All Forum Posts by: Dell Schlabach

Is this a standard MLS contract for your area?

Typically in our area it is pretty easy for a buyer to walk during inspection period for any reason and get their earnest money back. Your buyers agent should know the odds. 

@Larisa Van Valkenburg sorry about the delayed response. 

Could be condensation, but seems awfully wet for condensation.

If I was trying to solve this, I would take a fan set it on the inside dry it real well. Then i would take a hose and run water on the outside, see if it pools up right under the window or if it runs away. If it pools up you need to get the water diverted. I don't know how thick that sloped concrete is, and if water is seeping in under the concrete and in through the window. The only way to tell for sure is to test it. 

We have had to solve a lot of similar water intrusion issues, and many times they are not the first few most logical sources. 

Couple other options

1. if you don't need the window, close it with a cement block

2. You could do a four inch solid cement block and a smaller window

3. Replace the current window with  a glass block window that gets mortared in sealing out water intrusion

But I suspect if you probably divert water from the outside it will solve the problem.

 I know what you mean, we put the pictures of our houses on the wall. The early years I used to put them up based on when they were finished or almost finished.

You could use a criteria of when you listed it, or when you got a contract on it. Just keep it consistant so you are measuring the same thing year toyear. The irs has more spe ific requirements but if its for your own tracking purposes, no harm done.

What is the tracking purpose, for you own info, or is this tax related question, cash vs accrual method

We use a board to track our projects, we track, offers made, contracts accepted,buy and sell, rehabs started, rehabs listed.

When people ask us how many houses we did, I tend to ask what is their definition of did :-) do they mean houses completed, houses sold, houses under contract.

But typically for a one word answer, we "count" it when the contract closes, not when we get an offer or finish and lust it on the market.

You mean realtor vs broker? 

Or you asking about is it worth becoming a realtor?

Depends on the objective, what are you trying to accomplish.

If you want to buy 1 rental property a year. No

If you want to buy 10 rentals a year, or be a full time flipper and you are planning in buying properties off the mls like we do then YES Definitely

1. Motivated seller, this is what your marketing should provide

2. List of questions to see if it's a potential deal when they call, 90%-95% are not. You don't want to go look at non deal all day long. 

3. Ability to determine ARV

4. Ability to determine Rehab Costs in a 10 minute walk through house

5. Negotiating skills to close a deal.

6. Sign a purchase agreement

7. Give them a deposit

8. Show?  the house rehabber, how do you get in to show? Maybe take plenty of pictures if all major items so you don't have to take potential buyers inside. 

9. Sign an assignment contract if you are assigning. 

10: if you are doing simultaneous close, take docs to title CO. 

This is sort of a summary, their are details to all of them, not an easy process for someone with out any real estate experience, for your first one, I would pay someone to walk me through the process and split profits if I found a deal, odds of closing a deal would be much greater in my opinion. 

Lot of places for things to break down. 

Does this answer your question or do you have specific questions related to one of the procedures?

 My opinion is that it's a terrible way to start if you don't have any experience, I suspect less then 2% of people who try wholesaling without prior real estate experience ever do one wholesale deal. 

Possible, but odds of making it are terrible, unless you can hook up with a successful wholesaler and learn the ropes that way. 

I personally think flipping is easier to master, if you have one of the three keys

Funding

Construction Skills (do most of the work to keep costs down)

Project Management Skills

If you are strong in one of these you can possibly hire the rest. 

@Trixia White

I just looked up the definition of reverse wholesaling, although i didn't know the terminology, apparently we reverse wholesale.

We do about two of these in a typical month, we have four rehabbers we wholesale to, we know their criteria and find deals for them. We also rehab, so if we buy something they don't like, we rehab it ourselves. 

We operate out of an LLC, upon the advise of our accountant.

I would suggest you do a few deals, see if you can, see if you like it, make some money before setting up an entity. 

Truth be told, it's the rare new person that ever puts a wholesale deal together. I suspect less than 5% reality is very different then the infomercials or seminars.

It's possible but not easy, I would spend all my time to focus on doing a deal before setting up an entity you may decide against.

After you do a few deals and have assetts that need protected, find a good accountant or real estate attorney, and see what may be the best for you.

The best to you in your real estate adventure.

As @Andrew Syrios mentioned, sit down with pen and paper write down everyone you know that may have 7,000 that could give it to you if they wanted, then start making phone calls. Anyone who is not interested, ask them if they know someone who might.  Odds are someone will loan or partner with you from your list.

If not go to REIA meetings, and present your deal in front of the group, or start calling the officers of the clubs, they will likely know someone.

Good luck