All Forum Posts by: Account Closed

@Bill Gulley Hey Billy Boy!

@Dion DePaoli Thanks, I guess I was referring to a selling agent.

@Shea Stringert A data service for comps is essential, but subscriptions are expensive. RealQuest had a pay per report option (just a few dollars), last time I used them. You should have every MLS listing available to you through Realtor sites, like this one NJMLS. If you're missing an active listing, double-check your search criteria.

If my @thing doesn't work, could someone enlighten me?

Hey Shea,

First off, never listen to naysayers.

I've never used a buyer's agent to purchase mls properties. Curt mentions the reason why, 6% vs. 3%. Whose contract offer do you think gets shuffled to the bottom, the one that offers full commission or the one that's split?

Hi Mike,

Have you been to your local REIA? The largest group has a smaller meeting in Prescott, but you might be better served to go into Phoenix. Look for HM lenders advertising there, pick up flyers and ask around. Some HM lenders will role in your points (no money down), but usually not on your first deal with them. Your cost will be 5% at most. Buy low! If you can't come out of pocket, then, like Kevin says, start looking for private money, and set your own terms.

John

If you put together a mailer, think about how you go through your own mail. For example, I usually toss out anything that looks like an advertisement or sales solicitation without ever reading. This is one reason I recommend against the post card. I think you would do better to mail something that looks like a letter and reads like a letter. Include a return address with your name and address, not a company name. You can prepare a standard letter of inquiry, but try to personalize each one with, at least, the names of the homeowners. Mass mailing of form letters or post cards is easier, but smaller batches of personalized letters can be much more effective.

I bought my first property for $36,000, a duplex in Atlanta. I bought the place with a no-credit-check, hard money loan at 10pts/18% interest; yeah, I know! The duplex was already occupied, so I had immediate monthly income to pay my note. While putting on a new roof and painting the house, a lady from across the street who managed a rooming house had come over to me and said she wished I could do that to her house. I said give me the name and number of your landlord. Within two weeks, I had seven rooming houses under contract. I wholesaled all seven. I sold the duplex about a year later and never held another property. It takes a certain breed to be a landlord, and I ain’t one of ‘em!

Well said, J. Lamar. There are plenty of people who are not ready to make the transition, or birddogging happens to be their preferred niche. By all means, use birddogs and anyone else who gives you a lead, but reward them well. It’s additional income that you wouldn’t have had otherwise. And there’s nothing like a big phat check to keep a good birddog motivated.

Awesome information, J. Lamar, for those whose goal is birddogging. But for those who aspire to wholesale, don’t use birddogging as a stepping stone. Bite off more than you can chew; then, start chewing. Remember, finding the deal is the hardest part. If you have the ability to find the deal, you have the ability to wholesale the deal, yourself. You can’t chew with somebody else’s teeth. If you find a good deal and pass it along to another wholesaler, you’ll give up the learning experience, you’ll give up the opportunity to begin building your own buyers list and you’ll give up almost all of the profit. That’s not to say you shouldn’t use an established wholesaler and the benefits of an already developed buyers list; you should, but do it from a position of strength, control and equality. Your “find†is worth more than a referral fee, 50/50, nothing less.

I don’t want to get eaten alive here, but I think bandit signs are investor pollution. It’s litter, pure and simple. I don’t like those obnoxious “We Buy Ugly Houses†billboards, either, when they are placed directly in the hood. They are entirely disrespectful to the people who live in these neighborhoods. Remember, amidst the poverty, the crack houses and the eyesores, there are plenty of truly good people who do their best within their means who live in these neighborhoods, send their children to schools in these neighborhoods and participate in neighborhood crime prevention and redevelopment organizations.

Absentee Owners
The all important property data services, like RealQuest and Haines Criss-Cross, provide a lot more useful information than just comps. You can find out whether or not an address is owner-occupied, owner contact information, sales history and mortgage information. I used it to compile a mailing list of out-of-state homeowners specific to those zip codes where I like to buy.

If it's a fixer-upper, you'll want to require cash or hard money only. Seasoning won't be an issue. Some states will allow you to pay a small fee for a rush recording, which I recommend. I use a land trust when I am using a cash partner, mainly because it describes a partnership, provides some anonymity and protection to the investor. If you use your own cash, your personal name, an llc or a trust is all fine, since you'll be in and out quickly.

Survivant91, consider switching roles. Instead of being adopted, adopt. Find a deal first. Then find a real player with an established buyers list in your area, and adopt THEM. Tell them to bring you a buyer, and you’ll split the profit. You will earn while you learn. It’s the best adoption program out there!