All Forum Posts by: Mark Saenz

So this didn't happen?

Kim,
I totally see where you are coming from. I remeber when I was I new and in your positon and how nothing seemed as easy as everyone made it out to be (at least at that time).

And before I chime in here, I want to let you know that I agree with some of the other posters...you need to move into the wholesaler osition as fast as possible...so learn ASAP.

Here is what you need to do:

1. Research the wholesaler you are thinking of working with. A lot of them are not legit...I'll just leave it at that. Mainly you want to see a track record. Once you determine they are legit, call them and tell them what you would like to do. My recommendation is not that you "mark up" the property but ask them is you can market their properties and if you bring a buyer they pay you from the proceeds. If they agree, then you just have to be a better marketer than they are. Consider yourself their new marketing department. If you do a good job, they may even higher you as their property marketer...just a thought. ***If you can, get them to sign a contract agreement with you so that you have something in writing; however, I am not sure how much luck you will have with that. If they have been around a while, they are probably good to go. Bad investors usually don't last long (our community is not that big).

2. Start marketing for buyers and building a list.

1. Bandit signs with general advertising.
ATTN: Investors
Buy Homes half priced
Needs work!
555-5555

2. Craigslist Ads
3. Networking
4. Classifieds

If you start building a list and then you can work something out with a wholesaler...you should see some paychecks.

You also have to be prepared for someone possibly not being fair with you...just know the space you are aboutto play in.

I own a wholesaling company and I would allow someone to bring me a buyer and I would pay a commission on it. I cash checks when my properties sale and I'm ok with people bringing me buyers.

An apprasier here in town has his list of buyers and he just tells them he will bring them good deals and he may tack on 1-2K per deal and they are ok with him doing that....I like full disclosure.

Lastly Kim, here is a little nugget for you...in addition to the homes we post, here is an ad we run as well to build our own buyers list...just to give you an idea...and I practice what I preach:

[LINK REMOVED]

(I hope I can post this link without breaking rules....it's just an example for others to learn from)

Do these things and I truly wish you the best of luck. Hang in there and master this game. It's the best!!!!

Amigos,
Mark

P.S. As you build your list...protect it...now you have an asset to your business...and as Jon said...now you have something of value.

LOL, boy that's true....when we list on the MLS we do a couple of things (this could be a post of it's own)...we still market all our own properties. We never leave our sales to anyone else. We also have an in-house agent so we have an aggressive marketing campaign for her and she just takes a fee for service....I WANT TO MOVE PROPETIES PERIOD!

If you don't have an in house agent, then you can find a broker that will list it for a fee and then you can control the marketing without having to foot the 3% for the listing agent.

You will still have the buyer's agent that find the house through the MLS and you have to pay them (figure that into your numbers), and, you are right, you can't schedule simultaneous showings; however, by doing your own advertising you will find some buyers on your own and you can schedule multiple showings that way.

I list on MLS (when retailing) for exposure and hope we find our own buyer (hopefully without an agent) before it sells through the MLS. Either way, I am prepared to pay the 3% to the buyer's agent. Again, I just want it sold.

Jason,
There are a lot factors that should be considered when answering this question; however, at the end of the day what you need to consider is PROFIT. That's why you are doing this right?

So first, every area is different and you have to understand what happens in that area.

I invest in multiple areas in my market, but my strategies are different for each part of the market.

If it's a highly sought after area, I may wholesale, fix and flip, or owner finance.

In an area where the homes stay on the market for a long time I buy dirt cheap and wholesale only (mainly to investors).

I also tailor my offers by what will happen in that particular area...again in the not so good areas, I may not exceed .40 cents on the dollar as opposed to an area where I know I can sell quick I may go up to .70 cents on the dollar.

At the end of the day you have to begin with the end in mind...how much am I going to make on this deal? And then structure everything to help you achieve it. A quick 5K (in 1 month), might beat a slow 10K (4 months).

In your particular case you may also want to consider buying in the good area buying and then just wholesaling to one of these families that wants to move into this good area. You're in and out quickly and with less investment than "fixing it up". again you may make a quick profit -vs- a slow profit.

As for the cheaper homes...do some research and determine what the quickest way to sell is in that market and then implement that strategy.

Another thing to consider in these "cheap homes" area is theft and vandalism. In my "cheap homes" area I have to consider that....so if you are doing a fix and flip...will your NEWLY installed materials be there when your buyer goes to check out the property.

Just some thoughts for you to consider.

Amigos,
Mark

Hey BPers,

Here is a little tip to help sell your houses faster (I did this on Monday and it reminded me to post this method):

TIP: Make sure you are scheduling multiple people at one time to go see the house you are selling.

This will create a SENSE OF URGENCY AND A FEAR OF LOSS and have your buyers fighting to give you a contract.

I use this technique when I am wholesaling a property, when I am owner financing a property, and when I am retailing a property (when I can) .

Now, the key here is make sure you have at least 2 qualified buyers...I like to make sure all the buyers are qualified; however, if I am trying to create some real fear of loss...I will just get the numbers there.

Just to be clear, I do this as often as I can and have literally had people fighting to get their contract in first (which you want to have on hand); however, if you have a good qualified buyer and you can ONLY schedule that one buyer...then do it. If you have a serious buyer, then just get on with it.

Try to do this as often as you can and you will see the contracts come in faster (not to mention, it will save you some running around...(1 appointment versus many).

Good luck and hope this helps your business.

Amigos,
Mark

P.S. Have any of you used this method? If so, I'd like to hear about your experiences. Thanks!

I'm with Jon. He is right on point.

The only thing I would add is:
I have a question about your rental comps...

You say the comps around town...
what about in your complex?

How many other condos are for rent? Is this a complex where sales ceased and now everyone is trying to rent?

What are the condos in your complex renting for?

The thing about condos is that your rental comps, sales comps, etc. will usually (almost always) come from what's happening in that complex alone.

Now there are always exceptions to the rule; however, things you should definietly be aware of.

Last thing...(just in case) if you are getting your numbers from the person trying to SELL you the condo...uuummmmm

It doesn't sound like you are...but just want to make sure.

Best of luck to you!!!!!

Amigos,
Mark

Victoria,
The only way I would say yes is if you are very experienced rehabber.

If you are from out of state, I am assuming you don't have crews, connections, and preferential pricing on materials. Who will run the show for you if you are not there?

Also, make sure you know the market you are getting into. I have a friend who bought an out of state property in Michigan and "just figured" the market was the same as the AZ market....long story short...they lost money and just wanted out. The rehab was suppose to take 3 weeks and took 6 months (due to shady contractors) etc. etc. etc. or yada yada yada.

So, unless you have a lot of experience I would say be very very careful...or just don't do it.

That said...if it's a good flip....start looking for another LOCAL investor you can assign or flip it to and make a few bucks.

My two cents!

Amigos,
Mark

Chuck, these were great even for me. I love learning lessons....especially when they aren't mine...unfortunately even we still have "learning lessons". It's all part of the gig my friend.

Cheers,
Mark

I'd say the biggest mistake when I was first starting out was not collecting everyone's name and number when I went to networking events.

I was so focused on learning and on what I needed to get started...that I didn't realize the huge resource that was right there in the room for me.

For example, I can tell you with certainty that one of the following 4 factors is holding you back right now (this is true even for investors that have done a few deals): Money/Credit, Time, Knowledge, and Fear.

Well, all those resources were available to me in the networking groups I was going to. There was someone there who had each of those things.

Not to mention the fact that IF I got a deal...who better to turn to than one of these "investors" to flip the deal to or partner with.

So network and make contacts...these are obviously people looking for what I may find!

Hope that helps!

Chuck,
The Estimate will be free. There are a few reputable shops here in town.

Mark