WELCOME TO RIVER DAVES PLACE

Dallas Investment Property Club

Go-Fly

Where Are My Shoes?
Joined
Mar 2, 2010
Messages
4,446
Reaction score
5,087
Well that’s what I was asking.. lol. We send you $$. You send us more back right? :D.
Never take your profits at first. Roll them back in for at least 5-10 years. You can get to the point that banks will call you to take foreclosures off their hands in a package. We had a shopping mall that sent us a rent payment of $40k every month. I gave some seed money to a buddy that bought and rented dental offices. He has now turned the business over to their daughter and retired at 55. They bought a new motorhome and are going to travel like we did. Going to take the 5th and meet up with them next month. What I'm saying is build your wealth. Opportunities will come along for cash flow without touching the principal.
 

pronstar

President, Dallas Chapter
Joined
Aug 5, 2009
Messages
29,521
Reaction score
26,627
Never take your profits at first. Roll them back in for at least 5-10 years. You can get to the point that banks will call you to take foreclosures off their hands in a package. We had a shopping mall that sent us a rent payment of $40k every month. I gave some seed money to a buddy that bought and rented dental offices. He has now turned the business over to their daughter and retired at 55. They bought a new motorhome and are going to travel like we did. Going to take the 5th and meet up with them next month. What I'm saying is build your wealth. Opportunities will come along for cash flow without touching the principal.
That’s the plan for retained rentals.
Standard BRRRR method stuff.
Buy distressed.
Renovate to bring value up.
Refinance at the new, higher ARV, to pull out the initial investment.
Rent it out.
Repeat the process.

Keep the initial investment in the business, and recycle it over and over


Sent from my iPhone using Tapatalk Pro
 

pronstar

President, Dallas Chapter
Joined
Aug 5, 2009
Messages
29,521
Reaction score
26,627
Got this one under contract, in 1/3 the average time on market for the area.
Full price, no contingencies.

Reinforces our mission to bring high-quality renovations to up-and-coming areas.

Time to renovate the next home in the queue



Sent from my iPhone using Tapatalk Pro
 

pronstar

President, Dallas Chapter
Joined
Aug 5, 2009
Messages
29,521
Reaction score
26,627
Our latest flip, on to the next one!

Bought for $150k
Put $35k into it.

Before:
IMG_4368.JPG
IMG_4367.JPG
IMG_4366.JPG
IMG_4365.JPG
IMG_4360.JPG
IMG_4364.JPG
IMG_4363.JPG
IMG_4362.JPG



After:



Sent from my iPhone using Tapatalk Pro
 

LargeOrangeFont

Steering RDP Towards Political Moderation 😁
Staff member
Joined
Sep 4, 2015
Messages
26,430
Reaction score
34,582
Awesome!! What is rent for something like that?
 

pronstar

President, Dallas Chapter
Joined
Aug 5, 2009
Messages
29,521
Reaction score
26,627
Nice. How quick are they selling?

The Dallas market is still hot.
Just got the market today, open house Saturday.

My last flip was in an area with 60 days on market average, I was under contract in under 20 days.

Another student under my mentor sold her house in Arlington in 2 days @ $6k over asking. It’s just a few miles away, and that was two weeks ago.

Most quality renovations that my mentor’s brokerage is selling, have been selling quickly. I’m hoping to continue that trend!


Sent from my iPhone using Tapatalk Pro
 

pronstar

President, Dallas Chapter
Joined
Aug 5, 2009
Messages
29,521
Reaction score
26,627
After one day on the market:
6 showings an offer.

My base numbers were for a $230k ARV.
Quality of rehab allowed us to push the price to $240k.
First offer was $235k

Gonna wait until after today's open house and the weekend to see if we get any more interest.

Then on to the next one.

This market is hot...


Sent from my iPhone using Tapatalk Pro
 

Ballsdeep

Well-Known Member
Joined
Feb 25, 2009
Messages
6,248
Reaction score
5,576
After one day on the market:
6 showings an offer.

My base numbers were for a $230k ARV.
Quality of rehab allowed us to push the price to $240k.
First offer was $235k

Gonna wait until after today's open house and the weekend to see if we get any more interest.

Then on to the next one.

This market is hot...


Sent from my iPhone using Tapatalk Pro
Nice work, are you doing the work yourself or sub everything out?
 

RodnJen

Well-Known Member
Joined
Dec 19, 2007
Messages
9,570
Reaction score
5,102
After one day on the market:
6 showings an offer.

My base numbers were for a $230k ARV.
Quality of rehab allowed us to push the price to $240k.
First offer was $235k

Gonna wait until after today's open house and the weekend to see if we get any more interest.

Then on to the next one.

This market is hot...


Sent from my iPhone using Tapatalk Pro
Nice work!
 

pronstar

President, Dallas Chapter
Joined
Aug 5, 2009
Messages
29,521
Reaction score
26,627
Had our open house today, tons of interest and at least one more offer, with other folks saying they’ll present an offer later tonight.

Having one more open house tomorrow. Bring highest/best offers by 7pm tomorrow evening.

Need to move on to the next one quickly, to take advantage of the market.


Nice work, are you doing the work yourself or sub everything out?
Contractors/sub it out


Sent from my iPhone using Tapatalk Pro
 
Last edited:

Shlbyntro

Ultra Conservative
Joined
May 27, 2018
Messages
3,077
Reaction score
5,430
Rod's reply in another thread really got me thinking...

Just a show of hands:
Any inmates interested in this?

For a conversation starter, I'm thinking it starts small.
A few folks chip in a little money ($5k - $10K each), to make a decent return on several properties.
Focus on rentals, ideally multis but also some SFH...maybe flips down the line.

The sky is the limit from there.

Consider:
Rents are high compared to purchase prices.
Population set to double in the next 15 years.

Not looking for anything more than ideas and possible interest at this time.
Posting here is in now way a commitment to be part of it, and I'm not making any promises to anyone at all.
I've got some liquidity I need to pigeon hole away.... I'm interested. In Austin
 

pronstar

President, Dallas Chapter
Joined
Aug 5, 2009
Messages
29,521
Reaction score
26,627
Just finished another one, got to work around middle of October, went on the market yesterday.

This was the first one with an RDP investor - lbhsbz
Standard hard money rate, point(s) + double digit return from a conservative position.

Quick-ish flip, had to replace roof shingles and HVAC, plus some deferred maintenance stuff, so a bit of a thin margin but will make a profit. More of a “lipstick on a pig” renovation versus my previous gut jobs.
Bought at $180, put about $35 into it.

This would have made a great rental nearly as-purchased, IIRC it would have been right around 9% cash on cash return, but since I had to flip it I needed to force some equity.

Went live at 2p yesterday, open house is today...already have a full day of showings so hopefully it sells fast and for a lot of money

IMG_5831.png



Some before pics, and pro pics at the listing link.
I think this one turned out well.

IMG_5440.jpg

IMG_5448.jpg

IMG_5447.jpg

IMG_5451.jpg

IMG_5463.jpg

IMG_5450.jpg



Link to listing:

Check out this home at Realtor.com
$249,900
3beds · 2baths
810 Clover Hill Ln, Cedar Hill




Sent from my iPad using Tapatalk
 

HNL2LHC

What is right and what is wrong these days!
Joined
Jun 25, 2018
Messages
4,989
Reaction score
6,240
Looks good!!!! It appears that you retained the floors, renovated the kitchen and bath, painted and cleaned up the lighting. Would be nice to get over ask on it. I always enjoy this thread. Keep it coming!!!!
 

pronstar

President, Dallas Chapter
Joined
Aug 5, 2009
Messages
29,521
Reaction score
26,627
Looks good!!!! It appears that you retained the floors, renovated the kitchen and bath, painted and cleaned up the lighting. Would be nice to get over ask on it. I always enjoy this thread. Keep it coming!!!!
Thanks!

Yeah, you’re exactly right.

The tile floors were in excellent condition, and also walked ruler-flat, which also bodes well for the foundation (it’s a slab).

I’m wasn’t crazy about the color, but from an ROI standpoint I’m not replacing perfectly good floors. Was able to find a warm gray wall paint that helped with some of the yellow/brown color in the floors.

My biggest expenses were HVAC and roof...those stung a little.

Roof was in good shape, no leaks, just old shingles in a single layer. Adding a layer of shingles was $5500.

The 3.5T 14 Seer HVAC system, all new including air handler and ducts, was another $5200.

Resurfacing tubs for a few hundred bucks also makes a big difference while keeping costs down.




Sent from my iPhone using Tapatalk Pro
 

Wedgy

Well-Known Member
Joined
Jan 18, 2020
Messages
1,218
Reaction score
1,618
Good job, looks really nice, hope it goes quick for a good ROI. Good Contractors really help. You did good Frankie!
 

HNL2LHC

What is right and what is wrong these days!
Joined
Jun 25, 2018
Messages
4,989
Reaction score
6,240
It must be great to be in a sub $200k price point. You’d be in the high $600k here doing the same type of business. However even with the high buy in you’d be getting roughly the same amount of profit. We are about to be in a position on mowing forward to a plan with our son. He is an architect so we have that cost covered for noting but his time. We are looking for properties that you could add onto and get the quality up where you might get a 6 figure profit. But it is going to take a about a million to make happen. I think that route that we will take is to spend $$$ to create a house with an ADU. That way you could rent either unit and live in the other. Maybe do it every 2 years and keep moving up the price points and profit. Along the way pull cash out at a sale to purchase a rental.

In 20 years our son would be set. We did it on a small scale without help from the parents. The wife and I could have done so much more if we had more guidance. I want to do that with our son So he does not have the worries that we did.
 

boatpi

Well-Known Member
Joined
Feb 28, 2012
Messages
4,986
Reaction score
5,036
The Dallas-Fort Worth area is hot and just like the rest of the west everyone’s improve in the outside of our house. Our company 4Kaluminum.com makes the only powder coated aluminum patio cover in the western United States.

About a month and a half ago some people from Fort Worth contacted us, we made a deal for a distributor. we’re flying up next weekend we’re gonna be rocking and rolling probably in January with their first shipment of 30,000 pounds. People been calling us for a year from that part of Texas complain the only kind of patio cover they get for the most part is wood it takes a shit in for five years.

I think Texas is going to be good for everybody we’ve been had inquiries from San Antonio, Houston, and Austin for distributors of our product going to get into that first quarter.
I won’t be surprised when they get full inventory of the people in Fort Worth could sell 1,000,000+ a year of the product. Cool thing is the principal is fire fighter he’s got a contract in business on the side so I’m really happy for him.
done a lot of research I think Texas is golden.
 

Hammer

Well-Known Member
Joined
Apr 17, 2010
Messages
20,169
Reaction score
7,881
The Dallas-Fort Worth area is hot and just like the rest of the west everyone’s improve in the outside of our house. Our company 4Kaluminum.com makes the only powder coated aluminum patio cover in the western United States.

About a month and a half ago some people from Fort Worth contacted us, we made a deal for a distributor. we’re flying up next weekend we’re gonna be rocking and rolling probably in January with their first shipment of 30,000 pounds. People been calling us for a year from that part of Texas complain the only kind of patio cover they get for the most part is wood it takes a shit in for five years.

I think Texas is going to be good for everybody we’ve been had inquiries from San Antonio, Houston, and Austin for distributors of our product going to get into that first quarter.
I won’t be surprised when they get full inventory of the people in Fort Worth could sell 1,000,000+ a year of the product. Cool thing is the principal is fire fighter he’s got a contract in business on the side so I’m really happy for him.
done a lot of research I think Texas is golden.
Do you strictly distribute? Do you have “certified installers”? Or anyone can buy the product and put it in?


Sent from my iPhone using Tapatalk
 

HNL2LHC

What is right and what is wrong these days!
Joined
Jun 25, 2018
Messages
4,989
Reaction score
6,240
So how many offers did you guys get today Pronstar?
 
  • Like
Reactions: DWC

boatpi

Well-Known Member
Joined
Feb 28, 2012
Messages
4,986
Reaction score
5,036
Our headquarters is in Las Vegas but we have distribution and five states our goal is to do everything west of the Mississippi since nothing is made like our product in the western United States.

We sell to contractors but distributors can do exceptionally well sometimes or even contractors and they set up a warehouse.
We are in Reseda, San Jose, area Sparks Nevada, Phoenix, and outside of Tucson, plus our headquarters in Las Vegas.

We’re considering opening a family distribution in Corona sometime before next summer.
And of course our distributor in Fort Worth but we’ve all received emails and calls for San Antonio Austin, and Houston.

It’s not practical to ship our material so it Hass to be picked up through a distribution center. You guys invest in or just doing flip houses especially medium price to moderate price look at a product and see if we’re in your area.

It’s a crazy business the big guys are the inexpensive guys Aluma wood and Dura loom but it’s all roll form paper thin stuff with steel on the inside and in some areas it takes two months to get their material.
Basically it’s a downspout 24 gauge painted.

I don’t wanna jack this thread but a lot of people on here are looking at home-improvement things like that and it’s flip houses always need the contacts. We’re looking to take on two distributors per quarter in 2021. I figure a guy in is probably going to sell 2 million next year.

very selective who we choose to be a distributor but if you fit the profile the buy in is about $120,000 for your first container. We started this in the ground up 14 months ago.

I would not be surprised if next year we surpass 5 million. I’ve contributed but it really goes back to my wife who’s been in the aluminum industry for 30 years.

and the detailed answer to your question in Las Vegas we saw two contractors and I’m a little picky who I sell to as a lot of flakes here and I don’t sell to anybody with a pick up truck and without a license.
 

boatpi

Well-Known Member
Joined
Feb 28, 2012
Messages
4,986
Reaction score
5,036
I did, we are good, like it hers I do a
Lot of favors RD’ers.

Back to thread; Texas is good I don’t see it changing much my people tell me it’s good for several more years. The only thing in her family you guys doing flips is the cost of materials
 

pronstar

President, Dallas Chapter
Joined
Aug 5, 2009
Messages
29,521
Reaction score
26,627
So how many offers did you guys get today Pronstar?
Haven’t talked to the realtor yet. Hopefully I have one/some


Sent from my iPhone using Tapatalk Pro
 

pronstar

President, Dallas Chapter
Joined
Aug 5, 2009
Messages
29,521
Reaction score
26,627
Ok just spoke with the realtor.

Good news: we received a full price offer.
Bad news: VA financing

Open house was unbelievably packed, and we had showing up until 9 last night. He’s going to reach out to other interested parties to try to get a bidding war started, and also to see if we can get a non-VA, non-FHA buyer.

By this afternoon we will be under contract, either accepting the existing offer or (hopefully) getting a stronger offer.


Sent from my iPhone using Tapatalk Pro
 

pronstar

President, Dallas Chapter
Joined
Aug 5, 2009
Messages
29,521
Reaction score
26,627
Welp, were under contract, VA Loan, 100% financing. This has better appraise LOL


Had an interesting talk with my mentor today. He wants me to become a realtor at his brokerage, work as much or as little as I want. He’s mostly in North Dallas, so I would head-up the South Dallas/Arlington-ish expansion of the brokerage.

If I bite, he will also waive my mentorship fee.

We’re having dinner on Thursday to discuss.

I’d basically still renovate houses, would represent myself on each sale so I retain the commission, and represent the brokerage for sales in my area.


Sent from my iPhone using Tapatalk Pro
 

lakemadness

Grobe Bruste Bitte
Joined
Sep 25, 2009
Messages
3,278
Reaction score
1,936
Welp, were under contract, VA Loan, 100% financing. This has better appraise LOL


Had an interesting talk with my mentor today. He wants me to become a realtor at his brokerage, work as much or as little as I want. He’s mostly in North Dallas, so I would head-up the South Dallas/Arlington-ish expansion of the brokerage.

If I bite, he will also waive my mentorship fee.

We’re having dinner on Thursday to discuss.

I’d basically still renovate houses, would represent myself on each sale so I retain the commission, and represent the brokerage for sales in my area.


Sent from my iPhone using Tapatalk Pro
What is your mentorship fee? Whats the mentor do?

My wife and I have been doing enough volume over the past several years that we helped our realtor build a new fucking house. So my wife got her license earlier this year. Just in 2020 she has sold 4 million. Now deals we look at look even better when she gets the fees.

I assume your mentor mentored you on buying/flipping?
 

pronstar

President, Dallas Chapter
Joined
Aug 5, 2009
Messages
29,521
Reaction score
26,627
My mentor coaches me on flips and scaling up to build my asset column to create generational wealth.

The biggest benefit is that he’s a pretty large wholeseller in the area. Finding deals is typically the hardest part, and he basically removes that hurdle.

He also has tons of contacts, so if I use his people I get a pretty good price and excellent service. So I can leverage his relationships for things like title, insurance, some trades, etc.

He’s also a hard money lender.
Owns HVAC, foundation, landscaping businesses.


Sent from my iPhone using Tapatalk Pro
 

RichL

Well-Known Member
Joined
Jan 14, 2017
Messages
1,275
Reaction score
1,083
Welp, were under contract, VA Loan, 100% financing. This has better appraise LOL


Had an interesting talk with my mentor today. He wants me to become a realtor at his brokerage, work as much or as little as I want. He’s mostly in North Dallas, so I would head-up the South Dallas/Arlington-ish expansion of the brokerage.

If I bite, he will also waive my mentorship fee.

We’re having dinner on Thursday to discuss.

I’d basically still renovate houses, would represent myself on each sale so I retain the commission, and represent the brokerage for sales in my area.


Sent from my iPhone using Tapatalk Pro
This sounds like it could be win/win.
 

pronstar

President, Dallas Chapter
Joined
Aug 5, 2009
Messages
29,521
Reaction score
26,627
This sounds like it could be win/win.
That’s what I’m thinking as well.

Taking my current flip into account:
$250k
I pay a discounted 2% seller commission - $5k

If I was an agent selling my own flips:
I would pay a full 3% seller commission. But I would pocket 80% of it, with 20% going to the brokerage.
So...
$250k
3% seller commission - $7500
I pay the brokerage $1500

The cap is also quite low, I’ll get details tomorrow. So even if I was just selling my own flips plus a couple other sales per year, I’d retain 100% commissions.



Sent from my iPhone using Tapatalk Pro
 

RiverDave

In it to win it
Joined
Sep 13, 2007
Messages
104,488
Reaction score
85,806
My mentor coaches me on flips and scaling up to build my asset column to create generational wealth.

The biggest benefit is that he’s a pretty large wholeseller in the area. Finding deals is typically the hardest part, and he basically removes that hurdle.

He also has tons of contacts, so if I use his people I get a pretty good price and excellent service. So I can leverage his relationships for things like title, insurance, some trades, etc.

He’s also a hard money lender.
Owns HVAC, foundation, landscaping businesses.


Sent from my iPhone using Tapatalk Pro
That’s rad you found a guy like that to help you!
 

caribbean20

Well-Known Member
Joined
Mar 4, 2011
Messages
560
Reaction score
593
Wife and I have been buying nice houses with stunning views and keep them for use by family and ourselves. We don’t rent and look solely to capital appreciation for any long term return. With big gains in the stock market, we’re taking gains off the table and redeploying the capital to real estate. We hope the capital will be less risky in real estate, plus they’re fun to use.

We think housing will be a good hedge against the inflation that is most certainly coming. Next, We are looking at lake front property with boat docks at Lake of the Ozarks. Some very nice second homes owned by people from the mid west, KC, SL and Chicago. Many of them are turnkey, furniture included. Just got to spend more time down there getting the lay of the land.

As a former boss once told me, you can’t assess a country until you go there and smell it.
 

pronstar

President, Dallas Chapter
Joined
Aug 5, 2009
Messages
29,521
Reaction score
26,627
Had the VA inspection a few days ago. Zero issues, were good to move forward.

Was a bit worried about it, as I know they can be picky.

Not it’s just hurry up and wait so we can order the appraisal


Sent from my iPhone using Tapatalk Pro
 

Turnup

Well-Known Member
Joined
May 27, 2011
Messages
570
Reaction score
676
I've taken VA offers most every time, even over cash. You'll find as time goes on who is truly committed and who can walk when wind changes direction.
 

pronstar

President, Dallas Chapter
Joined
Aug 5, 2009
Messages
29,521
Reaction score
26,627
I've taken VA offers most every time, even over cash. You'll find as time goes on who is truly committed and who can walk when wind changes direction.
I know the buyers were super stoked that I accepted their offer. Evidently they’ve either been out-bid, or had sellers who chose other offers for whatever reason. But I’m thrilled to have a vet get into a quality home.

My biggest worry is comps...there are no truly comparable homes that have sold in this area. If I had tighter comps I’d feel better about things.

It’s out of my hands at this point. I’ll put my trust in the good Lord and we’ll see what he has in store


Sent from my iPhone using Tapatalk Pro
 
Last edited:

Wedgy

Well-Known Member
Joined
Jan 18, 2020
Messages
1,218
Reaction score
1,618
Passed my first test to get me RE license. Hoping to have the rest knocked-out in the next few weeks


Sent from my iPhone using Tapatalk Pro
Good job Pstar!! Continued Success! Pretty exciting there eh!
 

pronstar

President, Dallas Chapter
Joined
Aug 5, 2009
Messages
29,521
Reaction score
26,627
Good job Pstar!! Continued Success! Pretty exciting there eh!
I’m really amazed at the opportunities that have presented themselves to us since we’ve been here.

We’re truly blessed


Sent from my iPhone using Tapatalk Pro
 

pronstar

President, Dallas Chapter
Joined
Aug 5, 2009
Messages
29,521
Reaction score
26,627
Little update:
Passed my RE school testing.
Taking state/national tests next week.

Not bad considering it's supposed to be 180 hours of classroom time (I did it online "at my own pace" LOL), and I just started on Dec 21.

We're pretty excited at the opportunities 2021 will bring.

NAR reports that DFW is seeing a 50% decline in inventory YOY, with the same number of buyers.
With the Fed keen on keeping rates down and increasing inflation, this should be another good year for real estate in the area.

I'm working with my mentor on some turn-key rental programs that should rollout soon.
One has the investor putting ~20% into the deal.
Another has investors using the bank programs we're setting up to use 100% OPM.

More to come...I might have to become an RDP advertiser/sponsor :p
 

Waterjunky

RDP Inmate #94
Joined
Sep 24, 2007
Messages
3,494
Reaction score
2,095
Little update:
Passed my RE school testing.
Taking state/national tests next week.

Not bad considering it's supposed to be 180 hours of classroom time (I did it online "at my own pace" LOL), and I just started on Dec 21.

We're pretty excited at the opportunities 2021 will bring.

NAR reports that DFW is seeing a 50% decline in inventory YOY, with the same number of buyers.
With the Fed keen on keeping rates down and increasing inflation, this should be another good year for real estate in the area.

I'm working with my mentor on some turn-key rental programs that should rollout soon.
One has the investor putting ~20% into the deal.
Another has investors using the bank programs we're setting up to use 100% OPM.

More to come...I might have to become an RDP advertiser/sponsor :p
Keep us in the loop on all of this, you have many of us watching carefully.
 

pronstar

President, Dallas Chapter
Joined
Aug 5, 2009
Messages
29,521
Reaction score
26,627
Well, just passed my state and national exams yesterday.

Exactly 4 weeks from cracking the online classes to licensed...I’m happy to have gotten it done before the baby arrives.

More to come


Sent from my iPhone using Tapatalk Pro
 

pronstar

President, Dallas Chapter
Joined
Aug 5, 2009
Messages
29,521
Reaction score
26,627
Faaack me (and Pat LOL)

Pushing 60 days on this one, had to wait for it to season for 90 days since it was a VA loan.

“Officially”, the buyers loan didn’t start processing until Jan 10, so in that regard things have been moving.

House appraised at full asking, so our small gamble paid off.

Finally signed closing docs today, looking forward to the next one.


Sent from my iPhone using Tapatalk Pro
 

pronstar

President, Dallas Chapter
Joined
Aug 5, 2009
Messages
29,521
Reaction score
26,627
Got my first listing last week, just closed it today.

Just a lease for one of my mentor's rentals...but I get the first month's rent so that's a plus. Of course I gotta pay the other realtor 35% and my broker 20%...<sigh>

It's nice to have an additional income stream though.
 
Top