All Forum Posts by: Luke Weber

Every big task is made up of little tasks.  You have to stop looking at the big picture and just look at the next thing in front of you that needs to be done, do it, and keep on moving forward.  And then every once in a while take a look back and see what you have already accomplished.  Remember, if all of us dingbats (I think I can still use that word and the PC police haven't taken away our rights), have done it, no reason you can't do it too!  Just keep moving forward.

Figure out if you want big city or little city far from things, that will help narrow down your choices greatly!

I know there are a few of you out there that have reviewed my books on Amazon, The Flipping Blueprint. Thank you so much! I love that we can share this information and help people along their real estate investing journeys. 

If you have any other books that you really enjoyed and added value, even if it is just one or two golden nuggets you gleamed, comment what they are.  I've read my entire library and need some more books!

@Jonathan Greene that is exactly it.  Yes a formula can get you in the conversation, but those of us who have been doing this for a long time know that a formula can also get you into bad deals or keep you out of good deals, plenty of variables.  And yes if you really wanted to, you could have a formula that includes most of those variables and build it all out in a spreadsheet with about 15-20 columns, but even then, there will be sometimes it looks good on paper (or doesn't) and you know you shouldn't (or should) just not do that deal!  I basic formula is a starting point, it shouldn't be the deciding factor.

Data wasn't available for what could have happened, we paused out of an abundance of safety to see what would happen.  After experiencing the 07 crash and losing alot there, I didn't want to put what I had at risk again.  Oddily enough, like many other markets, we kept increasing and inventory has stayed low (less than 2 months available).  We've been buying for the past 4 months or so again and been doing well, a few tweaks, not buying properties with renters in place as much, less rehab is more desirable for a quicker in and out, less leveraged on our purchases and using more of our own cash.  If you are going to play, just make sure you play smart!

When I am dealing with wholesalers or Realtors they almost always ask for my formula.  I tell them, there is no formula, if you think it is a deal, send it to me and I'll run MY numbers on it and let you know.

If it needs a lot of work, it will take longer.

If it is turn key it will move quicker.

Lower price, I'm probabaly all cash, higher price I am probably getting a loan or private investor.

Tenant or Vacant?

So many factors that need to be considered on each deal.

If you are using a "formula" you are either missing out on potential deals OR you are buying something you shouldn't.  Run your numbers fresh on EVERY deal you see.  Get as many deals coming to your inbox as you can.

I've been investing for a long time and since 2001 I have been tracking market inventory levels to know what, when and why I should buy or sell.  A lot of this stems from my background as a real estate appraiser and my love of numbers.  Why is this important?  The numbers are why I stopped buying in 2005 and started selling in 2006.  The numbers are why I started buying again in 2010.  The numbers are why I stopped buying again at the beginning of March 2020.  Attached is a screenshot of the numbers I track.  What numbers are you tracking?

Yep, although it's not a cap rate I would even consider holding, others are so I am happy to sell.

We closed on our fourplex last week.  The original buyer fell out because their appraisal came in at $240k on a $300k purchase (they said they would come up to $250k), we told them to pound sand and relisted.  Appraisal was bad, not just because it was low.  Cash offer came in and we closed at $295,000 March 1st.  It pays to know your market and your power as a seller (or buyer).  This is what's happening in Vegas.  A real appraisal should have hit $270k no problem and maybe a stretch to $280k.  

@Terry Lao

@John Kruze networking, both in person and virtual are huge!  It did wonders for my flipping business.