All Forum Posts by: Jacob Michaels

@Joshua Dorkin We had a blast with @Brandon Turner today in the Seoul REI meetup and hearing his raw investing stories and tips. If you have the time we'd love to have you join us at a meeting as well!

@John Van Uytven @Daniel Ryu Thanks guys for organizing the meetup today. Really great stuff!

@Brandon Turner Thanks so much for joining in on Skype! Really motivating for the investors who are currently doing it to keep going. LOOOVED the poo toilet story :) 

Have a great time in Hawaii with your wife and if you're serious about visiting Korea I'd be happy to host you guys in our new place. We've got plenty of space!

Look forward to meeting with you in person soon.

@Dan Shoemaker Just wanted to follow up after you've had more time with them. Are you still just as satisfied with August REI?

@John Van Uytven & @Daniel Ryu Thanks a lot for spending the time to organize the meetup in Seoul. You guys are doing great!

@Brandon Turner @Joshua Dorkin Looking forward to having you both join in on the next meeting (virtually)!

@Kamran Ahmed 

I'm a wholesaler in Dallas, and may have something in South Dallas that might work for you. I'll PM you.

Jacob

Does anybody know of anyone who is interested in purchasing land in South Dallas:

Lancaster Rd, Dallas, TX 75241

I'm talking with a seller that has 6 lots available. Asking $60k OBO. Financing offers welcome.

land, commercial, DFW

Here's another example:

We can think of it as I talk with a small shop owner who has a dozen cans of green beans that they've held onto for a year and thought they could sell it, but didn't and now just wants to get rid of it. Sure, they might originally sell for $1 each but I make an offer for $0.20ea and they happily accept. This shop owner could get a higher price by putting more effort into it and actively marketing it to someone who'd pay more, but it's just not worth it enough to them. They want to get rid of it and be done with it.

Now, I've just offered $.20 to them because I have another shop owner across town who will give me $.30 for them because they have customers who buy them all the time.

This is a win-win-win because there was real value that I provided to both sides. The convenience to the seller and hassle off their hands, and the great price to my buyer.

The Seller could have gotten more from somewhere else, but it wasn't the primary factor in selling cheaper. Convenience was.

The buyer most likely could not have gotten that product cheaper elsewhere. So they love it.

I come out ahead because I provided real value to both sides. 

Value is not always measured in dollars. 

@Bill Gulley As a wholesaler myself, I can appreciate your opinion on the matter and I think there's a lot of truth in what you're saying. There's definitely a fine line to walk when wholesaling and I agree it's wrong to convince the seller their property is valued far lower than it is. There is a lot of gray area when negotiating great deals on properties and it is not an easy black or white by any means. 

The way I work it is not to tell them it's a low-value property, but to tell them that based on these and these factors (comps, repairs, liens, etc) I could do ___this price. Is that something that could work for you? 

Sometimes, sellers are simply not looking to make the absolute most out of a problem---believe it or not. Sometimes they value getting cash out of their property and getting rid of a headache for themselves more than getting more money. 

I do think there's a need for wholesalers in certain situations and that done well we do add a lot of value to the chain. What if a seller needed to close within 7 days because they absolutely needed the money at that time? A realtor would not be able to guarantee that. A good wholesaler with a strong cash buyer network who knows exactly what their buyer can pay and that they would deliver 100% would be able to help this Seller out of their problem, where most realtors wouldn't. 

@Pavel Sakurets I'm a wholesaler in Dallas and have done both double closings (buy and sell on the same day) and assignments (transfer the contract to my buyer for a fee in lieu of closing). 

I try to have 30-45 days to close with a generous inspection period to run the deal by my buyers. 

To answer your other question: for me, I do not file Memorandum of Options on my wholesale deals, and I would not do anything to enforce the contract if the seller went behind my back. Why? Because it's just not worth the hassle and cost. 

The solution is to develop great rapport and good ongoing communication with your sellers to make sure you don't have this problem come up in the first place. It would be because you lack this necessary rapport that you might encounter this situation, IMHO. If you have great rapport and communication, then your seller will probably tell you that he's really tempted to take someone else's higher offer, and you can try your best to get him to stick to the contract or work out another arrangement with him. 

I think there's a lot of misunderstandings about the best practices with wholesaling, and I agree a lot of wholesalers throw out deals that suck. I try to subscribe to their mailing lists so I see some of the issues other investors are talking about. 

Unlike some others, I think that people wanting to get started in RE investing SHOULD consider wholesaling, but they need to study and learn directly from the pros who are currently running solid wholesaling businesses. I'm still working on building mine up, but I have been helped so much by learning from others' experience and mistakes. 

And yes, it IS possible to start wholesaling without much money or experience (driving for dollars and dialing for dollars come to mind). The difference is to make it work that way you have to invest a lot of TIME and SWEAT EQUITY to learn the trade properly to find and recognize the deals, and market or network with buyers. 

I think there are a lot of investors who are happy to help newbie wholesalers, as long as the newbies are willing to work and learn and bring real value (DEALS!) to them. 

I haven't worked with Net Worth Realty myself, but as a fellow wholesaler they sound like a company I need to connect with. 

This market in Dallas is tough! However I am able to find and negotiate a few properties that are legitimately rare finds, and I try to pass on the meat of the deals to my buyers. 

@Jamie Wooley @Hattie Dizmond @Stan Butler @Greg Carr @Mark Ferguson @Will Pritchett @Chris Soignier PM me and let me know what you're looking for. I only work in the Dallas and surrounding area (not FW).