All Forum Posts by: Dell Schlabach

@ba reed ...curious why your bright idea is giving you a headache?  Or is it writing the business plan that is giving you the headache?

Do you really neeed an official comprehensive business plan, or would you be just as well served by writing your concept, goal on a big white board for clarity and then writing out the steps needed to implement it?  

I have seen plenty of people spend an extraordinary amount of time writing up a plan and never execute, I have also seen people execute on large scales with no written business plan. 

Implementing a brilliant idea should fill you with energy and excitement, not a headache? 

Whats causing the headache?  Whats your major obstacle, or problem to implementing your bright idea?

Back a few years ago at the bottom of the market,  when we figured out how to buy, design and sell houses in under 30days on market, at or above similar comps, when average dom was at over six month. 

Although we shared what we were doing with many people, execution from anyone else was rare. 

A person who can execute on a decent idea, will be infinitly more successful then the person with a brilliant idea without the ability to implement, execute, deliver. 

If you have a bright idea, make sure you execute well, or team up with someone who can, I wish you the best.

I agree with the two previous posts, it will keep it much cleaner.

We typically pay about 10% for private on rehabs, six month notes. 20,000@ 10% for 6 month = 1,000. Even if you had to pay 20% or 2,000, to make the deal happen in this case would be better than not being able to do the deal, and a good return for your investor.

@Daniel Nolan 

re: proof of funds, we do a lot of rehabbing as well so we have a lot of money going through our account...I take pictures of it at its high point every month to use as proof of funds. I have also used proof of funds letters from a private lender, basically a letter on his letterhead stating BenchMark has available "$200,000?" to purchase real estate, a copy of my lenders bank statement attached to the pof  letter. 

Although technically that would be a preapproval letter and not a proof of funds, Ive never had them denied.

See if I understand what you are attempting to do. You are a realtor, instead of just getting paid a comission for finding the deals, you want to get contracts on them and get paid realtor comissions, plus a "wholesale markup/fee"?

I am not a realtor but we buy most of our properties, reos from the mls and we wholesale a lot of them to cash buyers/rehabbers. I write the offers in our company name, as soon as we get a contract I contact a couple a rehabber looking for a deal,  write up a purchase agreement at our agreed upon price.

We have a set up similar to what @Jay Hinrichs suggested.

I have a couple "money guys" who will fund the deal short term while title transfers to the new buyer,  if I dont have the cash available. I pay 400.00 per 100,000 borrowed per week, with a minimum of 1,500 to the lender per deal.

We did 43 total deals this year, 17 of those were wholesale deals ... three of these wholesale deals are still  under contract to sell and are expected to close before the end of the year. Four rehabs on the market and five currently under rehab, three will be completed before the end of the year.... didn't quite reach our goal but almost doubled what we did last year. 

@Jade Davis 

 I suspect the person doing 30 deals has some assistance ... however I can see a wholesaler possibly doing 30 a year by them self, if they farm out the direct mail. Rehabbing not so likely.

Welcome to BP, lot of "bpers" from northeast Ohio here.

What a real estate strategy are you getting into? 

I hear this all the time too, not possible anymore. We have 17 houses in the rehab, flip loop right now @Brian Burke   probably has 10x that. 

We wholesaled three to other rehabbers last month, bought three the last two weeks, putting a rehabbed one on the market this friday, another going next friday.  Closing on rehab on the sell side tomorrow, got a contract on another rehab on the sell side on sunday. 

There are plenty of people who would agree with you that there are no more executable fix and flip deals in our area as well. I hear it all the time. Doesnt make it true, only mskes it so for people who havent figured out how. 

@Joel Owens  from 30 minutes to 3 hours depending on who Im selling to. Probably another hour or two of staff time handling the paperwork.  Not sure how to figure the time spend on mls searches, and having one of my guys looking at the houses, finding the deals, its something we are doing anways on a daily basis for the rehab business. 

Price spread ... 5k-15k .... its a fast turnaround, by far the most profit per hour of anything I do, for me its easy, we get a buyer for it while we are waiting to close, couple days after we close it transfers to my buyer/rehabber. 

If these deals show up for you in your normal course of business, and you can find a couple rehabbers who dont have time to find deals, could be quite profitable with minimal time requirement.