All Forum Posts by: Sarah Nowak

If you're looking at flips I found an excellent one in that area that has a great spread. I've already walked it with my GC and researched comps.

I’m an agent in Dallas/Fort Worth and there is definitely a great market for investors here but because of that it has become very competitive. Staying on top of where the deals are is challenging as it can change quickly but right now I’m seeing good deals in the West and Southwest areas of Fort Worth.

Hi Daniel, I’m an agent working exclusively with investors and I definitely agree that you need an agent that understands an investor’s specific needs. Retail buyers are very different. Most investors I know are on several wholesale distribution lists and have lots of Realtor friends so they’re seeing lots of potential deals and are able to choose the best ones for their budget and goals. Also consider joining a few facebook groups for REI as I see lots of properties posted in the ones I’m in. I know a few that will drive around and look for empty and/or boarded up homes in the area they want and then use tax records to find and contact the owner.

I agree, this is a deal and if you end up passing on it, send it my way ;-)

I agree with Omar. I have recently seen a few properties that meet the 1% rule (or very close to it) in the south Dallas area, specifically Desoto and Lancaster. From my experience, it becomes less likely the higher you go in price point. I did have a client last fall that was looking for turnkey properties that met the 1% rule in Arlington near UTA and we were able to find several but there’s nothing out there like that currently that I’ve seen.

Is this property still available?

Hey Frank,

This is definitely something that comes with experience. Take a notepad or use your phone to keep track of each individual estimate when you do the walkthrough with your GC (e.g. $X for flooring, $X for paint, $X for kitchen cabinets etc.). Once you've done a few properties like this you'll be able to do rough estimates on your own.

As for a formula....that obviously depends on the condition of the home, the finishes you choose, and who your contractor is but, in my experience, you can expect to pay $20-30/sq ft on average barring any huge unforeseen expenses - for a retail flip.

For a rental, its a little more complicated but usually you'll spend significantly less getting a rental property market ready. You just have to know your market and understand what renters expect.

I second Courtney’s reply. Many of my clients don’t even want to look at retail properties because it’s rare to find one (in my market, at least) that is priced well for investors. Remember that if it’s listed by an agent, their commission and the commission of the buyer’s agent is built into the list price. When you go through a wholesaler, they take a much smaller cut and typically aim for offering their properties at 70-75% of ARV. You can go even further and begin procuring properties yourself in the same way wholesalers do. Have a “I buy ugly houses” magnet made for your vehicle, bandits signs, call homes that are in preforclosure, contact homeowners of expired listings, go to auctions etc. And of course as others have explained, you’re playing a game of odds here. The more offers you make, the more times you’ll hear a yes. Good luck!

Hey David, not sure what your first question is...if you're wondering whether or not your per square foot estimate is reasonable, its hard to say. It really depends on the quality of finishes you're going to use because prices can vary wildly. For example, you could pay as little as $2.50/sq ft on flooring or as much as $25. I assume you'll keep the cost as low as possible but just thought I would bring it up.

For the loan, I've seen lower than 14% on hard money so let me know if you want some recommendations.

As for your related question, in my opinion, it's best to ensure that all utilities are on for the duration of the project so you can spot/diagnose potential issues as well as simply for convenience. Of course this will vary for each property and time of year but $300/month is a reasonably conservative number and in most cases you'll come in well under that - probably closer to $200.

Hey Trevor, you got some great responses here...just wanted to echo the sentiment that small multi family is the way to go and to add congrats on the impending proposal :-D