All Forum Posts by: Andrew Michael

@Brendan Henry-Lambert

Finding a good wholesaler will be a huge asset to your team. MLS its possible but be prepared to make many offers as the competition is fierce. Auctions can be a great lead source but you will want to shadow someone with auction experience before you dive into this strategy yourself.

The best way to find off market deals in my opinion is by doing your own direct marketing.  If you do not have the resources to do so then link up with a good wholesaler who already has these systems in place.    

@Shalante Davis I am going to send you a message.  I know the lender you are referring to well and I am fairly confident you have misunderstood their terms.  

Its always a good idea to ask for an official term sheet so you can get any proposed offer in writing.  

Right now competitive HML rates in the DMV are 2-3 points at 9%-11% depending on credit, borrower history and the asset itself.

I cannot recall if I had done my first deal prior to joining BP.  I am pretty sure when I joined I was still in my research phase trying to figure it all out.  I remember reading peoples post who were doing multiple deals a month and thinking "How in the world are they doing this, I can barely find a deal that works".

Fast forward to today which marks the end of my most successful month in real estate.  I did a total of 17 deals this month, 6 wholesales and 11 loans.  Though reaching this milestone feels great I know its only the beginning and I will crush these numbers in 2018.  The point of this post is not to brag or boast but to simply share my beliefs on how I got to this point (and rather quickly).  I believe success in real estate is much simpler than people make it out to be.  

Here is what I am not.  I am not super smart, I have no degree in real estate, I had no money to start with, the list goes on.  

Here is what I am.  I am persistent, consistent, and very coach-able.  I listened closely to people who are doing what I want to do even when I didn't understand the reasons behind their advice.  Most of all, I went all in and immersed myself in as much real estate knowledge as I could.   

If you are reading this post, have yet to do a deal and are being held back by fear or uncertainty this post is for you.  We have all been there.  We all had to get over the hurdle of our first deal.  Take the leap, learn and remain steadfast in your goals.  You'll be glad you did.

Start going to the local meetups and joining the active FB groups.  The reality is there are 100 people like you offering the same.  Show them that you are motivated, what value you can bring and most of all be persistent.  There are people everyday who say they want to get in the game and are never heard from again.  The longer you hang around and continue to network the better chance of finding your path and people to mentor you. 

@Sidney Anning

Frederick is a great market to begin in as the price points are fairly cheap and there is a decent economy there poised for growth.  If wholesaling is where you want to begin then I would suggest moving south a bit and working markets closer to DC.  Personally I find Frederick to be a good rental market rather than a wholesaling market. 

Make sure to hit every meetup and networking event you can. 

Thank you @Russell Brazil I actually had a great conversation with @Kenneth Croisetiere earlier today.  I appreciate the mention.  

@Nghi Le 

You are correct there are some hard money long term products out there but I'd still rather see people use these as "short term" vehicles and refi out once the property is seasoned, their credit is repaired, etc. Especially if being utilized simply due to convenience.  

There are contracts available on BP and you can also Google it but whatever you do I would suggest you have an attorney review it.  The safest method is to explain to a real estate attorney what it is your trying to do and have them draft one for you. 

You present the owner of the property with a contract to purchase their home.  If both parties sign the purchase contract the home becomes "under contract".

@Ginny Denson

Hard money lenders are going to look at everything you mentioned but each lender will weight that information differently.  For many lenders the most important factors are the asset itself and your ability to pay back the debt (credit).  

Now when you say you are looking to purchase your first investment property do you mean to flip?  Hard money is a short term vehicle and not something you would want to use to acquire a rental property for example.  It will be hard to avoid banks for any long term investments unless you can set up owner finance deals.  

Hard money is certainly the easiest/ fastest way to get money just make sure you have a proper exit strategy in place.  You do not want to get caught in a hard money loan with no outs.