All Forum Posts by: Brian Midden

@Justina Dunavan

@Nathan G. Is spot on.

If you’re serious about it then you will need to make some major sacrifices. Cut expenses down to a minimum. Ask your self if you really need some of the things you have. Maybe get a smaller home or trade your car in for one with no payment. Figure out a way to live on a minimal amount of money and don’t buy anything unless you absolutely need it and don’t make excuses for why you need something

Understand that there is multiple expenses when running a business. Don’t assume that you will only need to bring in 40k if reveue to make the same salary. Don’t forget there is operating expenses, marketing expenses, overhead, taxes, etc. So you may have to do 100k in revenue to make 40k a year and keep your business running and growing (just an example).

Good news is you have 20 years experience in the PM business so you have industry knowledge. You have worked for multiple companies and can learn from there mistakes and improve in areas they refused to.

@Aaron A Bitto

I think you're confusing yourself. But your LLC is your business name. For example my company is KC Home Acquisitions, LLC. Now I think there are laws and rules about putting the LLC behind your business name but I'm not sure so I would look into that.

But starting off you can purchase properties in your own name and yes renters can make checks out to you.

I may be wrong about this (someone correct me if so) but if everything is in your own personal name you have a risk of being sued. But if you created a LLC (or company name) then your company would be sued and not you personally.

This is just my understanding. Now I could be wrong about all this I’m not a professional and would recommend legal advice.

@Aaron A Bitto

LLC is good to protect yourself and personal assets. Along with that it's great to start branding as soon as you can. That way when you start doing deals people will know what company it is. And it seems to give credibility.

Bad thing having an LLC early is that I'm sure you will make a lot of mistakes early on and that could start giving your company a bad reputation and you could potentially dig yourself a hole.

In my opinion, if you have the money to spend on it then do it. But if it comes down to paying for a LLC or spending that money on marketing. I would suggest spending the money on getting deals.

@William C.

Sorry about that! I didn’t see that part.

How long have they been trying to sell the property?

If it’s been awhile then I would come in a little low.

Other than that , if your numbers work and you’re happy I would just give the asking. Not worth losing the deal for an extra $50/ month.

@William C. I would suggest doing 2 offers.

For example:

Offer 1: 100k, 30 day closing, 14 day inspection, financing contingency.

Offer 2: 90k, 14 day closing, 7 day inspection, cash offer, and all closing cost covered.

I would listen to why the seller is wanting to sell and issues they have. If they just want to get out of the house then a fast closing is a priority. If they are just trying to break even then money is probably the most important. Or if sellers keep backing out on them then maybe no inspection contingency would be priority.

I wouldn’t do more than 2 offers, as it confuses people. They will probably pick one and accept or try to negotiate it and you can go from there

I would also think Is $50/ month (+/-) worth risking the deal.

If the seller ends up selling their property to someone else do any of you ask what they got for the property? 

Lets say you have a lead that you continue to follow up with and one day you reach out and they say its no longer available and they sold it. Do any of you ask them what they ended up getting for the property or do you consider it rude?

I go back and fourth on it. I like knowing so it can help me with future deals but there are times i feel it is a little rude.

What are your thoughts?

@Sheila Campbell a lot books you read will say you can get started with little to no money. In my opinion though this is nearly impossible. Especially if you haven’t done a deal. Lenders with be reluctant to lend you money when you don’t have much skin in the game. If the deal is just smoking then you can put the home your buying as collateral and this will make it a little easier for you.

Obviously you know that wholesaling is the best way to start to build capital. I suggest this route because it lowers your risk, gives you a way to start learning different markets, helps you to start connect with investors, and it helps you understand how real estate transaction work.

As for a referral fee, I think you mean an assignment. Where you put the property under contract and assignment to an investor. The problem with this is you have to put it in the contract that it is assignable and you have to explain to your seller that you are passing it on to and investor/ partner to take care of the deal. In today’s market that is very difficult since sellers have MANY options of buyers.

I would look at your state laws to see if you can double close on a property. Another route is contact some local investors and see if you can work out a deal where you will give them a list of warm leads daily or weekly. In exchange they can give you a fee for every deal they close.

I was curious as to how long did it take some of you to get your first deal done?

What did you have to go through to get it done? How many people did you have to call? How many letters did you have to send?

I hear all kinds of stories from people and I want to hear what all you say! I have heard people say it took them over 6 months when they were cold calling all day  and sending letters every few months. Others say they drove for dollars for a couple hours and close on their first deal in less than 30 days. 

Just interested in hearing everyone's story!

@Jeffrey Douglas

Way of the wolf- Jordan belfort

Little different than what investor typically read but it will help when trying to acquire properties.

Hello everyone,

I am potentially getting a property under contract here in the next few days. The property has a tenant in place and I plan on wholesaling the deal. From what the buyer has said they seem to be good tenants since they just resigned a lease. 

I was curious as to if there is any way to find out that the tenant is up to date on rent payments rather than just taking the current landlords word on it?

Any other insight or tips on wholesaling properties that are occupied would be great!