All Forum Posts by: Kevin Delaney

Lead generation.  You won't go anywhere without leads.  Market yourself just like an investor does.  Website, direct mailings, etc...

May 8th and they are forecasting 2 to 8 inches of snow?  Leave the sump pump alone and move now!  Find a warmer climate ASAP!   Good luck and God bless!

I would stay with the commission.  If you have the seller and the buyer you would be pulling 5 or 6% anyway.  If your newbie investor is happy with your services and his/her new found income, they will be coming back to you looking for more.

It brings lots of clarity.  You don't need a Realtor.  You have the houses.  You have the investors.  All you need to do is negotiate with the owner of record.   You started this thread because Realtors weren't calling you back.  Why are they suppose to be calling you?  Maybe they were as confused as I was.  I don't see where you need one.  If you want e to locate a specific type of home for you so that you can sell it to one of your investors,  I cant.   I think that would be crossing the wholesale line and be more of brokering deal.  Getting your Iicense is probably your best bet. 

@Karen Hurd

To figure the comp on a house like that find out how much more 1 bedroom is worth in that area.  I.e.  find 2 similar homes with one being a 3bdrm and one a 4 bdrm.  What's the difference in price?  Let's say 10k...  then you can add 10k x 2 or 20k to the price of the 4 bdrm.  Same with the bathrooms.  It's a little more difficult to figure out since there aren't any near by properties that are similar, but that will give you an idea.  However, as an investor, you usually don't want the best or worse house in the neighborhood.  As @Jon Holdman stated, it's hard to recoup the value when you've exceeded the area.

Wow.  Well, I'm still wrong, arrogant and haughty.  I merely asked for clarification as to what you wanted.  In fact, I apologized for you seeming offended by my earlier post.  At least I'm not the only one at which you decided to throw insults.  Is it just comps you want?  Comps are simply comparable properties that have recently sold or are currently for sale.  I would imagine you could get a pretty good idea from any number of the sights you mentioned.  In your original post (the one where you only insulted Realtors and not other BP members), you mentioned the Realtors bringing you deals so you could take them to your rich brothers.  That confused me and I'll explain why.

Let's say my mother would like to sell her home.  As it sits the home is worth 150k.  My mother needs a quick sale and needs at least 100k.  I, as a Realtor, call you.  You enter an assignable sales contract for 100k.  You sell it to your brothers for 110k.  You pocket the 10k, I pocket a 3k commission, and mom walks away with 97k.  (numbers are for demonstration purposes only, not including closing costs, title fees etc..)  

Now, scenario 2.  Mom wants to sell her house.  It's worth 150k.  She needs a quick sale and wants at least 100k.  I call any number of investors, but most likely my favorite one first (my favorite would be the one who uses me to sell the home after repairs).  I offer him my mother's home for 110k.  He purchases my mother's home.  I make 3300 commission and Mom walks away with 106,700.

You see, I failed to see the value you were providing in your original post.  I only asked for clarification.  Your clarification was that the Realtor would receive the same commission.  I hope in the above scenario, you would see that is not necessarily the case.  There are lots of investors out there.  If there wasn't, a site like this wouldn't be around.  I wish you wouldn't take any of the members words as offensive or insulting.  That's simply not the case.  As far as comps go, I give free comps all the time.  But I do so in the hope of generating leads.  It would seem to me, you would like a Realtor to spend their time giving you comps and spend their money marketing for deals that you may be interested in selling to your rich brothers.  I'm not seeing the plus side for the Realtor.  Their commission is there with or without you, so what are you bringing to the table?

is she trying to mark up MLS deals? The way I understand it, She wants the Realtor to pass it to her before they even list it on the MLS.

It seems perhaps you were insulted by my confusion.  For this, I apologize,   A wholesaler doesn't really need a Realtor.   You would.market your business to find those properties.  You would negotiate a sales contract with those owners.  Then you would sell your interest in that contract to your very rich brothers.  A Realtor has a fiduciary obligation to their client.  They should be doing what's in the best interest of their client.  It would be a stretch to think that passing them to a wholesaler would be in their best interest.  If they needed a quick sale,  the Realtor most likely knows or has access to investors directly.  Thereby saving your wholesale fee.  It sounded to me like you want the Realtor to do your marketing.   That's 80% of the wholesaler's job.  I wish you the best of luck in your business. 

I must be missing something.  Are you saying you want the Realtor to find properties for you to wholesale?  Then they get nothing in return?   Realtors pay for marketing like everyone else.  I'm missing why they would pass on their deal for you to wholesale.  Now, if you were marketing and found a lead that you couldn't make a deal work, it might be worth something for the Realtor to take the listing.  The way I read it, it sounds like you want them  to give you a steak for a smile.

I have a property in a similar situation, though I'm only negative 100/mth.  The refi idea is the best in my opinion.  I could easily positive cash flow with a refi.  The only problem I'm having is that the lenders will only refi 70% of the appraisal and I'm not quite there yet.  If you are, I'd definitely look into it.