All Forum Posts by: David Reo

@Lydia R. Thank you for the invaluable advice. I will put in the time to build a track record and then go out to raise capital after that.

@Jim Pellerin I like that 14 hour a day system. I would definitely be willing to put in that amount of time or more. Is that 50-200 emails a day? How fast did you get to 100 deals? I figured I need to make 30-40 phone calls a day to be doing deals consistently, but I like the email strategy also and I am interested to learn more.

@Joseph Cacciapaglia

This is a new venture, but I have other people in my circle with more knowledge and experience in real estate. I don’t buy into the “get rich quick” scheme, and I understand it’s going to take a ton of time and money to build a consistently profitable wholesaling business.

@Lee Ripma

The seed money would go into pulling lists, sending out mail, hiring virtual assistants when necessary, and building/ maintaining a brand image.

I'm looking to raise money for my wholesaling business, and I would like guidance on how to go about this. I just finished reading "Raising Private Capital" by Matt Faircloth so I have a couple ideas. 

Right now I am looking into a structure like this:

-Borrow from an individual with an IRA -> convert to a SDIRA

-Make loan interest and principle payable at the end of term (because it's an IRA)

-Structure similar to a construction loan with monthly drawdowns of about $5k for the highest probability of success with direct mail

-Possibility for an equity component: pledge a percentage of profit along with normal interest in the promissory note (a joint venture)

Would this be attractive to a potential investor considering I am wholesaling in California and the average fee is $15k-$20k on the lower end?

@Mark Pedroza I’ll definitely look! Those are just the cities that I currently have buyers in.

I am building a wholesaling business this summer with a focus on the Bay Area and the Central Coast of California. Specifically: Menlo Park, Palo Alto, Redwood City, San Luis Obispo, and Pismo.

This bring me to a question: is it smart to wholesale in California, or would it be wise to go virtual in a different market?

@Nina Grayson  Your post about making your own calculator on excel, including average rehab costs (and then adjusting based on the buyer's needs), and being willing to take your minimum fee really resonated with me. As a wholesaler you should have a fiduciary duty to your investors (cash buyers), but it is also more than that. Both parties are in symbiotic relationship. As the deal finder, you have to be willing to give up the deal for a cost that makes sense to the experienced cash buyer. I'll take a high-volume low-margin wholesaling business over a low-volume high-margin wholesaling business any day of the week. Then, not only are your sourcing fair deals, you are able to reach as many people as possible. This network is invaluable for taking your real estate game to the next level. Just like @Henry M. said on that long (but extremely valuable) post: relationships, relationships, relationships!

@Barry Pekin I definitely recommend it. The book is all about mindset and focus.

@Barry Pekin Thanks! I am reading "The One Thing" right now, and it definitely touches on your message. Ideally, you only do the 20% you are best at (Pareto Principle).

@Braden C. Awesome advice! I will make sure not to get too focused on one channel of marketing. I sent you a message, and I look forward to connecting!