All Forum Posts by: Christopher Blanco

I started going to REIA meetings, talking to people here, talking to banks. One meeting at a bank I was talking to the banker about my story. She said she had someone with a very similar background and goals who was about 3-5 years ahead of me. The bank then took me as a guest to the REIA meeting where I met this individual. He helped me get started. Then I met a great investor realtor here, and then I took some mentor ship classes through my local REIA.

The key to all of this is network network network. I didn't offer to do work for someone, I just started out, bought a property and rehabbed it. I am now on my 2nd and 3rd with a 4th in the wings. Just keep going and make the plunge!

If you have that great of a deal, run the numbers, get them presentable, and start asking around. Go to your local REIA group, post the analysis here. Do you know what the Vacancy rate is for each cabin for each season? What did your friend make last year on the properties. Before you jump on this you need to have your numbers squared away.

1) A true HML will want to know about the deal first, make sure you have your numbers squared away and presentable. Be able to talk intelligently about the area and the deal. Some HML's will require a break down of construction costs.

2) Shouldn't be a problem. If there is an objection to this, then put a 7 day walk though contingency in your offer. I have them in all my offers even if I get my contractor in before hand. Here is what I have in my purchase contracts:

"Buyer shall have seven (7) days after acceptance (the “Inspection Period”) to perform inspections, environmental inspections and/or tests of the Property, at Buyer's expense. Buyer shall have the exclusive right to terminate this Agreement within three (3) days after any inspection for any reason whatsoever by delivery written notice to Seller. In the event that Buyer terminates this offer, then the Earnest Money paid by Buyer, if any, shall be returned to Buyer within three (3) days of said termination, and the parties shall execute a mutual release.

Seller agrees to provide reasonable access to the property for Buyer or its agents to inspect said property. Also Seller agrees to provide reasonable access to the property for Buyer to review any such conditions corrected by Seller in the event the parties agree, in writing, for Seller to repair any item or condition of the Property as a result of the inspection." 

1) Due diligence! Don't ever take the Wholesalers word for anything (or anyone's for that matter). Run your own numbers, get your contractor into the property etc. Once you find a wholesaler who you know can run semi-accurate numbers, then its trust but verify, but most over estimate ARV and under estimate repair.

2) If a wholesaler is assigning you the contract, he should be upfront about the contract price and assignment fee. If they aren't, then I would ask for a double close. 

3) Negotiate! Especially with the larger wholesalers, there is often more room in a deal than you think. 

I never let lack of financing get in the way of making a deal. There are plenty of options when finding deals before financing

1) Wholesale. If you cannot get finding find an investor who will take the deal, even if you only make 1-2K

2) Local Hardmoney. If the deal is good, there aren't many HML's that won't take it. I have built up a relationship with one who I know will fund a good deal EVERYTIME.

3) Friends and Family

4) Bigger Pockets!!!!

Finding and recognizing the deal is the most important part of this buisiness. If you find the deal, you will find the money. 

I only market to probate right now, I use a White Letter and then put it in an invitation envelope. I consistently get 3-5% call rate (higher if you count "Take me off your list")

I wouldn't recommend directly engaging the appraiser. The best thing I have found to do is to leave a book on the countertop or table that contains your comp's, the work you did  (before and after if you have them), and contractor receipts.

Some will look at it and some won't. You don't have to accept a low appraisal either. I just did a HELOC and my first appraisal came in at $101,000. I said it was ridiculous because houses smaller than mine were selling for $135K+ in my neighborhood. I challenged it and got it revised to $138K.

@Aadil Saeed Welcome to Cleveland. I would also consider joining the Great Lakes REIA and try and make it down to a meeting or two.

• I have my personal checking account where my W-2 income goes. I pay my mortgage, car payment, and living expenses out of this account
• I have my business checking account where my investment dollars go. I pay for everything for my rehabs out of this account. I also pay my cell phone and internet through here as I use both for business. 
• I have a business Credit Card that I pay off every month to keep credit up
• I have a HELOC account that I use as my GAP lending account. ]
• Every two weeks I put $275 of my pay as an investment into my business.  This also helps pay my monthly bills (QuickBooks, phone number, gmail address, and web hosting)
• I also have a separate checking account for my rental business (which I have not started yet)

CoC of 6.1% is not where you want your investment dollars. If you lend me your 150K, I will give you a higher rate of return than that and you won't even need to do the work. If a deal is not north, well north, of 10% CoC return...then you need to look elsewhere