All Forum Posts by: Mitch Messer

Quote from @Paul Whitney:

Hello,

Selling a rental in San Luis Obispo, CA and trying to redeploy equity in 1031 exchange to a better price/rental rate ratio location.  Ideally, looking for something along the lines of a 200k purchase price with 2000/month rental income.  Anyone know of locations within the states where this is possible?

If you'd settle for two $100K properties that rent for $1000/mo EACH, then you might want to take a good look at Tulsa, Oklahoma! 😁

Quote from @Lisa Spencer:

Mitch - What a BP Profile? 

BP (= BiggerPockets) profile.

Mine is here: https://www.biggerpockets.com/users/mitchblade

It explains how to reach me, since I cannot DM.

Quote from @Lisa Spencer:

Hi, Can anyone recommend a reliable contractor in the Columbus GA area?

Possibly. Specifically what type of contractor do you need (electrician, plumber, carpenter, etc.)?

Or, do you mean a general contractor?

Would love to help, if I can!

Quote from @Eyal Goren:

I read that every mortgage has a Due on Sale clause, which means you have to notify the lender when you sale the property and pay the entirety of the loan when you sell the property. 

How do people work with the clause and make these kinds of deals?

First, let's be very clear here.

The mortgage your speaking of is a private agreement between the seller and the lender. The "due on sale" clause (DoSC) obligates the seller to notify the lender if the property is sold.

Failing to do so would place the seller in violation of this agreement, giving the lender the right to accelerate the loan.

But no laws are being broken here.

So, subto is neither legal nor illegal.

Second, it only works because most lenders are more interested in receiving payments than in invoking the DoSC clause and foreclosing on the property.

But, it can work, provided seller and buyer are both on board and the proper process is followed.

Quote from @Jacob Luong:

Thanks every one for your recommendations. 

Hey Jacob, I'm happy to share recommendations and contact info with you. You will need to reach out to me, though. (I can't DM here.)

My BP profile page explains how.

Quote from @Nathan Frost:

Hi all, curious on any advice or tips here.  Inspection was schedule for today but when the inspector / my realtor arrive the power is off.  They also noticed the furnace and hot water tank is missing / stolen.  Seller agreed to install a new hvac, hot water tank, and furnace before I can do the do the inspection now.  So the inspection is pushed back 10-25 days until those items get installed.  Sounds good since everything will be brand new but is there any other leverage I have.  This could take 2-3 weeks to get done since the seller is out of the country.  Can I get them to come down in price or get them to install motion lights / fake cameras?  What should I do?  Be nice to get them come down in price or give me seller credits.  Bonus is I am getting new HVAC, Furnace and hot water tank.  Just trying to see if I can use this to leverage my deal in any way.  Thanks.

If I'm you, the last thing I'd want is the seller installing an AC unit, water heater, and a furnace right before closing.

There's ZERO incentive for them to do the work with the same "love" that you would. Plus, you'd have no control over the brand, size, or capacity of any of these units.

First, I'd want to see quotes from reputable contractors. And then, whatever the seller was planning to spend, I'd have them pay that amount to me as an cash allowance at closing.

Quote from @Ilija Sladojevic:

Thanks for your feedback.

I will close those deals now, but where should I advertise these properties. I've started on Facebook groups and reddit. But besides that what would you recommend. Thanks.

For each deal you find, there are serious buyers nearby who are actively closing deals. These are the people you need.

You'll find them at the local real estate investor association (REIA) meetings, or the REIA FB groups.

You'll find them by talking to real estate agents who sell their houses once the rehab work is done.

You'll find them by checking sales data to see who's buying with cash in your target market.

They're out there. And, fortunately, you don't need many of them to be successful.

But, be very careful!

When you start "advertising" these properties publicly, you expose yourself to the accusation of brokering without a license. 'Cause you would be!

The idea that you need thousands of folks on your buyers list is a dangerous myth, promoted by gurus.

You would do just fine with a dozen serious local buyers.

And, they're already out there. You just have to find them and bring them the deals they want.

Quote from @Ilija Sladojevic:

I have a few possible deals lined up just awaiting the rights contract. But I want to build a buyers list first. Any tips?

Yes. Don't wait to get those deals signed up.

You build your buyers list by having great deals!

Serious buyers aren't going to get excited until you have something under agreement.

Quote from @Jonathan Greene:

Boom. The problem is that most wholesalers or off-market acquisition folks are being "trained" to follow a script, not solve a problem. If you just called someone up and asked how you could help them, you would be ten steps ahead of Bobby, who is stammering through the first line of a script from 1974 about a cash offer when the homeowner bought the house for 51k in 1978 and it's worth 804k (aka does not need cash, he needs a place to go).

Agree 💯!

Ours is a "people" business. We solve problems that happen to involve real estate. And, most times, we get to make money while we do!

I'm not a fan of any script or gimmick that gets in the way of an authentic conversation with a potential seller.

Warm 'em up with a joke, if it helps, but keep the focus on them and their problems. Then follow up relentlessly until their problem is solved.

That's the only training needed.

But, you can't sell that for $2997, so the gurus don't teach it. 😁

I'm hearing folks say: "I'll call sellers once I gain more CONFIDENCE!"

NO, you won't. That's not how "confidence" works. Trust me.

That's like me saying "I'll speak Spanish once I get more confidence speaking Spanish."

NOPE. You only GET confidence by DOING the thing. How ELSE could it work?

What you REALLY mean is this: "WAAA! I'm UNCOMFORTABLE talking to sellers!"

YES! TRUE!

So what? Who cares?

Not the seller. The seller has a PROBLEM. If they think you can help them, they're all EARS!

They don't care how YOU sound, how YOU look, or how YOU feel. They need HELP!

STOP making this about YOU!

Get OVER yourself.

SOLVE their PROBLEM!

Can I get an "amen?"