[Wes Johnson]

Wes Johnson

Hi Panamapreacher

Would you be so gracious as to share the exact specific’s you gave to your bird dog? I have had a great response to my bird dog ad on CL but I have many troubles getting a true wholesale house from them. I feel I have given them specifics of my needs but I feel I must be missing something.

Thank you
Wes J

[Wes Johnson]

Wes Johnson

Thanks Arcinio.

[Wes Johnson]

Wes Johnson

Welcome Kyle
So glad you made the choice to join our group! It sounds as though you have not been disappointed in the amount or quality of information here as I described to you. See you at the next meeting!

panamapreacher……would you share you favorite source of people finder? Do you use a free or paid site?

Thanks
Wes Johnson

[Wes Johnson]

Wes Johnson

Hi Lotus
If you have landlords looking for rent ready properties, have they told you what their criteria is for ROI or Return On Investment? Here in South Carolina where I am, my landlords will buy almost anything and everything that will give them a 20% ROI. Market value is usually no concern to this type of investor, only cash flow. To know what your ROI will be you need to have a pretty good idea of the market rent for the property if it is not already rented. If you take the gross rent for the year minus taxes and insurance you will have a figure called NOI or Net Operating Income.
NOI divided by purchase price will give you first year ROI. For example if the property you are considering rents for $500 per month and taxes are $1200/yr and insurance $400/yr the NOI would be $4400/yr. To realize a first year 20% ROI, your investor could only pay
$22k for the property. So if you are wanting to make $3k on the deal yo would have to option the property for $19k or less. If the rents are $750/mth then you would have to option at $34k or less for you to make $3k and your buyer get his 20%!
I look for these deals daily. I have one buyer who will buy all I can find. I am also seeing here in my market blue collar DIY’s buying cheap (10-15k) houses and rehabbing themselves on weekends.
I hope this helps and you may find your buyers there are looking for lower ROI’S. It is of great benefit to know your buyers wants and needs first and then shopping for the right property is much easier.
If you need help figuring your option price for your rehabbers, Jackie has a great section in her Real Estate Profits on Steroids book on how to figure and a really cool way of figuring repair costs as well.

Wes Johnson

[Wes Johnson]

Wes Johnson

Hi Jackie
Thanks much for replying. Sorry I did not include that info in my original post!
I had a Realtor pull comps and it looks like $55sq/ft or 89k is today’s value and it is a slow market in this area. The positive’s are the house is located in great area, close to everything, that was built around the same time (05-06) and good school’s.
Yes you are correct she bought direct from the builder in Aug of 06.
Right now I need cash chunks Jackie!

Wes J