All Forum Posts by: Robert Leonard

Brandon Sturgill the seller will have taxes to pay on a cash sale of the property, so it's not "all going in their pocket." You would do well to also present a seller financing offer. A property that comes with financing will be pretty easy to wholesale or a good way get your cash flowing rental portfolio started!

@Winona Wyatt you have a pretty good idea ... it sounds a lot like www.postlets.com I think they may have already beat you to the punch?  All the landlord/property manager has to do is snap a few pictures, upload them, and fill in a template with property information. 

Nobody has to go to their property.  It's free to the landlord/property manager.  They make their money from other advertisers.

Tammy Stinson if I were in your shoes, I would wholesale whichever of the two would offer the least rental income as a first deciding factor. If they are both the same, then I would sell the one that would cost the most to make it market ready. Then get your income producing property to start producing income! If that doesn't fit your goals, Try to make the most out of the relationship you have the opportunity to build with whomever you sell the property(ies) to. That can help you grow your business!

@Ken P. If you join "The RING" (real estate investors network group) on meetup.com, you'll find several of them.  The group just met Tuesday and we meet once a month.

@Roger Lin this would only make sense to me if you have no better options.  I think there's always a better option.  The strictly cash flow investors I know of are slumlords who do nothing to add value to their property(ies), as long as it cash flows.  I didn't say that to be accusatory of you, just of the strictly cash flow strategy. 

The lower the price, the more it becomes a cash flow intensive property and appreciation usually is out of the equation.  While the cash flow is good, the management is usually more intensive/costly.  The properties also usually come with significant deferred maintenance.  Your resale options are usually limited on such a property also.

I'm speaking in general terms. If what you found is an exception to all of what I said usually comes with this type of property, a consistent 9% ROI is better than you can do in a lot of other investments.

@Dmitriy Fomichenko 

@Ibrahim Hughes check out www.animoto.com for slideshows that you just drop your pictures into and pick a theme and music and it's done.  You'll have several options for download or sharing on youtube.

@Ken P. fug-et-about it!  No way, no how!  Not in Baton Rouge!

Nahh, just kidding.  There are deals to be found everywhere for a good wholesaler.  You really have to be good, because there's a lot of competition and you can make a bad name for yourself very quickly by trying to sell bad deals using bad valuations and repair estimates. 

The pros know a good deal when they see one and they know the market well enough to see a bad valuation from a mile away.

You can do it, just bring your A game!

Welcome to BP @Sean Blanchard!

You can learn a lot here!  If ever I can help with any LA specific questions that come up for you, give me a shout!

@TAYLOR BRANNEN if you understand the 2% rule (the property generates 2%/month in cashflow of the price it cost you, like 25k house generates 500/mo rent) then I would make that your target for small town properties to compensate for the other drawbacks. 

The drawbacks.  Your tenant pool to select from will be small and that will mean longer vacancies if you have demanding criteria for acceptable renters.  Supply and demand dictates that the rent (and property value) will be lower than more populous areas.  It will be harder to find help (contractors or someone else to handle emergencies) when you need it.  Less restrictions, can mean Sanford & Son move in next door.

The positives.  It does offer lower entry price points to get started. When you do get a tenant, they will probably stay a long time.  Riff raffs can't hide long in a small town, every body knows every body and there is no anonymity, so you'll have less of them to deal with.  Change happens slowly in small towns, so that offers some stability in neighborhoods/property values.

As far as what makes a good deal.  You have to learn the difference between a low value house and a low priced house.  A 40k house in a neighborhood where houses sell for 35-40k is a low value house.  A 40k house in a neighborhood where houses sell for 65-75k is a low priced house (potential good deal).  Of course that is just the first number in the overall equation before you start determining property condition and how much it will cost to repair/update and all other expenses?