All Forum Posts by: Jonathan Vince

Would like to start the project by the end of August or within the first couple weeks of September

Originally posted by @Sanjeev Advani:

@Jonathan Vince is the property you are speaking of near white lane and wilson road in Bakersfield? 

Who wants to know? ;)

j/k . . . no, it is not near that area

@Michael Guzik Yes! That's what I want to hear. Thank you for getting to the heart of the matter . . . and for the scripts ;)

Next week I'll be starting escrow on a vacant home in Bakersfield that I'll rehab and either sell or keep as a rental. What worked for me there was getting the owner's name and number from the neighbors, and then calling her and arranging to meet at the property along with a contractor and local realtor. After prying off the plywood and doing a walkthrough (and also having previously done due diligence and looking at comps), I made her an offer right there on the property. That was back in April. She wasn't ready, and kept kicking the can down the road in the months that followed. I had never before made an in-person offer on a home, and although I would definitely do some things differently, it was a great confidence builder. And now, four months later, after much gentle prodding, she has finally agreed to my offer.

In that case, I drew a lot of confidence from the fact that someone (me) was ALREADY in a position to buy the property. To me the most daunting thing about wholesaling seemed to be this idea that I'd have to get the seller all worked up and ready to sell before even having a buyer lined up. I appreciate the way you explained things because it helps me see that "first contact" is more like a first date than a marriage proposal. 

@Michael Guzik @Walter Roby jr @Mike M. (see reply- forgot to “@“ you guys the first time)

I appreciate everyone's answers! It's more like 1.5 years that I've been adding to this list (I rounded up), but, yes, more urgency makes sense. I guess what I'm seeking advice on is what exactly all those steps should look like in practice, and in what order they should go. For example, making contact with the owners-- I'm not afraid to knock on doors, but I also don't want to do so being inadequately prepared. Don't I need to have some potential buyers lined up in advance? Contracts ready to go? etc. And for me, another part of being prepared includes me genuinely having the potential seller's best interests in mind, and knowing how to communicate that to them, as well as being well-versed enough to show them just how the transaction might benefit them. Also, doesn't figuring out the numbers require that I first obtain a decent estimate of repair costs? . . . so, for all of the above "preparations", I feel like I would need to hang out with and get to know actual wholesalers and cash buyers. And in order for them to be willing to help me, I imagine they deserve some incentive too. That's why I mentioned reaching out to that cash buyer I met. He seemed honest and trustworthy. I know first impressions can be false, but they're still better than no impression. IF that's a good idea, then please advise on what a "fair" arrangement might look like. And please do share any other approaches that I might not have considered. Thanks again!

I have a detailed spreadsheet of about 110 properties in the San Gabriel Valley (Southern California) that I've built up over the past couple of years- unkempt homes I've noticed while driving (mostly in Alhambra, Pasadena, South Pasadena, San Marino, San Gabriel). I've done research on all of them, using a title company, the property tax portal, and other resources. And I've done some more in depth research on the more promising ones (owners, deaths, divorces, and other distressed situations). Several are tax defaulted. Many have foreclosures in their history. Many were last sold in the 70s or 80s, indicating older owners who may not be able to keep up the property. A good number are absentee owners. 

I know the more conventional approach is to send out mass mailers and then only spend time researching the ones who get back to you. But, I don't plan to do this. I'm willing to knock on doors and try to establish a good rapport, leave a good impression, etc, and do what I can to get the property under contract. 

I don't have experience wholesaling, nor do I have the cash or HML/PML line-up to purchase any of these homes myself. So, I am considering calling a cash buyer I met at a meetup, and seeing if we can arrange some kind of setup whereby he and I both benefit. Before I do that, however, I figured I ought to seek some BP counsel. Any suggestions on how we might want to approach this? I.e. should I offer to partner with him on reaching out to each owner in a way where he shows me the ropes and then I get a cut of his profit if he ends up buying and selling one (or more) of the properties? Or is it better to work out something where I get a bird dog (finder's) fee? Or???

Thanks in advance for your input!

It’s all free. Their benefit comes when you use them for a loan, or use their network of realtors, lenders, etc., and if you choose to use their property mgt services. So it makes sense to me that it’s in their best interests to seek their investors’ best interests.

Would it be a smart shortcut to use Marshall Reddick to help me buy a rental property a la David Greene’s method (as described in his Long Distance RE Investing book)? Or maybe I should rephrase the question this way: What gains, if any, might I forego by hopping on the back of a friendly giant? MR has great reviews and a solid track record, and it appears that they would also hold my hand in such a way that I would still “learn by doing.” For free Marshall Reddick: -does in depth market research -puts their vetted team to work for you in your given area of interest (yes, it has to be in one of their current cities) -analyzes properties (both the ones they list AND any that their clients may find and present to them) -mentors you (their focus is to help their clients hold long term cash flowing rentals) We talk a lot about leverage. I don’t see any real drawbacks to leveraging the knowledge and the network of Marshall Reddick to help me get the best possible bang for my buck in a market that makes good sense. So, please open my eyes if there is something I ought to be seeing.

Need recommendations for good realtors who have experience working with investors, and who cover territories anywhere within a 4 hour drive radius from Pasadena, Ca. Thanks!

Would love for some creative and knowledgeable folks to engage with this scenario and brainstorm any potential solutions. In other words, please take a look at the "ingredients" below and help me figure out what different options might be cooked up:

A husband, wife, and their 2 young children currently renting an apt. in SoCal want to:

1. own, or co-own a duplex, triplex, or quadplex somewhere in the San Gabriel, San Fernando, or Santa Clarita Valley (and if not that, then they'd like to at least stay in LA County). They would live in one of the units.

Or

2. purchase an investment property (that they won't live in). If in CA, then probably some place like Bakersfield or Fresno. If out of state, then probably TN, GA, or other affordable market.

Some stats on their situation:

*Neither have previously owned a home

*She: W2 part-time; He: self-employed

*Combined income very low. Don't prequalify for anything in the area, but have excellent credit score

*Together they have more than $100K in savings

*His parents are also looking to buy in the area. They are seniors with very little income other than social security. However, they have more than $500K in inheritance money, and are eligible for a reverse mortgage. Their pre-qual has them looking at properties below $800K.

*His parents are excited at the idea of co-purchasing a duplex, triplex, or quadplex and living in it with them (at whatever arrangement would make sense).

*On the wife's side, her father has had decent success in the past from buying and selling several properties in the LA area, and he is willing to partner financially (or even just give a loan) on an investment property.

*The husband has some friends and contacts who have invested successfully as landlords, and who would like to partner with him on potential deals. One of them has plenty of capital, and wants to work with him on finding a property "to buy low and sell high."