All Forum Posts by: Marcus Geiser

Finding deals can be challenging. One good option is to learn the wholesaling side of the business. This will teach you to locate for off market deals. The more motivated the seller the better chance of using creative financing. MLS properties have an agent, the agent gets a commission and will want to get paid I avoid properties with agents. In my experience two types of people are willing to owner finance properties. The person who doesn't want bothered, cant sell because of issues, or is out of options. The second is a person with enough resources to see the benefit of the interest. I always ask everyone "are you willing to hold the note for insert the rate %? No matter what the deal.

Second be prepared for owning a rental property. If your ROI is too thin it will become a problem. Be prepared to make the payment if the tenant does not. Also hold back a reserve to cover emergency repairs. Leverage is great, being over leveraged and under funded is a recipe for no sleep.

Figure out the best way to legally bind the deal. This will require an attorney. I would make sure to find someone familiar with how to make the deal work in your area. Lease/Option, Owner held Mortgage, etc. 

At the end of the day wholesaling may get you in the game and turn profits to purchase and renovate. At the very least youll become a great deal locator. 

On occasion real estate agents can help. They know the system. Investor want good deals. The will be motivated to get the commission on the resale because helping their people on the front side. Don't ever give the property info.

First build your buyers list it doesn't have to be huge. You need people that are going to pull thee trigger. Locating sellers is the first obstacle to overcome. The second is finding a buyer. Have a group of people to market the deal too. Call landlords ask if they want more properties. Call For sell by owners and ask if they are investors. Network at a local REI group. Use social media. Build a web page for both motivated sellers and motivated buyers. Repeat the process and devise new methods.

When you put the home under contract be clear about your intentions. If I don't buy the house one of the investors I network with will. 

Make a reasonable offer to the homeowner. Be fair and honest and you'll avoid problems. I always tell the sellers my plan is to close this deal as fast as possible. With me there is no commission you'll get 100% of our agreed amount.

When you sign the agreement be clear. I don't put down big deposits until I get a good idea of marketable deed. Sooo here is a crisp hundred to make the agreement legal. Get as much time for the hundred as possible 30, 60, 90+ days then make the deal extendable for an additional more substantial deposit for another X number of days.

Now here is the reason you will make money. If all you do is find the property ask the buyer to give you $500 or $1000 finders fee when they close. I'll do it with a handshake. They will pay because they want the next deal to. You make them money, save them time, and should be a great value. If he don't pay me, they needed the money worse than me and well I'd not enjoy working with them at any rate. Slime ball people are frustrating. Find good people.

The most important thing is this, create value for the investor. The second most important be create value for the investor. Provide a deal package that includes:

1. Pictures
2. Estimates of Renovation Cost
3. Materials List on Home Depot Quote on Paper
4. Comparable Sales
5. Fiverr.com can help with After Renderings like on Fixer Upper

Perform every act of due diligence you would do for a flip if your $100K was going into the deal.  After all if your trying to make $5000 on a deal texting an address may do but a Complete Deal Package will create the real value. If your numbers hold up the investor will jump on the deal. The owner will get paid. People will line up for your deals. May even call you. Your property analysis should be 100% spot on. When the investor gets your package he should only have to double check your figures and be impressed. My end game in wholesaling starting out was to perfect my craft. Get the numbers right while I couldn't flip. Build my resources and use wholesaling profits for down payment of my own flip. Remember $500 for finding and selling a property while becoming an expert is paid training. Work up to the huge scores if you have too. 

You could DM me. I'd be glad to give you my number so you could bounce ideas around in real time. 

RS Means Guide to Residential Remodeling Cost is a good book that can give every price per Sq Ft, Lin Ft etc if you want to take time to really crunch numbers. When I did a great deal of work I used the book to ensure good bids and show customers pricing. The numbers you can be adjusted down somewhat but licensed, ensured, workmans comp, contractors have higher cost than pick up truck operators. The book also tells you what labor rates are for all tradesman. 

I was a contractor in a long time. I did a good number of in depth estimates at an hourly rate for investors. Bid estimates with material lists on file at Home Depot or Lowes in their quote system. Maybe you could find someone to do the same. Offer a flat fee for the bid. Offer first right of refusal if he wants the work if you close and allow him too match lowest qualified bid. I call it a Rehab Plan and include Pics, Bid Break Downs of jobs, Total Cost, Drawings when permits are needed, After Pics from Fiverr if needed like on TV, structural engineer recommendations, if needed for the bad ones, and before they close a sewer cam. I do the for every wholesale deal to some degree I put together. 

At the end of the day it may make you money when they prove your profit. It will definitely save you money when the find the nightmare hidden from no contracting eyes. 

Question?

Would a worst case scenario with defaults, etc make section 8 more attractive. As it seems if RE and economy tank people will have less money. Qualify for more assistance. Resulting in the govt paying the rent for those who end up with the worst of it? It seems to me if Uncle Sam needs to pay the rent they can always print more. Are those rents a sure thing even in bad times? Never did any.

I have had some struggles lately the worst was a heart attack at 46. Self-employed, not prepared, unable to work. Truck repossession, Verizon Bill, etc. 

Bank of America offers a Secure credit card that is only $300 to open, I got a checking too to make payments easy. That was a few months ago. I have 2 new unsecured cards. The unsecured cards come at a price of $35 to $75 and the yearly fee. I look at as an investment in building credit. I use the cards for bills then pay the cards with the checking account. Never running a balance. A friend of mine told me he got his $100K American Express by using his other cards for business working capital and paying off in full every month. I do not know if it is true but he seems to think AMEX liked that and kept raising his limit. 

I am signed up with Trans Union and Equifax for monitoring and they offer tips to help build credit. Such as recommending a second type of credit. I got a car loan. The mix is important it seems. They also provide offers for new lines of credit based on what I click on for my needs. 

I recently was offered a $6500 business loan at 34.99% which I thought not legal, maybe I'm mistaken and it was 24.99% which i thought was limit to not be consider a loan shark. Maybe the difference is between business and personal. The term was two years so at 35% I'd repay $6500(principal) + $4550(interest) over 24-36 payments. 24 months $480 month 36 $320 month. This is crazy, BUT if I can make money with the loan I would otherwise miss out on I will look at it as a cost of doing business and a punishment for bad decisions. 

The biggest part of building credit is setting yourself up for success. Have a budget. A projected firm budget of monthly expenses Know what your responsibilities are. Keep a record of every other expense you incur. Starbucks @ $5.00 a day is $100 month $150 with a bagel! The incidentals add up and become clear where priorities lie. Monthly expenses of $2500 require an emergency fund start with getting a month ahead, the 2,3. Security lies in knowing no down swing can crush your dream and credit with late pays. Good credit is the result of financial responsibility. Bad credit is evidence of bad decisions. You debt to income ratio is the test of if you can be disciplined and live according your means AND save. 

I'll update you as I make the drive to the magical 660 score I need for hard money flip. I am 630, 618, 613 at the three agencies. This is up from 570's. Fast credit building seems to be 12 months lighting fast 24 months realistic. 

I don't know if  you can do it online but the Prothonotary or Recorder of Deed in the City County Building will have the lien information. It is on Grant Street, park across the street. Go in front door of City County Building. The office is on the left. Then go out the back door across Ross Street and the office for mortgage info is there. Go in get the mortgage info. I did it years ago with no clue which I am still fairly clueless! I did however perform the most due diligence I could for next to nothing. Unless I am remembering incorrectly with parking and fees it was less than $50.

I live on the red belt Rt 910, past Draguns almost on Rt. 65 in Fair Oaks. Message me I'd be willing to help you out. Either meet down there or whatever. A little real life networking. I don't know how you feel about that in this post Covid world so sorry if I offended. 

"@ Kenneth Garrett"

Competition drives the market. Hate it! I want to get to the supply before the demand. I hear a good deal of talk about finding deals through craigslist and MLS. The real profits are off market deals from motivated sellers. That has always been my focus. Finding ways to get to people first with a fair but profitable offer ready to close or assign.

Thank you for your input and tip. I will be cold calling next week. I'll post my results. The harder I work the luckier I get so I plan to hit it hard and find the right opportunity. 

If anyone else has any ideas I would be grateful for the information. I'll do my best to respond in kind with profitable information as I collect it. 

I have looked for topics here and found little clarity. Getting up to speed on the process of using the site. I want to call banks and credit unions to inquire about foreclosure and REO properties. I imagine they will take my call if I can get to the decision maker. Who Would this be, title or department? Any tips on best practices as to what to ask or how to proceed would be greatly appreciated. Do banks have list they share or is finding foreclosures a matter of getting abused by google hits and requests for my credit card. Do you recommend and site that can help me find properties.

Thank you

Here is what I do:

Wholesaling - Find properties that have investment potential.

1. Locate property and get an option agreement to purchase signed.

2. Package the property as a business plan.

    Comps

    Needed Repairs - I go as far as giving numbers and fixing price as complete if they buy and use me as contractor.

    Pictures

3. Offer the property to investor I network with by assigning option to purchase or requesting a finders fee.

If your numbers are solid and you are not greedy the meat on the bone for the Investor and the simplicity of the process should appeal to the right investors. I'm not a full time Wholesaler. This seems to work for me on capitalizing on opportunities.