All Forum Posts by: Jeff Rappaport

Carlos,

I am not sure where to start with your post. First, if you are generating a lot of leads you might want to consider learning to present several different offers to these sellers. Not all sellers want to take a low ball offer for their property. Being able to structure owner financing, subject to, and lease purchases may help you get some deals. All of these can be wholesaled as well! Second, it can take a number of leads to get a deal. In your market, it might take 20-40 leads to get a deal. Could be more if you are only offering them low cash offers. Third, most markets are competitive right now. It may be harder to buy a property but you should have an easier time getting the property sold. If your market is at all like mine, rehabbers are paying 80-85% of ARV minus repairs. If that is the case in your market maybe you can offer more money to these sellers you have been talking to. Fourth, you absolutely should be building a buyers list. Rehabbers, buy and hold and anyone else that has the capabiltity of paying cash. Last and certainly not least, you can not give up so easily! This is a business that requires time, creativity and persistence! The word "can't" should not be apart of your vocabulary. Figure out what is broken and fix it!

Let's start with a basic question - what is it worth?  Have you done any comps on the property?  The next question is would the sellers let you buy the property for what is owed on it?  What I mean, would they allow you to buy the property with the debt that is already on it?  What is the payment a month?  What would it rent for?  The big question is why would you want to convert it?  I know you want to wholesale the property.  You need to find out if it is really a deal or not.  You can certainly email me and I can help you with it.  Good luck!

Jason,

I would be very interested in the properties you have access to in Idaho.  Please pm with any details and I will get back to you quickly.  Thanks!

Kim,

I think you need to look at your leads in a different way.  There is the traditional wholesale deal where you buy it considerably under market value and sell it to a rehabber or a landlord.  That works fine when you can buy the property significantly under value.  

What are you doing with the leads that don't meet that criteria?  My suggestion is to become more of a transactional engineer (Ron Legrand terminology) and work to solve the seller's problem.  In the case you are referring to how about offering the seller a lease purchase.  You can do this in one of two ways:  First, you can negotiate the payment and the price down and do what is called a "sandwich lease option" where you stay in the middle of the deal.  You then find a tenant/buyer and collect a non-refundable option deposit up front, collect a monthly cash flow and possibly another pay day if and when the tenant buyer gets a new loan.  It actually is a very simple transaction.  Second, if the seller wants market rate rent or retail price for the property you enter into a lease purchase agreement with the right to assign your contract to a buyer.  You collect the non-refundable option deposit and you have nothing more to do with the property.  Just like wholesaling a house to a rehabber.  

You can do this on high equity properties or properties that have little to no equity.  You will be dealing with nicer houses in nicer areas as well.  I have not even mentioned structuring some owner financing which you can also stay in the middle of or wholesale depending on what kind of deal you get and what you are trying to accomplish.  

If you are interested in these type of transactions check out Joe McCall or John Jackson.  Both are very skilled at teaching these techniques.  

You are already generating leads.  You might as well make some money from your marketing efforts.  You can make as much if not more than your normal wholesale fee by doing this.  Hope this helps!

Have you tried rentometer?  I like to use that and then go on zillow and craigslist and compare the results.  

Bryce,

Why don't you put your creative mind to work and find a place that you do not need to get a conventional loan. Buy with owner financing, subject to, or lease option. You have some money to work with as a down payment or option deposit. If you let the banks dictate when they will lend to you, how much and how often you will find that is business is incredibly difficult! Come to some of the REIA groups here locally. I am speaking at the Utah REIA next Tuesday at 11:30 and at the new Wholesale Meetup group next Thursday evening. I am happy to chat with you about ways you can find a property to live in without getting a conventional loan. Call or email me! Good luck!

Works for me as well!  Where and what time?

Jared, I would be interested in meeting.  Let me know when and where.  

Jacy,

I work in the Idaho market and would be happy to chat with you.  I can give you some ideas how you can get going right away.  Email me!

Jeremy,

I would be interested in both type of leads you may have.  I would be happy to pay you if a deal can be struck or I will give you a portion of the profits.  Email me and lets discuss.  Thanks!