All Forum Posts by: Joe Kling

Point taken Jay. I was thinking of the retail agents not REO brokers. That being said, *some* of those properties could've been saved from becoming REO if a good wholesaler had linked up with a good rehabber and helped the original owner solve the problem, don't you think?

If any good REO brokers (or wholesalers) are reading this and want me to look at their deals in the east part of Los Angeles please private message me. :)

Hey Brent

Welcome to BP

One thing I often hear people say is that single family residences and up to 4 unit homes finance based on the buyers credit worthiness while the larger deals finance based on the merits of the deal. One of the merits of the deal is going to be your experience. So while it might seem easier to just go straight to the large apartment complexes your experience might prohibit you from finding funding. You might want to start off with some smaller units while learning the ins and outs of the business. Do things like listening to the webinars that Josh suggested above while debriefing the experience so that once you have all the knowledge to embark on that kind of transaction you also have the resume to inspire confidence in investors and lenders. 

Good luck. 

 I'm not missing your point. I just disagree with it. Wholesalers provide the function of sourcing properties that need to be rehabbed and linking them with individuals who are capable and willing to do that job. Realtors sell properties at retail value. They help the average individual who wants to buy a home for their family. The average individual doesn't want to deal with a rehab and even if they did their financing would prevent them from buying the types if properties that wholesalers typically deal with. Wholesalers have to be great at marketing so they can find those opportunities that rehabbers need to do business. 

The store at the mall doesn't typically buy directly from the producer/manufacturer. They buy from a wholesaler. Why is it different for REI?

 Tiffany -Are you capable as a property manager? Ask yourself that question and then act accordingly. If you're capable own it and others will believe it too. If you don't think you're capable, hire a property manager. People will treat you like the person you repeat yourself as. It sounds like you're a savvy, intelligent person so act accordingly. 

 James - 

That goes to my point. If we can help wholesalers do their job better we'll all benefit. If we try to kick them out of the discussion, they'll still try to do the job but they'll do it poorly and won't fulfill their function. 

You say that agents take 6% and wholesalers take 30%? We need wholesalers to understand that they're not building a long term sustainable business if they do this by offering "deals" at 80-90% of ARV.

I'd rather invest less of my time and money marketing to sellers and instead invest my time and money on the execution of the flip. If a wholesaler can get a property that's in rough condition to me for 50-60% of ARV even after their cut I'm better off than a realtor trying to get 100% of ARV by telling the owner that's what it's worth despite all of the repairs needed. Even if the wholesaler marked up their contract price by 30% - if they get it to me at 60% of ARV, I'm going to be dying to do business with that wholesaler because they're clearly brilliant at finding deals and locking them up and I now have a source of profitable deals.

@Brandon Sturgill

You're off base on this one. 

I'm not a wholesaler and I don't have plans on being a wholesaler but I wish anyone who wanted to be a wholesaler would spend some time on Biggerpockets. If they could learn about how to fill their role more efficiently everyone would benefit. I'm dying for properties and it kills me to see "deals" listed at 90% of ARV. If wholesalers took the time to learn how to do the job more efficiently they would close more deals and I could purchase more properties from them.

Why wouldn't I want that? 

Rent the strongest ozone generator you can find. Make it smell like it was just built. When you combine the smell with the fact that it is in good shape, the combination will overshadow the outdated furnishings. Schedule a brokers open right after this and an open house the next weekend. 

Don't place any value in arbitrary deadlines. Get the property looking is best as quickly as possible. Once it is, work on getting a top quality tenant. If those things happen in the middle of July so be it. Don't let your property sit empty just to start the lease on a certain date. 

@Eric Odum

I didn't want to upset any brokers so I was going to leave the underlying implications unstated. 

:)

offer to let the listing agent represent you. The enticement of double ending the deal will get you a response.