All Forum Posts by: Michael Zuber

My Market has turned. Lot more buyers, less inventory, and according to title company contacts a lot more home owners getting approved for loan mods (taking future properties off the market for the short term anyway).

Like Andrew Jones I work full time and invest in Central Valley

I won't look at a deal unless it is over 20%

That said the last 6 weeks have been tough, more buyers and less of a supply. If this keeps up for another couple of months I might need to adjust my target return

Good Investing

The 11 was focused on my market in Fresno CA Not CA wide

For Fresno I reference the local paper Fresno Bee who publishes a monthly metric

Z

Jon K - my strategy is to buy as many cash flow houses as I can and then let affordibility resort to the mean

I invest in California and Affordibility got down to 11 in the last cycle

Mike

I follow affordability index. When it gets below 20% I look to sell my houses

It saved my butt in 2006-2007

I have to agree with Aaron. If the numbers you list are accurate why the heck would you wholesale the deal. Again if your numbers are correct why would you give up 30% of the profit simply because it needs 1K in Paint (Maybe it needs more than just paint).

But again with your numbers:
Buy it for 14K
Transactional Funds cost 2.5K
Two Closing Costs = 4K (Guess on my part)
Selling Commission = 3K (almost 8% and high on purpose)

You think you can sell it at 34.5K but lets say it goes for 32k.

32K - 14K - 2.5K - 4K - 3K = Profit of $7,500 (Much better than the 3K you are looking for)

Now ask yourself how good are your numbers!!!!

For me it is "The Hunt".

I like sifting through all the noise to find the 1 or 2 properties that work in my model. I like the closing, the cash flow and the future value but for me the most fun I get is from "The Hunt"

Purchased 3 deals (7 units), recycled 90%+ of capital via private investors. My goal was 5k in cash flow and I estimate we have generated about $1,700 so far

My market is changing fast with less inventory and more buyers

So the rest of year should be fun

I have seen a change in the last 6 weeks. Supply is down and buyers are up so prices naturally rise. My question is what breaks first? Does more supply hit the market or do buyers keep bidding prices up to stupid numbers?
The banking system may finally get there wish for prices to rise so they can dump properties slowly and reconize less of a loss.

Agree with the other posters. Pull out the equity, lock in 30 year money and go buy the next asset to continue building your asset base of cash flowing properties