All Forum Posts by: Jamie Parker

Quote from @Theresa Harris:

Everyone is different.  There are times when you need to network and times when you need to work to get things done.  To me the measure of success (10K calls vs $100K) is how many of those calls resulted in a sale?  If the answer is none, then it is time to re-evaluate the plan.

1 deal closed (September 2024)

1 deal scheduled to close 23 December,

2 deals look to start off 2025 in a better position.

5 dispos are rural property

30+ follow-ups 

I didn’t hit the goal. That’s just the truth but all isn’t lost:

- Created actionable steps, Created a system that can actually produce the desired outcome. Most importantly doing the work and being accountable to the work can help make sense of; how the goal was attained and how to duplicate it. 

Sidenote: business analytics, MBA, so also this has been an opportunity to tell the story with data. (If the 23 Dec closes, that’s one story. If not, that’s another story) 

No smoke and no mirrors. No course to sell. Getting started is ugly and can be down right embarrassing. Work ethic and accountability to the work is more important than the outcome. 

To your point, on December 31, the plan for 2025 will be solidified or revised based on 6 months of committed action. 

With about 2 weeks to go in the year, Have you considered what your goals are for next year?  Have you reached your goals for 2024? It has taken the last 6 months of the year to come to terms with an essentially game changing mindset: 

"Track the input and let the effort determine the outcomes"

Initially I wanted reach a goal of $100,000 in a year wholesaling real estate. By May 2024, I realize the goal was crushing me. I found myself, trying to sell deals, not standing firm on the numbers. Ultimately I wasn't able to contract anything. Desperation begin to set in, almost like the opportunity was fleeing me. Even made 4 or 5 offers that were scoffed at initially, but ultimately sold at that price to another investor. I realized my confidence was lacking.

Around that time, I begin working with an accountability coach and establishing some small goals, embarrassingly small,...5 calls a week. I struggled to wrap my head around, 5 calls a week, at first. Then after a couple weeks the goal moved to 10 calls a week. By the end of June, I struggled to find 20 calls to make.

By July 2024, I decided to try a different approach. I built a list and skip traced 750 addresses. That lead to 20 calls a day, then 50, then over a 100 a day. After a month, my first contracted deal in over 5 years as a wholesaler (own 2 properties 2023/2024). For the next month, I tried to find a rhythm but struggled find consistency in effort. After the first deal closed, something changed.

"Track the input and let the effort determine the outcomes"

This mindset took the pressures of outcome, off the table. This has been my biggest discovery, in life. 

¡¡NOW I HAVE A GOAL!!!

10,000 Calls Made

 Where I started 2024 and where I am finishing, two difference places. My mindset is absolutely stronger because it only reflects my ability to do the work. Life can be many things, can take us many places. If you do the work. For those that may be wondering, No, I DID NOT make $100,000 in real estate in 2024. More importantly, I can start off 2025 with a realistic foundation. In this situation 10,000 calls has been more important that making $100,000 in 2024. But, next year....

Quote from @Jordan Ray:

Quote from @Jamie Parker:

This past weekend I was driving with my mom and daughter looking at properties in the Memphis Area. Cutting to the meat of the situation, I came across a property that looked like a fixer upper, typical investment grade property. Could use some work, good bones. Fast forward, I called the agent this morning. I informed the agent that I was a wholesaler. I was informed that the property is held in a conservatorship. While the Agent mention that the seller would prefer no assignment, to which I acknowledged. 

If the seller accepts the offer, (contingent on appraisal[as per court approval requirement]), How should i proceed in the situation. Can I just birddog the situation, step out the way, bring the buy and asking for a referral? or partner with a buyer for a flip? 

Just curious has anyone been a situation like this before. 

I would just treat it like a normal deal if the numbers make sense. The problem you will have is the fact you would be assigning the contract. Not sure if the court would approve it unless you had a buyer lined up before getting to court. Goodluck!

 So another question, if the agent that’s representing the seller, but don’t represent me as the seller. Will I be able to know if the offer is accepted? Do I just do my normal routine, follow up after a couple days if I don’t hear anything? 

Thanks 

This past weekend I was driving with my mom and daughter looking at properties in the Memphis Area. Cutting to the meat of the situation, I came across a property that looked like a fixer upper, typical investment grade property. Could use some work, good bones. Fast forward, I called the agent this morning. I informed the agent that I was a wholesaler. I was informed that the property is held in a conservatorship. While the Agent mention that the seller would prefer no assignment, to which I acknowledged. 

If the seller accepts the offer, (contingent on appraisal[as per court approval requirement]), How should i proceed in the situation. Can I just birddog the situation, step out the way, bring the buy and asking for a referral? or partner with a buyer for a flip? 

Just curious has anyone been a situation like this before. 

Quote from @Derek Bell:

I am used to posting under “commercial real estate”. I usually only do commercial/industrial developments. But I have an opportunity that I need some input. A seller and I are going to be under contract soon for a 13 acre parcel in middle TN. Very up and coming city located about 30 miles south of Nashville. Property is located at a wonderful highly traffic location. 18k cars a day and will only be increasing. 5 of the 13 acres is zoned commercial, the back 8 acres is zoned large lot residential. I want to keep the commercial zoning up front and parcel those off. The back 8 acres I want to rezone to a small lot townhome use. Just initial talks w my civil, I think we can get 40 pads or so. So, how much do residential developers pay for 40 or so townhome pads?

I am not going to do any improvements to the land, just improvements on paper etc. The topo is good. Not great, but good. All utilities are at the street. 

I would be curious to try a different approach work it backwards:

Example

1,000,000 Land Cost

x2 = 2,000,000. Soft cost, carry cost, offsite and fees

/.2 = 10,000,000 Total Build Cost 

40 pads= 250k per pad Cost [250k/$150 per square ft = 1666 sqft per unit] 

250k per pad x 20% = 50k for land ready to build. 

Check the comps for sale prices by square foot. 1666 sqft sales for 419k for example  Residential build cost and commercial build cost are different. The difference in build cost could add or subtract sqft but more of a quick estimate 

Quote from @Jamie Hora:

The question you pose in the title, "Is a rezone required if availability study can support more density".  Technically speaking, to develop with a higher density, then its an obvious yes that rezoning will be required.  

But I think you may be asking, should you do the rezoning, or leave it to the ultimate developer.  I would consider the jurisdiction you are in and the nearby existing development to gauge how this process may be.  Increasing density can often get strong reactions from residents if they disagree with it. 

Is the surrounding areas trending also with increased density? Does the City have Future Land Use Maps showing a higher density? If these are a Yes, then you'll have the support and backing of the City staff in your rezoning case.  In that scenario you could do the rezoning. (That's also assuming the higher density is what a developer is looking for in this area).

Thank you for pointing that out. Asking the right questions is vital to getting the right answer. In cold calling, have narrowed my focus since posing this question. "should a rezone be pursued" is exactly the thing that I ran into. Cold calling sometimes Topo maps and street view dont tell the whole story. I was able to drive the property a couple of days later, and I realized no i should not chase a rezone, and actually property similar to this will be removed from my list. 

About the availability study thing. That was my first time hearing that as a thing, never knew about it. Know I do. Thank you posting. 

Quote from @Tanarat Bunchom:

Hello Jamie! You’re on the right track—setting up separate LLCs for wholesaling and building can simplify things and offer liability protection, plus putting properties in their own LLCs keeps assets safer as you grow. Aiming for each part of the business to eventually fund itself is a solid plan, and a real estate CPA or attorney could help fine-tune everything for taxes and structure. Congrats on all the progress!

 Thanks you for the contribution to the discussion. While I am focusing on deals remaining consolidated to 1 llc makes sense. However, once i hit my goal and preparing to break ground on new construction, having a plan seems to help me better than shooting from the hip. I did that once and it didnt work out to well. Thank you again. 

Quote from @Sean O'Keefe:

Quote from @Jamie Parker:

Quote from @Tim Delaney:

Quote from @Jamie Parker:

In my first stint in real estate, I thought reinvesting in the business was keeping the marketing engine running. At the time I was running on direct mail. I thought reinvesting in the business was partially investing in education. I justified going to the 10X Growth Con in 2017 and a couple local investor seminars. Only thing I got out of those events were I didn't understand how to get to the next level (no fault of the events, I take responsibility of my on inability to make the connections in the content).  Taking notes and asking questions only got me deeper in the weeds as if I was asking the wrong question. 

After purchasing my first property last year, I have resumed cold calling after purchasing a second property this year. Closed my first wholesale deal in 5 years. But now, I am more concerned with entity structure. I wholesale in LLC #1, and the 2 properties i purchased is in my name currently.

The big question for me: When I start to build, should the properties be held in an entity? I will need to partner with a builder to get financing. Secondly, should Building LLC be separate from Wholesaling LLC(currently being used for wholesaling). Who should I or do i talk to about getting things more compartmentalized. I recently ordered a survey on the two lots I own, and realized that I may be approaching this the wrong way.

For clarity, as i understand the concept of reinvesting in the business, each "Bucket" should eventually fund itself without the need for cash injections or contributions. Where or when is the point should I consider this or can just start out at any point? 

Any thoughts? 

 Thanks for your reply, but also my apologies for the lack of clarity. In my first stent in real estate, I would make a withdrawal from my account, or spend out of it. Not going over a predetermined amount. However, I want to do things different. I think the technical term is distribution. 

Do I write the LLC a W-9 and write a check from the LLC into a personal account for tracking purposes? The rule I plan to enact is paying myself 10% of the revenue generated from wholesaling quarterly. Since starting up, I am personally funding the marketing and lists. At this point I have not done anything yet in terms of distributions. This year, Unless I hit my goal i do not plan on taking distributions, this will be how next will start for simplicity.

My ideal is to have a system or a standard in place to maintain discipline about procedures. That way I am rewarded but not using the business account as a piggy bank. 

Generally, Distributions are paid from profits that have already been taxed at the personal-level since IRS Schedule K-1 flows through to personal return. As a result, you don't need a W-9 for yourself, you're a Partner, and you don't need to issue a 1099. Distribution for Partners are track on the IRS Schedule K-1 in the Partner’s Capital Account Analysis section. You can wire the distribution, pay it by check, etc. The method of payment doesn't really matter - what's important is that it is tracked in Schedule K-1 and reported to IRS. 
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*This post does not create a CPA-client relationship. The information contained in this post is not to be relied upon. Readers are advised to seek professional advice.

 Ill take that I am thinking too deep about this. To all the comments thanks for letting me know, "stick to getting deals done". Ill just do that and stop trying to do what the guys on LinkedIn are doing. Thanks to all. 

Quote from @Tim Delaney:

Quote from @Jamie Parker:

In my first stint in real estate, I thought reinvesting in the business was keeping the marketing engine running. At the time I was running on direct mail. I thought reinvesting in the business was partially investing in education. I justified going to the 10X Growth Con in 2017 and a couple local investor seminars. Only thing I got out of those events were I didn't understand how to get to the next level (no fault of the events, I take responsibility of my on inability to make the connections in the content).  Taking notes and asking questions only got me deeper in the weeds as if I was asking the wrong question. 

After purchasing my first property last year, I have resumed cold calling after purchasing a second property this year. Closed my first wholesale deal in 5 years. But now, I am more concerned with entity structure. I wholesale in LLC #1, and the 2 properties i purchased is in my name currently.

The big question for me: When I start to build, should the properties be held in an entity? I will need to partner with a builder to get financing. Secondly, should Building LLC be separate from Wholesaling LLC(currently being used for wholesaling). Who should I or do i talk to about getting things more compartmentalized. I recently ordered a survey on the two lots I own, and realized that I may be approaching this the wrong way.

For clarity, as i understand the concept of reinvesting in the business, each "Bucket" should eventually fund itself without the need for cash injections or contributions. Where or when is the point should I consider this or can just start out at any point? 

Any thoughts? 

 Thanks for your reply, but also my apologies for the lack of clarity. In my first stent in real estate, I would make a withdrawal from my account, or spend out of it. Not going over a predetermined amount. However, I want to do things different. I think the technical term is distribution. 

Do I write the LLC a W-9 and write a check from the LLC into a personal account for tracking purposes? The rule I plan to enact is paying myself 10% of the revenue generated from wholesaling quarterly. Since starting up, I am personally funding the marketing and lists. At this point I have not done anything yet in terms of distributions. This year, Unless I hit my goal i do not plan on taking distributions, this will be how next will start for simplicity.

My ideal is to have a system or a standard in place to maintain discipline about procedures. That way I am rewarded but not using the business account as a piggy bank.