All Forum Posts by: Derrick Ward

Hi Eli, to get you started, and others will definitely add to what I am going to say, start with BP Rental Property Calculator. The calculator is strategically designed to help you factor in all financial aspects of the property, and give you a financial analysis report. To find out how much other similar houses in the area were sold for (comparables), you can go to websites like, Realtor.com, Redfin.com, and Zillow.com. You can research what similar houses are selling for, and what similar houses have recently sold for. If all else fails, you can check with a local realtor. If the property needs any repair, you will also need to factor your After Repair Value (ARV), after you fix the property up. To find out if the house will sell, you can research the housing market in that area. How long are houses in that area on the market for sale before getting sold. For example either the house has been on the market for sale 15 days, and already in pending contract status (Hot Market). Or houses in that area have been on the market between 30 - 90 days (Slow Market). If all else fails ask a local realtor because there are other factors to consider also.

Thank you Stephanie for your feedback. I find that honesty and being open is my best quality. I advised in the letter I was a new investor, because I did not want to take a chance on fumbling through any questions the owner might have for me, and me fumbling through trying to sound like what I was not. Either he was going to do business with me or not. If not then I would've moved on to the next one.

Yes I was just targeting that one property. Listening to other BP podcasts, and webinars, I followed their advice and tailored an open face letter, to get the owner to understand who I really was, and it worked for me. There are many other formats to use, but I like mine as well.

The reason why I stated the property needed work, is because it really did. The owner started the work, and it was visibly obvious he gave up on it. The tools and unfinished floors were talking loud. But that is a very good point to advise anyone using my template, and to tailor it to their specific need, or generalize it if they are sending out letters for multiple  properties.

 Thank you very much Nikki, I needed that information!!

 Thank you Penny, that is what I was wondering!

Sorry I am answering this post late! Here is the copy of my original letter, and then the follow up letter. The owner answered my follow up letter:

1ST LETTER:

Hello Mr XXXXXXX,

I am a beginning local property investor and I am interested in viewing your property in ­ENTER THE NAME OF THE SUB DIVISION IF APPLICABLE: ENTER THE FULL PROPERTY ADDRESS HERE. I do understand that it needs rehab work done on the inside, including the floor. My wife was raised in SUB DIVISION NAME IF APPLICABLE, and I see this as a great area to start my endeavors as a property investor.

Since no one is living in the home, and it needs rehab, if you are willing to sell I would like to make arrangements to view the property inside, and then come back to you with an as is offer contingent upon financing, and contractor review.

I anxiously await your reply, you can call me on my cell phone XXX-XXX-XXXX.

Thank you

1ST FOLLOW UP LETTER:

Hello Again Mr XXXXXXX,

I am just sending you a reminder that I am still very interested in viewing your home in ­ENTER THE NAME OF THE SUB DIVISION IF APPLICABLE: ENTER THE FULL PROPERTY ADDRESS HERE. I am willing to purchase the home “As Is”, and I will do all of the rehab work. My wife was raised in SUB DIVISION NAME IF APPLICABLE, and I see this as a great area to start my endeavors as a property investor.

Please call me so we can talk.

Cell phone XXX-XXX-XXXX

Thank you,

 Hi Maria, I am wondering if you actually cancelled the deal, or did you decide to go with it?

 Thanks for the update Obi!

@Emily Allred Emily, I have an idea. Try renegotiating the sales price with the sellers. Let them know that your partners backed out on the deal, but you are still willing to purchase the property. Offer them a lower number, say for example $99,500.00. All they can do is say "Yes" or "No".  Like I have heard it say many times on BP, "If the offer doesn't make you uncomfortable asking it, then you might be offering too much, from an investor stand point".

Terrific Adam! I keep missing all of the meet ups due to my work hours. I anticipate my hours changing soon, so I can start making these meet ups! Thank you to all the Meet Up organizers out there!!!

@Rito Altamirano - Hi Rito, I do not know the laws in Nevada, but I do know that there are split decisions concerning if you need to start an LLC, or not. Some say starting an LLC will help protect your personal finances in case of a law suit etc. (This is just a short explanation, not legal advice). Then I also hear a lot of active investors advising against forming an LLC, especially if you are just starting out, and have not even achieved your first property. I've heard it said that it may be harder getting a bank to finance a property investment loan as an LLC , as opposed to financing in your own name.

Concerning you telling your current seller you have a business name, I would suggest you be honest with the seller, and advise that you do not currently use your business name when financing your deals.  Let the seller know in your own words, that you like being professional, and you only use the business name for that purpose only.

I am excited for you! With all of your preparation you've told us about, and with your tenacity in not laying down and feeling sorry for yourself after that catastrophic event of losing your job, YOU WILL ROCK!!