All Forum Posts by: Brandon Jackson

From what I understand they are the original mortgage holder (Chase).

Very true. Part of me feels as if I need to stick to my guns and get some of these wholesales done and get my capital together before going all-in, but at the same time I cant help but wonders what type of possibilities exist and the cost. I appreciate the honest answer and the reality check.

addition: Most of these properties are held by the same bank, so I'm sure I can negotiate a great deal for a bulk buy

Hello fellow BP Members,

As some of you know, Im new to the real estate investing game.

First and foremost, I want to thank you all for all the help and guidance on this journey. Ive learned quite a bit and feel vastly more confident (and I didnt need a $1000+ guru to tell me how to do it.)

Now heres the scenario:

There are several properties in my area up for sale from foreclosure. Most of these properties are in good condition and require minimal work to restore to move in ready condition (mainly cleaning. The things Ive seen would make Beetlejuice cringe!). After doing a bit of due diligence, I came to the idea of wholesaling the properties to make a decent profit and use the funds to start my venture into renting properties. The properties have great potential and are being sold on average for around 40% ARV. But in this area, people are more apt to rent than purchase. With this in mind, i came up with an idea.

I want to buy several of this properties under one loan and rent them out. The pooled income would more than cover the cost of the mortgage or loan, while netting me a decent monthly income.

The drawbacks: Im assuming since the loan would be secured by the deeds for ALL the properties, which would be a pain if someone wanted to buy.

any thoughts or advice?

Speaking from experience: Your next move is to take some time aside and plan.

BP has a wealth of information, but that information is useless unless you have a clear plan of action.

What are you wanting to do? Are you interested in passive income from renting? Or are you out for the thrill and big payday that comes from rolling the dice with wholesale/ Fix & Flips? Whats your market? Do you want to focus on foreclosures ? Probate maybe? Where are you at personally financially? Do you have money to invest in a project? Can you qualify for mortgage financing on a rental property? Things of this nature need to be well thought out, or you will get burnt out quick.

Real Estate Investing is a process when starting out. Theres nothing wrong with taking your time.

and please please PLEASE: Do NOT hesitate to ask questions. Don't be intimidated by all these professionals. They are here to help and exchange information (and if you ask, are normally more than happy to help a newbie)

I wish you luck my friend

See you at the top

Heres a novel idea:

Link us to the property listing. Maybe there's something we can help you figure out. Couldn't hurt to have a few extra sets of eyes.

Heh, I learned something new today. (Completely serious).

But think about what Im saying. If you have a great buy and people are looking, maybe they just need that extra push.

Thank you for the complement. And its easy to be positive if you remember this: There is ALWAYS a solution.

Im not sure the legalities with the deed issue, so im going to have to advise against it for the moment.

No before pictures? Hmm. No big deal. You can still easily attract buyers.

- Drop a few extra dollars on a new appraisal. Im assuming the property is still being sold under market value, so it can do nothing but help your case

- Staging is key. You want them to feel at home.

- offer incentives like credit towards closing, first month payment,etc. (depending on your profit margin) if they make an offer in a certain timeframe. People love TVs and computers by the way. A trip to WalMart might be a good thing. There is NOTHING wrong with adding IMMEDIATE value to a deal. The few dollars you spend on making it too good to pass on is nothing compared to what you are losing holding.

- Take it off the market for a few weeks. It takes places like Zillow a bit to catch up, so a relaunch may be worth it.

People are more concerned with whats in it for them. Make it a great deal with immediate and long term benefits too good to pass up and noone will care how much you are making.

I hope this helps.

That's a tough break. Im sorry to hear that.

Personally, I think it just comes with the territory doing rehabs and fix & flips. In the digital age we live in, knowledge is readily available to anyone who seeks it. In a situation like this it may seem as if your cards are all showing and theres little to do. But, with this in mind, you can use this to your advantage.

On Zillow, you have the ability to claim the property. You cannot stop them from seeing what you paid for it as it is public record. You can,however,emphasis the value in what you have done. I would upload side by sides of before and after reno and show just how beautiful the property has become in your hands. This shows the potential buyer what they are getting and the value in buying the rehabbed property. It also drives business to your door because potential clients can see what you are doing.

If its one thing ive learned so far in this business, its that anything worth doing will be rough at times. Take it as their loss, refocus, use it to your advantage.

Good luck and keep pushing forward!

I think a little clarification is in order for this one:

For Wholesaling, you dont need financing. All you are doing is getting the property owner to agree to theoretically sell the property to you for cheap, and then you turn around and sell it to another end buyer before the closing date of your own personal contract. In this situation you wouldnt need any money because you already have a buyer lined up, you would simply pocket the difference.

Now what I think you mean is that you are looking to REHAB the property. In this instance you would acquire the property, do the necessary repairs/updates to make it attractive to buyers, and then sell it at a higher price. In which case, now we are getting somewhere.

My best advice to you is first to read the awesome beginner's guide thats provided on this subject. (http://www.biggerpockets.com/real-estate-investing).

Read it through, get a better understanding of what it is you are actually trying to do. Once you've done that, take your time and do some research. A little due diligence goes a long way. What are your goals? What is your market like? What would fit best for you and your situation? Once you have that down, its just a matter of leg work. Depending on what you are trying to do, there IS money available.

You made a wise move by joining the forum here. If you take this seriously and do your due diligence, I can promise you that you will get to your goal. It won't happen overnight, but it will happen if you put in the effort.