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Grant and Alan take you on a mini-tour of Cincinnati in search of the perfect house to buy and flip for profit. Many stops are on the map but find out which don’t make the cut right away and which are worth a walk through.
Runtime: 16:21
A quick rundown of the episode:
• Welcome to Episode 34
• Finding the right house.
• WE NEED MORE BOOBs!
{ 16 comments… read them below or add one }
Few quick questions :
1. Last house, you took off $10k for the realtor. At a purchase price of $70k thats nearly 14.5%. Why do you estimate $10k if common market is 3% for listing agent/3% for buying agent(sometimes 4%). Im a Realtor in KY and wow, $10k ($5k/$5k) on a $70k home is STRONG.
2. Very curious about your offer process and funding. Are you writing cash offers or offers contingent upon financing? If the latter, are you doing 90/10 loans, 80/20, etc?
3. You guys sounds like you have a desire to aggressively complete the rehab and get it listed pronto. How are you getting around the new seasoning requirements that most banks impose? Really curious on how you are preventing seasoning issues for when your buyers go to close.
4. Are you both licensed with a brokerage you dont own, or do you both own a brokerage as well?
Thx guys! Good video!
Please take us along on the OFFER process, show us the counter offers, the rejections, and most of all, the ACCEPTANCES!!!!
And we’d love to go to the closing table too!
Troy,
Great, great questions. We’ll see if we can answer all of them.
1. We estimate the cost of 10K of the realtors on the SELL side, when we sell the house for $130+. There is no expense to us on the buy side. Being both realtors ourselves we actually ‘get paid’ to buy a house.
2. We are writing cash offers.
3. We really don’t know as of this point. Ready, Fire, Aim. We’ll keep you posted on this issue.
4. We are currently licensed with a brokerage we don’t own, but some ‘things’ are in the works. We’ll keep you posted with this issue as well.
We’ll try to keep the Ren-Menions as informed as we can. Great comment Troy…thanks again…
Thx for the response. Regarding getting “paid” to buy the house, you take a commission (a taxable event) versus doing a net close and further reducing the price of the house?
With your experience and capital, have you guys looked at doing multifamily? Theres a ton of REO multifamily in Cinci, Columbus, Dayton that decent upside fixing occupancy and management problems. With your skills and motivation, Id believe you guys would be able to crush some multifamily easily!
Yes, and the reason being, most banks/asset managers don’t even look to see if the house is a net close or not. They just want to see the bottom line. Now, that has been our experience, they may not be the norm, but we ‘lost’ a house once by doing a net close and we vowed never to do that again.
We have looked at multi-families. We are staying away from those currently. Some reasons as to why: they are not attractive, tenants live ‘on top’ of each other, and it’s tough to differ a four-plex from another four-plex right next door, that looks exactly the same. We’re not saying we won’t ever get involved with multi’s, just not right now.
Good fishin’ boys. So, in the end you decided to make one offer, right? I take it you are pursuing the house where you broke down the costing rather than the short sale listed at $103k where you mentioned potential to offer $50k. What ruled that little house out to you?
Thanks,
Matt
We did make an offer on the house we ‘broke down.’ We will be making an offer on the $103K house as well. We felt we have a better chance with the $120K house so we wanted to make sure and get that offer out first.
Guys –
Tremendous episode. I love the details. This may be the best thing you’ve done to date (and that’s saying something). Good luck on your offers!
What happened to the Renlympics? You’re not giving up on them, are you?
Great music at the close of the episode. MCE knows his yodeling!
Lou,
Thanks…that is saying something…
The Ren-lympics are on hold, we are securing a spot for the final match. We are tied 3-3, no giving up in sight…
Hey how about showing some cars! That is what a car lot does, shows cars . ps your salesman needs a makeover!
Debbie,
Ok…We will show some cars!
P.S. Ouch…
Another great episode! As a RE Broker in TX, there is quite a bit involved in having your own RE business. If anyone can make it work, you guys can. A good office manager, a good system, add some agents, and more cash flow coming your way.
That is the goal…thanks for the encouraging words…
nice. seen some other ways of checking out the deals, really like the one reason not to buy vs reasons to buy.
Thanks, we think that is truly the way to do business.
Have you guys looked into the Sheriff sales in the counties you buy in?
I’ve been buying that way in Indiana and flipping. Good margins! Got to understand the process and make sure title is clean, have cash, but otherwise nice and fast flips.
We have purchased at Sheriff Sales before… however, recently, we have found we can save money by buying them from the bank after they have purchased them at the Sheriff Sale.
Whatever technique works best for you when you buy, use it, and just keep on buying!