All Forum Posts by: Chris T.

New marketing plan to find motivated sellers

1. Mailers â€" AO, OO
2. Handbills
3. Business cards
4. TV commercials
5. American Classifieds Ad
6. Phonebook Ad
7. Bandit Signs
8. Internet/Web Page
9. Vehicle Graphics
10. Referrals

Additional ways to find motivated sellers

1. Realtors
2. REO
3. HUD
4. Condemned Buildings List
5. Probate
6. Foreclosure list
7. Court Sales
8. MLS
9. Classifieds – look for deals in local ads
10. FSBO’s â€" call FSBO’s and look at FSBO website

I have experience over the past few years in Owner Financing - SFD but I am expanding into new areas.

What factors do I need to consider when analyzing rentals, in general, and multi-unit properties? I know that there are many posts on this subject so please suggest what titles I should search, that is, if you don't have the time to post the information right here.

I am looking at 9 duplexes, all 1 bdrm, with 10 two-car garages.
They rent for $375 each.

I agree with Mr. Dorkin about the mentoring.
I would recommend, running an ad in the paper that states that you are looking for property locators. Train them and split the profit.
Or, become a broker and train your realtors to do it for you.
The good thing is that you don't charge them up front for a whole bunch of money and promise them the sky! You help them make money and you split the profits.
I'll send you some detailed info on what I've seen work.

Also, writing a book that actually has the answers instead of a motivational sales pitch to buy more stuff seems like an original concept when it comes to REI. The good thing about a book is that the reader will get out of it what they put into it so that you don't end up wasting your time. You have the possibility of reaching and helping millions of people without actually being there.

When considering these two possibilities it is clear that writing a book (compiling all of your posts....lol) is the most effective way to help people without wasting your time or their money.

Lastly, I'm actually kind of impressed with Charles Parrish's approach to the whole thing. Create a curriculum and start your own university!

The way to stay away from the Guru status is by allowing people to earn money using your program, even if they just use the money to pay for your program. The guru's who say "pay me $2,000 up front and I guarantee you will make 200 times that amount in 10 days" are the same guys who will not let you work it off. If these gurus guarantee that the student will make that money back in a short amount of time then why wouldn't they just let them earn it using their system and then allow the student to pay them from their earnings?

Also, don't sell seminars. If you are a great public speaker and someone wants to hire you to give a lecture or speech, that's one thing, but when you sell tax-deductible cruise ship seminars to Somalia then you become a guru-pirate!

You will have him sign two contracts if you are doing an assignment. The purchase agreement and the assignment of contract.
If you don't have a contract to buy the house then you don't have a contract to assign!

Thanks Charles!
It does have an AH on record.

I was researching the tax info on a property and it has a Property Code of LA - Letters of Administration.

What does that mean and does that indicate how the owner obtained the property?

I understand that you want them to move quickly. In reality, that's how long it takes sometimes and you should plan for it so that you are not unprepared.

Look at the MLS for your area and see what the average days on market are then you'll have a better idea. However, the economy took a turn less then a year ago so you won't necessarily have accurate info and will need to plan for longer holding times because of it.

The market where I am hasn't been affected as much as most places.

My experience is in Owner Financing which allows me to sell properties a lot faster then rehab to retail, usually less then 45 days. But, the successful rehab to retail investors in my area are definitely planning on it taking 6-12 months now as opposed to 3-6 months a year ago.

The unsuccessful rehabbers in my area did not prepare for such things and have had their properties foreclosed on and or filed bankruptcy.

I'm just trying to give good advice to a new rehabber so that he doesn't get burned before he ever gets started.

The plan I mentioned earlier on this post allows for multiple exit strategies to ensure profitability. Including, cash buyers, conventional, FHA, and Rental (or lease options which are illegal in my state).

Sounds like some pirates have seized your site! lol

Originally posted by Tim B:

See the topic on 90 day seasoning.

Shouldn't a rehabber be factoring in holding costs anyways? In my area holding costs were figured to be 120 days but since the market changed they are estimating 6-12 months.

If you already figured your holding costs correctly then the 90 day seasoning period shouldn't be an issue.

I would begin marketing the property, immediately, as a cash only fixer upper. Let them know that you are in the process of rehabbing and they will begin to watch for your property to be completed. After it is complete you should have a few interested parties. Then, you could put it on the market as a "conventional only" deal until you've reached 90 days. By then you should have someone drooling over your property and they will have had enough time to save up for the down payment on a FHA loan.

If after 12 months you haven't sold the property then you may want to consider renting it out or offering Owner Financing.

I called two "We Buy Houses" signs the other day.
The first one was a realtor who happens to be investor friendly, which is not always easy to find, and who will certainly be useful as a wholesaler.
The second one was a hard money lender in my area. Another invaluable contact as a wholesaler.