All Forum Posts by: Ethan Neumann

The biggest thing we had issues on early on was improperly comping, or estimating of rehabs. A couple of our first deals ended up falling through because we didnt take into account (or understand) these things:

1. Renovations on bigger houses must be run differently than renovations for 1500sqft or less properties. Dont use the same $20-$30-$40 x sqft that you would normally use for a 2500sqft house. Watch Jerry Nortons video "How to comp in under 60 seconds" and it will give you a great start. 

2. When comping make sure to take into account the price per sqft sale price. An ARV house that is 1300sqft CANNOT be directly compared to a house that is only 1000 sqft. Even though it is very similar, price per sqft is what many cash buyers are looking at.

3. Location, location, location. If a house is in a bad neighborhood where all the comps are selling for very low prices, take into account that buyers are going to be paying significantly less because of the low upside. Not to mean that it cannot be sold, but with houses that need work in bad neighborhoods, you need to make sure its a good price! 

4. Try to stay within the neighborhood if possible when looking at comps. Our mentor even advised us to look at older comps (over 12months) before ever leaving the subdivison. If you do have to leave the neighborhood to find comparable sales make sure the houses are at least similar. Keep in mind no sales in the neighborhood in the last year is typically a bad sign. 

Having a deal fall through is never easy, especially when you're starting out. Don't be scared, but make sure you have carefully checked all the things listed above when estimating your buy price. Best of luck to you!

@Duane Alexander Love that. Yeah, if you are not experienced in repair estimates, using as-is comps is a great way to go. 

Overall, it just comes down to getting on the phone and making connections! These title companies WANT your buisness so just be genuine and reach out. Best of luck to you!

Exactly what @David Frandsen said. 

I would really try to look for flip comps. Comps that were bought maybe 6 months prior to the last sale date and renovated give you the most accurate depiction of where you need to buy it at. 

The tax value doesn't mean anything. However, this is something you will have to educate the homeowners on. 

This rule is made for highly appreciating markets. It is a quick way to see if a BUY AND HOLD strategy would work. It means that the rent should be 1% of the purchase price. So if the property rents for $1000, the purchase price should be around 100k. 

For lower appreciating markets, you want to be closer to 2%. However, this is just a quick way to run numbers and more underwriting needs to go into it. 

I would really focus on free education first. There is so much information on Youtube and on podcasts. From there it's all about taking action. Start calling sellers!!! Once you invest your time into the biz you can then take a look at investing in coaching programs. 

I am a big believer in surrounding yourself with the right community. Don't be afraid to invest in yourself so long as you do the proper due dilligence. 

Lookup "Title Companies in (City)" and then call all of the results. When talking to them ask if they have referrals, how often they do wholesale or flip deals, and how quick generally their closing process is. How quick they can close can say a lot about a company. 

You can definitely wholesale as a realtor. I don't exactly know what you have to do differently but I am def following this thread.  

We have tried both Call Tools and Xencall (Mojo too lol) and long story short, we ended up choosing Xencall for a multitude of reasons. While Call Tools does have a very user-friendly interface, and easy setup, it lacks some big features that Xencall has. One of the biggest of these features Xencall has is the ability to do automatic voicemail drops for every missed call. This dramatically increased our inbound calls in our wholesale business. Xencall as well has a few smaller features that help with tracking metrics of multiple callers. This can help a lot if you're looking to scale your cold calling operation. 

Also, when using Call Tools we also had issues with the power dialer not actually dialing all 9 lines at a time. With Xencall we never had an issue with this.

Overall, from a feature and scalability standpoint, I would take Xencall. Though, if your running a smaller operation and would like a cleaner interface with less barrier to entry, I would choose Call Tools.

You do not need a RE license to wholesale in pretty much any state in the US. I have several friends who wholesale in Ohio with no issues.

Wholesale is just a way to "sell" a property. So long as you own the property, you can sell it any way you wish. If you don't own the property and want to sell it for someone else, that is where you are acting as a real estate agent and would need a license.

So, wholesale is where you purchase a property, then resell it quickly for a "slight" mark-up without doing anything to improve the property. You do not need to be licensed to buy and sell properties for yourself. Exact reason why for-sale-by-owners do not need to be licensed.