All Forum Posts by: Delon Hall

I know that this post is slightly old, but I definitely wanted to chime in to offer my help. I am a investor friendly agent that exclusively works with investors big or small, new or sophisticated.

Its easy to find investor friendly agent and maybe even find a your first deal, but after time passes what you tend to see is that a lot of agents cant handle the demand that it takes to work with investors. After a while you stop receiving deals that fit your criteria, or stop receiving deals completely, and it gets harder to reach them.

The truth of the matter is that all agents have a threshold of how many clients they can take on and not enough agents are truthful enough to tell you when they have reached that limit.

So, if you need agent that is available from 8am-midnight, Sunday-Sunday; I am. 

Hey Babe Savage, I'm investor/ agent here in the Atlanta market. Are you looking for a list to market to or are you looking to build a really good relationship with a few really good agents?

Hi Harry, welcome to bigger pockets. What brought you to bigger pockets?

I agree, investing long distance is definitely a challenge. Theres really only 2 options either you team up with someone that has a a solid, verifiable, repeatable team, with a great track record. Or, wait until you get back build a team and go from there. which ever you do make sure you take your time and do your home work on every one you work with from your lender, partners lender, to the guy that cuts the grass while your property is listed.

@Stephen Hundley I wanted to mention that the risk is mitigated in profit potential. There s still a lot of cost that @Jonathan C. can cut; like co-wholesaling, lead source, and/or labor time. Arguably the question is how much would it cost in personal time to work free leads, then compare apples to apples, unfortunately i do believe the cold calling free leads (FSBO's) would probably get you the most bang for your buck but which process can be fully automated.

@Jonathan C. I would suggest that you explore more options to reduce your cost per lead and increase your profit per deal.

1) refer marketed valued deals to agents

2) ask for seller finance

3) work on your conversion ratios- lead to contract numbers, contracts to sale, and your profit margins.

***Money earned from the properties you held and/or flip would count as well, since the mailers were the procuring cause of the deal.

Finally, with that volume of mailers, do you have these numbers? leads-contracts? contracts-sale? offers-counters/rejections? Average profit per deal?

You could bring me a deal that has a potential profit of $50k+ and i would rather pass. An inexperienced investor with no money in the deal and no construction experience would have to pay me to do a deal with them. There just isnt enough in it for me. you have to look at it this way:

You- bring a deal profit 50k and want 50% = 25k and takes 3 months and I put up 100k, manage the project, assume all loses if any. You put up 0 with no help just questions.

Wholesaler #2- brings 50k profit, i over pay 10k and sales less 5k then i thought,  i still make 35k. no questions no hassles.

Solution: (this is how i got started) Bring an investor a deal and ask for 3% on the back end. You offer to become their right hand man, you show up to the property more then they do, present at every inspection, pick up material from stores, anything that they could think they need you offer. you do this 2-3 times things should get repetitive take that knowledge and go out and try your own deal.

Win-Win. i get more working capital when i purchase and if the property sales for less then what was expected im not the only one that's taking home a little less.

Personally i wouldn't touch a fix and flip under $75-$90k ARV (depending on the area). typically there just isnt enough spread for the "what ifs."

Closing cost is going to at least cost you $450-$500 on the front end, Is the 45 day hold time including days on market and end buyer closing time? And not to credit for a realtor on the retail end would defiantly be a mistake i would at least do 3%-4% to make it worth the agents time for that price point. that being said as a flip i would pass on this one, BUT it might be right for a newbie assuming that the repair cost are accurate. someone focused on getting in to their first project that they can afford to pay all cash out-of-pocket, looking to do a deal or two for the experience and not the return.

I would evaluate this one as a buy and hold with a nice size equity, instead of a flip (based on the info provided).

@Kirsten Sitnick  what if they do not provide clear title, what do you do then?

Hi, this is exactly how i got started:

Instead of focusing on getting a team, i would seriously consider joining a team. a 9-5 is nice but gaining the real estate experience that comes along with the job will become much more valuable then the W2.

When i started out i had neither money nor credit, with that being so, time (availability) and experience was the key. leverage your time to gain experience, leverage your experience for credit (credibility). credibility and cash, for your lenders security, will bring you the credit that is necessary to ramp up your buy and hold business. in that order lol

there are plenty of financing options out there and with time they will find you. Co-signer doesnt even belong in the realm of investing, you've got a lot of researching to do. there's seller financing, lease-options, hard money, private lenders, and the list goes on none of which ask for co-signers.

I would join a team of wholesalers. become a bird dog and learn what a good deal looks like. attend rei meetings, build a network so when your ready to strike you will have the resources to do so.

First i would like to to congratulate you on your purchase. You took action, which many arent capable of doing. At the end of the day we have to remind our selves that we are investors and that risk comes along with the industry. Beyond acquisitions and sales the next most important task that we take on as investors is risk mitigation.

Based off of the limited details describing the property im going to try my best to evaluate the deal: at $80k and properties are going for about $75k - $150k (2014), 30083 is a little rough depending on the area, which is fine as long as you can get a quality tenant and keep vacancies down to shy away from vandalism. in 2012 there were definitely better deals then $80k more like $35k acquisition, 20-30k rehab all in $60-$70k.

Few questions:
1. During your inspection period, did you order an inspection? a $1,500 maintenance item should have popped on the report, unless caused by the tenant.

2. did you do your due diligence on the PM company in advance as well as the property? maybe a few references or the lack of, would have help you predict these results.

3. did your contract spell out exactly how you PM company would be paid? is that 2 months rent up front plus a percentage? with that large of amount of money up front what is there incentive to effectively manage the property all the way through the life of the lease.
4. your PM company should have had some sort of system for handling late tenants. bigger pockets is full of ideas on how to bring them current or incentivese future tenants to keep this from happening.

What ever your answer is/was i agree with the other members waiting would only make things worse or prolong the envitable.