All Forum Posts by: Chris Gould

@Marc Cesar that’s awesome to hear you ended up doing 20 deals. While others are pontificating on the “if” it can work, sounds like you took massive action and just made it happen. Good stuff dude 💪🏻

@Shiloh Lundahl not worth worrying about IMHO!

Investment Info:

Large multi-family (5+ units) wholesale investment in Indianapolis.

Purchase price: $150,000
Cash invested: $34,000
Sale price: $189,000

Wholetail. Just putting an example deal out there.

What made you interested in investing in this type of deal?

It was risky. It's the biggest house in the neighborhood by far. Historic but not officially. The comps are near 500k and above for a house this big.

How did you find this deal and how did you negotiate it?

tons of follow up via direct mail, texting and cold calling.

How did you finance this deal?

terms. 30k down and 1k monthly principal payments for 6 months then balloon.

How did you add value to the deal?

Just cleaned it out. It was filled with garbage and horders when we first bought it.

What was the outcome?

We're accepting offers right now. Hopeful to get an accepted offer this weekend.

Lessons learned? Challenges?

Don't pay for clean out services until the work is completed!

Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?

Monument Title Insurance Company. They work very hard and are very fair. I only use them.

@Cliff B

I’ve done over a 100 virtual wholesale deals with my company Indy Home Offer.

Bottom line, yes, it’s very very possible. Might be cliche but ANYTHING IS POSSIBLE. I see this on here and I’d recommend stopping asking “if” and start asking “how”. Good luck dude 💪🏻

@Ryan Kindel

This is not a perfect science. You have to become a master at “guess-timating” rehab costs. My acquisitions agent has an excel sheet that auto generates estimated repair costs solely based on square footage. Then we break them down by estimated level of rehab needed. Our levels are:

Low - $10/sq.ft

Low/med - $15/sq.ft

Med - $20/sq.ft

Med/high - $25/sq.ft

High - $30/sq.ft.

Full Gut - $50/sq.ft

So am example of low would be when someone says the house is in perfect shape. No house is in perfect shape!

If they say it’ll need paint and carpet I’ll go with low/med

If they say it’s pretty good but needs new cabinets and the bathroom is outdated, I’ll go with medium.

If they say it’s outdated, had mold and needs a new roof, I assume high.

If they say it was in a fire, I’d assume full gut.

These are just some examples but you can waste a lot of time trying to be perfect with your rehab estimates.

Virtual wholesaling is about getting as close as possible while balancing an efficient review/offer creation process. And also, control those deals! Get them UC if you’re close.

And in the worst case scenario, if you get pictures back and your numbers were off, either cancel it out immediately or ask for a retrade (lower price) immediately. Don’t keep people hanging if it’s not gonna work. That’s a big reason why wholesalers get a bad rep!

Hope that helps! I know this was a tricky one for me as well when I was getting started. Good luck buddy 💪🏻

@Darian Hardy

Couple ideas

1. Post your deal to Craigslist without the exact address. Then interview all the inquiries that come in and add them to your list.

2. Bandit signs that say “FIXER UPPER. 2b/1ba 25k CASH” and then interview everyone. Even if the deal is gone or pending with another investor, still interview them and add them to your list.

3. Pull cash buyers from PropStream.com ($99/mo) and then skip trace their info through LeadSherpa (they can get LLC contact info). You can hand dial them or text them through BatchLeadStacker or load them into a dialer like Mojo and cold call them. (I literally am doing this this week and it 1000% works. I do it every six months or so to refresh our investor list)

4. Offer $1000 to your existing cash buyers if they refer someone who ends up buying a deal from you. 9 of 10 referrals won’t buy your current deal BUT they’ll now be a part of your list. If they bring you someone who buys a deal and it makes you $15k, the $1,000 is totally worth it.

5. Scrape FB pages for your city’s real estate investors. For example, I scrape buyers from “Indianapolis Real Estate Investors” all the time. Can pull 20 from there easily every month.

Good luck!!

@Anthony Holloway

The general rule in the Midwest is to stay with properties that will rent for over $1000 a month. You will get a drastically better tenant and have lower turn costs when they leave or you have to evict. In Indy, most rentals start around $700 a month so those properties can bring you a great return, especially when you’re getting in at $40k or thereabouts BUT you have to consider that these houses get torn up by tenants. Your turn could easily be $5-6k and poof, your cash flow is gone for the year.

So to specifically answer your question, I’d focus less and specific areas and more on properties that will rent for over a $1,000/mo and will cash flow for you after expenses. There are plenty of houses that sell for $100k that rent for $1,000 a month. With a traditional mortgage at that amount, your monthly payment is probably around $450 so you’ll have plenty of room to cash flow and start building up your portfolio. Good luck buddy 💪🏻

@Anthony Holloway

Hey Anthony,

Indianapolis is another great market if you're looking to enter deals at lower prices but still keep your ROI high. For example, we may sell an off market deal to our investors for 80k and that property will rent for $1000/mo. Pretty solid back for your buck. If you do look in Indy, I'd suggest buying properties that rent for a minimum of $1000 a month as you'll get a higher quality of tenant that way.

All the best 👍🏻

Hi BP,

I’ve been virtual wholesaling for the past 4 years in Indianapolis with my team. Currently, we have a TC, Dispo and Acquisitions agent.

Everyone is remote except my dispo who acts as boots on the ground. He’s currently using his own cell phone but we aren’t able to REALLY track his activity to keep him accountable.

What are other virtual wholesalers doing with their dispo agents to keep them accountable? “You get what you inspect, not what you expect”