All Forum Posts by: Michael Knaus

Auction.com sells (auctions) homes that are already taken back through the foreclosure process and are current REO's. They also merely advertise homes that are in pre-foreclosure. They provide the date, time and location (and some other facts)of the Sheriff's Sale. It is way safer to buy the REO's as they sold contingent to you obtaining clean title. Sheriff Sales are super risky but can be rewarding. If it is a pre-foreclosure, go down to your local courthouse and go talk to the people that work in the recorder of deeds office. They are usually very helpful in showing you what open mortgages there are. Then go to the Prothonotary/clerk of courts and check for judgments. Some liens are NOT divested through Sheriff Sale. I would be very careful as a first time buyer at Sheriff Sale. Do your homework for sure. If the two places I mentioned show no serious defect, then I think you should hire a professional to abstract title for you to be safe. I don't usually start there however because they do obviously charge for that. So don't waste your money until you have done a preliminary search of your own to see if it's even worth pursuing.

What are your goals? I assume you want to buy and hold or want long term passive income?

Hello everyone!

I just joined today. I am a full time real estate investor from Northeast PA. When I first started the business in 1998, I soaked up every bit of information I could get my hands on. I read books, I visited other forums and I networked like crazy. I went full time in 2005 and have been very successful in my opinion. I love what I do and have done almost 100 flips to date. 

Then, I became complacent. I stopped reading, stopped visiting forums and my networking has become borderline pathetic. I was on cruise control and quite honestly got a little over confident in my abilities and knowledge. I stopped sharpening my sword so to speak. Well it has gotten dull. I have been searching for ways to reignite my passion and even expand my business and knowledge. I also realize that over the years I have not reciprocated any of the knowledge that was shared with me as I was learning this business. I have learned many, many lessons the old fashioned way too. I got burned! I would love to share some of those experiences and even hope to learn from others. One thing is true. In this business you never stop learning. I am glad I stumbled across this forum and look forward to being a valued member. Thanks!

That's all well and good but I wouldn't go into debt doing that. Heavy debt plus new business is usually a bad idea. Def keep selling as an agent. If you must go with that type of direct marketing, pay for it out of your commissions (you said you do well) or go with more inexpensive forms of marketing at first. Then, after your first closing, go ahead and use it all for marketing if you want. You still have an income source through your commissions. Wholesaling is great but it takes a lot more than a fat marketing budget. 

I agree it really does depend on where in PA. There are some areas of central/northeast PA that were former coal mining communities that are loaded with cheap houses compared to market rent. This tends to attract out of state buyers thinking it's too good to be true. I would stay away from these areas. The trouble is, most people are trying to leave these towns. The ones that stay have tons of rent options because there are so many available. Stick to medium sized communities with great demographics. Look for towns with great employers, a college and hospitals. Then scoop up 2-4 unit properties in these areas. 

$10k is a lot of marketing. Are you renting a billboard?? ok that was a joke. There are some inexpensive ways to market your business though. I would not go into that kind of debt in pure marketing expenses right off the bat. Why not start part time until your wholesaling business earns enough to equal your current situation. Then maybe make the break into full time investing. Regarding your marketing budget, you could increase your marketing as the deals come in. Take a percentage of each successful deal and dedicate that to more marketing. This way you are not starting off in such a hole but are increasing your budget according to your success. The deals will come, even on a shoestring budget. 

Hello,

I already send a letter but have never followed up after that. I have read that the response rate increases with a follow up postcard. Has anyone found this to be the case? If so, what is the best (most cost effective) way to have these made? I don't want a generic postcard. I believe the card should detail the name and address. Thank you!