All Forum Posts by: Kenneth Sok

I think most people have covered the accuracy of Zillow very well.

From my perspective, I use ZEstimate as a ball park number when I need a quick estimate for any wholesale deals I am working on. Before I talk to a seller on the phone to gauge motivation and interest, I always pull up a ZEstimate just to get that ball park number. Then I adjust by 30-60% knowing that my number will likely be somewhere within that range. I always let the seller know that the range is large b/c I have no idea how the inside of their house looks (much like Zillow). 

If they are able to work with that number, then I know I'm talking to a hot lead and then pull actual ARV. Otherwise, they are probably looking for retail.

This can save a lot of time if you are running multiple leads and don't have time to run comps for every single one. It can very frustrating to spend hard time running super accurate comps when the lead is just a tire kicker or looking for retail and all you need at that point is "good enough".

@Luke Moses

I hear ya. Definitely hit me up if you have any deals and I'll do the same for you too.

@James Mills

I've been to a few. Hopefully get to meet up with you if you're attending.

@Roy N.

Agreed with everything you said.

Without any prior relationship, the initial 2-month lease is there to set the stage for this tenant that I mean business and that things will be different. Every bad thing about the tenant (missed payment, house not taken care of, etc.) is a strike against them. If things aren't that bad yet and can be resolved, I'd be open to letting them stay given they play ball.

Otherwise, if they are being difficult, then I wouldn't hesitate to evict them with the tenancy termination.

Hi everyone! 

I've been a long-time lurker and occasional poster. This is my first formal introduction.

I'm a RE Investor in Houston, TX. Been wholesaling for 2 years now with about 25 deals under my belt. I also have a few rentals (which I'm hoping to increase in the near future) and am planning on doing a rehab this year as well.

For wholesaling, I've found that the best way to look at it is by keeping the seller's needs in mind and being sensitive to their problems. Being a problem-solving company instead of just a profit-driven company has helped me improve my acquisitions but also made me sleep well at night knowing I'm doing everything I can to help others.

If anyone is interested in connecting, whether it be JVing on deals, asking for advice, or even just to chat, I'd love to talk to you! I'm looking for lenders and anyone interested in partnering on a rehab.

I'm looking forward to interacting with everyone and making some deals happen!

Cheers,

Kenneth Sok

I actually have an experience with this on one of my rentals. Take this as another way of looking at it.

I have a rental that has a tenant that has been there for 20 years. He was also paying under the market prices for rent. He still wants to stay in the property. Upon agreement, I initially put him on a 2 month temporary lease. Consider this like a probationary lease or even a testing lease.

After that 2 months, if I was happy with his tenancy, I would instate a 1 year lease.

I also immediately raised rents on him but not the entirety up to market prices yet. In my conversations with him, I told him that as a courtesy, I would slowly raise up rents throughout the year to get them to market equivalents. He was happy to abide and also willing to pay the higher prices. In this way, the rent hike would not be a huge hit to his monthly budget.

As such, I now have a long-term tenant who is very happy to stay and probably willing to pay whatever he has to to stay inside and built up rapport with him so that he is happy even though he is paying more now.

I know you're wholesaling the property but maybe the new owner may be interested in doing something like that. Hope that helps in any way. Best of luck.

@Rick Harmon

Best of luck with doing probate wholesaling! The leads are definitely very motivated and are looking for any help they can find.

I've been wholesaling about 2 years now and will say that the probate deals we've done have been the most time intensive. From affidavit of heirships to releases, etc., you'll find that one of the best tools in your pocket is a good title company. If you can find one that works well with investors and also has a solid legal team, they will help make your job a lot easier. 

Also be prepared to understand how heirships work and what the level of entitlement is. Rule of thumb: go down, go up, go over. As in, if someone is deceased and you need to find their heirs, first look down a level to their kids. If no kids, look up to their parents. If no parents, look at their siblings. If none of that, go up to the parents, move over to their relatives and repeat. One of my investing partners told me (and wisely so) that there is ALWAYS an heir. You just have to find them.

With that, you may also need help with skip-tracing. Keep that in mind if you need to find someone who has rights to the property.

Finally (and I know this is long), I would recommend using yellow letters or postcards to probate leads. We've found these work a little better as they are a bit lengthier in text, can convey more feeling (especially with a death in the family), and are more targeted. With bandit signs, you're going to get lots of calls but many of them will probably be tire kickers. 

Keep up the marketing and good luck! Let me know if you'd like any help.

Cheers!

Happy Birthday, Brandon! After listening to endless hours of you and Josh on the podcast, I feel like I've known you a long time. Keep up everything you're doing because it's all awesome!

Best wishes on your special day! Hope you're having a great one!

@Corey Smith - Thanks for your reply. Correct me if I'm wrong but I thought it was based on NOI. If there's no income, how do you evaluate what to base your valuation off of?

Is it at that point you use comps? If so, what if there aren't any comps? Thanks for your answers.

Steve Newsom - RE lawyer

Michael Plaks - Accountant