All Forum Posts by: Joseph Back

@Alejandra Corona Curious to hear why you chose to start knocking doors instead of just driving for dollars. I have had quite a bit of success with driving for dollars and then mailing and cold calling the property's owner. Very curious to hear what your success rate is with door knocking. Excited to potentially add it to my team's lead gen repertoire.

@Thomas Layne The absolute best way for us has been attending local real estate investor and landlord meetups. Also, being a part of an online real estate investing community on BP or Facebook is a great way we have found buyers in the past.

@Jason Munger Obviously backing out of a deal is never ideal. Our company's philosophy is to never put a property under contract that we wouldn't purchase ourselves. We have a pretty good feel for our market and only had to close on 2 of the 30 deals we put under contract last year. We are able to implement this model by having a strong relationship with the largest hard money lender in our town who is willing to fund our purchases if we are forced to close.

@Eric Frisch First off I would like to say to maybe rethink what market you wholesale in. Our company has found it is quite hard to break in and start wholesaling in a market as large as Philly. The competition is fierce and your competing against guys who are spending $30,000 or more a month on marketing. I would suggest finding a smaller market that is a 30-60 minute drive away and the competition is almost none. Regarding the training, I am a big proponent of just bootstrapping things in the beginning until you find some success. Specifically, when I first got started I went out and drove for dollars every Saturday over the course of 3 weekends. After the third Saturday I personally printed, signed, sealed and stamped ~120 letters that were sent off to the owners of distressed looking properties around town. I made $8,000 in assignments off that first mailer and used the money to start blasting out batches of mass direct mail. Continued to have success through scaling up and now do 4-5 wholesale deals each month.

@Account Closed Call around in your market to find a closing agent or title company that will do a ghost closing. Basically this is a double closing where you don't have to bring any money to the table. We work with multiple closing attorneys and title companies in our market who do this. I am sure you could find one where you are located.

Great post @Steve Babiak. Our two top methods for adding high volume cash buyers are the following.

1) Attending local real estate and landlord meetups. This was how we initially built our buyers list and where most of our repeat buyers have come from.

2) Reformat lists your purchase for sending direct mail such that you can see how many properties each person or entity on the list owns. For ever person or entity that owns over 10 residential/multifamily properties in your market skip trace to find that person's number and call them. This is a great way to talk to some big fish in your market who will purchase multiple properties a year from you

Great post @Will Barnard! I got started wholesaling about 8 months ago now and definitely agree that the more due diligence and clarity on repairs and ARV you can provide in your initial marketing to buyers the better the experience is for everyone. We make sure to provide a breakdown of each system in the house including its age, condition, etc. Also always like to run and attach a CMA to each of our marketing emails. This way the potential buyer knows exactly what to expect and much less time is wasted for all parties.

Great flip opportunity for any investor. 4BD/1BA with lots of potential. Needs cosmetic upgrade of flooring, paint, kitchen and bathroom. Roof and HVAC are in good shape.

I typically use the same analysis for both single family and multi-family properties. In general if something doesn't meet the 1% rule I am not even going to look at it because to truly cash flow after repairs and capital expenditures I need to be hitting something more like the 1.5% rule. That is just my opinion though and probably also has to do with the fact that I use 100% leverage in most of my deals.

I would say 5 doors is definitely enough to make it worth it. Given you are in Milwaukee where I would assume home prices are still reasonable, you could buy 5 rental properties that would cash flow ~$250 a month each or an extra $15,000 a year total. I agree with above comments that you should employ a property manager if you want these to be truly passive investments similar to the stock market. Lastly regarding education, I would say the best strategy is to start talking with investors, realtors and lenders in your local market so you can start getting an idea of what is actually possible for you in your market.