All Forum Posts by: David Olson

@Brian Pulaski those are the answers I got on the 10% rule which I agree if it is that large of a swing then it would be not so good. They do provide a detailed quote but as to the specific type of material I do not know. I didn't see one of their quotes up close. These are questions I plan to go back to them with.

@John Thedford @Bryan Frost @Travis White @Caleb Heimsoth @Account Closed Well the meeting went great! Well over the 1hr too and they shared with me some of their own investment strategies for a first timer like myself. They didn't try to sell me on training or sell me on anything for that matter. They were more than happy to answer the questions I had gathered from everyone. So below are the questions and answers from this past Friday.

1. Are you licensed or unlicensed? Licensed. All reps are getting their license as well.

2. Do you provide appraisals to back up your claimed ARV? : They Guarantee their ARV. If it’s worth “X” and they don’t hit their mark within 10% they will pay you $1,000. They also provide comps to back up the numbers.

3. Do you have written bids from contractors when you state "x" rehab costs? The numbers in the rehab costs are based on the assumption you will be doing the contractor work yourself. The buyers walk the property and they put together the estimate. When their rehab estimate was wrong in one instance they dropped the price of the home enough to make it a deal for the purchaser.


4. Can you provide me with at least five references for deals you have done? Reviews are on Google.


5. Do you require a non-refundable EM deposit? (Even though that is not standard in the RE industry?) Yes but it is an option fee. A $5,000 check is written to them not the title company and that check applies to the cost of the home. If it does not close because of them or the title company they will refund you the money. They want the work to be done on your part prior to placing the deposit on the property. It is about a two week turnaround after the $5,000 deposit.

6. What is your most effective marketing approach? Adwords, TV, Radio, Direct Mail? All of the above. Some months Direct Mail works better and some months Adwords and other marketing tools work better.

7. What is your average cost per lead and cost per deal? (This will help you handle the $10k assignment fees a little better Assignment is how much they make per deal.): Between $4,000-$5,000.

8. How have you helped sellers? (Wholesalers tend to get a bad reputation but some have truly helped countless homeowners improve their situations.) They have to add value to the clients. If they don’t then they don’t have a business to build on. They have to genuinely care about their sellers. They train their team and buyers to show the value they bring to each home owner.

9. How many deals do you average a month? 20+ per month since Sept. Goal is to do 300 this year.

10. Where are the best opportunities in my market to implement my investing strategy? Anywhere outside the loop.


11. Do you tell sellers you're a cash buyer, even though you don't have the means to purchase the property? They tell them they are there as a wholesaler.

12. Do you tell sellers you're buying their house, even though you have no intention on actually closing? No they don’t tell them that. Same answer as #11 above.

13. Do you advertise/market the property before you own it? Yes they market the property but technically speaking they are marketing the equitable interest in that contract.

14. Do you tell sellers you're bringing 'partners' or 'inspectors' to the house in order to show it to perspective end-buyers? No they tell them they are the wholesalers. If you go and try to speak to the home owner you get black listed. 

@Chris Hopper good lord money bags!! jk. That's great man!! The recent meetup event I went to last Thursday in Katy was regarding a house that was being rehabbed in Bear Creek. She gave some photo's and lessons learned on the project. I'm looking to buy my first property still and hoping it can happen before the end of March. 

How did you acquire all 5 and what is your plan? Flip or rehab and rent? Purchased with hard money or private or neither? 

@John Thedford it is not Northwest acquisitions. It's actually Senna House Buyers here in Houston. 

@Matthew Paul that could be the case. I'm a hard sell. Just ask our last time share presenter. 3hrs later I had a free cruise package (upgraded the package at my choice/cost to a nicer room), $25 gas card, two nights in a Marriott, $100 restaurant gift card, and two tickets the comedy club. 

@Bryan Frost my strategy is BRRRR. Which after listening to a few podcasts and reading some posts on here could be a good match. This is assuming they are great to work with.

@Grant Rothenburger not wanting to be a wholesaler but use them to find BRRRR deals. Close friend of mine is a successful real estate agent back home and he didn't have much if anything positive to say about them. It seems if you are truly a genuine wholesaler and are truly helping people find deals or sell their home than you are already greater than 90% of them out there.

@John Thedford Good questions. I would assume regarding if they are licensed is that almost all wholesaler do not have a real estate license correct? All your other points are great and thing I would have never thought to ask. Especially the bids from contractors when they state the rehab costs. 

@Jordan Decuir I haven't made an offer as of now. When using the BP calculators I'm having a hard time completing some of the numbers required. Most of which are estimates so its a bit challenging for me at the start. I plan to buy sometime before the end of March using the BRRRR strategy using a HML and then doing a cash-out refi into a 30 year term. I'm a bit cloudy on the refi part and not sure if I am required to have an LLC when using a HML or not. Do I pay the 20% down twice? Once to the HML and again to the bank at the refi stage? I do know its easier to get a residential refi when its in your name vs an LLC where I think you'd be forced to go commercial.

So I was at a recent REI event and I ended up winning a free 1hr mentor session this upcoming Friday with the co-founder and managing partner of a large wholesaler. Being the newbie I am, I would like to reach out to the BP community for a list of questions you would ask if you were in my shoes. Maybe some questions that you wish you had asked a wholesaler you worked with in the past? Maybe you wish you had more clarity on a certain step in their business model before you worked with them? Maybe there are a list of questions that are an absolute must for you to trust them?

I have listened to a plethora of the BP Podcasts (this wholesaler was a guest on two of them) and a lot of successful BRRRR investors work with wholesalers however they also say that 9 out of 10 aren't worth your time and the key is to finding a TRULY reliable wholesaler.

I literately plan to collect these questions from everyone on here and put them together and bring them with me. Following this 1hr spent with them I will get back on here and answer the questions that everyone asked. I think its a great way for me to learn and to ask tough questions that I likely wont think of on my own. 

So if you would be so kind as to giving me 5 or so questions you feel are absolutely a must for you to trust any wholesaler you would ever do work with it would be GREATLY appreciated!!

Thanks!!!

@Nghi Le thanks for the details!! In point #2 You state that I only need to put a down payment on the first loan so during my Rate/Term or Cash-Out refi there is no need to put an additional amount down? In the case of a HML, that could potentially fund the purchase and rehab at 100%, at which point does one put his % down then? At the refi stage? Sorry I apparently have it beat in my head that I need 20% down to get this BRRR on the road.

@Ola Dantis the 20% down to refi is one part of the cash out refi I was forgetting. So hypothetically one could do the whole deal through a hard money lender (purchase + rehab). Once this is complete and you move to a cash out refi, you would need 20% of the 75% LTV that the bank is allowing you to finance correct? Once this is complete they turnaround and write you a check for the difference once the lender is paid in full essentially giving you back the 20% you just put down? Sorry somewhat of a newbie here.

@Mike H. If you do a rate/term refi vs a cash out refi, don't you leave your money in the deal? Would a cash out refi be more beneficial for one who does not have the same cash reserves built up as Taft does? I'm starting the BRRRR as well and have been following this thread. Great content and very helpful. Also wondering how hard it is to get Recasa Financial to do a deal for a first time lender. I looked them up and they also cover Texas which is where I reside.