All Forum Posts by: David Reo

@Michael Thompson I looked into his website, and I honestly can’t fork out that sort of money right now. I’m more so looking for books with the same sort of info.

Thanks for replying though!

Where can I learn how to invest in subject to deals that most people throw away like Grant Kemp talked about on BP show #70.

If anyone has suggestions for books or other online material that would be much appreciated.

I have a couple money partners ready to fund my wholesaling venture, and they want to be limited partners. They also like the tax and liability advantages of an LLC. Is there a way where I could form a General and Limited Partnership within an LLC? If not, what would you recommend?

I would invest the full million at a safe rate (4%), and I would only allow myself to use the resulting $40k per year while I learn real estate. At the end of five years, I would take out an amount of the principal that I deem appropriate to further grow my real estate investing venture.

@James Taylor I would recommend sending handwritten letters out to lists in your area with multiple levels of motivation (I pull lists from PropStream). You can buy Forever Stamps for these letters on eBay for cheapest (about $0.42 per stamp). As for the letters themselves, try to get colors other than white to stand out in the mailbox and make sure you repeat every 3 weeks for up to 7 touches. I have heard it's best practice to match the color of the envelope to the color of the cardstock. 

Write simple messages on these that don't scream, "I want to take all of the equity in your house." This is all about putting in the work that other people don't want to. Regurgitating the same sort of buzz words that everyone else uses ("close fast," "all cash," "as-is") probably won't give you the best response rate starting out. Remember that you are a problem solver for the person who needs to sell. If you have a mentality that puts that other person first, you will naturally make more money anyways.

It's all about consistency, and making sure you have a strong "why" because you will get slapped in the face many times. 

@JD Martin This is more of a fun topic for people that want to jump in than anything serious that I will pursue. That being said, your point was well taken. I had just assumed that secondary performing liens would sell at the discount mentioned on the podcast I referenced.

I have a pretty interesting concept I’ve been kicking around in my head lately: can you buy your own note at a discount. I’m confident this would be near impossible to do directly (in most market cycles), but what if you set up an entity and got creative with things? I heard on BP podcast #23 that Dave Van Horn buys secondary liens for 3 to 20 cents on the dollar. What if you got a home equity loan and then bought it back for 3 cents on the dollar? That would be crazy arbitrage...but can it be done? Of course, this means the note would be for sale, or you convince the debt holder to sell.

@Matt Faircloth 5-star review has been left! I really enjoyed the book.

I am more so looking to raise money for marketing. Right now that means about $1500/ month. If you have any other tips on doing that, that would be much appreciated! When I get a deal ready to close I’ll definitely look into the double closing option!

Bay Area Real Estate Agents...where are you? Let’s connect! I’m looking to buy and sell in the Bay! Specifically around Redwood City, Menlo Park, Atherton, and Palo Alto.

@Lydia T. 100 it is! Where did you pull your lists and phone numbers for those calls and how much should I expect to put out for that style of marketing?