All Forum Posts by: Chris Gonzales

@Alexander Plott

They usually last about an hour or two. there is a really good one that I try to get to each month in south Austin held by @Guy Gimenez called "partnering to prosperity". Guy alwasys provides great content, and seeks to provide value in everything he does. Other than that, just jump on meetup.com and expand your range to at least 100 miles so you can pick up some meetings in Dallas and Austin, possibly further if you're willing. just remember that some of these are better than others, and if you hear the words "this is not a sales pitch" it probably is.

@Alexander Plott

Welcome to BP! I'm also a student here in Waco, though I go to Tarleton rather than Baylor. BP is a great place to meet new people and learn. I myself have just gotten into the learning phase of REI but im anxious to get started. One of the great suggestions you will hear when getting started is to go to meetings and meet investors, and I promise if you go to the right meetings, you will meet some people who will motivate you to succeed in this industry. The big issue however is that they are impossible to find here in town if they even exist at all (if I had experience, I'd probably start one myself). I haven't been to too many meetings, but the ones that I have gone to I've driven to Austin and Dallas for some are worth every hour, mile, and penny in gas, and others are glorified sales pitches. Find some of the good ones, make friends and contacts, and network yourself. I'm pretty sure that McLennan County has foreclosure auctions on the first Tuesday of each month at the county courthouse, may be a good place to find some cash buyers and investors in town, and not far off campus. I have yet to go to one due to scheduling conflicts in the past, but do intend on going next tuesday (7/7) just to get a feel for everything and maybe meet some new people in town. Other than that, pick up a few books, and listen to the podcasts, you'll learn more than you ever thought was out there.

@Guy Gimenez

Just curious as to what types of marketing you currently use, I think I remember you talking about direct mail at your last meeting, is there anything else you typically use? Flyers? SEO? 

If you ever catch yourself having to say "this is not a sales pitch" you've gone too far. I met a guy here on bigger pockets that is committed to providing value to other investors for the sake of building mutually beneficial relationships rather than just selling an education. His meetings are free, provide great content and are much more inviting than the meetings where people with expensive clothes talk about their 4 million dollar homes and have to tell you what a great value their $1000 class is. Make students colleagues, not customers

As a newbie/student, of the whole REI thing my self, I would recommend the Millionaire Real Estate Investor, by Gary Keller. I have learned a lot going through that book about investing in real estate, things I would have never thought of. He also has another book in the same series called The Millionaire Real Estate Agent, which I haven't read but have heard good things. I've also started reading another one of the books in the series called flip, based on a recommendation from a fellow BP member. Honestly though if you just jump on BP a few times a day, ask questions, and read forum posts that interest you, you'll learn a ridiculous amount, and even meet some great people along the way. I've only become interested in REI a few months ago, and I'm amazed at how much information I've taken in. Hope this helps, and best of luck!

Originally posted by @Account Closed:

Originally posted by @Bill Gulley:

Originally posted by @Account Closed:

As long as you let the seller know your intentions and your honest upfront, your not a crook. A good tip is in the wording you use with your sellers. I like to explain to them that I have partners, who invest in real estate, who actually pay me a fee for by buying my interest in the property. Also explain to them that clause in the contract that talks about assigning so that they know how you and your "partners" do business. Last but not least, give the seller a good earnest money deposit so that they feel more secure as about the deal. Many wholesalers talk about ten dollars earnest money............not a good idea. With a 500 dollar or more earnest money deposit they will know that if you default on the deal then they at least get 500 or more for wasting their time.

Partners? Really, you have "Partners" as in partnership? Or, is that part of the guru teaching to weasel out if you fail to get a "partner" to buy or sign off on the deal. How do you explain that clause in your contract?

Pretty simple to get the deal across:

,Mr. Seller, I acquire real estate for myself......I also work with other investors. If we reach an agreement for you to sell, and later I find that this property doesn't fit my investing needs do you care who buys it at our agreed price???

No, they will not care!

If they say something like..."Oh, you just want to flip my contract?" You can repeat what you said, no, if it doesn't meet my needs do you care if I let another investor buy the property at our agreed price? Actually, Mr. Seller, agreeing means you increase the odds of selling at your agreed price regardless of what we may find later on, per the agreement.

Again, they don't care!

Get rid of all the partnership BS and weasel clauses and stick to the standard contract, if title is bad, you're off the hook, if you can't get financing, you're off the hook, if the payoff comes in too high, you're off the hook, if the seller can't give good title, you're off the hook, if you make it contingent on passing a home inspection and there are significant issues you can't work out....again, you're off the hook! 

Not picking on you Tyler, it's just par for guruized wholesalers, who don't really know real estate or contracting and legitimate ways to terminate a contract. Learn the basics!  :)

 Whoa whoa slow down guy..lol everything will be ok. 

The thing is why would you even sign a contract with the seller if it doesn't fit your needs? Isn't that what due diligence is for? 

And actually I have yet to see a wholesaling guru talk about honesty upfront through out the whole deal. Your method seems a little bit more guruish to me. 

I have a feeling your an investor with sufficient amount of capital. For those of us that don't actually have the capital in our back pocket to acquire the property, I think it is extremely unethical to make a seller believe your buying their property and then at the end say "um yeah this property didn't fit my needs even though I signed a contract with you so I got some other guy that's going to buy if now". Sure it's a good exit strategy, but if you do it all the time it just better to be honest. And are the investors that wholesalers provide service for not in a partner type relationship?

 I think what Bill was trying to say was that using the word "partner" was a bit misleading, as calling them partners could be confused with having a partnership with them, in which you would run a business together. From what I can tell you two are technically saying the same thing, one person calls them "partners", the other says "other investors". Also I think that Bill does deals outside of wholesaling so when he says

"Mr. Seller, I acquire real estate for myself......I also work with other investors. If we reach an agreement for you to sell, and later I find that this property doesn't fit my investing needs do you care who buys it at our agreed price?"

He initially intends on acquiring the property for himself, to flip, hold, or whatever, but if at some point he finds that the property doesn't fit the criteria he has for his flips or rentals, THEN he will wholesale to the other investor. I guess you could look at a wholesale deal as his plan B or plan C rather than his whole business. Of course this is all complete speculation, as I do not know Bill or his business, that's just how I read the post.

J. Martin As everyone else said, this is a very inspiring post, especially as a newbie starting out. I've been on the site for just over a month now and have already seen what it can do, it's crazy! Joshua Dorkin did a hell of a job when he created this site, as well as the podcasts. This is an amazing community of like minded individuals who are all seeking the best for each other, simply unbelievable. There should be networks like this for more areas of business! Congrats on all of your success and good luck in the future!

@Linda Weygant, @Adrienne G., I'll be honest I've just simply never come across the term in the studying I've done over the past couple of months, literally this is the first place I've ever seen PITI anywhere, books, forums, articles, ect., though I have understood the concept of it, just never knew the term itself. I'm not one to ask what a term means though, that's what Google is for. Thanks for the input everyone. @Richard C. I feel an almost uncomfortable aggression when I read your post, it shows your passion on the topic and is exactly what I was looking for, very much appreciated! (love the drug dealer reference by the way). @Jesal Patel, that is a good point about the lack of effort involved when the wholesaler's money isn't necessarily at risk, thanks!

@Linda Weygant thanks for the input! Great stuff, now I have to go look up PITI!

@Darrell Jones very well put, that's the type thing I'm looking to hear, and not just for me, but for anyone looking to get into wholesaling. I want this to be a post where those looking to get into the business, as well as those already doing it can go and see what investors are really looking for in a wholesaler, and I think you hit on the topic well. I think I've got a good grasp on the role wholesalers play, which is as I see it, that they are the ones who go out and deal with the motivated sellers, they should go out and create great deals through negotiation with sellers and getting houses under solid contracts at great prices that are based on quality research and due diligence. From many of the complaints I hear, it's as if some people don't realize that wholesalers are in the business of selling deals, not houses, and the quality of that deal is where the real money can be made. Feel free to correct me if I'm wrong in any area of that!