All Forum Posts by: Robert Williams

Hey @Jerry Guzman. Turns out, it's about the return vs the ARV until your wholesale fee comes into play. LOL. Typically, 65-80% of ARV minus repair costs.

I suggest creating a calculator in Excel or google sheets. If you do find a cash buyer to sell to, ask them what kind of return they want, then you will have your answer. I have seen people legit take minimal profit because they were helping someone out. Ask, take note, that way when you find something that meets their criteria, you know who to call.

Hey Dillan, I would start analyzing where you live. You know the good, not so good, bad, and horrible parts of town. Figure out what makes a property a deal, then expand from there. Monthly cashflow of $100? $200? $250?; Cash con Cash Return of 10%? 5%? 12%? Once you have criteria, it really does not matter where you invest, you just start analyzing deals and making offers. The only other factor to location is If a problem arises with an out of market property, will you be able to rectify it quickly?

If you need help analyzing properties, create a spreadsheet that will help you. I have attached the one I created and use. Property Analyzer

If you cannot find any comps following the advice of @Kerry Noble Jr, which is an excellent idea, it may be advantageous to meet with a Real Estate Agent, Property Management company, or even an appraiser to help determine the ARV. You can always find something to even ballpark it. I have seen homes in my area that do not undergo a full remodel that sell for as much as brand-new homes. I think if you are conservative on your numbers, you will be surprised.

Another suggestion is to play with the numbers. Be realistic in what you think the fully renovated house may go for and evaluate it. Find out what numbers would make it a deal for you and go from there. I highly suggest creating a spreadsheet that does the math for you so all you have to do is adjust one number and see the results.

I have attached a link to the one I created. Enter the information into the orange boxes, and it will calculate for you. I'd start with the information you have and adjust the ARV from there. Analysis Spreadsheet

Much appreciated Mike! Definitely didn't even think about this one!

@James Tasso Thank you. I never would have thought to do this. Now it’s on my mind for everything I do. Lol

@Harjeet Bhatti Thank you. I think it wise to start where my money is held, then hit up other local banks as well.

Welcome to BP Andy! I’m a newbie myself, and what it came down to for me was learning to analyze a deal, set my deal criteria, pick a niche, learn as much as I can, dive in. Activity in the forums gets you noticed and opens the door to relationships. Don’t overthink it. You got this!

Hi all. I am in the process of interviewing banks for lines of credit and refinancing options, and am looking for some questions to ask. I was thinking of asking: What are the loan limits for secured and unsecured?, How much can the banker personally sign-off on without approval from a superior?, What Credit scores Scores are used?

Are there any other pertinent questions I should be asking? 

@RONALD HENRY I think the key when starting out is staying close to home, and getting off-market deals. Why not use that $100k and lend it to another local investor? The BP podcasts always talk about hard money being leant at 10-12%. Might work out well for you. Hit up a local REI group, tell them you have $100k, and what you are looking for and I'm sure you'd get some instant partnerships and potential deals. Unless you have a team in the OOS area you wish to invest in, it may prove a bit difficult to manage, hence why the absentee owner list is the most pegged list. Wishing you the best in your real estate journey.

@Brady McClendon @Dan Heuschele Seller financing seems like a pretty good option, especially since you can save him on the capital gains tax. Figure out a way of telling him how you’ll protect his pockets by him selling it directly to you with terms. Using a realtor will effectively cut your profits.