All Forum Posts by: Cody Lee

Hi Glenn and Matt,

Finding a wholesaler-friendly escrow agent is likely going to be more helpful. 

You can work with different escrow agents within the same title company and it can be night and day difference. Personal opinions on how things should be done as well as work ethic can vary greatly depending on the escrow agent you use. 

What I recommend is to look up highly-rated title company offices in California (doesn't have to be Sacramento), ask to speak with a senior escrow agent, and then asking them if they've personally done work on assignments, creative financing deals, double closes, etc. 

If they don't know what you mean or haven't had much experience, keep asking around.

A good wholesale friendly escrow agent will immediately know what you're talking about and give you confidence that they'll get things done.

Sounds like a pretty sweet deal, Mark. Great work!

1) Trying to make numbers work when they don't. When you are starting out, it's challenging to accurately assess properties and rehab budgets. It's also very tempting to try to force margins when you've been grinding out 60 hour workweeks only to get told no over and over or have people wanting prices that don't make sense.

You can overcome this by really knowing your trade and improving your sales strategies. John Martinez with Midwest Revenue Group has some great free sales coaching resources. I highly recommend him. The other thing is to not want a deal so bad. If the numbers don't make sense, continue to follow up but don't just increase your offer to try to get them to sign. This is irresponsible and sets yourself up for failure.

2) Be prepared to not get income for a while when you start. Income will tend to ebb and flow until you get your processes really dialed in so always keep a safety net in case of bad months. Also, this is not an easy business at all. There are tons of wholesalers out there who do unethical practices or act incompetently (like offering way more than they should) and that can make your market more hostile towards wholesalers. "A few bad apples spoil the bunch" really applies here.

The best piece of advice I can give you is to always provide value. Don't contact people with the mindset of trying to get a deal. Contact people with mindset of trying to help them, even if they don't work with you. Always put ethics and honesty first. Never lie or coerce to get a deal. Lay out the facts, build rapport, look after the seller's best interest. You'll be surprised how often people will be able to read your heart and work with you simply because they trust you.

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Hi Logan,

"Would you operate anywhere as long as the numbers make sense?" - Yes!

I started off in acquisitions in Portland, OR. As we grew, we started working virtually in Washington and northern California. We did many deals that were completely virtual.

Keep in mind that areas where there is less demand, you'll typically need an abnormally good price for the numbers to still make sense.

Although virtual deals will open up a ton of markets for you, they often come with more challenges than ones where you can meet the seller.

In general, bigger markets will have more deals but also more competition. Smaller cities and towns will often have less deals but less competition.

Letting people know what market you're in may help you get better advice.

Are you hoping to stay local to where you are or close deals virtually?

Hi Tanner, if your tenants are good tenants and are taking care of the property and paying rent on time, then I'd suggest Option B. 

Good tenants are generally harder to find than keep and $500/mo cash flow (after your mortgage increases) from one property is nothing to scoff at!

What I might suggest is using the $45k from Option B to purchase a duplex so you can start a family on one side and rent out the other. 

You may find that your personal living cost ends up being next to nothing or you start cash flowing on a second property.

Congratulations on your first flip, Dustin!! Keep it going!

Hi Dianna!

I highly recommend finding a wholesaler-friendly escrow AGENT rather than title company. 

The reason for this is because you can have two escrow agents work for the same title company and one of them will have no idea what you mean by an Assignment and the other will be a rockstar that has worked many wholesale deals.

That's why I recommend calling title companies, asking to speak with a Senior Escrow Agent, and then asking the agent two questions:

1. Have they worked on any assignments of contract?

2. How many have they done?

If the Escrow Agent doesn't know what you mean by Assignment of Contract, they're not a good fit. Similarly, if they've only done a couple, they're not a good fit.

A good Wholesaler-Friendly Escrow Agent will immediately know what you're talking about and make you feel confident that they'll take care of the transaction.

Excellent work, John! Looks fantastic!

Hi Prell!

Miami and Tampa metros in Florida, DFW/Houston/Austin in Texas, Phoenix metro in Arizona, pretty much any larger city in Ohio, and the Atlanta metro in Georgia all have reasonable prices and are hot markets for real estate investments.

If I had to pick one to start with, I'd say either Miami or Tampa in Florida. There's a lot of distressed real estate owned by older retirees in these areas.

Are you looking to start off wholesaling, flipping, buying rentals, or something else?