All Forum Posts by: Don Konipol

Quote from @Dana Lee Fuller:

Hello Everyone,

My name is Dana Fuller, and I’m excited to connect with this incredible community of real estate professionals. I’m a real estate investor specializing in diverse strategies, including fix and flips, wholesaling, buy-and-hold rentals, vacation homes, Airbnb’s, and specialized housing such as nurses' residences and college housing. While I’m currently retired, my focus is on reigniting my investment journey with dedication, resilience, and a clear vision.

My short-term goal is to secure my first deal in the coming months, and I’m working towards joining the Subto organization to expand my knowledge and build long-term success. In the future, my aspirations include owning facilities that provide shelter and education for homeless young women with children—a cause I’m deeply passionate about.

I’m especially interested in partnerships and opportunities in cities like Savannah, North Carolina, Texas, Hawaii, Florida, and areas across Virginia and Maryland. Savannah, Florida, and Hawaii are my key focus for vacation homes, while Texas and North Carolina present exciting wholesaling opportunities. I’m eager to explore deals and contribute meaningfully to collaborations that drive mutual success.

I’m also looking to learn more about working with social service organizations and impact investors to integrate community service into my real estate ventures. If you’re experienced in these areas or open to partnerships, I’d love to connect and explore how we can support one another.

Thank you for welcoming me to this forum. I’m looking forward to engaging with you, learning from your insights, and hopefully building some amazing partnerships along the way.

Warm regards, 

Dana Fuller

Finding Deals/Building a Buyers List:

What are the best strategies for finding off-market properties?

How do you identify motivated sellers?

How do you build and maintain a strong buyers list?

What are effective ways to network with cash buyers?

You’re probably not going to like my advice.  Oh, you may SAY you appreciate it; you may even suggest that you’ll consider it, but you won’t - not right now.  It will take a while before you’re ready.

You need to pick ONE strategy, One property type, and ONE geographical area.  Further, you need a single goal.  Then you need real education in real estate principles, real estate finance, and real estate law.  Otherwise, you’ll never be able to distinguish between a “good” buy, a “mediocre” buy, and a disaster.  Some of the strategies you mention are difficult to pull off even for someone with years of experience and tons of knowledge.  Some require large amounts of capital to scale, and scaling is the only way to be profitable.  Most properties are being transacted at prices that require 40% down to cash flow positively, and that with loans at the lowest rates being offered.  

Real estate investing CAN be a great field as either an investor or as a service provider.  But an extensive education is required.  The fallacy being sold is that real estate investing can be done successfully with “no money and no credit”.  The truth is that real estate investing is one of the most highly CAPITAL INTENSIVE industries in the world.  Yes,  you can borrow 60 -80% of the purchase price.  But that still leaves a big capital investment, and typically a very small cash flow. 

Quote from @Gregory Schwartz:

I’m an investor agent in Bryan-College Station Texas, and I want to start sourcing off-market deals to provide exclusive opportunities for my top investor clients. Sellers would have three options: sell to my clients, sell to me, or list on the market. I’m NOT planning to wholesale—just creating more deal flow for my agent business.

Back in 2020, I sent 500 postcards/month via DealMachine for about a year and a half this resulted in 2 off-market deals that I purchased. Now, with a $1,000–$2,000/month budget, I want to restart but am open to different marketing strategies.

• What’s working best for you at this budget?
• Should I stick with mailers or explore cold calling, PPC, SMS, etc.?
• What lists have been most effective for motivated sellers?
• Any lessons learned from your experience?

I’d love to hear your insights—thanks in advance!

While @Jerryll Noorden is usually more than a little obnoxious, a lot of what he says is true.  And while I disagree with him that SEO is the ONLY way to go, we’ve found that the two best bang for the bucks marketing is SEO and email to targeted audience.  Social media engagement is running a somewhat distant third. 

Quote from @Nicholas A.:

I am trying to expand my list of strategies to find deals.

I did some research and narrowed down my search, spoke to a few quality realtors and nothing came to fruition. Even after trying to pick the better ones.

Now I know I can search online, I can use a realtor, I can send out a mail campaign, I can cold call, I can go to auctions.

Are there any other strategies you would recommend to find deals?

Also I am going to be looking in northwest Indiana, Chicagoland illinois, and Racine area Wisconsin.

You can buy all the real property you want, or can afford - at market prices. 

If you’re looking to buy at BELOW market price, in all likelihood the property won’t be offered for sale at that below market price.  The information as to market pricing is too readily available to every seller, so that the advice of 25 years ago - target long term property owners who live out of town and haven’t kept up with the value of their property - is no longer a viable approach.

So, what is left?  What is left isn’t necessarily a marketing method, but an approach that can put the buyer in a position to recognize, negotiate, and “manufacture” a “deal”.

First, the buyer must have the knowledge of real estate in general, local market in particular, and property type specifically to recognize when SOMETHING is likely to happen in a particular area that will cause the subject property to become more valuable in the future.  This could be gentrification, changes in land use,  nearby development, or anything else that has not been “baked into” the current price of subject property. 

Second, the buyer needs SUPERIOR negotiating skills, whether in direct negotiation with a seller, or through an intermediary.  Many gurus teach learning what the sellers needs are and finding a way to satisfy those needs while still buying the property at advantageous price and terms to you.  This is a small part of negotiation, and successful negotiations can be concluded without ever knowing the buyers “psyche”.  How you develop negotiating skills and how you apply these is totally dependent on your comfort zone, your personality, your time allotment, etc.  I assure you I have concluded a number of almost u believable “deals” (I purchased a property For $5k that I sold for $125k in 2 days) and never dwelled into the sellers motivations, needs or desires. 

Third, is the capital, knowledge and ability to “reposition” the property.  This can be anything involving extensive rehab to merely obtaining a tenant willing to pay more.  Years ago I owned an auto repair facility leased to a general auto repair at $2500 monthly.  I approached the owner who wanted out of the business and was having financial problems offering to let him out of the lease if he signed ownership of his equipment, lifts, etc over to me.  He agreed.  I then contacted a brake repair specialty company expanding rapidly and looking for good locations and willing to pay a premium for them.  The company had a better than decent credit rating.  We negotiated a lease beginning at $4500 per month, and increasing by $500 per month every two years, over 10 years.  The equipment the brake outfit didn’t want I sold for about $6k.  The result was that I had almost doubled the value of the property merely by increasing the lease rate.  

You won’t “find” good deals, you have to “make” them. 

Quote from @Chris Seveney:

Quote from @Ken M.:

I'm not making this up. WSJ is.  

I started out buying pre-foreclosures and have made a lot of money buying them. But, now it requires training to stay out of trouble.

"Why do housing prices keep climbing despite higher interest rates? The federal government has allowed borrowers to take out bigger mortgages than they can afford. To prevent foreclosures, it’s bailing them out when they miss payments. Behold another subprime housing bubble.

The problems began when the Obama administration eased underwriting standards by enabling more home buyers whose debt payments exceed 43% of income to qualify for government-backed loans. Such borrowers are risky because they might not be able to make payments if their income drops or expenses rise."

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"As home prices climbed, the Federal Housing Administration insured more loans to financially stretched borrowers with as little as 3.5% down. No skin off lenders' backs if borrowers later defaulted, since the mortgages were backed by the government.

In 2007, 35% of new FHA borrowers had debt-to-income ratios above 43%. By 2020, 54% did. As housing prices and inflation surged, borrowers became more stretched. The FHA kept insuring mortgages to borrowers who were increasingly leveraged. About 64% of FHA borrowers last year exceeded the 43% threshold.

The FHA loan portfolio is far riskier than it was before the 2008 housing crisis.

Institute's Ed Pinto and Tobias Peter estimate that 79% of FHA first-time borrowers have a month or less in financial reserves—not enough to make mortgage payments if their household expenses rise"

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Oh, did anybody mention we are experiencing inflation? These people are going to start getting foreclosure notices.

We just acquired $5M of defaulted loans that will be REO's. I always tell investors they should bea note investors best friend for off market deals - of course the ones that do reach out to us are wholesalers trying to lowball the hell out of the deal thinking we are idiots but we are typically very sophisticated and no the numbers very well including the ARV, what it will take to get it repaired as well as rental rates.

In both residential and most commercial markets there are THREE prices; the wholesalers (flippers) price, the investors price and the users price. Most people don’t think of commercial property as having a “users” price, but I will provide an example below.

some number of years ago I was forced  to foreclose on an older office building that had been converted to a combo office / living units.  This type of property had no obvious buyer, but to generate interest I listed on Loopnet with the proposal of 20% down with owner financing of the balance.  

As expected, I received very lowball offers from numerous wholesalers, all offering low prices, wide “weasel” clauses, no REAL earnest money (“ my attorney will hold my personal check”, etc.) and 120 -180 days closes.  In addition I received two  low, but reasonable offers from investors, who had plans to rent out the facility.  While considering which of these two offers I would pursue, I received a call from a broker saying he had a church client that would like to make an offer and would use the facilities for offices associated with its non profit divisions and the bedrooms for spousal abuse victims shelter.  We negotiated a deal that allowed the church a low enough down payment to keep enough funds in reserve to make needed improvements/repairs.  To satisfy my collateral requirements the church put up as additional collateral a lot they owned in the same general area.  The price paid was about 30% higher than the investors had offered. 

The church refinanced the subject property and paid the note off in just over three years.  As part of the payoff, I accepted the title to the empty lot that was additional collateral for the loan, and leased it back to the church for parking at a 12% 3N annual return.  This went on an additional 4 years before the church exercised its option to purchase the lot back from me for 40% above what I paid.  

For sellers you will almost always receive a higher price from a user than from an investor, and from an investor than from a wholesaler.  

People who sell their houses to the ibuyers, usually at 20% below market because they’re attracted to the fast close, no hassle, no Realtor aspect remind me of the people who trade their car in at a 40% “hit” when the initial tires wear out at 30,000 miles, or the people who pay 19.8% interest in their credit card rather than get a 8% consumer loan because they’re attracted want to avoid the hassle.  Then they want to get into real estate but have no capital to invest. 

@Shiloh Lundahl and @Jay Hinrichs.  Thank you both for providing context and personal history with the lease option methodology.

I did some lease options years ago when I was still investing in residential, and even a couple on commercial property. 

I think we all understand that most if not almost all buyers entering into a lease option don’t currently have the credit capacity to qualify for a mortgage, or don’t have the down stroke needed.  This isn’t necessarily a bk or foreclosure situation, although it could be.  It could also be the result of job loss, career switch, free lance work, self employment, spouse wanting to stay home with newborn, pay reduction, or inability to sell existing home, moving job locations, or any other “life circumstances”.

After thinking about it, my opinion on the “ethics” of entering a lease option as an investor with a homeowner/consumer rests on two issues.  First, full disclosure.  I think that the investor should make clear to the home buyer that they forfeit their option money if they don’t perform.  Second, is if the investor WANTS the buyer to perform.  This isn’t as ridiculous as it sounds.  I’ve know investors selling CD or lease option who want to keep the property and k]just looking for the extra “income” from the higher rental rate and lease option fee.  The difference is that the investor that wants the home buyer to complete ownership will sell on terms and price where a deal can be completed, whereas the seller that wants the buyer to fail will have price and terms that guarantee failure.  Further, the seller who wants the buyer to be able to complete the transaction will screen the buyers so that he eliminates the people with no chance of successfully concluding the option, whereas the seller who wants to keep the property will sell to just these type of buyers. 

I don’t believe in tossing out the baby with the bath water. Lease options, contract for deeds, owner financing, etc. isn’t good or bad.  Its specific application and the actions of the principles at play are what determines if it is beneficial or not for all parties.

Quote from @Shema Cochrane:

People always want to know how to find land deals. Honestly, it’s a mix of research, persistence, and having real conversations with owners. Some are eager to sell, some are holding onto land for sentimental reasons, and others didn’t even realize they still owned it!

Today alone, I reached out to several owners and the responses have been interesting. Every deal starts with a conversation, and you’d be surprised at what you uncover just by reaching out.

For those of you working in land, what’s your go-to strategy for finding solid deals?

Shema, while you’re new to posting on BP, your statement shows GREAT insight and understanding that real estate is as much or more about PEOPLE as it is about property. I can predict that if you stick with it you are going to do VERY WELL. 

Quote from @John B.:

Why would a struggling investor not use propstream or one of the sites where you can post an all cash deal and instead use a wholesaler they know is making an assignment fee? 

I think you’re asking about the sell side? Why would a seller pay someone a fee rather than just market their property directly through an on;one property listing site? 

If that’s your question then the answer is because the seller may not have the knowledge, experience, time, ability, energy, to successfully conclude the transaction without “help”. 

Quote from @Jeff Fortuna:

There are no distributions. The ceo told me it is now a growth fund; although 3 yrs ago the salespeople (Scott Meyers) told me that it takes a few months for the distributions to start; 

there are 2 types of syndications. 1. Sales pitch oriented 2. Operations oriented. I have learned the hard way to kindly choose operations oriented deals. It’s really frustrating because I am in some other ss funds and they are doing very well. 

I have no knowledge of the principal or his investment vehicles.  His response is over a year old.  Jeff has informed us that he still received 0 in distributions. 

I have two comments about the response Mr Meyers wrote over a year ago.  First, if I understand correctly, the syndication made no distributions at the time because money needed to be spent to develop management capabilities for the sponsor.  Why were the investors in a real estate investment paying for the sponsors business?  

Second, the post reads like a promotional marketing piece with 95% stating how great the sponsor is and how successful their investments have been, while very little is stated that specifically addresses the particular investment the OP is concerned with.   

past performance is one thing, I’m also interested in the CHARACTER of the sponsor.  Do they take the time to address investor concerns and reach out and call an investor when he expresses disappointment as results are not what was anticipated? Or does the sponsor issue a statement obviously “sanitized” by legal counsel with only a generalized reference to any problems with a general tone of the investor is lucky to have invested with us?  

Quote from @Jay Hinrichs:

Quote from @Peter Walther:

Quote from @Joe S.:

Quote from @Peter Walther:

Quote from @James Hamling:

Quote from @Peter Walther:

Quote from @Don Konipol:

Quote from @Jay Hinrichs:

Quote from @James Wise:

Quote from @Don Konipol:

I've read all the posts providing posters personal opinions based on their experience, knowledge, biases, and specializations within the real estate field.  

The many NEGATIVE opinions, while not changing my mind that sub to CAN be done safely, have opened my eyes to the very real risks involved and the difficulty of structuring the transaction so as to protect all parties; I was also surprised to learn of how many investors have observed unsatisfactory outcomes with these type deals.

So, based on all your feedback, I have come to the following conclusions

1. While subject to. transactions can be done safely, it is most difficult to accomplish in residential transactions where the seller is a homeowner and not an investor. 

2. Full disclosure of the negative consequences (retention of liability without ownership of the asset securing that liability, limitation on credit capacity, etc.) must be provided the seller IN WRITING.

3. ALL parties should be represented by an attorney experienced in real estate

4. Buyers with limited knowledge, experience and capital should not engage in this type transaction

5. A subject to transaction involving commercial property and two professional real estate investors is an appropriate venue for a sub to transaction

6. the buyer should be fully prepared to refinance or payoff the existing loan if it is called due, and should have the capacity to do so.

7. the legal structure and documentation should be prepared by an attorney experienced in subject to transactions.

8. Avoid anybody who was a Pace Morby student

Sub2 is for criminals and con artists. Anyone who comes on these threads and talks about doing Sub2 deals is garbage.

Jim Luv you Bro but your over the top on this one.. 

yeah, I often disagree with Mr Wise, but I LOVE the fact that he unequivocally states his opinion. Even when he implies that I’m “garbage”.  This is the second time I’ve been called garbage in the last 6 months.  The first was by Joe Biden. LOL 

Was it really necessary to inject politics into the conversation, after all, I didn't mention the sociopathic narcissist currently occupying the white house or the chaos he's creating or his running buddy who thinks I'm a parasite.

" ....after all, I didn't mention the sociopathic narcissist currently occupying the white house or the chaos he's creating or his running buddy who thinks I'm a parasite."

Bidens back at the White House ?!!

I wouldn't get all up in arms, I am sure he's just having an "old-timers" episode again one of the wranglers will get him a 10yr old to sniff to coax him out soon enough. 

While Biden certainly wasn't up the task of being President, he didn't have over 100 mental health professionals opine that he is mentally ill.  Nor did he have many of his handpicked advisors such as Rex Tillerson call him "a fuc*ing moron", yet many seemingly intelligent individuals insist that Donald Trump is the greatest businessman who ever walked the face of the earth.  Forgive me if I seem confused.

Good morning Peter,
Following media affects some people more negatively than others.
Below is something someone just text me out of the blue probably less than 10 minutes ago. I read it and hopefully took it to heart. I’ll paste it below.

My goal is to daily have a happy, cheerful heart.

Words to live by:

Proverbs 15:15

For the despondent, every day brings trouble;

For the happy heart, life is a continual feast.

Proverbs 17:22

A cheerful heart is good medicine,

but a broken spirit saps a person’s strength.

I’m

In child of the King!

Nobody in this world is gonna break me!

I’m blessed and highly favored!!!

Big BOOM ‼️

Proverbs 18:15 – “The heart of the discerning acquires knowledge, for the ears of the wise seek it out.”

Micah 6:8 – “Act justly, love mercy, and walk humbly with your God.”

Isaiah 10:1-2 – “Woe to those who make unjust laws, to those who issue oppressive decrees.”

My Dad taught me Day one when I got into RE sales and I guess it goes for most sales jobs..NEVER EVER talk Religion or Politics with your clients as you will never know their positions on these things up front and you could be walking into a mine field.. Just keep those things to yourself. Working in San Francisco early on.  I had Black clients I had Gay Cleints I had muslin ( can t pay interest clients) I had Jewish clients, I had Chinese clients I had Indian and Paki clients. And everything in between. Same thing with BP you have all of these folks and their personal beleifs here on this RE site.

 Very smart Jay.  But NOT a lot of fun! LOL

My lifelong best friend is an attorney who I’d classify as a leftist/liberal (we’ve been “best” friends since 1962).  We only talk politics when we are at dinner - alone.  We don’t argue, just state our opinions. And the few times it gets a little heated, we end the night by giving each other a hug.  But secretly I do enjoy his TDS! 

This topic seems to have touched a nerve, additionally we do have a difference in opinions.

I think the question is worth considering, buy the answer to me is that all government “interference” in the market leads to distortions.  I’m not arguing the necessity, or the fairness, or the justification of taxation, consumer protection, civil rights, etc, just stating the effect is distortion in the market.

But, as I stated the taxation of a 0 - 20% rate on capital gains (ok 3.8% - 23.8%) is not only very low by the standards of the last 84 years, but also preferential to the marginal rates on earned income, investment income, and short term capital gains.  If we use an example of a $1 million gain, and assuming the seller is married and hence qualifies for the $500k exemption, then the effective rate is 1/2, so around 8.5% plus ossibly another 3.8% or 12.3% effective rate exclusive of the subjects decision to live in a high tax state. 

My guess is that with all the waste, corruption and thievery being exposed by DOGE, as well as the politically motivated spending buried in Congessional spending authorization, people will be further reluctant to pay taxes they may be able to avoid.  But making a sub optimal financial decision or even worse a bad lifestyle decision to simply avoid paying taxes is completely self destructive.