All Forum Posts by: Strat V.

My thoughts. I choose my words carefully. I personally know real estate investors that are Mastery students. They attend the same REIA that I do. I am not a Mastery student, I simply do not have $25k to invest in their education.

In the past, I have invested in training, coaching and seminars with little success but I blame myself mostly because I would spend all the money on training, seminars and coaching and have no money left to spend on marketing, establishing the proper legal entity, getting an attorney, etc...

Now I spend my time working with seasoned real estate investors and spending more time and money on marketing.

The systems, tools and automation that Fortune Builders have in place, from what I understand could/might/maybe help the real estate investor be more efficient with their time. I like that. With that said, there are many real estate products that the real estate investor can buy and implement in their business that can help with automation and free up time to concentrate on other areas of their business. Even with all these tools, automation and systems that are available, the business still will not completely run itself, at least not initially, maybe after some time of being established, the business could run itself, once it is build up with the proper team players. I like the idea of systems and I have begun to implement my own, for better or worse.

I have invested in online database systems to help find sellers and buyers. But I still have to access the database systems, take the leads, market to the leads and follow up. The database systems are just a tool that helps me with leads for my marketing. After a few deals, I plan to hire and train others to do the marketing. I beleive in a plan, it is vital, it is needed to help with focus. To craft a business map and this map must not be static but dynamic, able to evolve and adapt to the ever changing market. Evaluate, adjust, implement, process, repeat.

I just rebooted my real estate business and I am in the process of setting up my team of professionals to help with the areas I am not to proficient with. For now I must wear all hats, well most hats, with the exception of my attorney and real estate agent colleague, I am doing all the legwork until I can build the rest of my team.

Hey Andrew,
I am not an expert, just rebooted my real estate investor business recently. I do not have any rental properties yet. However, I do know Kingston quite well. Are you buying retail price or wholesale price? Is the asking price negotiable?

As for comps, I look at sold, active and also what did not sell, the expired listings to determine a base price point. Then I will look at the actual property and evaluate repairs and factor that in from base price point. If the property needs new plumbing or electrical or furnace, that is coming off the base point price.

That is how I evaluate the asking price. I am not sure how other more experienced investors do it. And I am sure I forgot to factor in other costs. That is why I always run it by as many experience investors I can find. Good luck

Are you buying and holding? Are you a cash buyer? I am looking at properties in Kingston NY, possible deals, multiple properties from an out of state owner.

As for the numbers, how did you calculate? I'd have somebody do an assessment of the property if possible to evaluate the condition to verify.

Did you run comps to find out if asking price is ballpark? How did they come up with $145K$

As for neighborhood, I'd find out crime stats and talk to neighbors. And I would definitely have somebody check the place out.

I'm getting alot of just curious, not really motivated. Should I analyze the properties and make a low ball offer or call them back and inform them I can not make an offer at this time? I do not want to ignore or dismiss. Any pointers, comments, ideas or advice?

I did a marketing campaign for out of state owners and I am getting calls. I was trying to use a script to determine motivation but did not work very well. I referenced the script, ie. seller lead sheet for key points.

My question is how do you determine if a seller is really motivated or just a tire kicker curious about what you can "offer"? Any pointers, advice or comments?

Okay, four calls today from out of state owners. I tried to use script, no go. They want to talk so I talk. I referenced the script for key points but I'm sure I forgot to get all info. At the end of the conversations, I tell the seller, I believe I have all the info I need, if there is anything I missed, what number can I call you back? So far that is working. Thanks for the comments from all of you so far. The script thing is hard but shouldn't we try to maintain control? Any pointers?

@Kelvin K. sorry for the late response, busy lately

1. Mao includes holding costs.
-response/answer: I was not sure how to estimate holding costs. Some investors will add a percentage, like x .05 or some other formula. Others use software to estimate. I just was not sure, it has been awhile and I am just rebooting

2. how did u determine rehab cost?
-response/answer: I determined rehab cost from experience. I have worked with contractors and have been "trained" from 3 different real estate investors including a local reia. Also, I will email out detailed info to local hungry contractors telling them what I need for getting estimates

3. if u have a decent ballpark est from a contractor for the est, u shud b able to also determine rehab period
-response/answer: Generally, I respectfully disagree, contractor estimates are all over the place. I will get estimates and I will do my own due diligence based on training, understanding my market and the costs associated with the rehab. I also calculate the cost of materials, do a walk through with a repair estimate sheet (based on training), and run it by other experience investors that I network with

4. if I understand ur ps correctly, most likely the wholesaler has the prop under contract n their purch price would not be on record until the final purchase by the ultimate sucker, I mean buyer :)
-response/answer: Yes, the wholesaler has the property under contract, probably paid too much or has it under contract for too much explaining the inflated numbers. As for final purchase price by the ultimate sucker, I do not think buying wholesale is for suckers, especially if due diligence is done. With proper analysis, and understanding the local market, doing comps, correct rehab costs, the interested buyer will be able to determine if there is a deal or not. I just like to confirm with other investors. Also, I was just curious to find out what the "wholesalers" had the property under contract for, if there was a way to find out but most likely not, unless it was recorded. Most likely, they wholesalers have an exit strategy and have some sort of option to buy or a condition of term to find buyer within a set time period, usually 30-90 days. I'm not trying to undercut or get around, especially if they have a legit contract, I just want to know what they have it under contract for. I think they overpaid and that is why they inflated the numbers, plus they do not understand my market, they are from a neighboring county. To be honest, if the wholesalers have it under contract for too much because the seller wants to much, there was never a "wholesale" deal to begin with.

5. is the subj property off list?
-response/answer: yes, as far as I can tell. I have a colleague that is a real estate agent, property is not in mls. we have some background info. I assume that is what you mean by "off list"

6. u cud find money from private capital (here or rei club) as well as hml (here, auction, rei club etc) if ur deal is truly a deal.
-response/answer: I think I need to demonstrate that I know what I am doing a little bit better before I solicit private money. However, I do have a network of local real estate investors that claim they have access to private money. If my numbers work and they are accurate, I am confident I will find funding. I also have an online database to find cash buyers and it is part of my marketing campaign. I would like to set up cash buyer list and find out what they want, so I can seek out those properties for them.

7. holdg cost includes tax, ins, cost of money, utils, hmmm (BP will fill in anythg I'm missg here I'm sure)
-response/answer: Thanks, yes BP is a great source of learning and information and I am grateful to be able to verify what the total holding costs are, or at least how to estimate the holding costs. I also need to keep in mind to do a search to determine if the property has a liens or violations by doing a title search and talking to local code enforcement.

8, how bad is the mold? how does ur area deal w mold remediation? u sure u est enuf for mold?
-response/answer: the mold is bad. I got an estimate from a local contractor as well as asking the wholesaler their thoughts. Both were dead on, the estimate for mold removal came out around 12K

9. is ur market a buyer or seller mkt?
-response/answer: not to oversimplify, and please if any other investors would like to comment, markets are generally global, yes individual markets will vary, prices, neighborhoods, single family vs multidwellings, commercial, etc, but globally, I would like to say, maybe not so boldly because I do not know everything, it is a buyers market. the market is in favor of investors even thought the market is starting to recover and prices are rising. now is the time to buy

10. good luck to u!
-response/answer: Thank you.

J Scott Thanks for the info regarding MAO, I was not sure how to calculate holding costs and now I have some info I can use to help with analysis.

I'm getting emails too. I put my website as a logo on my letters and people are emailing. Need to respond. Nervous. I got to at least use a property assessment sheet to obtain info for analysis. Thanks for all the responses.

Thanks everybody for the comments. I will use a script until it becomes natural. I need to work on my salesmanship, or lack there of. I believe that a script that builds rapport is what will work for me. I am not a natural conversationalist, but have other strengths. Eventually, I will hire a virtual assistant, an actual person that will qualify my prospects. BTW, I started a blog explaining more about my reboot real estate investor biz. Thanks again