What is the Best Way For Bird Dogs/ Wholesalers to send a deal

Question

I am in the Cleveland/ North East Ohio market and have literally bought hundreds of deals from other investors. I am in serious buying mode now and asking all of my connections to send me all of their deals.

For years my method to get deals is to put the address in the subject line, attach pics and any lease agreement, inspection reports, pictures etc... Then in the body of the email, I ask for a brief description of the deal. It works OK, but I have to believe there is a better way.

I am getting a lot of houses sent to me now and sometimes I miss them in my email, because they go to spam or I just overlook them somehow.

What are some others doing out there to get the deals sent to them?

is there a good App to use?

I currently use infusionsoft and I have Realeflow as well.

Any advice is appreciated.

Keep in mind that I actually pay cash and close these deals and am not looking for a way to put them on a list that I send back out.

Thanks so much BP! lookin forward to response!

Levi T. · Answer

I don't know if this will help, but define a real simple number that anyone can use to see if a deal will work for you. This will off load most the work of reviewing deals, something they can do off the top of their head. Cap rate is a good example, property type, or some combination. Most my deals come via email as well, but it's consolidated by those sending them, so I just have to scan over it and if something looks interesting I ask them to send me more details about that deal. Example email from this morning: Triplex downtown $250k. 2 bed 1 bath, 1 bed 1 bath, 1 bed 1 bath $2,320 month rents $399 avg month utilities $150 avg month tax and insurance Duplex South Stafford $250k 3 bed 1 bath and 2 bed 1 bath $2,250 month rents $350 avg month utilities $192 avg month tax and insurance SFH Spotsy Greenfield $150k 3 bed / 1.5 bath $1,265 month rents $0 avg month utilities $110 avg month tax and insurance

Ryan Dossey · Answer

If you truly have deals... I would get a few loyal buyers. 3-4. I would CALL them and tell them you've got something under contract that you think will work for them. Walk them through the numbers and let them know that you've sent them an email (while on the phone)I get stuff ALL THE TIME from wholesalers in my email and I honestly don't really "dig" in to most of it. A phone call would get my attention.

Bob Collett · Answer

Everyone has their own criteria. Here is my thought process:When I am looking for a flip, first I look at the neighborhood. No sense spending time analyzing something that I am not going to do no matter what. So I consider anything on West Side or Northern Summit County. Since I am realtor and have investor clients... for them I will consider east side suburbs also.Next as a flip, I have to see a 30% to 35% ROI potential. For me, I calculate the ROI (return on investment) as PRICE, the expected final net sale price (sale price less 6% commissions, less 2% closing costs) minus the COST which is the sum of total acquisition cost, plus holding cost (taxes & insurance), plus rehab cost. This gives me the PROFIT. Then divide PROFIT by PRICE. This gives a percentage with must be 30%. This percentage number is ROI. I do not use or even consier COC (Cash on Cash Return). This is used mostly to sell overpriced properties to newbies.I am fairly conservative in my estimates, so when I target 30% ROI, the final result usually comes in closer to 40%.When I am looking for a buy and hold; I open up the neighborhoods a bit, and then require 13% ROI. Similar type of calculation. For Income I look the total monthly rent times 11. Because there will always be vacancies. This gives me an annual Gross Income. I subtract annual taxes, annual insurance, expected annual maintenance cost, and an annual reserve to give me cover all repairs that will be needed over 10 years, expected annual inspection permits, and the 10% property management fee. I can explain how I calculate the reserve off line to anyone who is interested. I include the management fee, even if I, or the buyer is going to do their own management. It is still a cost. All of this results in my Net Income.Then I divide the Net INCOME by my COST to come up with ROI. I require 13% true ROI. Cost in this case is acquisition cost plus renovation cost. With this process, when I do a thorough professional renovation, the annual contribution to the reserve fund is small because everything is already done. If I do a quick and dirty renovation just to get in and rented, then I save money on the renovation, but my reserve fund contribution will be higher because I am budgeting for that driveway, roof, furnace etc.So to answer your question... this is probably a bit much for the typical bird dogger to calculate; but for someone who is serious about bringing me a deal, this is the way I will evaluate it.In summary, if it looks like a deal and is in one of my target neighborhoods, I will always be interested in buying it for cash.