All Forum Posts by: Andres Garcia

Feasibility Studies can help you a great deal in scenarios such as this. They will research and tell you the highest and best use for your land. There are many companies who offer these services to Real Estate Investors. In my opinion it is the best first step you can take.

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All very good responses which you should take into consideration. I would like to add one thing. A 10% cap rate may or may not be a good deal depending on the are or the market cap. In commercial real estate deals are valued primarily through the income approach vs comparable analysis which is prevalent in residential real estate.

A commercial appraiser will look at closed transactions in a particular area to determine the market cap rate. If you are purchasing in sub market (neighborhood or area within a city) in which the market cap rate is 12% then you are overpaying and vice versa if the market cap sits at 8%. During your preliminary analysis or your due diligence period you should call 2 or 3 appraisers and ask them to give you an estimate of the market cap in the area of your potential investment. This question should come in passing, call tell them you are shopping for an appraiser for a deal you are getting serious about, small talk (ask about the area what they know how they feel about it) and then just casually ask the market cap.

A final note, if you truly want to make a LOT of money investing in commercial have a specific strategy for each property you acquire. Determine its current market value, determine your game plan for management. How will you increase income? How can you decrease expenses? The beauty of commercial real estate is that it is very easy to manipulate the value of a building by simply managing a property efficiently.

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Fraud defined: intentional deception resulting in injury to another person, imposter; a person who makes deceitful pretenses; something intended to deceive; deliberate trickery intended to gain an advantage. If you do not deceive you are not committing fraud. You must disclose where the funds are coming from. These types of transactions conventional lenders will frown upon but if you go the private or hard money route many times they will not care. [EDITED BY MODERATOR - Solicitation removed.]

When I was a full time wholesaler most of my deals where listed. It is the easiest source to find deals because there are always so many. What you have to make sure is that you put it under contracts for well under the asking price. It is also an excellent way to make contacts. When it was my sole source of income I had 7 realtors who would bring me every listing before they put it on MLS to see what my price would be. It is always better if they are not listed but to create a steady listed properties are a huge benefit. Get your real estate license and it is even better because you collect assigment fees and Real estate commissions.

Researching for 6 or 7 months?!?!? Call me please you'll send out 6 offers within a week and do it with confidence...

If you want to run an ad it's not a terrible idea but I would't spend a lo of money on it. Craigslist Backpage and do an internet search for Real Estate Investment clubs in your area. Ask Investors about recent deals they have closed.

When talking directly with sellers you want to be sincere but firm. Let them know you are an investor. 2 thing I always ask 1. Motivation for selling 2. Always get a price before you give a price. They will generally resist but if you ask the same question in different ways you won't seem extremely pushy.

Remember most of your offer will NOT be accepted. So you have to choose the best way to invest your time.

Ask the seller what the condition of the property. The point of this question is not for you to start writing up a repair list but if a seller tells you the property is not in good shape they will be more receptive to a low offer. If you have an option look at properties that are owned by motivated sellers.

When I was starting out I went to Home Depot and walked around and took notes. This allowed me to have more intelligent conversation with investors. Also look around for lower priced materials, Mom and pop stores locally owned places. It's good to reffer your investors they will like you more because you helped them out and make you seem more knowledgable.

Dont worry about making mistakes always leave yourslf an out in the contract. It doesnt matter if you dont sell a paricular property because every property you get you advertise and you make new investor contacts and it will get to a point that on certain properties all you have to do is make one or two phone calls to move a property if you get to know your investors needs well.

I can send you a contract. It will work. I dont know if it is legaly enforcable in your state but it really doesnt matter.The only time that will come up is if a seller wants to back out of a deal. If they do I'll let em theres plenty of deals out there (it has never happened to me) If you want to be 100% secure call a realtor one of their listing tell them you want to submit an offer and ask them you to email a blank AS-IS contract make minor changes and your off.

In terms of reading I went to a bookstore (library if you are short on funds) go to the realestate section get a stack of books and take out whatever seems the most interesting. I've read over 30 books and the best lessons learned cam first hand.

Call me or email me if you like I love the business though I'm concentrating more on commercial deals these days I still do the residentials to pay monthly expenses.

How did this deal work out?

Just some thoughts that I thought might help.

1. Never, ever, ever... ever be afraid to submit an offer. Give yourself an inspection period and clarify that you can cancel for any reason.

2. If you look an a property always submit an offer within 24 hours. Doesnt matter if the property is worth less than you thought or if it needs more work than you hoped. Doesnt matter what the realtor says about the offer. If I spend more than 10 minutes on a property they are getting an offer for me it's standard operating procedure. I've done quite a few residential wholesale deal (Closed 56 in 18 months) I submitted over 700 offers to close those deals

3. Bank REO's can be tricky the LLC comment I saw above works I generally stay away from Bank owned properties. They rarely accept contracts other than their own.

4. There is nothing good that can come out of you disclosing your intentions with the property to an owner or a realtor. One of two thing will happen either they are ok with it because they are extremely desperate or you will scare them off because they do not understand or they think its illegal or whatever reason they come up with. I disclose it only if I absolutely have to.

"I am a real estate investor and am interested in your property/listing. I would like to do a brief walkthrough and submitt an offer within 24 hours. The only contingencies my contract will have is a short inpection period and of course clear title" Get's em everytime they ask very few questions and treat you as a very serious buyer.

If you want to get into it full time I would suggest you submit a minimum of 3-5 offers per day.

Feel free to contact me if you have any questions.

ou can go to bank of america website. Click on mortgages and theres is a section for "find my homes value" It is more accurate in large metro areas.

I know the founders!! They do have solid leads

Letters and post cards work well if they are prepared well. Thats going to get you the most bang for the buck.