All Forum Posts by: Miller McSwain

Hey Justin!

There are a bunch of ways to find a contractor, I'll list some below:

1. Check BPs contractor directory ( https://www.biggerpockets.com/... ). These contractors have a much higher chance of being reliable than from other methods because these contractors have taken the time to be active on BP. Also, they are accustomed to working with investors which is a plus!

2. Network with other investors and once you develop a great relationship, ask who they use! You can find BP meetups at https://www.biggerpockets.com/forums/521-events-and-happenings . 

3. Ask other team members such as property managers, real estate agents, and attorneys for recommendations. 

4. Follow J Scott's famous tactic of going to Home Depot/Lowe's and meeting contractors who are buying materials. These individuals are likely hard workers and are working before the competition. You can also ask the employee at the Pro Desk who they recommend. 

I'd make a list of the best contractors. Then I'd give them all small tasks and document how well they do. Then, for each of my rehabs, I'd choose contractors at the top of the list. Of course it is also important to take cost into consideration. So I suppose you will have to find a balance of cost and quality that you are happy with. 

I hope this helps!

@Jacob Webb

That sounds awesome! Feel free to message me after the new year, and perhaps we can meet up in Knoxville.

I'm in a similar situation to you. In the long term, I'm mostly interested in rentals (BRRRR in particular). However, I'm currently building a wholesaling business. I have all the tools/processes created and in place. When I get back to Knox, I'm going to hit the ground running!

I hope to hear from you in the Spring!

I haven't bought any properties through realtors in Knoxville, but I have spoke with a bunch of them. Thus far, Billy Houston (https://www.billyhoustongroup....) seems to be the best I have found.

During my first call with him, we talked about my investing plans, and he was super quick to recall properties currently on the market, the best areas to invest in for my price range, and rental rates in those areas. 

Definitely get in contact with his group!

@Jacob Webb

Did you graduate from UT? I'm currently away for the rest of the semester because I'm interning, but I'll be back in the Spring semester to finish up my degree.

Also, do you know what part of real estate you are interested in (flipping, buy and hold, wholesaling, etc.)?

@Mysonne Johnson

Perhaps. I've heard from the BP podcast that properties are more difficult to rent during the winter because of the weather. So you may face some difficulties with that as well. I think the best suited scenario is finding a distressed property that will take a few months of rehab, and then wholesale to a flipper. A few months after the rehab starts, the weather should improve and sellers will probably be ready to purchase. 

That being said, I wouldn't let any of the barriers keep you from starting. If you find a good enough deal, you will find a buyer!

@Justin Reed

That completely makes sense. You definitely do get fewer leads for more time.

I think that Driving for Dollars does give you leads that are more likely to sell though. For example, you may buy a list that has a prospect with high equity and is in probate. If you notice that this property is also in your driving for dollars list because it is physically distressed, then you know that you should market in a more personal way (door knock, phone call) to this seller, giving you the best chance of getting the deal. Meanwhile, you can blanket mail the rest of the list.

That is just a thought. I suppose you would need to track both methods and compare the returns to find out if you convert these driving for dollars leads at a much higher rate.

@Account Closed

I'm getting at what Nick is saying. If this person is going to be running the wholesale business completely, then why should they work for you? Why shouldn't they do it on their own and keep all of the profits?

What might make sense is hiring people for different parts of the wholesale business. For example, you could hire cold callers for marketing, an acquisitions person who meets with sellers, and a dispositions person who networks with buyers and closes the deals. In this case, these hires may not have the resources or drive to have their own business, but instead, they like performing one role while getting a lower cut. If done correctly, however, you and the hires should make more money than if you were on your own because you can do much more volume!

To throw another perspective in, as someone who lives in the southern US, I have never even thought about not moving because of the time of year. So I think it definitely varies by region. Virtual wholesaling might be the way to go then since you live in NY.

I don't know this for sure, but wholesaling in the winter could provide an opportunity in your region. If most wholesalers in NY take a break during the winter, then you could face less competition. After all, a lot of motivated sellers are forced into a situation and don't have the luxury of "choosing" when to move. I suppose concerns could arise with flipping the property to the end buyer though since they will likely have the luxury of moving when they choose.

@Account Closed

What parts of the wholesaling process would they be responsible for (marketing, meeting with sellers, finding cash buyers, etc.)? Or would they be responsible for every part of the wholesaling process?

If they are basically doing everything, then I don't see why they wouldn't just wholesale for themselves. However, as an example, if your business already takes care of marketing and getting a seller to sign a contract, then you could hire someone to take care of finding buyers and getting that side of the deal together. I think that would take some responsibility off of your plate and allow you to scale faster if you wish.

@Justin Reed

I'm just curious, why do you say driving for dollars is a waste of time? There are tons of people who seem to have had a lot of success from it.