All Forum Posts by: Guy M.

"I've talked to investment groups like yours in the past and they just want to come in here and steal the property from me and not pay me what's it's worth. I want you to know I'm coming to Tulsa this summer to fix my property and sell it myself"

So that got me thinking, how do you respond to someone like this when you're actually in a conversation. Obviously when they have that attitude the odds of it working out to a deal are probably minimal, but how can I at least help this person understand where investors are coming from when they make the offers they do. So I thought of an anology I could provide that would go something like this:

"Ma'am, that's very true, we do make offers that are below market value, but let's pretend for a second you are in the market to buy a car. You come across a seller who has a car that is worth $10,000. It's got a great paint job and a great interior, but it unfortunately needs an engine rebuild that's going to set you back $1,500. So the gracious seller has offered to sell you the car for $1,500 off and give it to you for just $8,500. Does this seem like a fair deal to you? (rhetorical) Obviously the answer is no because now you are taking over their problem of having to get the car fixed. What happens if it turns out to cost more to repair than estimated? What happens if the mechanic finds other problems that require additional cash? What about the inconvenience you'll endure by not having the car while it's being repaired and you're making payments on it?"

It's the same exact thing in real estate. Only they don't just need an engine rebuild, they need an engine rebuild, a paint job, and a new interior. Food for thought.

If anyone else has some responses that have worked for them in the past, I'd be interested to hear them.

"I'm sorry you feel that way, Ma'am. It's difficult for sellers to get anything near what they're asking in this market. However, hang onto my contact info if your situation doesn't change within the next five to eight years."

Short and potent.

0 Votes

Originally posted by @Robby Satram:

how to buy second house to rent it out,have 100 procent equity in first house,please advise

Like Curtis said, open a line of credit against your first property and use it towards the second property.

How much equity are you talking about?

2 Votes

Originally posted by @Carrie Cathey:

Curious to know which numbers real estate investors look at when considering properties. Do the numbers vary depending on the property type (ex. single-family homes, apartment complex, etc.).

Thanks :)

Cashflow is more important to me, as in immediate cashflow. It just so happens that if my investment is yielding a positive cashflow, then I will realize an ROI sooner or later.

Note, cashflow can begin in the negative but if there will be an ROI then there will eventually be positive cashflow too.

2 Votes

Sounds like something I would do. Fantastic!

3 Votes

I don't blame you.

Those RE books help BUT they all have the tendency to say the same thing and very few give you the down and dirty details. Anybody could write a book right now without having done ONE deal. They just read a bunch of the info in these books and put a different twist on it.

On the flip-side...

Some investors simply like to share their experiences. I love sharing mine, I know that for a fact. About the "limited supply" of land and real estate, there is an endless supply of circumstances. People buy and sell everyday and will continue to do so. Do you realize that the very land your foot is on has been bought and sold thousands of times for various reasons?

This forum is to strengthen our investor knowledge. Nobody knows everything, but somebody knows something. Someone can learn from me and I can learn from them... for free! You'd be a fool to think this sharing of info is all for naught.

3 Votes

Originally posted by @Kristi Patton:

Hey everyone! I I have been listening to the BP podcasts and figured it was time to jump in and meet people. My husband and I are currently looking for our first buy and hold property and look forward to learning from the experts here! Our very first goal - which I stole from the podcast/episode #2, is to acquire 5 rental properties over the next 2 years with the intent of having them paid off by the time we retire so we can use the income to supplement our retirement and pass on to my daughter someday. I am writing this on a rainy Sunday afternoon after watching my beloved Razorbacks shut out #8 Ole Miss - so to to any fellow Arkansans out there: Woo Pig Sooie!!!

Welcome to the forum, Kristi!

Just jump in and ask questions. My advice to you would be to NOT do nothing. As soon as you learn it... put it into practice. You're going to make mistakes and come out of the fight with a few lumps, but keep moving your feet. This forum will help soften a few of the blows of experience.

I joined this forum about 8 years ago. I had a hard way to go on my first rental (legal, unlawful detainers, etc.) and got discouraged. If I would have kept going, I would have about 10-15 properties by now.

I got my mojo back about last year and now I have two rentals. I'm not quitting or sitting around anymore.

JUST A FEW WORDS TO THE WISE!

0 Votes

Originally posted by @Dawn Anastasi:

If you are thinking of investing in a "D" class area, make sure you check out PM companies BEFORE you buy, if you're not going to be self-managing. I understand that PMs for "D" class areas are hard to come by.

I endorse this message.

0 Votes

Originally posted by @Account Closed:

How realistic is it to met 1 million a year as a wholesaler? I was listening to a wholesaling podcast and the guy said he makes six figures a month. Sorry if this is a non-PC question lol, the reason I'm asking is because I' want to raise capital for another real estate venture that I hope to pursue in the future ! Thank you to anyone who answers, I patiently await your responses :)

I didn't read any of the other replies save Aaron's so forgive me if I repeat what's already been said.

Here's my opinion:

Can you become a millionaire by wholesaling? Of course. Do a few great deals and you could make millions. Then roll those millions into holding revenue-... er... profit-generating properties.

Maybe some wholesalers can school me on this, but as far as I know, wholesaling is not sustainable income. If something happens to the investor, the income stops immediately and his or her family will have to live off past earnings until they run out. No good.

But I assume that most wholesalers are smart and they turn that immediate income into some type of passive income (owning rentals, carrying notes, mutual funds, etc.).

I am a buy and hold guy with five kids and a near ending military career. Wholesaling isn't attractive to me unless the deal can sustain me and my family for at least two years. Now, I'm taking it to the extreme, but however, the deal has to be worth it and purposeful. (This statement is arguable and totally my point of view.)

I have a day job, though. So I don't have to wholesale to sustain my personal living. I would most likely use wholesale methods to raise capital for buying rental property. If I can find several rentals with good spreads, I could pull in $2k, $4k, $11k, $15k and beyond a month. Then I'll never have to scramble to find deals or work for somebody else.

If you are looking for passive income that can be passed down to your kids and grand kids, I suggest you buy and hold, and find props with large enough monthly spreads so that PM fees don't massacre you.

SIDE NOTE:

If you have a day job, you could take about 75% of your rental profit and use that towards paying off the note on your first and second rentals (this is why I look for cheap properties... easy to pay off). Just snowball paying off debt. Next thing you know you'll own four or five properties free and clear in no time.

I'm not going to stop working (day job) until my rental income per month reaches a certain level... then I might move into wholesaling here and there to boost my existing income.

2 Votes

Originally posted by @Ryan Billingsley:

@Guy M. Our two properties are in Hazelwood MO. Not to far from your property. Exciting to go through the process for the first time.

It is exciting! Addicting too.

0 Votes

Originally posted by @Jabari Adams:

I just sent my first round of letters out on Saturday and this was the first response I received:

Hello Jabari,

I received your letter expressing your interest in purchasing my property at the above address.

I just finished spending $20,000 in renovations. This property is now one of the best in

Rittenhouse Park. The property has an estimated value of $115,000. If you are interested

in making me a serious offer, I would be willing to listen.

Thank you.

The neighborhood that the house is in the average comps are $55,000. I'm not really concerned about his valuation, I'm really concerned about my next approach. I'm wondering if I should maybe wholesale it to a live-in owner instead of a normal cash buyer/flipper. Any suggestions?

Not to change the subject, Jabari... but...

I was raised in Willingboro, NJ. I graduated from Willingboro HS in 1996. My mother and father still live in Garfield Park.

What a small world.

0 Votes

All Forum Posts by: Guy M.

Guy M. has started 17 posts and replied 131 times.

Post: Angry voicemail

Post: Buying second house to rent

Post: Cash Flow or ROI? Which number do you focus on most in an investment?

Post: Another master lease signed this afternoon: A lesson in solving others’ problems – IN FLIP FLOPS - + My Mistake

Post: Why Are there So many Real Estate Mentors amd Teachers?

Post: Newbie from Little Rock, Arkansas

Post: Anyone own rentals in the ghetto?

Post: Can I become a millionaire as a wholesaler?

Post: Closed on our 1st two rentals today!

Post: Wholesale Live-in Buyer