All Forum Posts by: Armani Emon

So just wanted to share some newbie mistakes with you all , please take this into account wholesalers.

Firstly, when I first studied wholesaling, I was taught that all you needed to determine if you have a deal is 

1.general repair estimates 

2. Comps

Later on I found out that you actually have to not only look at structural/mechanical repairs that need to be done to the home,but also you need to learn what upgrades/ features your comps have(granite,stainless steel appliances,new carpet,new flooring, sun roof, finished basements) After you figure out this information ,when you have your contractor take a look you have to send him your comparables and ask how much would structural/mechanical repairs if any would cost, you then have to ask how much it would be to upgrade your house so it looks like your comps but slightly better. 

So basically the most important thing to consider is what features/upgrades your comps have, if there are any mechanical/structural repairs needed. When you total that out that is your actual repair estimate number.

My second lesson that I learned is that you need to separate "mentors" from business

In my opinion it is not smart to do business with someone who is your mentor/that is helping you/or that you look up to. My reasoning for saying that is because at the end of the day peoples goals are personal benefit. No person wants to help you 100%. I had someone who is a mentor to me , and i decided to throw one of my deals to them. Because they knew that I was pretty novice they told me that my deal was worth xyz gave me a thorough explanation too!Following this we got it under contract for way lower than I should have and now they are wholesaling the property for the amount that I said the home was worth. In all,stick to your numbers and your guns, if someone is your mentor keep them at that. Being a newbie I thought that I was being helped because they were so helpful unfortunately they really got my *** out of a deal.

My properties has two stories,but my comps have three stories . 

Should I base my ARV after two stories or three stories?

or does it matter?

Investors buy anything that is a deal ! lol 

If the numbers work, it has good roi, and it has good comps the investors are going to buy

So one option that you can do is pair up with a good local realtor.

Offer him leads that don't fit your criteria such as retail deals. 

In exchange he run comps on your deals for you.

Maybe the MLS can present some good comps for you.

If you check zillow, redfin, and MLS and still cant find any good comps.

I suggest you begin looking in another area because the area you are thinking of investing 

in doesn't have very good comparable sales..so 9/10 that home wont sell

(Typically I find that homes located in a nearby area and have the same sqft 

can have the same comparables. ) 

I often use comparables  that have nothing in common but the sqft and many investors do not mind. 

The most important things to say on a phone call are 

1.what is the condition of the home, does it need repairs, has it been renovated in the past five years,

2.How soon are you looking to sell your home

3.Are you selling for any particular reason

4.What would an ideal offer look like to you

5.How motivated are you to sell your home?

-Brent Daniels

1. 1.First I think you should get a motivated seller leads list, by looking at where investors want to buy in your area and areas that fit your criteria.  You can drive down the streets or pull county records to find your information.
2. 2.Cold call this list like crazy at least 10-20 people a day. Use truepeoplesearch.com to find these number
3. 3a. do this consistently for like 5 weeks take a break then BACK AT IT AGAIN
4. 4.Set up a mass marketing system like direct mail , fb/instagram and implement in consistent probably twice a month
5. 5. Try to develop connections with as many seasoned buyers/investors as you can, they can provide you with insight and help you out.Additionally start marketing to buyers to build a buyers list for when you have your property.Craigslist, Zillow(A lot of the FSBO on zillow are just like minded investors), Reia, Facebook groups ect. Like every week try to make 1 new good connections

1.So get a good lead list

2. Cold call about 10 -20 a day religiously

3. create a Mass market using you preferred system 

4. Build about 1-5 connections every week

Hey Hey ,

I think that you should look for local contractors in your area that do free estimates and see if they will come out and give you a free estimate. After they do that ask them for a break down of each cost so you get an idea of how much everything is costing.

After that contact another contractor to have him do the same and compare the estimates to see if they are consistent.(or get a free verbal quote)

If that is too much for you , theres a book  called estimating rehab costs I think that is helpful..

propstream!

And educate your self like crazy.

That's what I think your first move should be.

Reading 

The Ultimate Beginner's Guide To Real Estate Investing in the bigger pockets guide section. Listening to podcasts,youtube videos, going to seminars, looking at the bigger pockets forums, talking to seasoned investors. Literally consuming all knowledge that you possibly can. I think that after you read the guide I referred you to then you'll have a better idea of what to do first. So check out those references and let me know if that helps. But I think that The BRRRR method should be considered.