Michael Quarles: The "As Is" Process of Podcasts 77 and 81

[Anne James]

Good Morning BiggerPockets Community,

Where would I find blog(s) explaining "wholetailing?" I want to understand the process from obtaining a list through closing escrow. After taking advantages of many BiggerPockets resources including reading the Ultimate Beginner's Guide to REI, I thought learning the skills of "wholesaling" was the best way for an inexperienced person such as myself to enter the RE Investing world. It seemed many of the components were needed for the other strategies. However, after listening to Michael Quarles on Podcasts 77 and 81 discussing the strategy of selling "as is" I have begun to consider this as another option.

As easygoing and fun as the interview was, I have several gaps in my understanding surrounding what steps I need to take in order to make this plan work. For example, what infrastructure do I need to set up since I work a full time job? Would Google Voice be useful as a “lead capture” system? Gaining a better understanding of some of the reasons someone would respond to a yellow letter or postcard vs. listing the property with a real estate agent would help me to see the duplication/turnkey built into the plan.

Thanks in advance for any assistance from the BiggerPockets community which is greatly appreciated.

[Bill Gulley]

@Anne Jamesundefined

Yes, I can be frank, or anyone else you want me to be, if I can get a very important message across to you. 

Nowhere on BP are the basics of real estate available to study. This is a social site, while we all give this site an educational aspect, it is not designed to fully educate anyone in the real estate profession, we go directly to strategies, methods or avenues of types of transactions. The emphasis is on "investing" which mostly involves acting as a real estate operator without having a great deal of capital at risk. 

In this arena, what people here want may vary, but basically they want to find ways of making the dream come true, to make money. Very common goal, everyone needs to eat, everyone wants to succeed, most have limited financial means or just no money to invest. 

Ask yourself why you are here. 

Many think they are getting an education.......no, you're getting information. 

Example: If an Army medic were to tell you he used a plastic bag to treat a soldier on the battlefield for a sucking chest wound, did you actually learn how to treat such a wound or simply that a plastic bag might be used?   Can you identify that type of wound? Are you prepared to give other aid to that victim from the results of injuries or complications that you may inflict by attempting to use a plastic bag or in treating that victim? Do you know the best way to transport that victim? Is the victim in shock...what do you do?

Okay, I could go on, but you should get the picture. 

In that example, incompetence can get someone who can be saved, killed! 

Incompetence in real estate won't kill anyone, not that I know of unless you drove them to suicide, but you can very well inflict damages, social and financial damages that can wreck lives, cause hardships, loss of money, loss of time, reputation and inflict psychological and emotional damage. 

I don't care if you have a room full of attorneys, you can have a string of business entities, a Recorder's Office full of Trusts, any disclaimer you might dream up, bottom line, you can and will be held personally liable for gross incompetence and illegally dealing in real estate. There is no such thing as a quiet real estate transaction, eventually what people do will surface. Incompetence, if your dealings are just a bit rough around the edges, you might get by, as they become more significant, the greater the likelihood you'll be held to some accounting, to the point of going to prison. 

Yes, people go to jail from dealing in real estate, most you never hear about. Ever hear a guru say he had to pay a huge fine to some agency to stay out of jail? No, I didn't think so.

Screw ups in real estate can be illegal or be tortious conduct, half the people on social real estate sites (probably more) don't know what tortious conduct is! Better look it up! Your screw ups can be intentional (worse case) or unintentional (still bad), it won't matter. 

PSSST! Want a real secret about public real estate internet sites?

Closer......

All kinds of people are on them. 

Some are very knowledgeable and well educated, they understand the laws and ethical standards as professionals and they contribute for various reasons, but.....

You also have those "old timers" stuck in a time warp, "this what I did in the 70's, 80's or 90's". follow these guys who failed to stay current and they can lead you down a path of destruction!

Then you have instant success types, they are making (more like taking) money, they may or may not know what they are doing is considered unethical in the industry or illegal, but they don't care.

You'll also find those preying on newbies, "let me help you" careful, that pat on the back just might hold you back. There are good coaches and mentors and bad ones.

The theory of a mentor and mentee goes back before Christ. The idea of the old master teaching the younger the trade while profiting off the back of the intern is very much alive and well today in real estate.    

Then, there are a few outright crooks, sharks, predators and authors selling ideas or taking your money for very little in return, if anything.

Last, but not least, we have the newbie experts who really want to be a guru, less than 10 years in the industry is still a newbie unless they have professional designations that indicate a greater degree of expertise, like attorney, CPA, MAI, CCIM, ALC, CPM, or maybe a CRS. Too bad thee is no certification for gurus, at least accredited by any professional association other than perhaps by each other.

Now, here's how you'll benefit from all these types:

You have to have a BS Meter! 

In real estate, you really need to know who shoots straight, gives valid and good information and is creditable. You need to spot the BSer, the half truths, the near misses of the truth and the outright lies and BS. 

If I could duplicate my BS Meter for you, I would! But, I can't, you have to build your own!

To build one, you need to know what is and is not acceptable, what is or isn't ethical, what is or even can be illegal, that means you must know the basic aspects of real estate....period. Then, it becomes a people skill, reading people and understanding their motivations, what's in it for them. Always look to this angle, because what is in it fr them can be a price too high to be paid. 

Your BS Meter will take you through the shortest path to success, keeping your reputation intact and allow you to lead others. Lose your reputation in real estate, if you can survive, you'll just be seen as another bottom feeder. 

So, why are you really here?

Best of luck :)