All Forum Posts by: Lucas Machado

I'm not sure how much studying will really help . . . though of course it's great to learn things on a forum or book . . . but in the real world it's so different that it may be better to focus on learning as you begin investing and issues come up . . . 

To get started though, here are few questions to sit down with: (1) where/how will you source your deals; (2) to whom will you wholesale too; (3) figure out escrow deposits/contracts. 

Once you answer those questions, there is likely 5 or 6 sub-questions. For example, you want to do direct-mail. Need to figure this out: (1) what mailing list will you use; (2) how will you generate mailers; (3) how will you pay for your mailing list and/or mailers; (4) what phone number to use; (5) call in script.

I could go on a bit . . . the devil is in the details and execution so that's a great place to focus your attention. Experience will teach you the rest.

I would also add that - I don't mean you need to go it alone and have a negative experience. Latch on to a person that is ACTUALLY doing what you want to do where you want to do it. For you, that probably means finding an excellent wholesaler in you area, and bringing them deals to work together on.

@David Weintraub I think the issue here is some people don't understand the difference between proof funds and letter of credit. There many people, even real estate investors and realtors, you can show a letter of credit and they will not have any idea of the difference that this is not a true proof funds. Hard money lenders hand those things out all the time - means relatively nothing.

A 100% proof of funds, at its core, is a bank statement that you are in control of. 

That being said, you don't have to be shady or deceptive about it. If they ask what is your plan to secure the cash, tell them you work with a lender that supplies cash on a short term basis to close deals. That is what I'm using as proof of funds.

Half the time the "shadiness" in real estate industry is simply not being upfront. For example, there is nothing inherently wrong with wholesaling. If you are upfront about how you plan to work the deal, home sellers will surprise you that they are okay with the process as long as they get the agreed upon funding and you aren't wasting their time/playing games. If you walk around strutting you got $10,000,000 in the bank and you in fact have no money and need to secure that financing elsewhere, there is where your problem is created.

Again, honesty goes a long way in these scenarios if you can actually perform.

Grats! Very beautiful work.

@Account Closed With the exception of having a physical ailment that prevents your ability to print carefully, if you can't figure out how to slow down and write in clear language - you're going to run into substantially larger challenges : ) This really should not be an issue worth expending you energy on.

You can just Google yellow letters and call script, there is hundreds upon hundreds of examples. Most of them are relatively the same. Simple.

Of course you should get a number with a voicemail. "This is Michael Kanter. Thank for reaching out, please leave a message and I will return you call as soon as possible."

Now by script, if you mean word by word what to say - that doesn't exist. Now, if you just mean questions that you need to ask on the call, 100% you need a script. There about 20+ questions you need to work into the conversation, and sellers rarely cooperate and answer your question. Honestly, if I don't have my script in front of me, no way I'd remember all the questions. Here's an example: I was talking to a seller the other day, I was caught off guard away from my PC so didn't have my script. We got to chatting about various things, by the end of the call, I realized I forgot to ask about the remaining debt . . . It's easy to get distracted when you're having a human conversation.

What is your concrete plan to execute on the leads? That's where I'd really be spending my time on . . . You can set this other stuff up in a couple hours.

Looks pretty good. Only $10k in repairs, though? How many square feet is the house and current condition? Tough to find deals at 50% re-sale value that only need $10k in repairs.

Personally, I would never close a deal based on anyone else's assessment of a property. Only you know your situation, what you're skills are, how you will work this investment.

However, there is software like https://www.propertyradar.com/ - that can compile lots of information. Most areas also have a system like "IMAP" that really provides comprehensive coverage.

Certainly, finding comps should be the least of your problems : )

I use PipeDrive - $30/mo or so for everyone that needs a seat at the table. I looked into Podio - seemed like a very complex product for a system that isn't that complex. If you have 5 different employees doing different tasks, sure, you need a customizable CRM. If it's just follow-ups, e-mails, notes - really doesn't need to be complex or spending more than $50/mo.

@Anthony Gayden "Driving for dollars" - I would not personally use for direct-mail. I can see the logic in it - but building the list is so hard. Direct-mail is about covering a large number of leads for as low cost as possible. For all you know, there could be a typos on the list of 25 names, they could be listed on the MLS.

Try this. Sign-up for BeenVerified. Find the owners phone numbers and e-mail. Prepare a detailed script about the property and why you are calling. It should not feel like a random cold call like you are a call service. "My name is Anthony Gayden, I am a real estate investor in this area, and am extremely interested in purchasing XYZ property." Reach out directly. One hybrid approach (probably how I would work it), is it send 1 letter and then follow-up with the call. This can bridge the cap as a conversation starter as well as lay the groundwork.

I was in a similar situation regarding a commercial property, and I wasn't sure how to value it (by this I mean, I understood conceptually, but the baseline data was hard to come by). I can run a cap rate just fine, easy it's just numbers, but getting those number i.e. the rent and re-sale values was tricky.

I ended up reaching out to 5 commercial listing agents - I explained I had a deal I was considering purchasing, but it was mixed-use and I couldn't figure out how much the office space would rent for. One of the better ones immediately gave me a price/sf number. You can find some names of local commercial agents on LoopNet (you want someone active). Some people won't give you the time of day, but others will.

Of course, I wouldn't rely on just one opinion.

Regarding the re-sales, if you find good & tech savy realtor - there is a local system (at least in Florida) where you can draw a custom map and select essentially any piece of information in that map. So for example, commercial property use, last sale date 1/1/2015, lot size, building area - and you have a comp base to work from. Of course, it's not as simple as SFH because there is not exactly "direct" comps.

@Douglas Vogel I started PPC about 2 years ago, and my two weeks were crazy. It was a good learning lesson though. You need robust negative keywords and proper keyword modifiers. I actually just tightened my modifiers to even higher levels because I was not pleased with the level of randomness Google sometimes allows, when left to it's own devices.

I think one thing to keep in mind if you're doing PPC is that your goal and Google's goals aren't the same. Your goal is to get the most bang for you buck, Google's goal is to take all your bucks : )