All Forum Posts by: John T.

Hi there, 

I have a question. I am thinking in running a mail campaign to hit some deals off market. I never did one, but it is about time to try and see how it goes. I invest OOS, and I know I can outsource a Call center to get my calls and set the appointments with the sellers that are interested . I personally work so many hours in my W2 job that I definitely cannot get those calls. However , I am wondering how you guys solve the appointment issue. The way I see it, It does not matter how many appointments  I got if I cannot convert those deals, since I cannot go personally to see those houses and talk to those sellers. I know I could hire a manager acquisitions, but do not have that volume to justify one I think. Heck, I don't even know how successful my mail campaign could be . Maybe I just can get two or three deals a year only.

How you guys do those BRRRRs successfully OOS? I am familiar with the rehab process, contractors, tenants, etc... But I cannot wrap my mind about this. I know I could partner up with a local, but at the moment I am not interested on that route. Also... yes , I am in contact with wholesalers, and they send me deals, but not really a deal in my opinion for the most part. Besides, I want to learn how to do my own direct mail campaigns, since I do believe it is a necessary skill in order to get to the next level.

I am sure there must be way, and I am sure there are plenty of investors solving this issue successfully. 

Thank you must to anybody willing to chime in and share what they know. 

First off, thank you all of you that chime in and give me your opinion. I highly appreciate it. 

I followed your advice, and I decided to pay the money straight to the contractor, and I told the realtor I want to do it that way. I also told him, I am gonna create an independent contractor agreement , that we both ( the contractor an I ) will sign. I also will continua my agreement with the realtor and I will pay him to check on the property once a week at least, and to verufy the work is done, since this is a rehab out of state, and I do need some boots on the ground. 

He is fine with it, and I did not feel any animosity about this. 

Now, the only think I will need is to find a template for this Independent contract agreement . I found some links from J Scott , but those are from about ten years ago, and for whatever reason they do  not work anymore.

Anybody has a template that would not mind to share with me? I want to do this right, and to follow a template will help me tremendously. 

@Matthew Irish-Jones Wow, I am very impressed you have a software like that. I should look into something like that. May I ask you if you have a template for the independent contactor assignment that I could use as a guide? 

@Rob Beeman Yeah, that pretty much what this guy is doing for me. To date , he has honestly giving  me good advice, and help me to understand some things. 

@Andy Sabisch Thank you, I will follow your advice and I will pay straight to the contractor.

@Khari F. I will keep that on mind. Can you share with me how you put a draw schedule on paper and perhaps and independent contractor agreement template? That would help me a lot. Anyway, thank you, you hit the nail on the head.

Hi there,

I am about to start a rehab next week, and I have a question about how should I do this right.

I am working with a realtor that is advising me and helping with the contractors. He met them, and we went over the bids together, he is very knowledgeable and I was recommended to work with him from someone I worked before. So far, we have a verbal agreement that he will charge a fix fee every time he must go to the site and oversee the work. That includes phone calls. We estimate he will go once per week. Basically he will be a sort of a project Manager, but I will not pay him a percentage of the rehab project. We agreed a fixed fee each week.

We contacted several contractors, and the one that he has more experience working with,  has the best bid...not necessarily much cheaper than the other one. I decided to go with them. 

My question is that he told me my deal is with him, and he will pay off the contractors. So the deposits must go through him. I already told him that I want this things on written, and he has no problem with this. What kind of agreement should I write on paper with him? Anybody have a template? 

Also, is that right to pay this contractor through him, or I should pay  directly the contractor by myself??

One more thing since  he acts as an advisor, Should I carry an insurance to him in case he hurts himself the site? 

   I already told him I want to check the insurances policies of the contractors, and that they are right. He already told me he will get them for me to review. he has no problem with any of this. 

    I honestly  like the guy, he seems to know what he is doing, he told me he invest himself. Also, he is a realtor, he works closely with someone with a great reputation. I just want to do the things right and structure our agreement on paper. Also, I want advice about if I should pay him so he pay the contractors, or I do pay the contractors myself. It is just our first time working together, not that I suspect him to not be honest. Not at all. I have no reason to be wary of him until date. I Just need a  little bit of guidance , or if other investors were in the same situation how they did it.

Thank you so much for all of you who can help me out with this.

Hi everyone, 

I need advice about a possible deal that I  have.

A friend of mine have one condo fully paid, and another one with a mortgage. He wants to sell the first one, and pay off the second mortgage with the proceeds. For that he needs about 45k. He is ok with financing the rest, but he really wants to cancel out the other mortgage with that 45k cash. The condo we think it might be around 115k, but we agree we need to do an appraisal to really see the real value of it.

I would like to buy this condo, and I was thinking in propose him a seller deal. However, I never made this type of deals, and I honestly have no idea how to structure this. I do not have those 45K either, but I could put about 20k down payment to him right now.

I would like to get some advice about how to structure this deal with him, so we do not need to involve banks or realtors. Please any real experience will be very much appreciate it.

Thank you sooooo much in advance, 

Hi there, I hope that some experience guys and gals out there can help me out with ideas of how to make a possible deal work.

A wholesaler called me this week with a deal, that I am actually interested. First off, I never worked with a wholesaler before, so I am a little bit intimidated, but I always willing to take action, that does not paralyze me. The problem is that the wholesaler wants the cash right away for at least the value of the property, which would be 130k. On top of that would be their fee.
I do not have that cash right now. I always go for traditional loans, so I’m gonna be able to get the 20%. I’m positive, I can have a traditional loan, but that would take about 5 weeks, and obviously the wholesaler will not wait for that .

I thought about going to a hard money lender to get the cash right away. That would be ideal if I still could refinance that home under a traditional loan after 5 weeks, but my understanding is that if go with a HML, my bank would make me wait 6 months until they can refinance the house. That would be really expensive for me, since I am sure right now the HML rates are very high, plus points and other fees. That would make the deal terrible and would not be worth it.

I was wondering about if the wholesaler would work with me by leveraging seller financing to me, I would pay their fee right away, and then in five weeks, I would refinance the house with my own lender.

However, in order to do that, the wholesaler would have to fork the price of the house upfront to the owner, plus then wait for me to get the loan. Why would they do that?

Also, I am not sure, if when there a seller financing deal my bank would not require 6 months of ownership.

Did someone have a similar situation, and came up with an idea or structure that worked out for both, the wholesaler and myself ?

I understand that for the wholesaler to go the extra mile, I will have to go the extra mile myself .

I really want to make this work, I know the property well, and I know there is not a major repair to do, most likely some TLC.

So in conclusion these are the facts:

1) I know I will have my lender financing the deal, but on their time frame (about 4 or 5 weeks)

2) I can get upfront the wholesaler fee, and down the road I will be able to get the 20% down payment for the conventional loan in 5 or 6 weeks

3) I would not mind to get a hard money loan, but only if I have to hold the HML for one or two months, because holding on to it for 6 months or so kill me, I think.

How can I do this deal attractive for the wholesaler to help me work it out and make it happen???

Thank you sooo much everyone!!!

Please, any ideas of how you did would help me a lot!!!

@Dave E. Go with Evergrow Property Management . They are serious , they have  systems in place and the two guys that run the company have a lot experience in the business on rental properties .
Ask for Derek , who runs the day to day operation . He is a very kind and respectful man , and he is honest. 

    I hope it helps . 
    

Hi there , 

    I need to put cages in some of my A/C units and I am struggling to find contractors that do this type of work.          I hope someone can get me some good referrals, because honestly I need to get some quotes, and get the job done ASAP, and I am being unsuccessful to find referrals in this type of work.
Thank you so much in advance!

Hi there, it is ok if he rejected the offer, and it hurts more because you are starting into this now( I assume).

Embrace it and feel comfortable with being rejected, no problem with that. You must do the right things that work for you and your numbers. Do not waive the inspection,  and if on top tit might be foundation issues that could be a nightmare for you. The owner knows that this is a sellers market and it will try to find someone easier than you. That's it.

Wow , I’m very impressed for the quality of answers given here . Thank you so much folks . I learned some important stuff in this posts .

Hey @Dave E. sorry for the confusion. Yes, it is the condenser unit what was stolen. 

I do not have any A/C company yet. I was hoping someone could share a referral for the job. I was about to call one of those big companies in Indianapolis, but I read several posts against it, because they overprice those services.