All Forum Posts by: Ariou B.

Dave this conversation has blown out of proportion LOL

First you say I don't know what ROI is and now you're telling me I'm making all these stuff up to win an argument over internet LOL you're something else man!

Pup: $615k

Rehab: $10k

ARV: $900K

(615+10)/900= 69.4% 

Of course you're going to think I'm making this up as well.

To wrap things up btw me and Dave because our convo is getting too long, I think we both agree 70% and many other rules of thumbs are good if you meet them, but they're not critical. 

@Account Closed mentioned, the 70% rule doesn't really work in SoCal so my question is why is the 70% rule even important in the first place? Why can't we all just stick to the fundamentals? 

• Is the ROI Acceptable?
• Does it meet the 85% rule (important because many HML look for it)

@Account Closed thanks for the info David, but I just don't see what's the big deal about any of these "rules" are. I've talked to a few HML and mostly told me we only look for 85% value.

I always try to think how much money am I going to make at the end of the project and what is my ROI. If I like these numbers, I just go for it. It takes less than 1 or 2 min to know if there's really a deal or not.

@Ashley Benning I just picked up a deal in LA and noticed it meets the 70% rule. I honestly don't really care about rules, as longs as the numbers make sense I go with it. This house we just picked up we bought it for $615K and comps go for any where between $875K-900K.

The last house we picked up and we are going to list it on MLS meets a 63.3%. We picked it up for $210K and will list for $329K (which is a bit under market value, but we want to sell it ASAP so it's OK with us).

These are the only 2 deals that I've done and I personally only care about the 85% ARV rule and that's it. Money is money and if I see an opportunity, I will jump in and grab it =)

- My only advise to you is try to increase your network and don't get stuck in analysis paralysis. 

Hi Robin, I would try to get in touch with as many wholesalers as possible in the area that you're interested. From experience, a big majority of their deals are not really deals but a small fraction of them are an actual real deals. Ask them to put you in their list and be proactive on Redfin. 

@Anthony Rullo when I met Tim, let's just say it wasn't a right time for me to use his expertise and invest with him. Now that doesn't take anything away from the fact that @Tim Ryan simply knows his stuff better than most REI that I've met. Who knows what will happen in the future, but one thing for sure is Tim has the resources to help you get started and move forward in your REI career. I seriously can't recommend him enough.

@Anthony Rullo, I met @Tim Ryan a few months a go and got to his his project. Till this day I've not seen a bigger flip in person. He's a great guy and he can truly help you to get started. 

Nice job! Why is there a $12/month HOA fee? Many of your potential buyers would not see your house in MLS because they'll only see houses with no HOA.

@Maria D.

Thank you very much for your thorough response, I really appreciate it. I will now have all the info I need to decide whether or not I want to get that license and you're right, it's very difficult to find this info on the Internet. 

Hi, sorry I don't have any good answer for you but I got a question to ask if you don't mind. I'm thinking about getting my license too but I'm not sure about the total costs. Can you please tell me all the costs that are associated with being an agent ( and I mean all the costs, all of them)? Thanks