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All Forum Posts by: Brendon Brooks

Brendon Brooks has started 1 posts and replied 42 times.

Post: Investors! Do you like wholesalers?

Brendon BrooksPosted
  • Rental Property Investor
  • Houston, TX
  • Posts 50
  • Votes 39

@Ruby Ruiz

Good wholesalers are problem solvers for both parties; motivated sellers and investor buyers. They are deal finders and match makers.

For motivated sellers - they find motivated sellers that may have just been procrastinating their problems so long that they're in a really bad place. They may be so behind on taxes, mortgage payments and or the property can be severally distressed from deferred maintenance and have just been in denial about their position until some one reaches out and says that they may have solution. They can help the seller sell their problem property quickly to help them move on with their lives. Which can be a major relief for them and can lift a huge burden from them.

For investor buyers - they do all the grunt work pounding the pavement, marketing and talking to potential sellers in precarious positions and work out a great win win cash price that allows room for an investor to get a great deal on their buy and has room for a fee for the wholealers efforts. Many good investors are happy to pay this fee for the efforts of the deal finder. This is not an easy task, however with the right level of competencies and a lot of hustle and persistence a wholesaler can make some cash to hopefully invest in their on REI deals in the long run.

I believe good wholesalers will give you an accurate estimate of what they know the ARV to be and what they know the estimated repairs to be. However, it is always prudent for anyone buying any deal that they should do their own due diligence. Most wholealers are in a business of building a buyers list, so they are not intentionally out to screw over investors that may be potential repeat customers. Would you? Yes there may be a few inexperienced wholealers that get their numbers off, but any investor worth their salt knows to check their numbers. Remember there are wholealers of all property types and segments within the REI world. Wholesaling is also not even just in real estate either it is found in almost all industries. It's nothing new.

Although, not every wholesaler is good at what they do nor or are all ethical; this is also the case in most professions. No matter where you go and what you do you have to first protect yourself and do your due diligence.

Post: Any areas out there for single families close to 1 percent rule?

Brendon BrooksPosted
  • Rental Property Investor
  • Houston, TX
  • Posts 50
  • Votes 39

@Benjamin Kanevsky

If you target potential off market deals you can make 1-2% deals or even better in many markets. There ar motivated sellers in almost every market. Pick one that you want to invest in and dive deep! Happy hunting!

Post: Best cities to house hack

Brendon BrooksPosted
  • Rental Property Investor
  • Houston, TX
  • Posts 50
  • Votes 39

@Kishun Barker

Hi Kishun,

I agree with several other posts on this subject.

It definitely varies so much depending on your goals, passivity and how much time your willing to invest. The best place is start looking in your own city and if you have them time, look for off market deals to get the best deal you can. You can even potentially incorporate some creative financing strategies.

Best of luck!

Brendon

Post: I closed a 100 unit multifamily deal in Atlanta!

Brendon BrooksPosted
  • Rental Property Investor
  • Houston, TX
  • Posts 50
  • Votes 39

@Adam Ulery

Hi Adam,

Congratulations!

How did you find this deal?

Thank you for sharing your win and any details you can!

Best regards,

Brendon

Post: How do I go about finding my first deal in Houston

Brendon BrooksPosted
  • Rental Property Investor
  • Houston, TX
  • Posts 50
  • Votes 39

@Brandon Anderson

Hi Brandon, are you located in the Houston area?

What are you looking to invest in, residential single family homes or multifamily units? Or are you looking for apartment buildings or commercial?

Also depends on your goals and how much time you want to invest in finding a deal and then managing it, or do you want a more passive investment?

Do you want to Buy & Hold?

Do you want to BRRRR?

Do you want to Flip?

Do you want to do development?

Or do you want to Wholesale?

Definitely need more info to guide you better, since there are many options and variations of real estate investment strategies that can be utilized for different property types and locations. Some of these can also be used in conjunction depending on what you're looking to accomplish.

I look forward to hearing more about what you're looking for.

Post: Financing Options with Wholesale Deals

Brendon BrooksPosted
  • Rental Property Investor
  • Houston, TX
  • Posts 50
  • Votes 39

@Matthew Metros

The issues is most wholesale deals require a significant discount off of market price in order to be worthwhile for the wholesaler and end buyer. These are typically but not always distressed properties physically that have differed maintenance. Which can be difficult or impossible to get a conventional mortgage on.

Many other properties are being targeted due to the owner being in financial distress, which they are often in a hurry to get what they want in order to sell it. Which means they don't have time to wait for lenders and real estate agents and retail buyers.

Often it is both cases a deferred maintenance and financial distress. So they are willing to forgo some of their equity in order to remove themselves from the problem property.

In some cases, some people just want to sell quickly for cash so that way they can move quickly and not have wait for their property to be sold on the open market. So it's a time issue for them.

You can use a hard money lender or private money lender to purchase a property like a cash transaction which can get you a better deal on the buy in most cases, however it comes with interest.

Post: Question about wholesale leads...

Brendon BrooksPosted
  • Rental Property Investor
  • Houston, TX
  • Posts 50
  • Votes 39

@Brandon Blackfin

Perhaps you can be frank with the said wholesaler and show him your numbers and he could have room to reduce his wholesale fee to make it a win-win for all.

I personally wouldn't want to try and steal a property out from under a wholesaler. And if he has a contract with earnest money in place than he's got the lock on the property until the contract expires or closes.

You could be patient and if the wholesaler can't get it assigned because he didn't get the right price on the buy for a good wholesale deal, then you could reach out to the owner once that contract expires. Who knows, you may be able to get it for even a better price than what the wholesaler had since he dragged it out.

Just be careful not to burn a bridge with anyone or tarnish your reputation with either party. It's definitely a small world in the wholesaler and REI world.

You could also try pursuing your own off market deals to get even better deals that you know can work for you from the start.

Good luck to you on your journey!

Post: Deal Check - First House Hack

Brendon BrooksPosted
  • Rental Property Investor
  • Houston, TX
  • Posts 50
  • Votes 39

@Colin Wyatt

Yes absolutely be sure that you're HOA doesn't have restrictions for it. You're parking situation could be a challenge, however it could still work and you could charge for parking potentially if in your area it's hard for tenants to find and could be valuable.

Additionally, not all college students drive, some may want to room with buddies that they know from school and carpool. Some also opt to take public transportation, bikes, mopeds, scooters... Parking on or near campus can be a major expense.

Definitely research what other properties are renting for by the room near by to see what the going rates are and if they charge for parking separately or not.

Or call up a few management companies to get some quotes from them on going rates and perhaps they can let you if that's a viable option for your area and maybe they will take on the headaches for you and your tenants will never know you're the owner.

Best of luck with your journey, you're definitely heading in the right direction!

Post: Deal Check - First House Hack

Brendon BrooksPosted
  • Rental Property Investor
  • Houston, TX
  • Posts 50
  • Votes 39

@Colin Wyatt

If you're open to trying to rent one of the larger units or both by the room you could really juice the returns on this deal. Of course it would be more intensive to manage, but could be worth it if you manage it well and are open to it. Also be mindful of any local regulations on how many unrelated occupants in one domicile are permitted.

Post: Wife Needs to Sell but Husband changes his mind.

Brendon BrooksPosted
  • Rental Property Investor
  • Houston, TX
  • Posts 50
  • Votes 39

@Juan Martinez

That's a tough and unfortunate situation, but if there's a will there's a way. Would the gentleman be more inclined to sell the property on terms? Lease option or seller financing? I understand that he's back and forth with it, but maybe the idea of continuing to get some monthly income would be more interesting to them and they wouldn't have to worry about the property anymore or a tax burden from a straight sell.