All Forum Posts by: Dustin Ruhl

Top 3 Newbie Wholesaling FAQs—Answered!

Real estate wholesaling can be a great way to make money but there are some things you should do first.

Know Your Market (the part of the country even the side of your city will have unique characteristics and it is important to know them). First and most importantly is a thorough education on whichever market you have chosen. One has to have an in-depth knowledge of what one is engaging in.

What are the high-demand neighborhoods?

Average days on the market?

Rehab costs per square foot for the area?

What do investors want? Single Family? Rentals? Fix and flips?

Find a Motivated Seller

A motivated seller will have a problem with the property and want to get out from under it fast.

Marketing: Strategy and Target Population

First you will need to determine a marketing strategy to find properties to acquire. You can choose online options such as social media ads, YouTube videos or web pages. You can also go with direct mail, radio ads, newspaper ads or door knocking.

Success lies in being specific with your strategy and who you will market to. 6 is the golden number. You will need to reach out to your target market a minimum of 6 times.

You will need to surround yourself with a team of people to help you succeed. You will need:

A Real Estate Agent

Buyers

Title Agent

Attorney

Wholesalers

If these listed points are carefully taken into consideration, there is a big chance of success in wholesaling.

Once you’re the middle man in real estate, beware the traps that could trip you up and cost big. 

Key Points:

1.  You should educate yourself about your own market before getting started.

2.  There are many different forms of advertising such as online using Youtube or offline using mailings.

3.  There key resources everyone should have before starting such as a real estate agent and attorney.

You will not know everything, and each deal can present different challenges. Having solid resources and relationships will help you a lot.

Once you’re the middle man in real estate, beware the traps that could trip you up and cost big.

Real estate wholesaling can be lucrative, but it can also trip you up and cost big. Some basic tips can keep you on the profitable path. You need to invest in your education or it’s like walking across a field of landmines blind. Learn your market, and stay close to the skilled professionals, such as lawyers and title agents, who can save your bottom line.

See the original at: https://www.biggerpockets.com/blog/newbie-wholesaling-faqs

My Favorite Rent Collection Method (Shocker—It’s Not Electronic)

In today’s world, many daily tasks and money transfers are done electronically. It has been a benefit to productivity across many spaces. However, when managing a rental property, the best way to collect tenants’ rent is not electronically, but in person.

There are several reasons why collecting in person is beneficial. Firstly, you are able to retrieve it from the tenants mailbox, and take photo evidence of it being there. You are also able to speak with the tenant. This is crucial, as maintaining a good landlord-tenant relationship is paramount when leasing property. Even if they are not a talkative tenant, you can use the time at the location to ensure the general upkeep of the property is satisfactory, especially if they are just starting in their first rental.

Another great boon to on site collection is ease of payment and contact with the maintenance head. With differing and busy schedules, it can be demanding to find time for meetings and payments with the maintenance crew. By collecting on site on the same day each month, you can kill two birds with one stone.

There are a few caveats to remember when trying to implement this technique. The set date to collect should be before your mortgage is due. It should also be in compliance with your local collection laws. Lastly, it does not scale up well in size at all. This method will not work for you if your tenants or properties number too high. In this case, a property management company may be the solution for you.

Make sure you’re getting the rent from your rental properties without a hitch. #Ironclad

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Key Points:

1. Picking up the rent checks directly from the houses allows you to see the condition of the property and address any concerns.

2. Checking in regularly with your maintenance team can keep you both on the same page and keep repairs timely.

3. This only works for people managing a few properties with a few people and wont be as useful for people with bigger operations.

Because I see my property—and sometimes the tenants—on a regular basis, my renters know that I am involved and aware. It can head off problems before they start.

Make sure you’re getting the rent from your rental properties without a hitch.

Managing your rental property, or especially properties, can be an endless cycle of documents and review and fiscal fortitude. If you lose tabs on what’s happening at your buildings and land, disaster can sneak in and disable every aspect of your business. Don’t be afraid to use technology, but even the 21st Century doesn’t have great, easy to use, and effective replacements for physically visiting and looking things over yourself.

See the original at: https://www.biggerpockets.com/blog/rent-collection-method

You need capital for playing the real estate game. If you are looking for other investors to make a particular real estate deal go through there are some things you need to consider.

Who you find to help make investments is an important step to realizing your financial goals. When you start the process of thinking about your next investment, it is important to consider many characteristics and attributes you would want out of your investment partners. You may want to find similar minded investment partners or perhaps find people different from how you think so that way you get a diverse array of opinions on investment options. You could think about how much capital these investment partners should have to contribute and what their end goals are with the investment(s).

How you meet these investment partners is up to you, and can largely be done through groups and other events that draw financially minded people to them. These events are great social networks that allow regular folks like you and me to bounce investment ideas off of one another, and from that partnerships can be established to mutually benefit each other. With all of that in mind, you can also find ways to find these investment partners online through avenues such as Facebook, other social media and paid lists of people looking to make investments. In summary, finding an investment partner can be time-consuming but is well worth the effort if time is put in and the investment is a success for both parties.

Don’t let profit pass you by. Connect with the right people who can help you seize success.

Key Points:

1. Reverse engineer your search for investors by being valuable to them by giving content that benefits them.

2. Make sure that your project and appeal are supported by your posts, designs, etc.

3. The most common method of making connections is simply reaching out and asking for connections.

The most successful investors are also the most efficient, and not only nail the follow up, but also take the time to really get to know and understand the ideal candidates for their next investing opportunity.

Not all of us with the will and way have the means to develop a business idea to full potential. That’s where investment comes in, and with investment comes investors. How to find them isn’t always as important as finding the right ones though. You need investors who will work with you, not against you. Navigating this path starts with educating yourself in how to communicate to the right partner for your venture.

Let me hear you thoughts.

See the original at: https://www.biggerpockets.com/blog/find-investors-capital-raise/

I want to share with you about this article I have read...please feel free to provide feedback.

"What No One is Telling You About Inspections"

Purchasing a home as an investment or as a residence comes with some risk. However, an inspection report can help you determine whether a property and the price negotiated is a deal that can make you profit.

Licensed Home Inspector

A home inspector is licensed by Housing and Urban Development or HUD for short. The job of the inspector is to provide the person paying their fee with a report that tells them if the property fails to meet HUD standards. That's it! The three duties of an inspector: Inspect, Inform and Report.

Inspectors are NOT licensed contractors. They are not qualified to provide a repair or rehab advice or quote on cost of work.

All inspectors are not created equal. Some have inspected thousands of homes and have lots of experience while some are brand new. Getting a recommendation from a trusted source can help eliminate your worry over the inspectors qualifications.

Inspectors hold a position of importance because people are usually making a very expensive decision based off their report. Inspectors try to report so that they will not be sued; they try and limit their exposure. This can lead to over complication of the report and crazy detail that is not necessary.

Home Inspections

It is always a good idea to have a home inspection. Getting an inspection done can make you aware of the risks that a property entails. The average price of a home inspection is $300 to $600. The amount will depend on the size of the property to inspect. The cost will go up as square footage increases or multiple outbuildings etc.

Big things to look for in an inspection: the foundation, the roof, the electrical and the plumbing. Settling and cracks do not necessarily mean major trouble. The earth shifts and the age of the home have a lot to do with that. For roofs be aware of leaks, old leaks, active leaks and how long before the roof needs to be replaced. This is a big ticket item.

A 50 to 60 page inspection report should not freak you out. It doesn’t mean the property is a dump; remember the inspector is putting everything in so that he can’t be sued. Use your inspection report as a tool but keep things in perspective, a long report does not mean the property isn’t a good investment.

As the buyer you have the right to requests repairs or compensation for work that needs to be done on the property. If the seller won’t agree to either look at the dollars necessary to make the property work, it may be that the original deal is still a good one.

Don’t fear inspections. Buying or selling, the inspector you hire can save you money and time. #Ironclad

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Key Points:

1 It is always a good idea to have a home inspection.

2 3 different inspectors of the same property can have 3 very different reports.

3 Inspectors try to ensure that the property is livable and up to code.

Just be cool about it. It’s just a house that you’re purchasing, houses breakdown, houses have been lived in, houses could be fixed.

See the original at: https://epicrealestate.com/what-no-one-is-telling-you-about-inspections-617/

Don’t fear inspections. Buying or selling, the inspector you hire can save you money and time.

The great news create by good investor and investing is more important of the good work.

@Don Gouge Nope.  Don’t coach.  Just trying to provide value in BP Forum.

@Brian G. Absolutely people would love to work with you.  I’m in Indy and happy to help anyway I can.

@Brian G. Green houses and trade up to red hotels.  That’s funny!  Choosing the correct market is definitely critical but also hiring a trust worthy team to help execute your strategy is probably the most import piece IMO.

@Ernest Alexander feel free to ping me when ready.  I sent you a request to connect

Ernest- Feel free to reach ping me when ready.

One of the most profitable ways of investing your money involves the real estate market—specifically, flipping houses, or selling a home at a higher price than you purchased that home for. And while there are certainly risks to this tactic—as with all methods of investing your money—with the proper due diligence and careful consideration, one can strike the right balance of lowering their investment risks while increasing profits. There are five steps involved in a basic real estate investment strategy: choosing a market, securing financing, finding the perfect property, making smart upgrades to the home, and finally selling the home at a profit.

Choosing a market involves researching a real estate market that has demand; this could involve an up-and-coming neighborhood or a home in a more localized, booming economy. Securing your financing can be beneficial before a person even begins looking at specific homes, so that once they find that home to buy, they can go right away to purchase it without waiting for financial approval. After a person has found the perfect property to purchase, they can submit their offer while taking into account what upgrades to the home are necessary. It may be very beneficial to a buyer to seek out foreclosed or auction homes, as those may be sold to the buyer at a steep discount.

When negotiating a buying price, one should offer a fair value to both the buyer and seller while keeping in mind the ultimate goal of wanting to make a profit. After your offer has been accepted, creating money efficient upgrades to the home is the next step in making profit. By doing so, the buyer will have created additional demand for the home and increased the chances of making a profit. The final step is to sell the house at a profit, and this can be more easily done by investing the upgrades necessary to increase demand. By selling the home at a higher price than it was bought for, the original buyer will have made profit.

KEY POINTS:

1   Making money on flipping houses you will need to be diligent and have a system that mitigates risk.

2   You will need constant education and sound practices in order to make a living in flipping houses.

3    Being aware of the upgrades that are in demand in your market is paramount.

Your thoughts?

See the original at: https://www.fortunebuilders.com/how-to-make-money-flipping-houses/