All Forum Posts by: Mike Barone

Hello BP, I was presented with a local creative financing deal and need some honest advise. This is a subTo deal a wholesaler locked down and is looking for an end buyer. This property is in the same city I live which makes it more attractive for me. Here are the details:

• Purchase Price 280K /ARV 310K
• Down payment of 20K (includes assignment fee 10K goes to seller 10K to wholesaler)
• Balance on loan about 171K
• PITI $1400 approx
• HOA $140
• Rent 2k renter already in place which is the current owner (He is wanting to lock in price now because he feels the market is going to go down)
• 2-year term with the option to extend to 5 years

Any advice is appreciated as I have never done this type of deal before.

@John Pfeifer Man I have the same exact scenario as you with a condo I used to live in. I lose about 150 per month and was looking for alternative option than just selling. I bought at the wrong price and cant sell for what I purchased it at even. I will have to investigate the seller finance option @John K. suggested. 

@Marlon Jackson You can utilize propstream to produce your own comps but don't just rely on the estimated value amount they give you. I would suggest digging a little deeper to find a more accurate value. Go into the details and you will find the comparable and nearby listings tab. Start filtering out like properties to produce the comp. (Sqft, lot size, type of property, same subdivision ect..) You will see a difference in the estimated value a lot of times. 

I would suggest using a google voice number. It is FREE :)

I have been using Batch Leads for SMS. Does anyone have experience with ROOR? @Moises R Cosme 

@Merari Alfaro  I would target buy and hold investors looking for a long term play. There is not enough spread for someone to invest to try and flip. I might be interested if the numbers work :) Just wondering what the rent would be for each side.
I am down in South Florida where duplexes start at 300+ and don't cash flow. Feel free to send me a DM

@Johnny Coleman You are not the only one.feeling the pressure. I have been trying this strategy for a few months just on weekends and afternoons. Nothing closed yet but 2 I need to continue to follow up with. What has been your most promising lead sources? Mine have been driving for dollars. Keep on pushing 💪

@Richie Choy appreciate you sharing your PPC metrics. Have you tried any call only campaigns? I am in the process of building out my own site but until then I was thinking of trying a call only or Facebook campaign. 

Keep on testing and good luck on your campaigns.

Investment Info:

Small multi-family (2-4 units) buy & hold investment in Hollywood.

Purchase price: $227,000
Cash invested: $50,000

This was my second multifamily purchased. I have increased rents since my original purchase and have created a nice cash flow. I will keep this one in my portfolio for sure.

What made you interested in investing in this type of deal?

I already had experience with small multifamily property and wanted to add to my portfolio. It was fully rented and turnkey when I originally purchased.

How did you find this deal and how did you negotiate it?

I found this deal by using a real estate agent. This was not a off market property, but the numbers worked at the time.

How did you finance this deal?

Conventional Financing

How did you add value to the deal?

After 10 years of saving most of the cash flow I used those funds to renovate the front unit. This increased my cash flow by 300$ per month. I still have some renovation to do in the second unit but will wait until the current tenant moves out.

What was the outcome?

I have a cash flowing unit with a ton of equity. It is paying itself off in 13 years and I estimate at least 1300/ month in cash flow.

I am new to the wholesaler community as well and have not closed a deal yet but do have a few in pipeline I am following up with. So in no way am I a expert I am only giving you my opinion and what I experienced so far in my journey. 

Using propstream lists I have found to be heavily targeted. I am not saying I have not gotten a few people interested from those lists but I do hear you are the 50th person that has contacted me quite often.

I am going to try list source next but the price is way higher so I don't know if it is worth the additional cost.

Driving for dollars I have gained the most traction and have gotten a better overall responce. If these result continue I will probably just go all in with this method until I get my first assignment closed.

Good luck on your journey in wholesaling💪