All Forum Posts by: Chadd Naugle

@Cameron Outlaw Just present yourself as the cash buyer.  Let them know you are part of a group of investors and you lead up the acquisitions. Tell the sellers, once it is under contract, you will have an inspection where your business partners (cash buyers) will inspect the property.  After the inspection period you will let them know if you will go through with the purchase or have to cancel the contract.  I generally keep this period short.  Contract to inspection is 4 days.  Offers must be submitted from my cash buyers within 24 hours after inspection.  So within 5 days you and the sellers will know if you are going to move forward.  The worst thing you can do is drag it out, and leave the sellers hanging.  You don't want to do that.

@Duane Bowles In order to have a successful wholesale business, you need an extensive buyers list.  My best buyers are the ones that go to auctions at the courthouse.  Go watch and auction (sheriff sale) the next time they have one.  Look for the people that are bidding or trying to buy multiple houses.  (By the way 5 of these type of buyers, is better than 30 buyers, that buy 1 or 2 year)  After the auction is over, go up to them and explain you find deeply discounted properties off market deals, and ask them if you can let them know about it the next time you have one.  Get their contact info.  You want about 100 cash buyers, before you start marketing for deals, otherwise you will have a contract, and no one to sell it to.  Start working on building this list first.

@Eric DeVito You need to distance yourself from all the naysayers.  It might be hard especially if they are close family.  Spend your time with the most successful investors in your area.  Also keep in mind most of the "advice" you are getting, probably has zero experience, in what they are offering advice in.  Meaning they have never owned a rental property, or invested in real estate. 

I got a lot of negative feedback when I started investing full time for a living.  "Is this real estate thing really going to pan out?  Shouldn't you be looking for a real job? What do you do all day?"  

Then I started bringing in 5 figure monthly paychecks consistently and now they all want to know how I do it....LOL.

The other thing I would suggest is listen to motivational stuff in the car, and not the radio.... Grant Cardone, Napoleon Hill, Tony Robins, etc.  Highly recommend Grant Cardone 10x, and Be Obsessed or Be Average.

Did you try a google search for we buy houses in your local area?  Or Sell my house fast?  See what companies come up and then contact them to see if they wholesale properties.

@Dan Green At those numbers it is a 47K profit, lets say holding and closing and the like is 15K, it is still a 32K profit.  It is a good deal. I don't factor in those costs.  The real problem is that you only showed it to 2 people.  Get a 100 cash buyers on your list, send it out, and I am sure you will have people offering you more than you are asking. Don't let the investors beat you up on price.  Find the buyers that are willing to pay more.  I have buyers that are happy with a 20 to 25K profit, so I would sell this deal at 40k+  

We have a property that I purchased cash for 56K. Seeking financing for 85k in rehab costs. ARV 185 to 210. I can send you a CMA from a realtor to verify, or you can do your own research.

Project turn around time is one month, 2 max. 

I have a track record, and can show you projects completed.  Detailed scope of work is available. 1st lien position, since we own it outright. 

Let me know your terms, and let's see if we can do a deal.

Thanks

Chadd

@Ian Tudor That's awesome. Congrats on your first property.  Are you syndicating or using your own money at this point?  I agree about taking longer than anticipated, which is why I upped my activity level.  

Hoping to start a good discussion on what you think is the biggest challenge you face when starting out in Real Estate investing.  Include your strategy (wholesaling, rehabing, rentals, etc) and your biggest hurdle so far.

@Michael J.You can pull out 80%, At least with my credit union. So if you can buy at 70% of ARV which is typical, then you can make 10% and still have it as a rental. So you won't be making as much, but you will be building rental business, plus the tax advantage it could almost be a wash.

Also if you want to weather the housing market up and downs, maybe you should look at buying 5+ unit multifamily where value is calculated on NOI, and not the housing market.

2 things - First you said your long term goal was to build a rental business. If that is the case, then why do the flips? If it were me, I would find the deals myself, rehab, refinance and then rent, also known as BRRR - If done correctly you could make money on the rehab, when you refinance and also have it as rental property.

Secondly, if you are going to be doing that kind of volume you are absolutely going to need to develop systems to run your business. You will need a system in place for marketing for both buying, and selling, dealing with and paying contractors, CMA's, inspections, permits, utilities, insurance, title work, taxes, etc.

Before you start, get a team in place,  accountant, title company, Realtor,  a GOOD contractor, Insurance person,  to name a few.

@Dusty Bowlingdid a great job with 13 flips in a year, but as he said, he has been doing this for 10 years, and I bet he already has systems in place, and relationships with Realtors, contractors, title companies, etc.  His marketing is already being done for him, through the relationships and reputation he has built through over they years.