All Forum Posts by: Jeff Smith

As an experienced wholesaler I have to say that the numbers in your story were not very strong and your mostly correct in reevaluation. The thing I would like to bring into the thought light here is the cost of repairs, I have been in construction and also a project manager for a successful rehab company and I can tell you most of the buyers on my cash buyers list always try to come back and tell me it will cost much more then what I have told them when I tell them the numbers. Its funny, because I see it almost every time. Its just a way to try and negotiate the price down with any skill. I guess what I'm saying is every rehabber/landlord out there have different levels of work and as a wholesaler we cannot know exactly what people will spend or want to spend on repairs. I personally use the sq ft x $ approach to give my numbers (Ex. light repairs $5 medium $10 medium heavy $15 and full rehab $20 x the sq ft of the house). Im always trying to leave 25% to 30% profit margins after the repair cost to my buyers.

Sometimes I don't think investor cash buyers understand the time, money and efforts we wholesalers put in to find these great deals and they just think ...uuugh your making $xxxx amount and all your doing is just transferring a contract... and so sometimes I just have to laugh at those type of guys. My opinion is if you Mr. Investor can make this deal work for you at my price then lets sign a contract, if not thanks for looking and maybe the next one will work better for you.

#lovewholesalinghouses

My .02$

As a experienced wholesaler, Im not sure your concerns are necessary.

To Thomas

There are other expenses like marketing,buying leads, my phone, paper, ink, internet service, etc. etc. but all these things are just tallied up as cost of doing business.

I use the same formula as above but sometimes I use .65 depending on the motivation level of the seller.

Taxes are pro rated at closing, I dont buy any insurance (why would you?) and I dont have any cost of money because I'm not borrowing any money, we only have the house under contract and assign that contract to a investor buyer or do a double closing.

To Bill

As a wholesaler that formula is way to confusing. Why buy at 70% or 73% or whatever when Im always getting properties for 40% to 50% by using the wholesaling formula? I just dont get it, maybe I missed something there.

Thanks Josh, Ive searched thru pages of blogs and articles but couldnt find anything close to what I remembered.

You dont remember something like this that you said you really liked it and I might be wrong but it seems like you might of said something about how its good to revisit old blogs and you remembered this one etc etc?

Hello, awhile back I noticed a post I believe was from Josh Dorkin, he had talked to a investor and this investor shared how he got comps in a new area or a area away from his local area.

He wrote a blog or a article about it and I remember reading some of it and know Im trying to find it again.

I remember that this guy was saying he would email 3 realtors about the property and the one who came back with the best helpful comps would get his business.

Does anyone know where I can find this article or blog?

Im trying to search for it but am not having to much success.

Please advise if you know what Im talking about..

Thank you

Hi Joseph,

I am a investor in Texas. I would love to connect with you.

My market is Amarillo, Lubbock, Midland, Odessa, Abeline, and all of Dallas and Tarrant Counties.

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Im listening to the same webinar right now. (live or recorded I dont know)

The webinar is sponsered by Cameron Dunlap.

I have personally met Peter Conti in Dallas in 2008. He has a great book on buying lease options.

I knew I was going to listen to this webinar today because I do business with Cameron Dunlap currently with his ibuyhouses.com exclusive territory set up

and his iFlip CRM and I really like that. You can check it out here if you like. iFlip

Anyway back to this land subject, I knew I was going to check it out so today while Im driving I listened to my podcast of Bigger Pockets that they did with a guy named Seth. So from what I learned on that + this post I have some new exit strategies for flipping land and I still have may $1000.