All Forum Posts by: Robert Feol

Easnest money = the money which binds a purchase and sale contract, usually $500 or $1000.

When you get your Realtor's license, you would get two checks - one for your wholelsale commission, directly from the closing attroney or escrow agent, and a second check would be made to your Realty company which would deduct appropriate commission splits and then give you your pre tax net commission from the Realty side. Honestly, it has been a fantastic source of revenue for us and has changed our lives. I'd be happy to give you our website with our blogs which may assist you as you begin down the path of becoming a real estate investor. Let me know.

Robert Feol

When I got started I was attending my local REIA and a national speaker came and discussed Wholesaling. Ideally, you never put a contract on a house you aren't willing to close on, but essentially you only lock up incredible deals and resell them to people on your buyer's list. You always work on building your buyer's list and then when you get a good deal you farm the deal to your biggest investors. There are a variety of marketing techniques you can use as well. But in a nutshell, you (ideally) do not close on the home - you resell it before you close the contract and do a collapsed or simultaneous close. You generally only put up earnest money.

As far as the two commissions go, follow this:

If you were a Realtor, and you bought a home - suppose you close on it - you get one commission.

If you are a Realtor and a Wholesaler - you buy the house as if you were going to close on it, but you resell the contract to anotheri nvestor. However, you were still the purchasing party on the sales side of the contract. When it closes, you get two commissions:

1) For being a Realtor on the buy side
2) Your Wholesale commission.

Hope that helps!

Robert Feol

Just a word of caution - in Real Estate Investing, sometimes perceived "mentorship" can translate into 'high energy motivated less experienced person gets taken advantage of." Be careful, and when you are looking for a mentor, ask them how many deals a month they do and what they would expect in return for your shadowing them. I had a mentor who stole lots from me and it was a disappointing experience - just use caution and good luck!

Robert Feol

One route you may want to consider to get involved is becoming a wholesaler of investment real estate. However, it is important that you do this in the proper way, or else you can potentially become a snake oil salesman like so many others out there.

The premise is, obviously, to control real estate deals(greatly discounted deals) through a purchase and sale agreement and then resell the home or assign the contract to an end investor, allowing you to make a profit. I started to do this while I was a full - time school teacher and began to make my monthly salary in a single transaction - and quickly ended my teaching career. 8)

Also, while as an appraiser you do have access to the MLS, you may want to consider getting your Realtor's license as an additional revenue stream, like if you are locking up great deals from the MLS - then you resell them and basically get two commissions. My partner and I both have our licenses and wholesale about 30 deals a month, so it can be quite profitable - and it is a great learning experience for you(learning to do repair estimates and estimate rental ranges, etc.)

Robert Feol

Hey All

I know this started about Dubai but I really think the next Miami is Panama City, Panama. My partner and I, both full - time real estate investors, have purchased several units there last year, both in Trump Tower and in Nikki Beach. Not only has the appreciation been fanatstic, but the city itself is a fantastic place and the people are incredible. Additionally, the dollar(the primary currency) is used there and the prices are CHEAP compared to US, across the spectrum - not just in Real Estate. We are going back for a 3rd time in November. I would lovce to share some of our experiences if anyone is interested!

Robert Feol

Hey All

Thanks so much for your replys. It is so interesting to hear from other people about what they do in their REI investments.

As far as Memphis is concerned, the market here is unlike anything I have seen before. The investing opportunities in single family homes are GREAT, extremely affordable and with awesome positive cash flow. You have to buy in the right areas, though. As for me, I focus on building my portfolio one house at a time, and also wholesale some deals on the side, so I guess you could call me a full -time inevstor but I have otehr interests as well that keep me busy.

One thing I have noticed is we have TONS of out of state investors coming to Memphis, I think they see it as some kind of massive opportunity.

RF

Hey All

I am a real estate investor from the Tennessee area, and I just found this webpage. I am excited about an exchange where people focus on assisting each other in the at times tumultous world of real estate!

I live in Memphis and would love to hear from other people about what is going on at biggerpockets.

RF