All Forum Posts by: Blake Reynolds

I am currently marketing to absentee owners through direct mail.

My question is:

If I include in my direct mail piece that I will offer a cash referral fee to someone if they refer someone they may know who is a motivated seller to work with me and we end up purchasing the home Is that considered bid dogging? Is there anything illegal about doing that?

I am not inquiring about the concept of wholesaling in general but more specifically offering a cash fee to someone who refers someone to work with me.

To me it seems like a good idea of being able to reach more people without directly mailing to them because not every motivated seller is going to show up on a list or county record.

@Chris Dudek I would be interested in attending if something was set up. I just started attending the local MNREIA meetings as well but I would love to attend meet ups more frequently also. The more education and networking the better!

@Sean Blomquist

I will have to find one of the meeting to attend with Pine Financials as well. The daytime ones wont work for me since I still work 9-5 (for the time being). But I will for sure have to come out to one of the monthly happy hours!

Thanks @Jennifer Tan

Have you had any negative experiences from them at all? And do they help you with setting up legal entity's as well, like and LLC or Scorp?

Has anyone used Legal shield service?

I heard about it the other night from another investor and It seems like a no brainer. It is a flat rate service for apx $30/month you get unlimited phone calls with a local top attorney and you get tother perks as well including free defense services and document review (up to 3 per month). There were a bunch of other useful things it sounded like as well and they have people who specialize in all areas of legal information.

Just curious if anyone has any input on this service or has used them before?

When you assign your contract to and investor you agree to an assignment fee for your equitable interest in the original contract with the seller. At least in MN the HUD1 statement still shows the property as being bought at the original purchase price agreed upon by you and the seller of the home. Also in the HUD1 there will be an area that lists that assignment fee and most homeowners that will be selling you property wont be very fluent in this document so it will be unlikely that they pick this out of all of the fees listed on the HUD. For all they care they still see the original agreed upon price that they are getting the house for.

@Sharon Vornholt

So I just jumped in to this thread looking for some more information on Direct mail frequency. Do you find that the one month interval is the best? I have been curious about mailing once every week or every other week. Just curious to see what your thoughts on that are.

Thanks

@Gabriel Velasquez

Welcome to BP.

My advice for you would be to go listen to the podcasts.

Under the learn tab click on podcasts and I would recommend starting at the beginning and working your way through them. Make sure to take notes too so you can refer back to the information!

Good Luck!

Thanks for the input everyone!

I will have to check out / re check out the BRRR webinar. I cant recall if I watched that one or not :)

@Joe Villeneuve

I guess I forgot to mention that I was considering this concept if I couldn't find a cash buyer for a wholesale property. I was referring to this being a back up in that event. 

Thank you for all the extra info as well. And I wouldn't necessarily rely on the rental income to cover the HML loan but it would help cover it if I needed it to depending on the terms of the loan.

My main curiosity was just if the bank would require money down on a refi in a situation like that and you answered my question so thank you! 

Hey all, 

Just curious to see if anyone can validate this exit strategy for a wholesale deal. First off this is purely an example and all of the numbers I use are just for illustrative purposes. 

So if I were to get a house under contract for let's say 50k and it rehabbed for 25k would this work? I get financing through a hard money lender and renovate the property up to rental quality and then rent it out. The ARV is now 100k. Could I get a traditional lender to finance the property at 70%LTV? If so would that be done without money down on the refinance?

So in essence I wouldn't  have to put any money into the deal considering the rental income would pay the hard money lender until it was refinanced. 

Is this something that can be done or is done commonly among buy and hold investors? My goal this year is to do one wholesale, one flip, and aquire one rental property.