All Forum Posts by: Clifford Paul

Kind of a broad generalization of the whole business plan of wholesalers.

I don't wholesale, but as a flipper I see deals constantly. I have flipped contracts and wholesaled deals away that didn't fit my needs all the time. Always made a substantial fee. It's easy money if done correctly and if you are already entrenched in the business. 

Just being a wholesaler doesn't seem to work for most people, but there are a few out there that are worth their weight in gold, just like a good agent. 5% of them do 90% of the business. Some flippers hate these wholesalers for no reason. If a wholesaler brings you a good deal & the numbers work, who cares how much he is making. 

Why do so many new people want to wholesale to get started in real estate? Is it because all the guru's talk about it making it seem great. To me, it looks like it sucks. I would rater get a 2nd job at a good rate to make more money. This would allow me to invest in more properties.

I just want to know everyones reason behind it.

I currenty have a w2 job, 2 side jobs, and own 2 triplexes and looking for more. I am really looking hard at buying other businesses using SBA loans instead of RE right now. I also have a wife and 5 kids to keep up with.

Look foreward to the discussion.

Jon

First some stats:

• I have 6 going on 7 doors in the DFW area
• I live out of state
• Rents  range from 1400-1950 Per Month 
• I pay 8% Per Month
• 60% of first month's rent on new leases
• $395.00 flat rate for renewals

Getting to the place where I'm considering looking for a new manager... Here is why... Looking for some advice if I'm being unreasonable and if from your experience you can get better rates.

My complaints seem to be focused on maintenance issues.   Here are SOME examples:

1. A unit was vacant and someone left a old microwave on the front step.. (Who does that by the way).   Anyhow, I was charged $225.00 for "trip and disposal" fees to throw it away.   Keep in mind that I was paying for garbage and they could have simply have thrown it away in the garbage can a few feet away.   Weeks of back and fourth, they blame it on the contractor and refused to budge on the issue.   I hate being "nickel and dimed" and this kind of thing just drives me crazy.  
2. I get a notification of a leaky roof on a property.   It includes photos of missing shingles and an estimate of 1200.00 to repair it.   I follow up their email with a call and ask them why my 8 year old roof is leaking and their answer is "I dunno, doesn't really say... but it can be fixed."   Duh...  I ask them to get me a quote to replace the whole roof, they never did... they just ignored my request like it never happened and then followed up with me asking if I want to move forward with repairs.   I literally call a roofer I found on Yelp who was amazing.   He went out, told me I had significant storm damage and recommended I turn it into insurance.   I was able to get a whole new roof with warranty, through no help of my property manager.   When it came time to inspect the work, my property management company wouldn't go out and inspect because they didn't hire them.... Despite me asking them to get quotes and they ignored it.   I ended up making a special trip out to inspect myself and purchased another property when I was out there.
3. Quotes to do painting and other make ready items are outrageous... I can easily get quotes with some phone work and significantly beat their quotes on virtually everything.... their price is about double.. And they claim the don't add on to their quotes from contractors.

Getting someone on the phone can be challenging.   Getting someone after hours is impossible...  

On the plus side, their online system is pretty good... all documents properly loaded, reports of who paid and when are accurate and the money is forwarded in a timely manner.  

Are these kind of stories par for the course?   Am I being too demanding?   Is the grass greener?   

I feel I'm overpaying for what "Service" they provide... 

Anyone with similar experiences?   Advice?

Hello to my new BP family,

I'm brand new in real estate investing, and I'm learning and reading as much as I can. I currently live in Big Spring, TX and I'm looking for that niche that's going to work for me. I currently work a full time job that allows me some flexibility throughout the day to pursue some aspects of real estate investing. I would greatly appreciate the opportunity to sit down and talk to some seasoned veterans about how to get started in the West TX market. I'm an extremely tenacious guy that is driven to succeed. Any and all help would be awesome. Thank you very much.

Hey all,

I am looking to buy rental properties in areas where the average sale price is 40-50k. I have a hard time getting solid information about loans from banks and other entities. 

Do any of you have any recommendations about what banks/institutions i should get a loan from? Other foolproof ways to finance instead? Thanks for your input in advance. 

@Rahul Handa just by 1 that generates $2500/month

I'm in the process of purchasing an occupied multi-family investment property. I booked an inspector to come out in a few days to test everything. The seller heard we were testing for radon and threatened to kill the deal if we do. Any idea why the seller would do this?

Hello guys,

I'm currently 18 years old and was planning on buying my first multi family property using the house hacking method in the Spring of 2020 so I'll be 19 at the time of purchase. My only concern is finding tenants who will be okay with there landlord being 19. So my question is should I use a parent as figure head?