All Forum Posts by: Sean Dezoysa

Hi, I have been searching through this forum and found that partnering with the rehabber and taking a percent of the sale at the end of the after-repaired sale is a good option for wholesalers who don't need the money immediately after the first closing. 

Does anyone have, or know where to get a stock partnership agreement for this type of arrangement?

Thanks

Sometimes it's good to look at a new venture from the angle of the most common causes of failure.Let's get the non-action/motivation ones out of the way. Most people fail anything due to not starting, not studying  enough to be competent or not having an initial plan. 

For the few remaining who take action, what have you noticed stalls them out? 

I'll post about myself a few years ago when I was underfunded and had to bail to retrain in a new profession.

1. Overestimating response rates and doing insufficient marketing to generate enough leads

2. Buyer's list too small or unreliable, causing my one potential deal to fall through.

Anyone keep in touch with prior distressed sellers to ask for referrals to other potential deals? I feel like this would not be a good market for it (since we deal in distressed properties) but hope to be wrong.

What additional concerns are there, Ellis? I've thought of starting with them despite the additional work to get the Executor on board, because I hear it can be quite a productive list. 

Recently a wholesaler told me he doesn't like probates because they often come with liens. He says he prefers to wait until the liens are paid off instead of inheriting the mess.

I know probates also have issues arising from tracking down the Executor, and getting all family interests to be happy with the offer you present to him (though he has final authority). 

Does anyone think probate leads are worth it? If they are motivated I'd still think they're worth dealing with these types of issues. But I wanted to hear what active wholesalers thought.

Two potential answering services I'm looking at, are Specialty Answering Service, and Answer First. Both say they have a lot of RE investor clients. One of them even sent me an example script. Both allow the script their agents use for inbound calls to be fully customizeable.

Anyone use these or other similar services? Do they do a good job of capturing leads with all relevant details? Or has anyone noticed a dip in performance (calls to closes) after trying one of them out? 

My main concern is they handle the call in an offputting way and/or aren't well versed enough to answer random questions, losing potential business.

Hi everyone,

When I lived in the Los Angeles area, investors sometimes spoke about deals they were picking up in the Lancaster/Palmdale area, about a 90 minute to 2 hour drive away. Back then they'd brag about getting a house for 60k and renting it for 1,200. 

i'm moving to Atlanta for a new job. I'm looking at Columbus GA and Birmingham AL for wholesale flips -- both about 2 hours away by car. I suspect Birmingham should be large enough to seek out local cash buyers through the local REIA and other means.

Columbus GA has a metro population of around 300,000 though. 

In a market like Columbus GA, do you think it would be better to look around Atlanta for cash buyers? Or would you still make the effort to seek them out in the same area as the property?

Double closing will definitely be more expensive and require transactional financing on the A-B side.

One tip I have read here is to ask your investor friendly title company to split the HUD-1 statement to show only fees to the buyer/seller respectively. This helps remove the assignment fee from the seller's HUD-1. Of course your investor still gets a glimpse of it.

No one has mentioned using an online e-signing service for electronic signatures. Indeed, I remember an investor friendly title company told me they don't like e-signatures too. 

I guess e-signing closing documents is out then?

Hi everyone;

I wanted to ask about repair estimates. Do you pay an agent, appraiser, or partner wholesaler to walk every property and build your estimates, or do you ballpark them?

Aaron Mazzrillo (who has done a BP podcast) ballparks all of his at $20/sf estimated repairs. He said in So Cal it's done very well for him despite being so basic. He does buy quite low (something like 52% ARV, in So Cal) so maybe some thin deals are also filtering out this way.

I've also heard you can just ask the seller for what needs fixing and ballpark the rehab as light/medium/heavy. A paint and sweep is around $3,000 to 5,000 in repairs. A moderate rehab is $10k to $15k. A big rehab is 25k to $40k. 

Curious what everyone else is doing when they don't or can't walk the homes themselves.