All Forum Posts by: Nikki Robinson

Awesome! Thanks for the tip about the JotNot app too. That's exactly what I need at this time.

Question: did you use a state-specific contract? In GA, there's a section that says the Buyer (me) can't assign the contract without written approval from the seller. Did your contract say anything like that?

Neighborhood Scout has been pretty helpful for me so far. If neighborhoodscout.com isn't the URL, you can Google the name and it'll show up.

For the areas I've searched on there, it showed house vacancy rates & more accurate average rent rates than Rentometer & Zillow. Shows accurate neighborhood home values also. Demographics, median household incomes and more.

Thank you @Ryan Billingsley. That was very helpful.

I'm fortunate to live in an area where off-market deals are plenty for the person who puts in the footwork to find them. However I keep second-guessing myself and running the numbers 10-15xs, with different scenarios, before I make a move on getting the property UC. Constantly worrying if I'll be able to find a buyer.

But from what you told me, I'm feeling a bit more confident because I do take extra care to make sure the cash buyer has a truly good deal in the end.

At this point, a $3500 assignment fee would make me just as happy as a $10k+. I'm eager to have the first complete deal under my belt. Thanks again for your insight.

My goodness! I felt silly for spending $300 on a real estate investing course after I found BP. I can't even imagine what you're feeling right now. Share the company's name. No need in being discreet about people who'd willingly rip off folks who are trying to get ahead in life.

$41k would purchase the house and complete the rehab on one of my newest leads - a 3bd/2ba, 1466 sqft house I just found this weekend.

Damn those guru companies! The people in charge have no morals. I'm so sorry this happened, but there's a lesson in every bad situation. I'm sure due diligence won't be a problem for you ever again.

Congratulations on closing this past Friday! If I'm not being too nosey, could you share the numbers on that deal? I'm a newbie and am always interested in seeing what kind of numbers/deals attract the most attention from cash buyers.

IMO, this was definitely an example of a high interest wholesale. I was excited just reading through your updates lol.

Well I spent the afternoon doing more research and learned it's likely not enough profit potential for a JV flip. The best plan for this lead seems to be cash buy & hold, private money funded rehab & refi with a small local bank.

But I'm too much of a newbie still for all that, lol.

I'll see if I can get it under contract with a max. offer of $8500.. starting offer $6k. It might be good negotiation practice to lowball an already low price. At the very least, I'll see how a seller reacts to that for experience's sake.

If successful with that approach, I can wholesale it for $10k to a seasoned cash buyer with enough money to handle rehab on their own, so they'll have a nice cash-flowing rental.

Feasible?

Oh yeah... after more research, I found Rentometer's average rent to be a little off. Avg rent for similar houses in the area are ~$600-650. Still not bad, in my opinion.

@Rick Baggenstoss

Thanks for your response. He's willing to do seller financing, $5000 down with $450 payments for 12 months.

I knew I wouldn't be able to do a conventional. By lenders, I was referring to HM. Or if I tried to find a JV partner to fund the purchase & rehab then flip the house with a 60/40 or even 65/35 split (them taking the bigger cut), do you think anyone would be interested?

I'm pretty comfortable with the repair estimate because my dad has been fixing & flipping houses as far back as I can remember and I've seen what he can do with a $10-15k budget. I also used to work at a Lowe's store and remember the approx. costs of materials. From conversations with the contractors that used to frequent the store, I also have an idea of labor costs in the area.

A special thanks for the tips on checking with neighbors, Craigslist and the local paper for rent prices. I'll do that now.

Everything in me is telling me to hop on this. But there's that little voice chanting, "This is too good to be true," in the back of mind.

Motivated seller wants $9900 for a 3bd/2ba, 1466 sqft house in a rural town in south Georgia. It's definitely the very definition of distressed. Here are photos:

(right across the street from $9900 house)

(neighborhood in opposite direction of previous photo)

... It's a pretty decent neighborhood as you can see. The seller included that it "Needs work - New Kitchen, Kitchen floor, Bathroom and overall rehab." From pictures I estimated about $15000 in repairs to bring it up to ARV. Recently sold similar properties nearby went for $39-41K. That's been the going price range for about a year. According to Rentometer, avg. rent in the area is $833.

If I offer $8000, I'd only be in at about $23-26K (leaving a little wiggle room for extra repair costs).

So with these numbers...

ARV: $40k
Repairs: $15-18k
Price: ~$10k
Avg. Rent: $833

Is this really as good of a deal for a buy & hold as I'm thinking it is? I'm a newbie and still trying to wrap my mind around CoC & Cap rates. Would this attract a lender?

Should I start looking for a lender?
How does repaying a lender work when you hold, repair and rent a property?
Will a lender fund 100% of the purchase and rehab?

I can only imagine the stench in there ... smells like money I suppose lol. Congratulations! 

Congratulations! My goal is to wholesale until I have enough cash to start buying 2-4 unit properties.