Tinfoil Hat Wearers Unite

[TacoXpo]

I know a few landlords now, they are hurting because of covid relief bs, their renters get to live for free and evictions are all on hold.

We have had two move out and have not missed a beat since clean rentals near the beach are still a rarity. One of the larger landlords that I am working with on a flip has 250 doors and his latest is that everyone but 7 have paid their rent on time. They are all high-end units in LA and much of the real wealth seems to be making money.

 

[TacoXpo]

Not looking good is right. We did our part. I'm honestly not sure how it is this close. I see so much Republican stuff everywhere I go. People are still flying Trump flags on lots of houses.

Have you looked at what flags are flying in cemetaries? We shall see what happens.

 

[Oswego]

That's an interesting read, and written like it should be presented in a weekend get-rich-quick seminar.

The problem that I've seen is that too many people want top dollar for their junk houses. For example, let's say all the homes on a street are valued around $300k. There's one house on the block that isn't up to par and is on the market. The sellers will want $295k and it will need $100k in repairs (I'm not exaggerating. This is a real scenario from when I was looking at homes when we moved to the area...house was practically falling down). Based on the formula given in that PDF... 295 x .7 = 206.5k. Take out the money needed for repairs and you're offering 106,500 for a home that is listed at $295k. I doubt anyone would be willing to sell it for ~30% their asking price.

At this point, we're mainly looking at homes that are ready to rent. They are more than I really want to pay for a home to rent, but at least could be turned around to start earning money quickly without needing the rehab.

Thats a supply and demand issue and it's only an issue because of what side of it you are on. The sellers love it I'm sure.

You already know the answer. You stated it yourself.

All the profits go up in smoke for the rehab/reconstruction or development so if you pay someone else to do it - they get your profits.

Exactly why I mentioned the games rigged in constructions favor. They always win. Especially these days when no one wants to get their hands dirty. Seen it with mall stores and restaurants my entire career. The majority of my clients on those jobs have shuttered their doors within the first year because they can never recoup the cost of their new construction that was completely overpriced for marketing.

Same reason I don't even want a driveway or any utilities on land I'm looking for. You add in a culvert and some stone so the NY'ers can pull their Mercs into the lot and prices jump double digit percentages. Add in utilities and it skyrockets far above my budget.

I just started watching this architect. She's pretty smart. Also a TX native. She bought a house in TX and is redoing everything w/her husband. She takes a very scientific approach to her channel so I like that. I used it when researching insulation.

https://www.youtube.com/channel/UC_NzYRcT5IroUsMU2472ViQ

 

[CowboyTaco]

I have a client that was from ATL that has used that method and has not picked up a single hammer and started with less than 100k and now owns a dozen SFR rentals. He's the one that first turned me on to BRRR. I have a guy that is in my group and a good friend that is in his 30s and has 6 rentals in Midland doing the same. He started doing while his job was filling vending machines and delivering Coke.

I'd be interested to learn more about his strategy to finding the properties....though I'm sure he is scooping up all the ones that he finds...

 

[Anathollo]

That's an interesting read, and written like it should be presented in a weekend get-rich-quick seminar.

The problem that I've seen is that too many people want top dollar for their junk houses. For example, let's say all the homes on a street are valued around $300k. There's one house on the block that isn't up to par and is on the market. The sellers will want $295k and it will need $100k in repairs (I'm not exaggerating. This is a real scenario from when I was looking at homes when we moved to the area...house was practically falling down). Based on the formula given in that PDF... 295 x .7 = 206.5k. Take out the money needed for repairs and you're offering 106,500 for a home that is listed at $295k. I doubt anyone would be willing to sell it for ~30% their asking price.

At this point, we're mainly looking at homes that are ready to rent. They are more than I really want to pay for a home to rent, but at least could be turned around to start earning money quickly without needing the rehab.

This is the problem we have as well down in Suckston. But I have the added handicap of ~265 people moving to Houston a day as well as extremely low mortgage interest rates that have bumped everyone up a bracket on buying homes. So more people are buying houses that they can't realistically afford during normal mortgage rate times.

But if you're looking for a turn-key rental, you'll have to pay more for it. Just think of it like you're getting your time back by not having to work on the property or spend more on repairs.

But with residential rentals, you need to have volume to make good money. Owning one or two residential rentals is not going to make you enough to make it worth the headache of repairs, shitty renters or high taxes.

 

[TacoXpo]

I'd be interested to learn more about his strategy to finding the properties....though I'm sure he is scooping up all the ones that he finds...

He looks all the time. He probably looked at 90-100 for everyone he owns. On the other side of that, I have a guy that buys nice properties, pops a very sexy kitchen and baths and sells it for $$$$. I have one with him right now that he bought for 970 and will fip at around 1.2-1.3 - but he knows house fashion!

 

[TacoXpo]

... oh and he probably makes offers on 15 for every one that he gets.

 

[CowboyTaco]

... oh and he probably makes offers on 15 for every one that he gets.

I figure that is probably a key aspect as well.

I also figure that you can come in at the 70% and use a home inspection to your benefit.

Say the house is listed at 100k. You offer 70k. They accept and you get a home inspection that determines XYZ need to be fixed. You get estimates on XYZ from a pro and reduce the sales price by that amount. If it's 10k in work, you walk out with a house for 60k and hope that you can do a large portion of the rehab yourself. Seems you would be better off coming in that way as opposed to offering 60k up front.

 

[CowboyTaco]

This is the problem we have as well down in Suckston. But I have the added handicap of ~265 people moving to Houston a day as well as extremely low mortgage interest rates that have bumped everyone up a bracket on buying homes. So more people are buying houses that they can't realistically afford during normal mortgage rate times.

But if you're looking for a turn-key rental, you'll have to pay more for it. Just think of it like you're getting your time back by not having to work on the property or spend more on repairs.

But with residential rentals, you need to have volume to make good money. Owning one or two residential rentals is not going to make you enough to make it worth the headache of repairs, shitty renters or high taxes.

Yes, but you got to start somewhere. I've had 2 rentals up to this point. One was local and the other long distance. I know some of the headaches associated and the problems usually seem like they are always people-related.

 

[Anathollo]

Turn on the news and start watching.

 

[TacoXpo]

Yep. I am saddened - who knows - they could even be ATIFA douchebags. I am sure there are enough Trump supporters that would be willing to risk their lives like this.

 

[AlienXtx]

Turn on the news and start watching.

No, but I am listening

 

[AlienXtx]

 

[Oswego]

guess the fan got hit with shit today? No ones been saying anything on sports talk radio all day and thats why I listen to it

 

[TacoXpo]

From my view, ANTIFA rioted.

 

[AlienXtx]

From my view, ANTIFA rioted.

That's what I told my mom when she called me wigging out (she hates Trump, but doesn'tlike Biden either ). Told her that sounded like some familiar bs to me. Told her the same shit has been going on all year with BLM/ANTIFA burning shit down and rioting all over the country. When she told me some chick got shot I told her "well if it is ANTIFA then that was luck, but if it was on purpose it might have been a republican because them other assholes can't hit shit"

 

[TacoXpo]

That's what I told my mom when she called me wigging out (she hates Trump, but doesn'tlike Biden either ). Told her that sounded like some familiar bs to me. Told her the same shit has been going on all year with BLM/ANTIFA burning shit down and rioting all over the country. When she told me some chick got shot I told her "well if it is ANTIFA then that was luck, but if it was on purpose it might have been a republican because them other assholes can't hit shit"

We're in a nutty time. Hate seems to drive many. I just wish they felt the same about the 'peaceful protests' earlier in the year.

 

[Oswego]

Everyone's freaking out in the media for ratings

Got physiologists on TV this morning trying to help parents explain whats happened to their children.

Hold the fuck on morons....

This is Democracy. You can't have the good w/o the bad and this was not bad imho. this was a little wake me up call and thats it.

4 dead and a little insurrection is nothing. thats like the first 2hrs on a Friday night in the Chicago streets.

And guess what? When the bad turns good you don't see anyone complaining do you?

Our founding fathers started out as spy's, terrorists and turncoats.

99% of what I saw was nonviolent so everyone can take a chill pill and just be happy this wasn't a real raid on DC.

 

[TacoXpo]

Everyone's freaking out in the media for ratings

Got physiologists on TV this morning trying to help parents explain whats happened to their children.

Hold the fuck on morons....

This is Democracy. You can't have the good w/o the bad and this was not bad imho. this was a little wake me up call and thats it.

4 dead and a little insurrection is nothing. thats like the first 2hrs on a Friday night in the Chicago streets.

And guess what? When the bad turns good you don't see anyone complaining do you?

Our founding fathers started out as spy's, terrorists and turncoats.

99% of what I saw was nonviolent so everyone can take a chill pill and just be happy this wasn't a real raid on DC.

Yep.

I can distinctly remember the day and event that changed this guy from a liberal to a conservative. I was at a home of a Captain of Northwest Airlines who was also the mayor of the richest city in SoCal. I told him about how I think people should be able to intellectually come to agreements without violence like MLK. He brought me into a room that I am certain had millions of $ of historical artifacts from the Revolutionary War. He went on to say that no REAL change has ever occured without violence. He went through in detail some of the events in our history like the Boston Tea Party and some of the battles in the Revolutionary War. I will never forget him looking at me and asking, "What are you willing to die for?" He changed my political views forever.

 

[Oswego]

Half the morons flipping out prob can't even name the 50 states.... let alone be informed enough to know that it is "our" duty as citizens to insure we are in control.

That to secure these rights, Governments are instituted among Men, deriving their just powers from the consent of the governed. — That whenever any Form of Government becomes destructive of these ends, it is the right of the People to alter or to abolish it, and to institute new Government, laying its foundation on such principles, and organizing its powers in such form, as to them shall seem most likely to effect their Safety and Happiness… it is their right, it is their duty, to throw off such Government, and to provide new Guards for their future security. ~ TJ