All Forum Posts by: Drew Cameron

Hi fellow wholesalers. I'm looking to scale my business and start using lists. Up to this point I have been exclusively driving for dollars, but life is getting busier and I have a little more expendable income now. I have recently started an LLC and created a brochure for a mail piece that has been getting a higher response rate, but not any difference in serious sellers. I'm in Phoenix, AZ a relatively saturated market for investors. I see bandit signs at almost every intersection outside of the very affluent areas. With such competition what are you doing to separate yourselves? What kind of pieces and lists have you used successfully? I should also probably mention that I have purchased a Sean Terry program and have access to heavy discounts at a printing company. With that I'm contemplating going away from my brochure and just sending out 3 times the amount of postcards for the same price to increase my exposure.

I used a similar system to receive roughly $40,000 in credit cards at 0% for a 12 month period. The company I used took 10% upfront and then helped me liquidate everything so I had usable funds fairly quick. I was able to do a flip with the funding I received and pay back all the money before my interest free period ran out. It was expensive, but the flip more than covered everything and I was able to get in the game. I would do it all over again if I had to.

I'm currently doing my first flip on the west side. There are a ton of flippers in the valley. A couple different networks that I have been involved with here are the wealth investor network and the Matrix real estate investor network. I'm partnering with the guys at the Matrix on the flip I'm currently in the process of.

If he is a close family member than just go talk to him. Show him your previous work, the numbers for this project and run the different options by him. Offer him a great rate for his money and show him that you are serious. Then draw up a contract with whatever he prefers and have all parties sign. If everything works out as planned you can continue to partner with him on future deals at much better rates than hard money and better than what he would get in stocks or mutual funds. That's a true win win.

Hi fellow BP'ers. I'm looking into buying my first property and am looking into multi family homes. I'm in the pre qualified phase for another few hours as my loan officer has his company doing computer maintenance work until Sunday night when he will be able to pull my credit score. Based off of the numbers I gave him he thinks I can easily get pre approved for up to 175,000 for a duplex. There are many available in my area so he told me to take a look in the meantime. Many of these duplex and triplex in my area can have significant cash flow from day 1 or can live in one side and use the other to cover most if not all the mortgage. My loan officer said he thinks I can get the first time home buyers grant and my realtor is investor friendly (he's an investor himself) who said he will negotiate that the seller pay closing costs. Has anyone done this successfully and got a house with no or low money down and free rent? It seems like the dream scenario!

Hi fellow BPers. I am a real estate newbie having been in the game for almost a year now. I'm currently in the raising capital stage to eventually get into buy and holds. I have been doing this primarily through working nights as a sommelier and wholesaling. My schedule now allows me to have my days free and is very flexible. The problem is I only make about $45,000 a year on paper before any wholesale deals. So far I have done 2 deals this year but I feel like I'm gaining some momentum and getting better at negotiating and analyzing the deals. I have an opportunity to start working at a job that will triple my salary after 1 year, but requires 65+ hours a week working 6 11+ hour days a week. If you were in my shoes would you take the sure thing and just save for a rental property or keep the flexibility and try to get better more efficient at wholesaling?

Unless you paid all cash for the house I would do the sale in your name then do future business with the llc. Switching to the llc could allow the bank to enforce the due on clause and make you pay the whole loan outright. That can be crippling when you are starting out.

I think it is a good plan. I wouldn't limit yourself to a certain amount of deals per year. If you aren't using your own money to fund the deals and you aren't doing the work yourself, then you can do multiple projects at the same time as long as you can afford the hard money payments. As long as you have a deal that is good enough you should definitely be able to find someone to fund it. 

The more flips you do the more you will make a name for yourself and the easier it will be to get funding. In the Phoenix market houses under 300,000 are selling fast so the BRRR strategy as an exit won't really apply unless you love the place as a rental rather than selling it. I also think it's dangerous to bank on appreciation, but in the valley most neighborhoods are appreciating at rates better than 10% annual.

Overall I think your plan is good, but don't be surprised if you reach your goals sooner than you think. Best of luck to you.

@Brian Fouts I figured someone had to be using this strategy on Bigger Pockets. I am looking to set mine up soon. It seems very smart business to do so and the sooner the better.

But you can still do both. They are not mutually exclusive ideas. Other people's money is still available as always. After a few short years you have a bank that will never reject you and makes you more money. This has incredible potential, especially for those already established, but even for the newer investor as well. The potential here for hard money lenders is through the roof and it is safer than many other investments.