All Forum Posts by: Jim Pellerin

If you want to find out what other Airbnbs are doing in ur area, che k out wheelhouse. It will allow you to create a test listing. You only start posting when you get bookings. 

Start raising capital. 

I would start charging your parents rent. You can always reimburse them. The lenders are looking at about 75% of the income and 100% of your debt when doing your DTI ratio.

A lot of people get stuck at this magic number of 3 or 4 units.

Theres a few things you should budget for. Capital expenditures. Maintenance, Vacancy. Depending on your cash flows, I would put aside everything the first year and then 20% after that. 

 I just get the owner to contact the lender and have them change the account where the auto payments are coming from. Sometimes the lender wont allow payments from an account that's not in the name of the borrower so you can do what you suggested. Or just get him to send you confirmation of payments each month since it's only for 3 months but theres a risk he wont pay.

One word of caution is to make sure there is no foreclosure, bankruptcy  liens on the property. I had one long term deal go into foreclosure. I had to step up and cover the arrears. I didnt do what I just suggested you do.

Is that ARV real. I just did a search in Riverside and the average price is $600k but for a 1,700 sq ft property.

https://www.movoto.com/riversi...

Here's how I would tell anyone to start wholesaling

1. Create a list of buyers. This will help you focus the property search and take the pressure off once you find a deal.

2. Define the criteria. What do most of your buyers want (referred to as buy box).

3. Obtain list. Based on this criteria acquire a list of sellers. You can use listsource, batch leads, propstream. You can look on FB Marketplace (we get a deal a month here). craigslist. Etc.

4. Tools. If you want to make a lot of calls I recommend a tool like MojoCaller. You also want a good CRM. Hubspot is free. Freshsales is cheap.

5. Scripts. Make sure you know what you are going say to the sellers.

6. Make offers. Make lots of offers,  even if they are just verbal. Shoot for 1 a day.

7. Follow up. The fortune is in the followup. Keep doing it until they say no.

8. Put a property under contract and assign it.

9. Repeat.

Make sure you are conservative on the ARV and pad the rehab estimates. And dont forget to budget for acquisition costs, carrying costs and disposition costs. Most people use about 15%. So that means about $54K depending if your ARV is $360K. So that leaves a profit of $360K - $260K - $20K - $54K = $26K.

1. Agree on a price with the seller

2. Find a buyer

3. Buyer does his due diligence

4. Assign contract to buyer

5.  Send assignment agreement to title company

6. Deal closes and your fee is transferred or mailed to you

You may have to get someone to sign fo you.