All Forum Posts by: Mateusz Prawdzik

@J Scott @Justin Luyt

Though this might be true, having a spreadsheet to follow and see what to focus on is a good help for beginners. I remember when I first started i would run around the house and just follow the sheet as use it a guide. Eventually, with time and practice, you get so good that it takes maybe 10 minutes to see what's wrong with house and how much (round about) everything would cost to repair.

The key thing to remember though is the word "estimate." No rehab cost is exact and will ever be so make sure that when you're doing fix and flips you always have at least $10k reserve, so that when something goes wrong you can use this as a back up. 

That's another reason why i hate having my contractors comes and "estimate" the cost of rehab. Also, when people say "is the Rehab cost confirmed?" this is also stupid because it's an estimate for a reason and it can't be confirm until you actually close the deal. 

This is just my thought on the matter.

@Ryland Taniguchi @J Scott 

What's the difference between IRR and ROR? Why are IRR such high percentages? ROR is usally 10-25%...

@Ryan Goldfarb @Brian Spatz @Paul Ashworth @Rob Quinn @Michael Iozzia 

Even though like you guys said, there is opportunities in every town, Bergen County is a HOT market and moves so fast. Like just this past week, there was a house on ridge Rd in Rutherford that was on the market for 12 hours and already had 10 bids... That's nuts! (I didn't win unfortunately). But anyways, its about knowing where you live and not going out side the boundaries until you know the area 100%. I am new to REI but I have been just focusing in Bergen County and I am looking to JV with anyone that has properties and deals in Bergen County. I try not to move outside of this area but I have been successful with finding deals. If anyone is interested in JV'ing, I have lots to offer to the table and am willing to talk about it.

In Bergen County, what I realized sells really fast is SFR with quick access to highway and/or NYC transportation. Also, being located at a dead end street that leads to the main road, is another BIG attention grabber. What else... In Bergen County, shopping isn't really a problem because there is a big superstore at every corner. But that's my 2 cents.

@Oz Pariser Okay, so I prefer networking a lot more than direct mail but think of this, which songs can you probably sing really well... if you listen to the radio, the ones that are played there. Why? Because it's the same sh*t over and over and over and over and over and over again, literally. Think of your marketing and advertising as the same thing. Pick a format and stick with it, people will think "this guy keeps sending me this letter, he must really want this house" or "why is this sh*t still coming in the mail" after a while people will get annoyed and do something about it. 

The general rule of thumb is 8 times in 5 weeks. Use the same list, same format, same letter for 8 mailings. And then if you get no responses, go on to a different list and style, but keep doing that find something that works. 

Additionally, with advertising in regards to not mass mailing but little buys, write handwritten letters. As long as you don't have TOO many properties, this shows the buyer that he's special and that his property is really wanted and it means something to someone because they hand-wrote a letter. 

Like I said, I TOTAL prefer networking and meeting people, but I've heard that this works best for marketing. Try to get people annoyed and hooked at the same time. 

Best Regards,

Matt

Okay, so this is how I turned a buyers list of 1 to 50 in a matter of weeks. First and foremost, attend ALL REI meet ups in your area, and DON'T be shy. Make sure you talk, don't sit there and not make friends, if you want to succeed in Real Estate, you need to connect and network, THAT IS KEY. Secondly, just take initiative some why, make friends with other wholesalers and try to co-wholesale properties in the area. If they have contracts that they can't get rid of, you be the middle man for him and take a little bit of money to find buyers.

When you talk with buyers on the phone or in person and they don't want the property, always ask "WHY?" and "do you know someone that does perhaps." These questions will not only teach you how to analyze deals but will also make you connections with more investors.

When you're at these meetups, share your ambitions and explain to people that you will be successful and you will attract a lot of people because there is nothing more attracting/appealing than success. 

Don't worry about money neither, with a good deal, everyone is going to want to partner with you or buy the contract off you. FIND THE CONTRACT FIRST.... THEN LOOK FOR MONEY.

Best Regards,

Matt

@Steve Babiak I never ended up purchasing this property, but the cash flow was calculated by the seller. That is a good point that I will consider. In the future, I will consider my own expenses and cash flow prior to buying the property. 

Thanks again,

Matt

@Jonathan C. I was just going to make a post of how are some ways people convince sellers to sign the contracts. I was in a little situation yesterday where the lady was really tough and she hated contracts. I tried teller her that I am not here to scam her and I am a professional that doesn't charge you anything but help you find a buyer. She was not biting. So my question is... What are some ways guys talk to/say to people when trying to sound convincing? I am new to wholesaling and I need some advice. 

Thanks,

Matt

@Mike Palano Hey, welcome to the team. I am glad that you decided to join. I'm relatively new to the REI scene to, but I've only been grinding hard at it for about a week and I am already looking to settle deals. What kind of investing are you looking at doing? Rehabbing? Rentals? Wholesaling? I've done a mix between wholesaling on the side (if I find something good) and Rehabbing (which I'm hoping to JV with someone soon). This is extremely fun and fast paced, as soon as you start meeting people and you get a good buyers list, you're off to the races. Make sure to sign up to all the meet ups in your area, they will be crucial to your success.

Best Regards,

Matt

@Matt Lefebvre How long does a contract usually last? And what determines the length of the contract?

Thanks

@Wayne BrooksOkay I understand now, prior I didn't quite understand the contract concept but now I get it.

I am probably not going to pursue the property because of the fact that it's already under contract with a realtor. I might wait to see if the house doesn't sell (maybe 1 month) and see if he would be willing to drop the contract with the realtor and sign one with me. Do you guys think this would be an efficient tactic? I heard that this could bring a lot of attorneys into the picture, unless the seller of the house and realtor are really good friends. 

Please give me some insight on this idea, maybe it'll work, I really see this deal being big if I can negotiate a deal. Additionally, what would you guys do? As a wholesaler, would you wait and attempt to contract with the seller at a later date or would you just ditch this house and keep going? Is it worth my time? I was advised, no, but maybe someone else has a different opinion. 

Thanks again,

Matt

@Ricardo Meza@Nathan Miller