All Forum Posts by: Daniel J Cano

Here's how I found my Mentor.

I started by contacting investors in my market, and understood what a good purchase for them is.

I found that deal worked, and wholesaled it to the investor I got along with the most.

I asked if I could tag along to learn more, with the condition being that I bring him more deals to flip. I've been working with him for 2 1/2 years, and currently manage all his flips. last year we did 33ish. 

This does two things, provides value to your mentor, and it gets you a seat at the table. Rinse and repeat until you know his or her entire system. I may not be receiving the maximum capital out of this, but I am gaining all the experience and connections necessary so that lenders, agents, sellers and most importantly myself, see me as someone who is qualified. That is far more valuable than money in my stage. 

Hope this helps you.

What they're asking you to be, is a Wholeseller. Nothing wrong with that. Maybe they aren't paying you what a Wholeseller normally would get, but what you are getting is experience. In any market, your value as an employee/partner is what you bring to the table. Wether it's a deal, transactions, management, whatever promotes the business and its profitability. 

Similar to you, I started wholesaling but for a flipper in Orange County CA. Started cold calling for a few hours a day. Eventually I got a couple deals, and asked if I could help with project management. Slowly transitioned into the Project Manager for our company. Now I oversee all the flips, and the best part is, I'm getting paid to learn from an experienced flipper. My market value is increasing everyday I show up.

All that to say, if you really want to get a foot in the door, and make money. You gotta stick with what you want to do. Life insurance, real estate, car sales, whatever. Stick with it, and focus on building YOUR value in that industry. The money will follow. But you gotta do the grunt work and build your experience. 

Private money lender to experienced flippers. 

no need to pay someone $5,000 to hold your hand through the wholesaling process. You can find plenty of free educational videos on YouTube or instagram. TBH, if you do it this way, you can actually get paid to learn the wholesaling process.

Wholesaling seems daunting if you do not understand the sales process, and the language of real estate. That's what the courses will teach you. They will not hand you deals, they will give you the information you need to be able to close a deal.

But here's a nugget for ya. Find a real estate flipper/investor local to the market you want to attack (you can find one on BiggerPockets). Connect to find out what a good deal is for them. Once you know what a good deal means to that investor, go out there and find it. Bring that deal to your investor. Have em' walk you through that deal, and get paid at the end. Most investors want to help, but let's face it, their time is best served getting deals. Bring something valuable to the table, and I'm sure they'll gladly let you sit at their table.

This is exactly what I did to get started in wholesaling, and that's how I was paid to learn how to wholesale. I've transitioned from wholesaling to project management/Admin work for the investor I connected with here on bigger pockets.

Good Luck

Dan C.

Although I have not used this company, I have had to deal with them. They manage a rental SFR next to our flip in Buena Park. We proposed to replace the fence between our two properties. I could tell they took great pride in their work, were timely, and understood management.

Not sure if they are still taking on new clients, I will message you their info.

You can let them know that Dan with MAC PROPERTIES sent you over. 

Thanks!

Dan C.

Hi Annett, 
I help my mentor manage his STR in Big Bear Lake (on minor things our Big Bear Lake PM can't do). It was purchased two years ago (Short sale) and I visit Big Bear Lake regularly. (not so much Big Bear, Arrowhead, Fawnskin etc)

You'll NEED a professional property management company to manage your STR if at Big Bear Lake (city requires a maximum of a 2 hour response rate for guest complaints, and other things). From what I heard, this isn't the case with Big Bear, or Arrowhead, fawnskin etc. But be sure to double check (call up the city or a local property management company in those areas and ask who can help you answer questions you have, like what their rates are, what does your cabin need to be permitted if the city requires it etc.).

If you can get over those speed bumps, I'd say that Big Bear Lake is a solid place to make the right purchase that suits your needs. it is going to be very crowded this winter season. Naturally this means your cabin will be booked. Send me a message, and I will send you the info on our little cabin in Big Bear Lake, so you can get an idea of what a small rental is going for. (we had 29 nights booked in October!) with the exception of this week (roof repairs) all of November is booked, and half of December is too!  Imagine what it'll be like when snow falls. Just know, finding a contractor that is willing to make that drive up and down the mountain may prove difficult. I know of one, but he is NOT cheap. 

GL!

Dan C.

It might also help to go through the application process yourself, maybe through a nice apartment complex nearby? It'll cost you whatever the application fee is, but it'll serve as a great lesson for yourself as a landlord because you'll see how a professional company handles tenant onboarding. And also a good perspective as a potential renter. You learn how both parties think. Wether you decide to sign the lease or not is up to you, but at least you learned how both parties think. 

GL!

Dan C.

Provide them with the rehab costs. Be ready to tell them who will be rehabbing (subs or a GC) if all work is being done by you, I'd be ready to tell them what experience you have in rehabbing. Make sure you understand the proper way to rehab (plans, if needed, permits, inspections etc). Will you be subbing out specific trades? Electrical and plumbing are special trades that require someone who knows what they're doing. Otherwise you'll end up with a burnt down, or flooded house. Make sure you have bids lined up. Be sure to provide them with comps. If it's a condo, I advise you use rehabbed comps within that SAME HOA (last 6 months only). KNOW YOUR NUMBERS!

They're going to ask how will their money be secured. You'll need to figure out what assets you can cross collateralize. or provide a personal guarantee? Whatever floats their boat.

Be sure you understand how many points they are charging you, what the interest rate is, term of the loan etc. Remember hard money loans aren't the same as FHA insured/ conventional loans.

Good Luck! 

I Started wholesaling a year ago. Yes it's for real. I was able to get my first few deals driving for dollars. My only concern is that some states are requiring a licenses to wholesale, I am sure more are to follow. So get while the getting is good!

To avoid the moral conflict that Don mentioned, I targeted Landlords. They tend to be business minded, and less emotional about the property. 

A good teacher is Jerry Norton on Youtube. His content is GREAT for wholesaling/investing in general. I did not buy his course, but I did attend a seminar a year ago that taught me the basics of wholesaling. 

Good Luck!

I purchased an entry level course a few years ago (for wholesaling). It was great info back then, when I had little knowledge of this industry. They'll FLOOD you with information, and leave you with more questions than answers, then try to upsell to more expensive courses. However, this course was a huge boost of motivation and helped me get the ball rolling.

I think many here agree that education is important. Seminars and courses ARE forms of education, as well as this forum. I used the seminars and courses, combined with this forum to really propel me into sinking my teeth in this industry. Started wholesaling and eventually found an investor near me, that was willing to mentor me, as long as I exclusively wholesale deals to him. I forgot to mention that I found him on BiggerPockets! It's been working out great!

Like many others in this thread, I agree that this forum is all you need, BUT I can't say that this forum and podcast ALONE was enough motivation for me to get started. It has for others, but not me. Try going to an entry level course or seminar, keep an open mind. But also be aware that they will try to upsell you. I found that the courses are good enough at teaching the broad basics, and the forums are great for advise and pointing you to the right direction. Remember that no one will have all the information you will need, so sometimes you will need to figure out things for yourself!

Good Luck!
Dan C.