Looking to Add Value without being a Hassle - feedback/ideas?

Question

Hey folks,

I'm still new to real estate but have been diving in with everything I've got in attending classes and every meetup available in my area. I also plan to start a meetup on a trial basis within the next two months. I've connected with a few bigger players and I'd like to add value to their business without bringing them more work, but I'm unsure on the best approach. Do you have any general advice on the following?

- I've heard it's a professional's market right now, not a newbie's based on the competitiveness and tightness of most project budgets

- I'm eager to learn and offer help (based on the pro's request for bird dogs, wholesalers, JV Partners, etc) so is it appropriate to send them off-market deals that I've found accompanied with my draft cash flow assessments? Do they expect the properties to be under contract already?

Thoughts? Thanks in advance for your time.

Jim Goebel · Answer

@Cara Kennedy

It might be helpful to do some thinking about how properties get 'on the market' or ready to buy.

A lot of wholesalers end up getting the property under contract, before engaging sellers.  You don't have to go this way.  If you have a plan to find properties (perhaps, off market) then a simple conversation with the owner and getting a feel for their reservation price, may be all that you need.  I think most investors know that some % of leads go through and some don't but a good lead is a good lead.  The other part of the equation diligence wise that you'd need to be able to credibly answer would simply be able to speak a little to the prospect/opportunity of the deal.  That gets more into the purchase price, the rehab cost, and then the sell or rent estimates.  At least being able to communicate this at a level that is

Hopefully this helps.  The above kind of assumes you are thinking more of an 'off market' route to getting deals.

The other route, of course, would be to go out and do the prospecting for on market (MLS) stuff.  If someone had the knack to fill that role in for me, and wanted to follow through on executing the project I'd take them up on that.  The big trick is that follow through credibility for someone that's busy.  In other cases, where someone's looking for the deal, they could roll the work into their operation/availability.

Keyonte Summers · Answer

@Cara Kennedy I like your motivation and work ethic to have this mindset.  What are you looking to bring to the table?  Are you a wholesaler? If so some expect the deals to be under contract or at least some type of communication with the owner. I have an wholesaler that I am mentoring and going out with him to some of the properties so he knows how to market to the investor. Myself being an investor its certain expectations I have for people I have contributing to my effort and vice-vesa. Maybe be treat the to coffee and ask the general question of how can I be a good service to you, what are you lacking in your business that you need a newbie to assist with. Make it clear that your in it for experience and if you can make money at the same time WIN-WIN.

Maybe we can connect I seen your post on multifamily partners

Cara Kennedy · Answer

Thank you, thank you, thank you....That is all great advice and further clarifies my thought process. I really appreciate you taking the time to write that out! If I can ever be of help or help you connect with people here in the Detroit Metro area, please don't hesitate to get in touch. @Jim Goebel

Cara Kennedy · Answer

@Jim Goebel, thanks for taking the time to respond. Can you clarify whether "far along in the funnel" should be properties that are already under contract/in the due diligence phase? I'm not opposed to starting the process myself and learning as I go, but some of the deals I'm finding are big enough that I'd prefer to work for someone more experience and build up my "street cred." Thanks again for your time.

Jim Goebel · Answer

@Cara Kennedy

Hi Cara

There may be entry level deals out there in many markets.  However, at least here the slam dunks for a new entrant are harder to find.  There's more people out there hearing about success over dinner parties wanting their part.

If you were to pass along properties that were pretty far along in the funnel to an experienced investor, and you are credible in terms of not wasting folks' time - I'd think most investors would take you up on this, at least to see what you can do.  I don't know if this is what you're proposing.  I wouldn't worry too much about if you're causing more work - if you do your diligence, someone will let you know if a project makes sense or not for them.  In certain cases some investors may allow you to take a crack at managing the project.  That's kind of where we are - if I find the right project and can find someone credible that wants to manage it, we'd figure out a way to take it on.  I'm plenty busy, so much so that we have one project with higher holding costs (longer to get through it) than we'd otherwise like.  But, a good deal is a good deal!

Looking to Add Value without being a Hassle - feedback/ideas?

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