All Forum Posts by: Garrick Solberg

This is extremely helpful. Thank you very much, John!

Excellent information, guys, this is all very appreciated.

If that were true, then why even bother with the expensive properties?

Hey all,

My family is currently developing a condotel building and getting ready to start selling preconstruction contracts. This actually isn't an advertisement for it in any way, as the lawyers say that we can't discuss numbers at all since it is all projections. Why anyone would buy an investment without any kind of numbers to work with baffles me, so I'm trying to find out a way to make it possible. But that's another issue entirely.

Anyway, I will not disclose the project because I want to discuss the forecasted numbers that we have at this time. The condotels are actually 3 hotels with a "key" system so they can be used as a big condotel or separately as standard hotels. The price for each condotel is 450k with a 56k revenue to the owner each year. Insurance, maintenance, management is all handled by the property and is already calculated in to come up with the 56k number (based off of 60% occupancy). We're still talking to lenders right now, but its likely that the bank will want 20% downpayment for each condotel.

So, if you were a potential investor, what information would you be looking for and also would you find the numbers I stated as a desireable investment? Thanks!

Hey all,

I'm trying to come up with a FAQ for sellers that I deal with, but I am having a real mental block because I'm not really sure what they would want to know. The obvious thing is what they can get for their property, but I'm wondering if there are certain things that I can convey to put their mind at ease about the whole process. Any ideas?

So you guys really only get the name, number, address and asking price before you head over to see a home? I would think at the very least you would want to know the condition and house details.

I'm very curious how this "deal" got spun as well. Sounds like some court time is definitely in the works, although I wonder if not doing your due diligence leaves you completely liable for your loss.

I appreciate your honesty on your problem, definitely keep us posted on how everything works out.

Oh, I just ask for their name and phone number on the voicemail. This is the list of questions I have for when I call them back.

I have a voicemail 800 system setup now, and I will begin advertising it soon. If everything goes as planned, hopefully I will start hearing from sellers. The problem is, I haven't yet composed a list of questions about what to ask them. I'm looking for suggestions on what to ask, but all the while keeping it short and concise.

Here's what I have so far:

1. Name - Are you the owner?
2. Phone (day, evening)
3. Property Address
4. Beds/Baths,sq footage, age
5. Owned how long?
6. Vacant or occupied?
7. How long has the house been for sale?
8. Repairs needed? Estimated costs?
9. Asking Price?
10. What is the home worth?
11. Are the payments current? If no, how much behind? (in $)
12. Reason for sale?
13. Is the house listed?
14. When do you want to move?
15. Are you willing to sell your house for what you owe on it?
16. If not, if we were able to buy your house in 7 days or less, what is the least you could accept?
17. Would you be willing to receive any of your equity in the form of monthly payments?
18. Would you be willing to sell your house by allowing us to take over your payments until we could sell your house?
19. What will you do if the house doesn't sell?

I'm very interested in finding out about your system as well, Charles. I get listings from wholesalers that I meet all of the time, and usually they have have the "big 3" listed: ARV, Rehab cost, and Price. Now, the only one of those I can truly trust is the last one, but it would be great to get an idea of what kind of ARV it could garner. I was recently looking at one with 90k ARV, 12k Rehab, 41k asking price. On paper, this seems quite good because 90x.70 = 63k-12k rehab = 51k, leaving an extra 10k for closing and holding costs. But, when I throw the property into Zillow (yeah yeah, not trustworthy, etc.) it gives a Zestimate of 65k. This makes the deal not a deal at all, and it probably isn't, but i would like a better system to know for sure. Granted, the rehab estimate is probably optimistic, but that's a whole other level I'll have to figure out as well...