All Forum Posts by: Charlie John

@Matt Gragg

Huge transformation!!! Looks incredible Matt. How much did you pay for the renovation? 

Staging the property like you did is something I would like to do on my next flip. Adds a lot of value to house vs an empty house. 

@Lee Edwards

Don't listen to any one tell you that you can't be successful. Go for it but make sure you estimate all rehab costs accurately, the rehab time accurately, the rent price accurately and then overall have a large amount of equity in the property once your rehab is complete. If you are going to take on a hog like that , you deserve bigger pockets. The process will teach you a lot too which will become invaluable ! Good luck

@Tim Campbell I posted this type of question a few weeks ago, but didn't receive much of a response. My question was how could I provide a service to help homeowners that would like to sell but their house needs light (or heavy) repairs to get top dollar? It's a service geared more for people who may not have the money to do it... I would front the money to get the repairs done, get the house looking as best as it can so it sells for top dollar. Then after the sale I would get paid back.

Wouldn't this type of service be extremely helpful in your situation?

If it needs 10k, I lend them the 10k (my company would act as a the contractor doing the repairs) and then get back 15k or something like that once we close.

@Toi H. Great points especially about laying out the entire wholesaling process and discussing who will take each role and how they will be compensated for it. And absolutely his capital that seeded our marketing would be returned before anything is split.

Let's ignore the fact that he has done deals before -- How would like to contribute to fund the marketing machine in order to get more deals to wholesale. He funds, I do all of the rest (and that includes find the buyer). He is nothing more than a partner that provides the marketing dollars. This would not be the typical "co-wholesaling" situation where I find the contract and he finds the end buyer.

any one else have thoughts on how this could be mutually beneficial and fair?

Sorry, by flipping I mean't fix and flip. 

I appreciate your hustle Adrien! I am on my way man! How did people react when you door knock/cold call and say Hi I have been trying to reach you...

I currently send out my own marketing to custom driving for dollar lists but am limited by my monthly budget. I only send about 500 post cards per month. If I could increase the amount I send per month, then more opportunities will be available and that is what I am looking to accomplish.

Thanks for your response @Adrien C..

I will add that he does not know much about wholesaling or how to find off market deals. He doesn't understand the marketing/negotiating with sellers part and honestly, I don't think he would want to do any of it. But I do! That's my value proposition. Using his marketing funds, I will do the grunt work to drive the neighborhoods, collect the data (addresses and home owners name), send out the marketing on schedule, take the calls, set appts and get contracts signed. That is the value I can provide. What if we send $1,500 worth and get a wholesale fee of $10,000 that we then split. He is turning his $1,500 into $5,000 (and thats just one deal) with me doing almost all of the hard work. Does that make sense or am I just not thinking about this clearly?

Hello,

Wondering if BP could help me figure out how to present this opportunity to another investor/partner and if there would be any potential problems that I haven't thought about yet...

I met a guy that would like to get into wholesaling single family homes. He has personally flipped around 50 houses in the last 5-10 years but hasn't done very much as of late due to the REO inventory drying up. He was doing majority of the deals back in 2008-11 when deals were easier to find off the MLS. He heard about wholesaling recently and was intrigued by it.

He knows that I am currently marketing for off-market deals in my area and would like to partner (to fix n flip) if I happen to find another deal. But instead, I am considering how can we combine our resources to do more...

What if he funds the cost of postcards and postage. Say $1,500/month.

That would equal a little over 3,000 postcards per month going out.

My role is to create the custom lists (driving for dollars), create the custom marketing piece, address all of the postcards and send out the mail on time every month, consistently. I would also take all of the calls, do the follow up and meet with sellers to get contracts signed. 

Once we have signed contracts, then either of us can use our networks to find the cash buyer for the property.

We then split the wholesale fee. 

He is using his money to make money. I am using my time and sweat equity to make money.

Could this work successfully? Why or why not?

I am getting a little too excited to do this because currently I am restrained by my monthly budget as to how much marketing I can personally send out. If I had $1,500+/month to send out marketing, well then, skys the limit!

@Mark Ferguson Love your podcast. You can tell that you're genuine and know what you're talking about because you are actively doing this business. Your huge goals inspire me to do something similar. Keep it up! 

Quick background on me: I have been marketing to a custom driving for dollars list for the last 12 months and have only bought and sold 1 property. My goal here is to wholesale and fix and flip. I have gotten great response rates from the marketing and set appointments with every seller that was interested in what I proposed. I know most of you would tell me I should be pre qualifying leads before actually wasting my time to go to the property, but I wanted the experience of walking through houses, learning to build rapport and improve my sales skills. Plus, I have only been sending to around 1000-1500 homeowners every 3 months - nothing too crazy.

My offers have all been too low for these homeowners to accept. I think they were low because I am conservative on my ARV and my rehab estimates are higher because I believe I am truly estimating for ALL of the repairs/improvements correctly. It has been frustrating to constantly hear No when each of these sellers wanted to sell and had houses that needed a bunch of work! Why wouldn't accept an all cash AS-IS offer?!

I recently met with a bank that is ready to sell a house for an estate that I have been marketing to for the last year. The homeowners are now in an elderly care home and gave the bank my letters. The bank got an appraisal and of course, they are valuing the property at what it might be worth AFTER the house is fixed up. So, I kind of knew my offer at 70% of that wouldn't go over so well since the bank has a fiduciary responsibility to sell the property for the highest value. When I presented my offer at the bank, I gave them a second offer -- they can hire my company to get it ready to list on the MLS so that it sells quickly and for the highest price. I would clean out the junk in the pole shed, clean the interior, repaint a neutral color, replace carpet and other light rehab tasks. The bank loved that idea and we are going out to see the inside next week to create a scope of work.

Instead of just letting the lead go because they won't accept at 70%, I realized that I can still provide value and create a profit somehow. It was a huge realization for me. 

I am thinking back to the 25 or so homeowners that I met with over the last 12 months and I bet every one of them would be happy if I proposed to help repair their house so they can get TOP dollar for it. 

Questions for you guys on BP: How can I make this work? Most of the sellers I meet don't have the money or expertise to fix up their property. What if I paid for all of the renovations (putting a lien on the house) and then once the house sells, I would get paid back for the repairs + a profit on top. I am profiting by performing the repairs(contractor) and lending the money to do it.

This would not geared towards motivated seller, but just sellers with houses that need work.

How can I create a model around this idea? I feel like I could create customers out of all of the sellers that do not want to sell at a discount. Any thoughts would be appreciated!! Thank you.

hey man it's true when they say if it were easy everybody would be doing it. That's what creates the opportunity if you keep working hard at it. 

Don't look at list price. Run numbers and find out what's the most you can offer and then start submitting them! 

Best of luck!!