All Forum Posts by: Roy Leach

@Bill S.  Great point about trading one problem for another....   It actually seems that having trouble offloading deals might actually be a bigger problem because you've got your name on a contract promising to buy a property which is a bit more stressful than not having properties to buy IMHO (I've been on both sides of this).

@Jeffrey Hotz I've spoken to many investors across the country and they agree with you... it's tough all over.

But, these are both discussions about "Why would you look elsewhere?" which isn't really the topic.  In all honesty, my plan isn't to abandon Denver, but to expand into other markets.  If I can find 1 deal a month in Denver or 1 deal a month in Baton Rouge, why work both of them and get 2 deals a month total.

So, that's the real impetus for my search for other markets...

IF you were going to consider other markets, do you have input on whether the concept of the formula would be useful?

@Jeff Filali Thanks for the input.  Since you have experience in Oklahoma, do you have any input on which market is working better for you... Oklahoma City or Tulsa?  (not sure if you have experience in either).
According to my formula, Tulsa should be easier to find properties than Oklahoma City.

I absolutely agree with you about analysis paralysis... it would be easy to try to study the numbers forever.  But you have to have some ideas on where else in this big country to look at expanding into.

Again, I'd love to hear your experience to see if my number are even close to reality!

I'm sorry if this has been covered a zillion times before.  I didn't see anything in my search so here we go.

In the Denver market, there aren't a ton of deals out there because there isn't a ton of inventory.  This means that any inventory out there is high priced (even for distressed properties).  Seems that the amount of return for the amount of effort currently in the Denver market is excessive.  There's got to be somewhere else that I can get more deals.  I can put together a team anywhere in the US but the big question is WHERE...

I'm trying to find a formula to determine what the best city to wholesale in is (okay, it doesn't have to be wholesaling, but that's what I do so that's my focus).

The formula I'm trying out is... 

Number of properties listed on MLS / number of people in the area.

Now, I know that most of my deals are OFF MLS, but I don't have any way to get the number of those properties, so assume that there is some correlation between number of MLS properties and the number of off MLS properties (even if we don't know what that exact correlation is)

So for Denver, there are currently 1015 properties for sale on the MLS (I told you it's tight out here!) and a population of 650,000

1015 / 650000 = .0015

The actual mean of this number isn't too important (I don't think).  Rather, I'm using it as a metric to compare it to other places.

Oklahoma City's number:

2920 / 610000 = .0048

Okay... just looking at the fact there are almost 3 times as many homes listed in OK City as Denver with a similar population tells me that there should be a bit more inventory to wholesale.  So for OK City, the magic number is about 3 times that of Denver (go figure... that math stuff is pretty consistent :) )

Tulsa comes out as:

2974 / 400000 = .0075

So this means Tulsa should have even more homes available per capita and maybe an easier market still.

Of course, you have to pick large enough markets to be worth your while, so I don't know that this would work for Blythe, CA (174/19000 = .0092) even though the number is awesome!

Now the big question...
Does anyone have any other input or thoughts on other variables to consider?

@Andrew Hall Have you tried Bandit signs?  I'm sure they'd be pretty unpopular in SD but just curious.  Does Bakersfield look any better?  That's a LONG way from SD :)
What about Corona or Riverside?  Seems that there might be some movement there without going 100+ miles.
I'm from CA but moved to CO about 11 years ago so just curious what the market is like out there (hopefully a little easier than Denver!)

Oh... So it isn't just me running into this issue :)

I'm getting a little response with direct mail but nothing earth shattering.  Basically, it comes down to really working it.  Regardless of what the late night infomercials and web based ads say, properties don't just fall in your lap....
And don't forget to check out the marketplace on BP for properties!

Is anyone seeing better results from Fort Collins or Colorado Springs?

Finally... an event  close to home! Then again, I might have to stay downtown the night of the after party :)
Looking forward to hearing all of the great speakers and can't wait to connect with lots of other local folks!

SOLD!!!!!!!!!!!!!!!!!!!!!!

SOLD!!!!!!!!!!!!!!!

HOA: N/A

Suggested Rehab:

-NONE, house is in good condition and Ready to go.

Additional Information:

Home is ready to go.

Updated electric done by electrician so all outlets in home are grounded.

Updated kitchen with granite countertops.

Permitted 440 square foot addition with wet bar.

Basement is finished with 2 non-conforming beds and a bath.

Garage is finished with heater.

Storage shed is finished with heater.

Roof is in good shape.

Hot water baseboard heat.

New carpet

@Sam White you're absolutely right! An LLC is an entity in California (in this case), but you also have to register AS a business. I've got some friends in CA doing web businesses and $800 sounds spot on!

@Vee Vu the term "Your Net Worth is only as big as your Network" really applies!  Go to the online forums like BP and make connections but really, the best way is to talk to people in person.  REIAs are a great way to do so.
You can also watch for "We Buy Houses" bandit signs.  Call 'em up and ask them to put you on their buyer's list.  They will be more than happy to do so.

Search Craigslist for "Cash Only", "Fixer Upper" or "Needs TLC" in the real estate for sale section.  These are usually flippers or wholesalers.  If they're flippers, you can ask if they know of any wholesalers.

This is a weird business.... MOST of the people involved are willing to help out if you ask.   There isn't a big "You're my competition so I'm going to try to steer you wrong" attitude.

Action is better than observation.... Just go do SOMETHING and things will start falling in place!