All Forum Posts by: Richard Dunlop
Richard Dunlop has started 7 posts and replied 715 times.
Post: 1% Rule? 2% Rule? Help!
- Investor
- Detroit, MI
- Posts 755
- Votes 462
Originally posted by @Joe Villeneuve:
It's really simple. 1% is used when you want your milk to taste like water, 2% is used when you want to drink healthier milk. It takes some getting used to, but once you do, going back to heavier milk tastes funny.
Other than that, it's a lazy way to guesstimate whether you have a good deal or not. Every market is different in so many ways that using it as even a guideline can do more harm than good.
Bottom line, learn how to estimate rehab, analyze markets, and analyze deals on their own merits...and above all, never argue with the numbers.
I'm drinking HALF & HALF Working on one that is pure cream!
Post: Looking to buy in area that will double value in 1 to 2 years
- Investor
- Detroit, MI
- Posts 755
- Votes 462
Originally posted by @Brent Coombs:
Originally posted by @Chai Sag:
if my friends agree, next year or in 2 years I can show the deeds of some of the other places
@Chai Sag - Just yours will do - (and anyone else you thinks they have their doubling in 2 years prophecy down pat) - NOW!...
WOW!
Most in this thread ridiculed his reasonable question.
Now dog pile on him and demand he share his acquired knowledge with the scorners?
Post: Looking to buy in area that will double value in 1 to 2 years
- Investor
- Detroit, MI
- Posts 755
- Votes 462
Originally posted by @Chai Sag:
@Jay Hinrichs
100% , you can get deals at 50% of value in many markets , 99 % of the time when they come to you ;)
But this is not the subject of this OP
Jay has an excellent suggestion that I will expand on so don’t pass on it too quickly!
There are markets that allow you to compound Jay’s scenario and your question together; in fact I think they often ARE the same market.
It is the market that is in flux that offers the best opportunity to acquire properties as Jay suggests AND get the appreciation of the market that you seek.
Is it possible to buy all in for 25% of the actual value(1 year future value)?
Absolutely! I’ve done better than that in one week.
Post: Change locks between tenants?
- Investor
- Detroit, MI
- Posts 755
- Votes 462
Yes Always!
Save the locks.
Post: wanting to get started
- Investor
- Detroit, MI
- Posts 755
- Votes 462
Originally posted by @Josh Holmes:
Hello all! A new acquaintance of mine just turned me on to BiggerPockets and I could use some help. I would like to know what the best way to get started is with no cash to invest. I've watched a couple BiggerPockets videos and something that stuck out was "leverage". What product is best for newbies, single family, multi, condos? Any help appreciated. Thank you, Josh Holmes in Las Vegas, NV
Are you a veteran with good credit? Other than that start saving up some money.
Or move to a cheaper area like I did
Post: Buying from a wholesaler with an almost 100% assignment fee
- Investor
- Detroit, MI
- Posts 755
- Votes 462
Originally posted by @Magesh R.:
The wholesaler is charging ~40k as assignment fee for the property. This is almost 100% of the contracted sales price(40k). The property is worth more like 120k and with some rehab (25k) can go up to 145k so it still makes sense to buy...
The house is worth $145,000 and you're all in for $105,000
Maybe the question should be do you want to make the $40,000 or do you want the wholesaler to make it. He may just want to keep it and fix and flip it himself!
Post: Why would someone sell a "perfectly good" seasoned performing note for 60-65 cents on the dollar?
- Investor
- Detroit, MI
- Posts 755
- Votes 462
Originally posted by @Julian Buick:
Humour me (I'm originally from Ireland so I'm allowed to use that spelling).
You have a note that is worth 100K, you sell it for 60K. Now you are looking to buy another note. How exactly do you buy another note that is MUCH LARGER?
I take the $60,000 and buy a house I can sell for $150,000 with $20,000 down creating a new note for $$130,000 and $20,000 cash. My normal markup is greater than my illustration here. Hope that helps. Scottish in my blood somewhere distant past.
Post: Why would someone sell a "perfectly good" seasoned performing note for 60-65 cents on the dollar?
- Investor
- Detroit, MI
- Posts 755
- Votes 462
Because the I would use the discounted cash to create a MUCH LARGER note!
So it is a Win Win situation.
Post: So which one is really the "Ultimate" Beginners guide
- Investor
- Detroit, MI
- Posts 755
- Votes 462
2 for the price of 1
Post: What do you think about making multiple offers at once....on the same house?
- Investor
- Detroit, MI
- Posts 755
- Votes 462
The more you can confuse the seller the better???