All Forum Posts by: Brendan Martin

If the transaction is voluntary, both parties perceive that the other party is doing them a service. Always. If someone doesn't add value, or at least convince the other party that they have, the transaction doesn't take place. 

Money is not the only form of valuation. When looking at transactions keep this in mind. Think about it, if you have every paid the extra penny per gallon of gas rather than crossing a busy intersection to get the cheaper gas, then you already understand this concept. Stop forgetting it when you judge  other RE investors on their business.

So, yes, even if a wholesaler gets a property with a "lowball" offer, they are still providing a service.  There is no other way to look at it if you intend to be accurate.  

If you post a networking event through BP, you can give people a heads up on whether anything will be pitched to the attendees or not.  For my purposes, I'd just like to meet more people in Wichita Falls that are involved in real estate.  I'm with @Cori Bryan on this, I wouldn't want to be annoying. 

I'll try my hand at setting one up if people would like to give ideas on venue.  

@Account Closed, let's start a REI in Wichita Falls.

I'm no wholesaler myself, but I've repeatedly heard that consultancy is big with the yellow letter method. The potential sellers sometimes make contact months or years after receiving the first letter. Having the letters go out on a schedule and sticking with it seems like the way to go. Good luck!

Hey James, I'm not currently a landlord but I do have an interest in becoming one. Which means, take my advice with a grain of salt. I believe if I was in your situation, I would retain the deposit (that's what it's for after all) like your PM suggests and put it back on the market for rent. Based on how quickly you got it under contract in the first place, you will most likely get it rented quickly again. But, do it quickly because you don't want to run out of the Wichita Falls PCS season. Another option of course is to sell. The market here is moving pretty quickly right now. Many houses are getting offers the first week they are on the market. I can recommend an amazing agent if you are interested in selling. Just send me a private message. And no, it's not me ;) Good luck!!

We are looking at doing a live-in flip and I'm wondering how people would suggest doing the calculation for holding costs. I'm planning on getting a 15 year mortgage and living in it for two years to avoid capital gains tax. Since we have to live somewhere anyway, I'm tempted to leave out holding costs altogether. Would this be a mistake?

I'm new as well. I do know that multiple exit strategies is a must though. So, I don't think anyone on BP would judge you if you flipped one or two:). Welcome!

Thanks for your comment Michael! 

You reminded me of a book/essay I read a while back called "Profit and Loss" by Ludwig von Mises.  He talks about how important it is for entrepreneurs to have the feedback from profit and loss to effectively and efficiently allocate their efforts and resources.  Without the feedback, you never know whether you are wasting your time or not.  I'm kinda tired of wasting my time haha. 

I was just affirmed that my competitive spirit is alive and well. 

At times I wonder if, since entering adult life, my competitive spirit has died.  I'm sure this is one of the things that has been driving me toward real estate investment or entrepreneurship in general.  Having worked so long in massive organizations where career progression has more to do with superiority than it has to do with job performance, I've noticed my own work ethic slowly slipping away.  I think now that what is happening in my addiction to the many, many, podcasts and articles and books and videos on all things entrepreneurship, is that my competitive spirit, my work ethic, my desire to produce something, anything, of value is stretching me to the point where I can no longer remain in my current state of hum-drum. 

What, you might ask, led to this tiny epiphany of mine?  Don't laugh... I noticed I had more votes than I had posts on the BP forum.  Yep, I'm that petty apparently.  My vote to post ratio is greater than 1... (I know, I know, who really cares?)
So, what is your motivation to start a real estate investing career? 

Kyle,

Ok, I'm going to geek out a little on economics in an effort to provide some comfort.  I would suggest looking up the term "subjective theory of value".  Basically, it states that the value of a good or service is determined by how the parties to the transaction perceive its value and not by the cost associated with providing the good or service.  In short, the simple fact that a transaction takes place, between free individuals, is all the proof one needs to determine that both parties valued what they got out of the transaction more than they valued what they gave up.  Here is where people get tripped up though, money is not the only form of valuation.  There are many different ways to attach value to a good or service.  The fact that you are successful in your area means to me that perhaps the sellers are willingly to give up some of the money for other things that you are providing to them that they consider valuable.  Perhaps they simply trust you and value working with someone like you, perhaps they value your ability to get their property sold quickly, etc. There are a number of reasons that people would be willing to give up the opportunity to make more money.  Sure, they could have put in the work and found buyers themselves, but they didn't, they chose to do something else that was more valuable to them.  Instead of looking for buyers, perhaps they spent more time with their kids or at the hospital with their dying relative.  You can't know all the reasons.  I say, as long as they are well informed, and still choose, of their own free will, to go through you, there is something that they value about doing business with you that math simply won't explain. 

With all of that said, do whatever settles your conscience, now.  Don't wait and try to make excuses, if this is weighing on you, you won't be satisfied until you resolve it, no matter how much money you make... remember the subjective theory of value:)  Best wishes!