All Forum Posts by: Michael G.

Hello James,

Welcome from a fellow Strong Islander! I have a few long term single family row home rentals in Allentown PA. The price point for acquisition is much lower than where we live and they are managed by a property management firm. They cashflow nicely and A-Town is only 2 hours away. Happy investing...

JS - I still do this myself but I think it would be well worth my time and effort to train and pay someone else to do it.

MQ - Do you use Corelogic, Site-X-Data or some other list source?

I'm curious how many first time rejections from sellers turn into sales?

I've had some sellers come back after a few months and say I'd like to accept your last offer.

Its not been 50% of the first time rejections however I heard one investor remark that 60% of his business comes from follow-up.

Has that been the experience of other investors out there?

County courthouse that the subject property is in should have all the mortgages and liens recorded.

If you are unsure about the repair costs get a scope of work from a general contractor, preferably one that works with investors to determine a true repair cost.

If feasible, get several looks by several contractors.

Disregard my last post.

Allstate just raised my rate by 50% on one of my rental properties! Absurd!

The property is in Allentown PA.

Can anyone suggest another carrier?

Maybe a carrier that specializes in landlord policies?

Dashboard.

Last few days when I click on the Watched Forum Thread link it takes me to Recent Forum Activity.

Dont know if this was previously reported.

Is anyone else experiencing this?

Brand new to Wholesaling?

Build a buyers list. @ the very top of the wholesaling forum is a sticky entitled Buyer's List "How To".

It's a good read and will essentially give you a crash course on one of the main staples of a wholesalers business which is finding buyers for properties you put under contract.

In fact, the entire wholesaling forum would be of great educational value to you if you are a newbie.

IMHO @ a very high level your wholesaling business should look like this...

1) Market for wholesale properties. (probate, REO, craigslist, FSBO, bandit signs, etc.)

2) Put wholesale property under contract.

3) Consult your buyers list of cash buyers for interest in heavily discounted wholesale property.

4) Assign your contract to cash buyer / rehab investor from your buyers list.

5) Repeat.

There is plenty of detail in-between but you will learn as you go.

I believe Curt meant Larry Goins.

If you want to spend money on education go ahead but I would dive head first into this BP website first, especially the wholesaling forum and absolutely submerge yourself in the sea of information offered here...for FREE.

I'm somewhat anti guru only because I spent a lot of money learning wholesaling systems and only used 5 - 10 percent of what they taught me...but maybe thats just me.

I dont know about any other wholesalers but it took a while for me to get this wholesaling thing right. It sounds simple but I had to keep trying until I had all the pieces working together.

It may not happen instantly for you but it will happen if you keep at it.

At the end of the day as a wholesaler, you gotta have houses to sell (at a heavy discount) and someone to sell them to.

Greg,

If I understand your question correctly you are speaking from a wholesaling perspective.

I'm thinking the profit in the 65% model would be 5% for you when you wholesale to your rehab buyer @ 70% of ARV.

So for instance:

ARV is $200K x 65% @ $130K - $50K repairs = $80K

Assign 2 cash buyer for 70% of ARV @ $140K - $50K repairs = $90K

Difference is your profit @ $10K.

Obviously if you can purchase @ < 65% ARV, that puts more profit in your pocket.

Sometimes you have to play it by ear. In a perfect world I guess this model works.

In the real world i've seen the rehabber pay 75% of ARV and we work out the wholesaling fee.

It all depends...