All Forum Posts by: Bill Goodland

@Jordan Meyer the monthly rent percentage is now how a property management company makes their money, it’s how they keep the lights on for themselves. It’s in all the other fees

@Casey Roman have you tried to find a partner that can qualify for a mortgage? Or that lives in a market that makes more sense?

@Andrew M. I understand having a full time job makes it tough to do REI full time, but rather than buying turnkey, why not just focus on buying one great deal per year? The better ROI would probably be worth your time.

@Madhav Thaker of course you could send direct mail out to people yourself, or network with wholesalers however they're going to want cash. Most likely way you're going to find a deal is by scouting the MLS. Get an agent and get auto emails and check them as soon as they hit. Often times the MLS listing with no pictures may look ugly on the inside, but those are sometimes the best opportunities because although ugly, they're inexpensive to make look nice relatively speaking and people that are willing to make subpar listings are also much more likely to take less than what their place is worth. A good tip is to screen your area based on cost per square foot. Let's say average $/sq ft. is $100 in the zip code you like but you know that you can do flooring and paint for $10 per foot. If you can find a deal for $70 and put in another $10 per foot, you can reasonably expect to gain 20%(or $20 per foot) in equity in the place. Obviously there's a lot more factors than just that, but it's a great screening tool

@Austin Steed any regrets or other lessons learned on the project? Obviously the place looks amazing and you did an awesome job, just wondering if you think going to extra mile was worth it from an ROI perspective

@Derrick Barker how much real estate experience do you have? I’d just say please be careful man. A contractor will tell you what you wanna hear because they want your business. Doesn’t mean it’s a bad deal or idea, but development is a whole different animal with a lot of moving parts so you don’t want your first deal to be your last

@Antonio Cucciniello it's going well man, but has been a lot of work while working a full time job with overtime already. Just got 2 units turned over during a pandemic and will now gross $400 a month over my PITI. Definitely worth it in the long run, but it's true, if it was easy everyone would do it

@Austin Steed congrats, the rehab looks awesome! Can I ask what made you guys go 23k over budget?

@Madhav Thaker well yes and no. I wouldn’t take on a huge rehab for your first deal but flooring and paint can go a long way to boost value on a place. Buying a below market deal and getting a loan later on once the equity can be captured is a great idea and I would argue is safer than dumping all your cash into a place during a rehab, but I would also avoid high interest hard money loans on your first deal.

@Adam Cain I would attend some meetups in the Philly area and meet a bunch of agents before choosing one. @Chad Gallagher has a great meetup in the philly area that plenty of agents attend. I think there was also a guest on the BP podcast a few months back that invested in Germantown. Getting recommendations from other local investors has been so far for me the best way to find great people. Best of luck man.