All Forum Posts by: Rick Pozos

This is why things are slowing down. Sellers want the 5.5% or 6% cap rate to sell, but buyers want the 9% cap rate to buy. HMMMMM. Some sellers are NOT going to be selling.

I just got offered several 4plexes that were valued at 5.5% cap rate. I said wow they are a bit over priced. Seller has a mortgage that will prevent him from selling at a 6% cap. He is going to have to wait a few years until rents catch up.

Hey @Jacob Rocha we have several arbitrage properties and we co-manage one with a family member. You can always reach out. All my info is on my profile.

I think more people know about short and mid term rentals so they are more comfortable renting to someone who does this. All the people that we rent from know us. We actually need to start going out and renting from others now.

You mention that you work with real estate investors. Why not talk with your clients? Let them know that you want to do some of the things that they do. What investor meetups do they go to? Go to those also. Get some information from them to know what to expect and learn from them. They are local to you and you can see all the challenges that they have.

AND we do some direct marketing to people behind on their mortgage about to go to foreclosure. We really do get lots of referrals from friends and family.

You asked the million $$ question. How to find deals?? If I knew the best way, I would be sipping Mai-Tai's in the Cayman Islands on a stack of cash.

Seriously, there are lots of ways and everyone has their way that they like to do things. I have a Facebook page for business where I show the projects that we are doing. Hopefully that attracts more work for the construction company.

I have a Facebook page for helping people with their house issues. Sometimes people can not or do not want to keep their house and they call me because they follow me. 

Instagram lets people know what I do also so that I am a resource for others who need real estate help, maybe selling their house. I can buy it.

My personal Facebook page also says how we are always looking to help others with real estate issues. And I do help lots of people. It fulfills my need to help others as well as buying a house or two here and there.

It sounds like he is trying to do too many projects and does not have any money to get another one going. 

I am kinda on the other Side of things here. I AM the rehabber. BUT I would NOT give 50/50, maybe my lender gets 25% of the profits for lending the money and SOME carrying costs. Finding a REAL DEAL is #1 biggest issue. Then dealing with contractors is full of headaches. Lots of moving parts that most new people cannot handle effectively.

But I am not giving up 50% of profit. Something sounds a little fishy. I would rather just borrow at a little higher interest rate and keep all the profit for myself.

Hey @Patrick Goswitz I dont think this was ever a bad deal, you just were not aware of all the ways to make money!!!

On properties that I know will not become financeable I try to find a friend or relative to lend me the money to purchase and rehab the property. Take the down payment amount and pay down my loan that amount. Basically do a wrap to the buyer. Higher price and higher interest rate to the buyer.

It turns out to be a nice cash flow situation for 10 years or more.

Getting 60k down payment is super duper. I usually get 10%, maybe a little more.

The deal might not be as good as you think. Believe it or not, prices have come down or are going down. 

Also, people are a little scared right now. I have seen people not wanting to do anything. People who have plenty of cash are saying that they are not going to buy anything this year.

I go to a few investor meetups and started one myself to build a network. I dont necessarily need to get the absolute highest price for my deals, I just need to get it sold QUICK. I can wholesale just about any type of property that I get under contract with a couple of phone calls.

Open house? Most agents use an open house to find more buyers and then list their house also. I have used an open house, but I focus on this house. Advertise as much as possible to get people there, create a buzz. Ask the serious people for their number and follow up with them the next day.

Put it on Zillow. You will get lots of exposure there.

You might find a flat fee person to list your house on MLS. That is where you really get the network of other agents, but you have to pay them something.

Just curious, if you were an agent part time, why aren't you anymore?

You are probably NOT going to make money in 2 or 3 years buying near turnkey properties anywhere. I would think if you moved into the property and then rented it out after a few years THEN you might break even in another few years after that. Higher interest rates and much higher valuations that cause higher property taxes are going to put downward pressure on prices for a while.