Dallas-Fort Worth Real Estate Investor Club

Wholesaling to Buy and Hold investors

  • 16 Sep 2013 12:23 PM
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    Message # 1390715
    Michael Mixon
    My postcards are hitting mailboxes now.  The majority of investors in my area are going to be looking for buy and hold, and only a few I've been in contact with are interested in fix and flip.  I've focused my research on fix and flip wholesaling, and have a decent enough grasp to start negotiating deals, but I'm not so well versed in flipping to buy and holders.

    What makes a good deal to a holder?  I've heard a purchase price of 50 times the monthly rent, others say 75 times the monthly rent.  Is there a norm, or average I should be shooting for?

    Thank you.
  • 17 Sep 2013 12:50 AM
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    Reply # 1391127 on 1390715
    Cindy Carriger (Administrator)
    I have not heard of doing the math in the way that you described...however, i tried doing that math based on some the rentals we are holding - and it comes closer to 75, however, that is without them needing much work - say 2-7k on average.  This formula seems to mimick basically buying at 70% minus repair costs more or less.  However, this could be changed if the rent income is more than 1% or less than 1% of the Market Value of the house.  If the rent is more than 1% of Market value, the landlord could potentially pay more than 70% minus repairs.

    I will say, since a landlord is mainly concerned with the cashflow, using that mo. rental x 70-75 is a pretty good rule of thumb.  (less if it is in great need of repair, i.e. possibly lowering that number by the $amt of repairs needed) But, that's just one person's opinion - looking forward to seeing what other's have to say as well.
    Cindy
  • 18 Sep 2013 7:28 AM
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    Reply # 1392248 on 1390715
    Deleted user

    I do both fix & flip, buy & hold. Not sure what area you are working. Would like to be on your buyers list if you are Tarrant cnty. 
  • 18 Sep 2013 9:07 AM
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    Reply # 1392325 on 1390715
    Bob Jones
    Please add us to any buyers list bobjones@homefrontreig.com we are currently growing our rental portfolio and doing buy/fix and resell. Our rentals are valued at $100,000 to $200,000 after we rehab them. Our buy/fix/ and resell properties range from $200,000 to $400,000 in value after we rehab. We are open to discuss any deal that make sense financially. All the best fellow investors. Bob Jones
  • 18 Sep 2013 3:20 PM
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    Reply # 1392642 on 1390715
    Michael Mixon
    Thank you all for your replies.  I've been without internet for a few days, and I appologize for not replying.

    So Cindy, if you were analyzing a buy and hold deal, and it came to ~70x the monthly rent, that would fit your cash flow requirements?  I'm only asking because I've heard 50x, but that means selling alot of houses for under $30,000.  I'm liking 70-75 better.

    As for those asking to be on my list, I'll happily add you if you wish, but I operate out of Cooke County.  Specifically Gainesville.  If anyone is interested in buying this far north let me know, I'm always looking for more buyers, have less than 10 solid buyers at the moment.

    Great day to you all.
  • 18 Sep 2013 10:32 PM
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    Reply # 1392937 on 1390715
    Randy Cox
    Put me on your list as a fix and flip, cash buyer.  Gainesville is fine with me; I grew up there.  If you need help with costs to rehab let me know.
  • 19 Sep 2013 9:55 AM
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    Reply # 1393356 on 1390715
    Michael Mixon
    Great, glad to hear it Randy.  Email me at mikemixonrei@gmail.com so I can get your contact info.
  • 19 Sep 2013 10:12 AM
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    Reply # 1393370 on 1390715
    anand dahya

    please  put me on your buyers list   

    even if you come across any small unit multi family I am interested

    akdahya@sbcglobal.net    817 219 4726
  • 07 Dec 2013 1:55 PM
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    Reply # 1453659 on 1390715
    Deleted user

    Please add me to your buyers list as well. I am looking for flip/rental or owner financing properties to sell. I am planning on buying 1 to 2 every

    quarter.

    kavi.mainali@gmail.com

    402-598-9363

    thanks

    Kavi
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