Comments on: First Year Recap

By: Steve

Steve — Fri, 23 Oct 2009 01:20:32 +0000

Okay, I sent the email again.

By: Ben

Ben — Fri, 23 Oct 2009 00:57:38 +0000

I didn’t get the last email — not sure what happened, there is a very annoying spam blocker that is at the server level. Another email that should work better is bbary123 no spam [at] yahoo.com

Thanks,

Ben

By: Steve

Steve — Thu, 22 Oct 2009 22:16:21 +0000

I can send you contact info for one, I don’t know if you got my last email but I mentioned them in it.

We just list our properties and let other agents find buyers typically.

By: Ben

Ben — Thu, 22 Oct 2009 22:07:29 +0000

Hi Steve,

I’m working on finding a Hard Money Lender. Would you be able to pass along the one that you use?

BTW — I’m getting my license. Have you find that you find your buyers or the come from other agents?

Thanks and congrats on the success.

By: Steve

Steve — Thu, 03 Sep 2009 05:05:48 +0000

Hi Mike –

I built a spreadsheet that runs a deal through the system. Probably the most basic way to explain it is we are looking to buy at 70% ARV less repairs.

So if a property needs $20,000 to be worth 150,000, I want to buy at 150,000 * 70% = 105,000 – 20,000 = 85,000 max offer.

Basically 10% for closing costs, 10% for cost of funds (hard money) and 10% profit. Since we sell properties ourselves closing costs are closer to 5% so theoretically should end up with 15% of selling price as profit. With the market upswing, we ended up doing a little better.

I am curious to know what you buy and your strategy it seems like you are a long-term investor? Drop me an email via the contact form, if you want.

By: Mike Z

Mike Z — Thu, 03 Sep 2009 03:40:25 +0000

Congrats on the great year. Curious when you look to lock up a deal what is your goal? 40K+ in profit? or Maybe a 20% Return on Cash?
I really liked your word of caution. I am seeing new investors overpay in my market as well (Central Valley)