I can send you a lease-option contract I use. Generic Staples contracts my be adequate but using state approved forms would be best for your specific area. Check in with local REIAs to see what your fellow investors are using.

Also, search for forum posts on Lease-options and the new Frank Dodd rules. Things are changing and some people are saying that if you don't "qualify" your lease option (owner-occupied) buyers you can get in trouble for not complying with lending guidelines.