All Forum Posts by: Isaiah Lopez

Hi @Isaiah Lopez, 

Thanks for posting. I've been a wholesaler for over 10 years and just want to encourage you that it's possible to a) do it long term b) have buyers who love to buy from you. It simply takes deciding to do things right and treating people well (of course along with actually knowing what you're doing). Unfortunately wholesalers have gained a poor reputation because there have been many who have not done what I just recommended. (yes just read the forums to hear of many negative experiences with them) Problem is that in trying to make a few extra quick bucks they are actually hurting themselves financially in the long term. I'd encourage you to yes learn the "how tos" but also to look at ways to add value to the buyer. This will help you build a list of ones you can trust and who can trust you. A giant list isn't crucial to be successful. You can do well with a handful of consistent buyers, but you need to treat them well to get them.  

That said, if you're looking for one on one mentoring, I'd encourage you to go to the REI meetups in your area and keep your eye out for a wholesaler who meets the description (buyers like them). Then you can treat them to a coffee. There you can let them know that you're hungry to get involved and learn the business and ask them if there is anything they need that you can help them with...even if it's answering phones, cleaning, whatever. Just say that you'd love an opportunity to help them out. And then, of course, actually do what they offer and what you say. I have a full-time staff member who is learning the trade who started in a similar matter.

Hope this helps!

Michael Quarles podcast has been the most beneficial to me.  Dont overthink the website, cards, etc...you want people to take you serious so you need to show you are serious so I think some signage on your vehicle, some business cards and a basic website and dressing for success is a great start.

Give cards to everyone you meet and tell them you are a RE investor...go to every REI meeting you can and start shaking hands and asking investors what kind of properties they are looking for.

Differentiate  yourself...don't be lazy.  I am fairly new but I can tell you start meeting with everyone that will have lunch with you or meet you.  Ask questions, return calls promptly, return emails, send thank yous and help others out - network!  If people like you they will want to start working with you.

Like @Jeff Rabinowitz stated, just get your phone to ring so you can start figuring out what you don't know and where your gaps in knowledge are.  Try bandit signs, call FSBOs, rental sign numbers, rental ads in craigslist and start figuring out what markets you want to direct mail to..spend some time with this so you arent wasting your money direct mailing to markets that won't bear much fruit.  I like Michael's podcasts because all his focus is on wholetailing/wholesaling.  You can download his scripts, listen to example calls and he explains how to use listsouce, how to do direct mail, etc.  Obviously, you wouldn't do everything and wouldn't scale like Michael does at this point but you will get a solid foundation in how to start.

Start documenting your processes and procedures, read EMyth so you will be prepared to have a business as Jeff refers to.  It will happen....just don't quit.

Message me and I can email you a copy of an investors requirements so you can get an idea of what that might be expecting.  At the end of the day, I follow on BP who I think are some of the most respected, wise and knowledgeable investors...I pay attention when they post replies. Best of luck.

Hey @Isaiah Lopez

Is that $1,885/mo mortgage PITI (Principle, Interest, Taxes, Insurance), or just principle and interest?

Also, I'd definitely recommend working with an agent who can help you to refine those market rent estimates to a more precise figure.

Happy to lend a second pair of eyes to review the numbers. 

Isaiah Lopez I know that you will be building equity in the apartment and pocketing a couple of hundred a month after expenses, which is good.

If I was in your shoes, I just don't know how I would feel about shelling out that $2,300-2,400 each month for my own rent also. That's 3x more than what you pay right now.

Have you looked into any Triplexes or Quadplexes? You could use the FHA and generate enough income from the other 2-3 units to gain equity, pay for your own mortgage and maybe still pocket a couple of hundred.

Although, I don't know what state you reside in and if it is different but you only have to occupy a residence for one year with an FHA then you can move, but you have a family and that's always something to think about.

 I wouldn't be too nervous about an elementary school, but if the property is really out of date it will probably require a good amount of rehab and you need to discount that from whatever offer price you plan on making for sure.

It's hard to say for certain, but it appears to have a decent rent/cost for a property of that value and you certainly can't complain about the financing! It won't cash flow with you living there, but it would be a cheap way to live in all liklihood if you think you get that rent. The big thing is I always want to be buying under market value. Do you think you're getting any built-in equity at that price?

You can get a free credit report online from creditkarma.com. I believe that these don't count against you on your report because the are a self initiated request but I may be wrong. Check online to see what the credit requirements are for fha. If you need to clean up your credit, it is best to do that before applying because you will likely get a better interest rate. You will also have to have a down payment saved for the property if you get approved . I am not a lender but have bought through FHA before. It is a good program if you can qualify. Also, keep in mind that the estimated payments on most real estate sites don't include property taxes or insurance, nor do they include maintenance so you may want to add those to your expenses.

I am very familiar with the area you are interested in. Please remember that our desert area is seasonal.  If you rent year-round, rent will be much less than if you rent seasonally.  Renting seasonally will captivate more income, but can leave you some months without any renter.