All Forum Posts by: Alexander Robinson III

Howdy Melitus,

You can actually find out by searhing how many cash buyers bought in the last three months. Zillow is a good way to find out. Also, pay attention to the amou t of renovated homes, and homes under construction in any chosen area. 

It can be a sticky situation. But just as you're trusting the tenant to make payments on time an not default, you're also depending on the seller to do the same.

Its really no different than a traditional rental situation. Just because you pay your rent does not mean the owner/landlord is paying the mortgage.  

Brian is right. A wrap is the way to go. If you don't know what a wrap is, it's called a wrap around mortgage. This means you take over the payments of a homeowner and get the deed to the property. 

For you to make money off of a Wrap Around Mortgage, you enter into an agreement (contract) with the seller to take over payments of the house. Let's say the seller still owes $150,000 on the property to their lender. You find a buyer who is willing to pay $15,000 down (10% of what the seller still owes) on an option to buy and have the buyer pay you a monthly payment. 

The monthly payment is the amount the seller pays a month, plus the amount you add to make to earn a monthly cashflow from the deal. So if the payment for the seller is $700 a month, you would have the buyer pay $900 a month. You keep the $200, pay the seller the $700 so they can make their payment to their mortgage company and repeat until the new homeowner pays off the house.

In the event the buyer does not pay off the house in the amount of time agreed, or does not decide to renew with lease option, you can find another person willing to purchase the house, have them provide a down payment, and start the process all over again. The point is that the house needs to be paid off. The seller does not have to do anything but collect the check and send it off to their mortgage company. They are happy most of the time just to pay off the property. 

1. Yes, that is waaaaaaay to high, especially depending on if you're mailing buyers or sellers.

2. Yes. Direct mail is a great way to build a list.

3. A drip campaign works well with direct mail campaigns. I usually mail no more than seven mailings over a period of time. 

4. Words of advice. Research and numbers help you save time and money when mailing to lists you've purchased or created. Niches help to regulate this as well. The one thing about lists that were purchased is more than likely, others have mailed to these same people and make it harder for you to make any difference or see the success you anticipate. What type of list are you building??

Congrats on your deal, but don't do it half way just because it's your friend. Remember, business is business. Having it under contract gives you the right to market and assign the contract to a potential cash buyer.

You need a set price so you can not only market it appropriately, but it also gives you the ability to wither add your assignment fee to the price, or work out a percentage of the price your and the seller agree to pay you. 

Trust me, mixing business with friends can be tricky sometimes. But no matter what, you always want that contract in place. 

It truly can be overwhelming. It sounds like you have more than one interest. That isn't a bad thing. I do suggest pacing yourself. I say wholesale to get your feet wet. You'll make some quick money and get some experience along the way as well. 

You never have to stay in the same place, but it would be a good idea to plant your feet a little in one world before you immediately venture into the next. Helps keep your sanity as well! lol.

I want to fix n flip.... and I will. I want to own my construction company... And I will. but I started as a wholesaler, still am, and will soon move into the next phase. Don't think so hard to where you don't do anything at all. Action and education are the keys to success in this. :-D

The awesome part is that it's in Pre-Foreclosure and not Foreclosure. The answer is, yes, you can wholesale pre foreclosures, and yes, you can get the property under contract for what they still owe on the home. 

When the any part of the foreclosure process happens, many of the home owners would love a way out that situation free and clear as quickly as possible.

So if you find a home that's worth $300,000, and the home owner still owes $$200,000, then contract it for the amount owed, add your assignment fee (and maybe a little extra to help out the homeowner), and wholesale it to an investor. 

The homeowner pays off the house, an investor has a new property, ad you've just earned yourself an assignment fee. 

It's not as cut and dry as that, but that's basically how the process goes. 

You want to make sure the numbers make since. Trust me, they never lie. 

Short sales are possible as well, but that's a whole other story! lol. Good Luck! :-D

First off, congrats on getting your motivated seller. Just keep going and they will keep on coming. 

Your buyers list should not be hard to build at all. There's many ways to find them and attract them. for instance, finding out how many absentee buyers purchased in the area the two properties are located in. You can use zillow or listsource to do so. :-D

Congrats on stepping out and taking action! You will never gain results by doing nothing. I am BIG on direct mail campaigns. They truly make a difference and produce results. Keep it up. Once you get more used to it, you'll begin to develop your own strategies and ways to make it more and more successful. 

Building a buyers list is more important to me than building a sellers list. With my buyers lists, I'm able to make multiple strings of income, and depending on my buyers for being repeat clients.

I wholesale, co wholesale, and market various products and services to my buyers lists. This is why anyone who I mentor or have one on one consultations with, I always advise them to have strong and reliable performing buyers lists. The longest it's ever taken me to move a property through my buyers list is three weeks.  

The crazy part is, I stumbled across much of the strategy I use to build my buyers lists by trial and error. Totally awesome experience! :-D