All Forum Posts by: Robbie Reutzel

@Jose Castillo, yes you can use mojo for probate, absentee and other lists provided you have phone data for them.  There are many services that will provide it but only a few provide accurate numbers.

@Davit Gharibyan

Always based on actuals. I would call the broker and explain your rationale. You’re probably not going to get the deal but it’s better not to overpay. This is not always the rule, if the property is massively inefficient and you can still do a cash out refi or sell on your planned exit timeline it can sometimes make sense.  For the vast majority of deals just do your valuation based on actuals, present your offer and let the chips fall where they may. 

Don’t be too discouraged. We recently had a similar situation. We underwrote a 120 unit property at $8M and verbally presented our offer only to be told they were expecting something in the $14M range. They are under contract for $13.5M. Somebody overpaid by a lot. Don’t be that guy. 

Good luck!

If it works as a BRRR deal you won't be overpaying. Those deals are very hard to find.

The market is not likely to "dump."  It will be a slow down which has already started happening if you look at the indicators.  We're seeing longer days on market in a lot of places which is a symptom.

@Dave Molesky, We rehab, wholesale, and buy and hold.  To tell you the truth, if we could hold every project we do we would.  You need to consider how well these strategies do during different points in the market cycle.  Rentals that cash flow day 1 are fairly recession proof especially if you are talking multi-family.  You should also take into account the tax benefits of buy and hold investing.  We get crushed on capital gains in the flipping business.  No way around it.  

Sounds like you're doing well but the next correction is coming!

Good luck!

@Jason Hill, this all comes down to what the market looks like.  What is the vacancy rate for similar buildings in that market?  How much rehab would you need to get it to that condition?  As @Andrew Beauchemin said, you should be consulting your team for this information.  A good team should be able to tell you market cap rate, market rents, market vacancy rates etc.

Once you get those numbers you can more accurately underwrite the deal. 

Last thing is to ALWAYS only offer based on ACTUALS, not pro forma.  

Good luck!

@Aaron Hall, @Dennis M. is correct to some degree.  C/D areas will generally cash flow better than A/B areas but I think your deal source is also very important.  If you are looking at only listed properties or pocket listings, there is much less of a chance of cash flow than if you are finding off-market deals.  All of our highest profit buy and holds, flips and wholesales have been when we were direct to seller.  It also helps if you are targeting motivated owners.  

Just my 2 cents.

@Leanna Green, we have good crews but it's taken years to get them.  They give us good prices because they know we will give them volume.  We're investors first but also have a brokerage.  Only thing you can do is ask for recommendations.  Once the market calms down it will be easier.

Hi @Leanna Green,

Unfortunately, people are very hesitant to share their contractor contacts if they are good.  They are afraid that they'll become unavailable if they are in demand by other investors.  I can tell you that generally, it is very difficult to find contractors who will work at prices that make sense for investors and who also fulfill all the other criteria you have.  The reason is because they can make so much more $$$ installing a deck for a retail client and other such projects.  Especially in this market.  

Not saying you won't find it but our costs have gone up considerably recently due to demand. 

Good luck!

Hello BP,

My partner and I have a 20 unit property under contract and are looking for PM recommendations.   Frank Weston from Lakeside Realty has come up.  Anyone know of a company with distressed property experience?

Thanks!

Yes, we do it all the time!