All Forum Posts by: Peter Stewart

@Brandon Spurlock Sorry, I scrolled through all 4 pages and caught the $515 figure referenced, but must have missed the post with the #'s above. Thank you for re-sharing. Sounds like you landed the perfect BRRR!

Great job! If you're open to sharing, I'd love to see how the numbers break down. Here's my guess:

$1000 for rent

$100 mgmt

$515 PITI

$150 vacancy/repairs/cap ex (5% each)

$765 total expenses

$235/mo cash flow 

$2820/annual on $4k investment = 70% ROI

Is this close?

As a broker myself, I typically will not show homes to buyers unless I know they've been preapproved (if financing) or if they've shown me proof of funds (if cash). The agents who don't know what they're doing and/or don't value their time are the ones who don't properly qualify prospective buyers. I got burned plenty of times doing that when I first started out. There are a ton of buyers out there who are not serious and/or not in a financial position to purchase (whether they know it or not). Confirming that they are both is a protection for all parties. Even the buyer (protects their time and possibly their $$).  

Let's be real here, there's no doubt that investor/agents or teams that work like you describe take the best deals for themselves. Same with the wholesalers in town - of course they cherry pick the best deals to keep. But what they may consider the "best" deals may not be the best for you - everyones criteria is different (areas, property type, budget, goals, etc). 

Now, a few good points got brought up:

• Not everyone has unlimited money, so it's not like *all* the best deals get snatched up prior to being presented to their clients. 
• -What you're looking for may not be what the agent/team you're working with is looking for. Using myself as an example, I only buy in A/B areas, and I only do flips for SFR's and I buy and hold multi units. Many of my investor clients like to buy in C/B- areas, and they buy SFR's to rent. So, we are not competing at all. Now, the challenge is when I have multiple clients looking for the same thing - that is a more likely scenario to happen, and this is where you can run into an ethical dilemma (depending on how you handle it).
• Come from an abundance mindset, not one of scarcity - there are plenty of deals to go around. 

To answer your two questions:

• #1. It's not necessarily a problem. In fact I would suggest working only with an agent/team who invests. I would not take investment advice from an agent who did not invest themselves. They won't know what they're talking about and they won't know how to properly analyze a deal. You'll get the most accurate advice and guidance from someone who walks the walk, not just talks the talk. Now, with that said, I personally would avoid the "all in one" teams because I do see potential conflicts of interest there - especially when it comes to the contractors. 
• #2. Going back to the abundance mindset, I can see why people may not hesitate to share. In a community like BP when you share, collaborate, and help others, karma has a way of paying it back to you. 

@Chris Clothier I don't mind the questions at all, and I am a listing specialist so yes, I go over appraisal advice with sellers all the time. However, the seller advice is not really relevant to this discussion - at least not to my answer. The OP asked a question as a buyer, so the advice given is for a buyer, not for a seller. And no, I don't believe any advice is absolute, there are always exceptions (for the most part). 

I would never purchase a property in a market I didn't know *extremely* well without an appraisal contingency in place. Especially if you are a new investor. Protect your cash reserves and protect yourself from overpaying for a property. Agreeing to pay the difference no matter what the amount is a risky move. Now, I know from both personal and professional experience that appraisals aren't always accurate, and there are other exceptions where an appraisal isn't necessary...but the majority of the time they are. There's a reason why RE purchase contracts typically always have appraisal contingencies in place by default. 

www.HunnHeritage.com

They offer estimate options for investors

@Shawn York I am local (live in Carmel - just N of Indy) so that would be awesome to see a property or two in person. 

Thanks @Shawn York! Don't want to trouble you too much, but if possible could you send me some pics of the larger projects he's done for you? peter @ peterstewartrealty.com

I am looking for referrals for a general contractor for a whole house remodel in the SoBro area. Most of the construction companies I have contacted do not do flips, so I need a contractor who does work with investors. I have done a few flips before, and I've been a broker for over a decade, so I am not a newbie to this. I am a very easy client to work with and I pay on time. Although I am budget-conscious, I understand that a profit needs to be made, and I want to create a win-win for all parties involved (I'm not one of those investors who nickel and dimes everything). 

The home is ~1400sq ft, 3br/1ba, with a full unfinished basement (~1000sq ft). Needs everything - roof, windows, kitchen, bath, flooring, paint, fixtures, landscaping, etc. It's not a to-the-studs project, but there is a ton of work to be done. I'm looking for a reliable contractor with at least 5 years of experience doing this type of work full time. 

Looking to start the work around 9/1/19. I'm ready to hire, just need to get a few estimates first. 

Thank you!