All Forum Posts by: Chris Bounds

Hi @Nicki B. , Welcome to BP!  You're absolutely in the right place if you want to learn how to invest in RE.  Be sure to check out the BP podcasts.  They are golden!

Thanks @Bill Gulley and @J Scott . I'll check with my CPA to make sure I get it accounted correctly. I'd prefer it all to go through my LLC.

PS @J Scott - Love the Book on Flipping Houses!

Due to the timeline of the foreclosure process and the very likely chance that the property needs a lot of repairs conventional financing will not work. You need cash or private funds. 

Good question. I was confused about that when taking RE classes as well. I do not believe so if you're advertising as an investor (not for listings), but you do need to tell prospects that you are a licensed agent when you talk to them (at least in TX you do).  

I'm new to DM myself, but one thing that I found out from others is consistency is key. Make sure you start out with a batch that you can mail to at least 7 times or more. Search BP or my post history and you'll find a ton of info on DM. 

congrats @Glenn McCrorey !

Thanks everyone. I'll keep it at the personal level for now. Because the primary objective is REI and not to be a RE agent commissions will be mostly from flips. Of course, as time allows I'll represent retail clients too. I figure that I can use commissions made for living expenses and reinvest profits from the LLC.

@Ron Drake, No partners.  If I do any partnerships a separate entity will be created. 

@Karl Krentzelagreed on wholesale (contract assignment) deals.  

This is a question that I'm probably overthinking (since I like planning I do that often), but...

Investors that are also Realtors - how do you get paid commissions when you sell or lease a property (including ones that you do not hold equitable interest)?  Does it go under your investment company as income?  Do you have an entirely new company for realty commissions? Or does it simply go to your personal account?

I have an LLC for my REI. I'm thinking that I should have all commissions go through the LLC. Tax wise it shouldn't make a difference, but at least the added income will help my financial statements.

Thanks @Mike Watkins & @Dev Horn 

I might target OO after Absentees have been mostly exhausted for my farm areas. The only OO marketing I've done before has been door knocking on pre-forclosures.

Currently my response rate for Absentee has been much lower than expected.  My postcard campaign of 854 addresses is at .002% (2 calls, 1 of which I closed the deal). 2 batches have been sent so far with a 3rd going out next month.  My white letter campaign also had 2 calls out of 899, no pending or closed yet.  Only one batch for letters has gone out so far.  I'm sure the response rate will increase as more and more batches go out though.

In a podcast a while back I heard @Michael Quarles say that he groups potential sellers into two categories: Owners with equity and owners without equity.

Can anyone share their thoughts/results marketing using direct mail with equity as a primary marketing parameter verses marketing to only Absentee owners?  

Currently I am marketing to only absentee owners with equity, but I realize I am leaving out a lot homeowners in my farm market that may be willing to sell at a discount.