All Forum Posts by: Max Garcia Jr

San Antonio TX Buy & Hold Deal

984 sq ft

Built 1958

Single Family Home

3 Bedroom 1 Bath

Rented for $750 in the past

Estimated Rent after repair = $850/mo

Taxes $1,071.09/yr = $89.25/mo

Estimated Insurance = $60/mo

Estimated Cost of repairs = $10,000

Investor/Assigned Price = $45,000

ARV = $75,000 (Based on Comparable Solds in the Neighborhood within the past 12 months)

Rent $850 - Monthly Taxes $89.25 - Landlord Insurance $60 = $700.25

Annualized Rent $8,409 / All in Investment $55,000 = 15.28% Return on Investment 

It would have to be a cash deal. Closing is on July 31, 2015. Call or text to schedule a showing.

-Max Garcia Jr

210-413-2929

[email protected]

@Darrell Shepherd A glimpse into how you get your leads is like gold to me. Thank you for sharing that. I currently have a website, but have virtually no SEO for it. Tell me, did you hire someone to rank it (or ppc), or did you do it all yourself. I'm curious. Also, as mention in several posts on this thread, I'm definitely going to be building my local network.

@Bill Gulley I definitely need to get back to the basics; I hear you on all accounts. Particularly, I need to partner deals types to their relative investor specifications. Question: other than being able to look up properties on the MLS, how would getting licensed benefit me?

@Joe Gore I don't want to blow the deal, so I get nervous. I end up not sounding genuine at all. I've gotten better. However, I don't come from a sales background. I'm thinking of signing up for a beginners sales course or something. I read a the 21 Ways...Book by Brian Tracy, that helped a little.

@Renee Stewart I've already been partnering with a local wholesaler. However, I don't really get to much guidance out of him. I'm definitely looking to increase my network.

Thank you all for your responses. It is well appreciated.

Max here...

I've hit a figurative brick wall! 6 months ago when I started "wholesaling," I thought I'd be in much different place by now. The "this is going to be easy" mentality was never present. I've always known that this would be a challenge. But, I knew it would be a task worth taking on.

I've seen both my parents pass away with 0 assets. I don't want to do that to my family. My goal has always been to wholesale enough properties to buy & hold properties with cash, creating long term cashflow for my family.

However, since I need some "wholesaling income" to supplement part time income lost last year, it's been rough creating a marketing budget that'll provide sufficient quality leads, while putting food on the table. I'm sure many of you can relate.

So far, I've put about $7K into marketing, and I've only gotten one deal that netted $12K. While this seems great, It's only been 1 deal, in six months of driving driving driving (over 2000 properties), mailing absentee owners over and over (1,700 properties), and scouring the internet for possible deals. I have a lot of patience; it is my nature. But both, my and I and growing frustrated. Our reaction is "something needs to change," not "I need to quit." We're not quitters.

I know my weakness, which I think is good think. I don't know how to "sell." I struggle with talking to people, and having finess while maintaining confidence. Also, the higher quality leads are rather expensive. I got some decent quality leads from mailing absentee owners, but my budget doesn't allow it any longer. I've resorted to driving for vacant and dilapidated homes, and mailing them, just because it's more targeted and cheaper because it's a lower quantity of leads; also, I'm on Zillow everyday with saved search. But these are not bringing in the quality leads I was getting with the mailing list.

Am I missing something here? What should my focus be? I'm scrambling just to put food on the table, and I haven't even started a fund for my first buy & hold.

Should I try a flip? Just to make some cash?

Sorry in advance if this seems like a rant.

@Ibrahim Hughes Yes, I did talk to down $10K, haha. I know it would've been acceptable for me put down $1K or so, but he wasn't working with me on price, so I figured I'd make it easy on me on the EMD side.

808 Canterbury Hill, Terrell Hills, TX 78209

City of Terrell Hills

Alamo Heights ISD

Prime Real Estate in San Antonio, TX

5 Bedrooms | 2 Baths

Single Family Residential

2,355 sq ft Structure | 10,393 sq ft Lot

Extra 192 sq ft Detached Efficiency in the Back Yard

Built in 1957

ARV = $504,000 (@ $214/sq ft)

Wholesale Price = $330,000

Estimated Repair Costs = $75,000

Estimated Holding Costs = $40,500 (@ 10% of Wholesale Price + Repair Costs)

Potential Profit = $60,000+

NOTE: Great Value Increase with added square footage

Visit this link for more info, photos & comps: http://wp.me/p3JB6R-7b

- Max Garcia Jr, [email protected] 210-413-2929

My apologies. He wanted a $10K EMD, where $6K of which was an option period fee. If I decide to cancel the contract during the due diligence phase, he would keep $6K, and I'd only receive $4K back. However, I declined his terms stating that if I have to concede to non-negotiable price, he'd have to concede to my non-negotiable terms. My terms were a $50 open escrow, and a $25 option period fee. He accepted! Now I'm going to have a reputable realtor to do a CMA on it, so I can make sure I'm selling a good product. Thanks for the input guys.

Just an update...

The seller is an investor from another state. He's been holding it vacant since Feb 2013. I wrote the contract up for the his price, and he responded saying that he wants a $10K Earnest Money Deposit, with a $6K Option period fee for "holding costs" for the month I'll be wholesaling it.

My question...

Is it common for a wholesaler to put down a $10K EMD, with a $6K Option period fee, if I'm not even the guy who's going to rehab the property? I told him respectfully, "I conceded to your price. At your price, I would expect you to concede to my terms." My terms being a much smaller EMD and OP fee.

What do you think?

That could range from $250-$1,000 depending on what you have worked out with the investor. There's bird dogs in SA that work off of a percentage of the deal. From your perspective, I'd name your price. See where that takes you.

I'm currently exploring the option of turning my website into a blog to help happy homeowners. But, this would take a lot of blogging hours that you may or may not want to put in.