All Forum Posts by: Brad Jacobson

I like Deal Machine.  Idk if I'd consider it affordable ($60/month for the list builder) but the skip tracing is super straight forward and has been really effective for me in the several months I've been using it.

Good luck!

Hi @Jefferson Bautista,

This may be different in Canada where you're located but here in the states, most state purchase contracts (REPCs) have a lot of protection for the buyer, especially when in the "due diligence phase."  There is typically no ramification for backing out of a purchase contract as long as you're in the due diligence phase and haven't altered the contract in any way (like offering non-refundable earnest money upon acceptance).  

When I'm trying to purchase a property, either for myself or a client, we'll write as many offers as we can everyday.  All serious investors do this as well since finding deals is mostly just a numbers game.  

Earlier this month, a client of mine won multiple properties within a day or two of each other.  We did an inspection on both properties in the first few days of our due diligence deadline and then decided to cancel one purchase contract and pursue the other based on our findings and research.  There was no chance of getting sued or having any earnest money stripped from my client because we followed the purchase contract and backed out in our appropriate due diligence phase.

Not to be too harsh on your agent, but it might serve you to speak with other agents to get a second opinion.  If you've already entered into an exclusive buyer-agent agreement with your agent, perhaps you could ask to speak with their broker or ask the agent to show you what they are referring to.

Hope this helps!

Wholesaling works in any market as long as you're succeeding in getting properties UC under market value.

Personally, I'd recommend starting locally in the market you know best.  Having an excellent handle on a market and being able to identify good deals is the biggest key to success in wholesaling.  

Good luck!

Hey @David Reeves,

Look for and go to a local real estate meetup!  There, you'll probably find several investor-friendly agents and you'll be able to chat with each of them.  If you're not sure where a local meetup is, get on meetup.com or search for local "real estate investor associations" and you should be able to find something not too far away.

If no meetups are found around in your area, my brokerage has forums that are specific to investor agents and I can search for you - just DM me if that's of interest!

Good luck!

Hey @Marjo Naci,

I'm partnered on a few deals.  Partnering is great as long as you do it correctly.

When partnering, ensure you have the proper LLC in place to house the property(s) you're acquiring and also that you have your partnership agreement in place that outlines what happens if a partner fails to perform, neglects the business, passes away, etc. You'll likely need a real estate legal pro to help you do this the first time so budget an extra $1,000 for legal fees.

One example of a partnership I did is when I first left my W2 job to do real estate full time. I found a pair of houses locally that were a great deal but I couldn't secure a traditional mortgage because my 1099 income wasn't sufficiently long. I brought in a partner who qualified for the loan and we went 50/50 on the downpayment and ownership. The homes are housed in an LLC, there's a separate bank account for the two that my partner and I share, and the properties have performed well so far.

Good luck!

Hey @Cody Slevin,

For residential homes, the cosmetics go a long way and things like upgraded kitchens and bathrooms can make a big difference because your end buyer will be willing to pay a premium for those items.

However, when looking at small multifamily like you are, you'll rarely get as much value out of upgrades like granite countertops and a remodeled bathroom because your end buyer is only going to focus on the rent amounts.  

Rehabbing multifamily for the best appreciation value will come down to functional items like bedroom count, bathroom count, AC, parking, and basic cosmetic (like carpet and paint) because these are the items that can increase the rent.  One mistake most new investors will make is to over-rehab rental properties.

Focus on the value add and think about what a tenant would consider valuable when rehabbing multifamily.  

Good luck!

@Steven Brown,

Most lenders will want to run your credit prior to giving the full pre-approval.  There are some lenders who have alternate methods that might not do a hard pull but either way, you need to get pre-approved now if you're serious about making a purchase.

As you mentioned, if the good properties are going in 24-48hrs, you need to have all your ducks in a row including a pre-approval and a great agent at the ready to walk you through the proper way to compete.  Getting the pre-approval will also motivate you and a good credit score that's never put to work is pointless!

Good luck!

Hi Alana,

Great question!  I've found that giving a seller multiple offer options is one of the best techniques to land a deal and give you an edge over other offers.

When proposing a seller finance, you can consider several levers:

1. Purchase Price

2. Down Payment Amount

3. Interest Rate (pure interest)

4. Interest Rate (with principal pay down)

5. Note Length

Normally, if a seller wants a higher price, you can ask for a longer note, lower interest, lower downpayment, etc.   If a seller's sticking point isn't the price, you can offer other incentives like a high pure-interest rate for a shorter term or something like that to sweeten the deal.  Take some time to make a spreadsheet with these levers and play around with them until you have two or three good offers that all make sense for both parties.

Financing the rehab can be done in a few different ways including: bringing a partner, HELOC, private money, or even credit cards (though this isn't recommended).

I'd suggest putting all your efforts into getting a good spot with your grandmother so the deal makes sense for you both right now.  Once you've got the property under contract and it is a good deal, you should be able to find the money pretty easily.  Right now there's more money than there is good deals around.

Good luck!

Hi @Lindsay Z.,

I'm a fellow Utah native, investor and Realtor.  I have been mulling over the same question for a few years now with the rentals I own in Davis and Weber Counties and would love to connect and talk to you about the options you have!

I did end up cashing out on two properties in Layton and Clearfield, but I also choose to cash-out refi on another and keep a few more up in Ogden.  There has defiantly been pros and cons to both decisions!  I found that placing the money I cashed out on was more difficult that I imagined but it did give my portfolio a major boost.

All in all, it really boils down to your long term goal.  The most important next step for you is likely deciding what that long term goal should look like.

Good luck,

Hey @Arthur Livs,

It totally makes sense to join a wholesale team like "We Buy Ugly Houses" because when you're just starting out, you need structure and contract help once you've got a good lead. 

Most wholesale teams are going to ask for the same thing, cold calls, mailers, door knocking, bandit signs, etc. and they all work as long as you're willing to put in the time.

One of our biggest local wholesalers said to expect six months and a $8,000 spend before getting your first deal.  If you're willing to accept this reality and put in the work, time, and potentially money, you can be crushing it in no time as well!  

Good luck!!