WREIN, Kelton Todd, Tresa Todd-Lugten

[Lori Brock]

Hey folks, I have an opportunity to join a mentorship program with Tresa Todd-Lugten and the Women's Real Estate Investors Network. It looks perfect for me, but I'm concerned there may be something bad that I don't know about. I'm not too worried about overpaying, just about getting bad value, or worse yet, bad practices. Does anyone have any experience with these people?

[Gia Pirelli]

I also took her class. I learned a lot. I didn't do the coaching program but it sounds legit, just expensive up front. I joined propstream and connected investors. I can find foreclosures and preforeclosures pretty easy that way. Your job is to solve their problem. So explaining why an investor (you) is preferable in their situation is critical.  So here's my opinion, take it or leave it. 

1. Selling through a broker can take 2 weeks to get a listing live, between pics and creating the listing etc. Depends on the broker. And it can take months to sell. Depends on the market. 

2. An investor will generally waive appraisal and purchase with an inspection only and close within 2-3 weeks. So if you're a distressed owner in a hurry to sell, out of time or don't have the money to make repairs or compromise on inspection and repairs OR  you don't want endless showings and strangers wandering through your house, especially during covid, then an investor is fast and easy. Is that worth 5-10%? Probably.

3. Generally a foreclosure is in poor shape and needs repairs to make it anywhere near comps. So there's that. Retail buyers are picky. A distressed owner isn't about to upgrade and repair. If they had the money they wouldn't be in distress. So they'll sell it for cheap anyway (not full retail) and then pay the 6% on top of that. IF it sells in time. Whereas selling to an investor they skip the hassle, the pictures, the showings, the repairs, etc. and get out from under it in time to move on with their life with $ to put down on something else. And if they're smart they can maybe get a tax break for it, if they can show a loss on paper. (Run the numbers for them) If they're in an active bankruptcy that's also a factor. Again, your mission is to solve their problem and you need to know how you're doing that. Otherwise, no, they won't sell to you.  They'll go see a realtor with the fantasy that they'll get full retail and potentially wind up losing it to the bank, at which point it poses the risk of short sale, which may be worse than a foreclosure. The IRS will literally bill them for roughly 30% of the difference in what's owed versus what it sold for. Then bankruptcy may be their only option and they won't be able to buy another home for 7 years. So a realtor is a big gamble at that point. 

These are real human beings in bad situation and they need real advice and real creative solutions to get out from under it. That's where you get to make a difference. And that is worth something. If you believe you're undercutting them while trying to convince them that you're not, you're missing a big piece. You are a problem solver. That's you. Not just someone out looking to make a buck off someone else's suffering to solve whatever your own problems are. Does that make sense? That's why they might sell to you versus going through a broker. Again, just my take on it. But your intentions and beliefs are just as important as the numbers. How can I help versus how can I benefit.