All Forum Posts by: Ed Brancheau

That's totally understandable. And I'd suggest that you can narrow strategies down by looking at what you've been good at in previous jobs and what you absolutely hate doing.

Like I said, I'm really good at digital marketing and getting leads BUT because I have a vision problem, I can't easily go investigate properties. So, I've chosen to focus on lease options.

My friend on the other hand, loves fixing up houses and then selling half of them and renting the other half.

Each of us is great at what we do but would be horrible at what the other does.

Stay Awesome!

Holy moly! What a lot of detail. Going to check the pics out more.

So, what's been the most difficult part so far and how'd you overcome it?

Stay Awesome and Keep Busting Butt!

Wow. This is so weird because I shot a video Tuesday night about how I use Propstream to find investors to partner with. I haven't cleaned it up yet, but here's a down and dirty version: 

Partnering is one of the best paths to success when you figure out what you're good at and what they're good at. Essentially, what is everyone bringing to the table.

So, first of all, what are you good at and what do you want to do in the partnership?

What I'm good at is developing marketing systems because I've been in digital marketing for almost 20 years. But I don't have the time to close deals because I also run a digital marketing business.

That's why I look to partner with wholesalers that don't know how to generate and nurture leads but have the time to reach out to these hot leads.

Now, in your case, I've partnered with people where they provide the deal and I provide the money (or vice versa) and, basically, we've set up the deal where I own the property but we split the profit. I do it this way because while I could pretty much give a crap about anything but the numbers, I essentially want veto power.

However, when it comes to leads that I generate and nurture, I give the wholesalers a lot of latitude to make deals because I trust my partners to know their area better than I do.

Stay Awesome!

Here are three great forum threads on the topic:

Start earlier. Avoid paralysis-analysis.

Hey Alexandre,

I have not yet found an area that doesn't have deals.

There are even deals here in San Diego where 3/2 houses start at $500K!

Basically, it takes more money to buy but when you find a deal, money is easy to find.

Plus, while the profit percentages are pretty much the same nationwide, the net profits are higher.

After all, 10% of $150K is $15K whereas 10% of $750K is $75K. It's all the same. The only difference is in people's heads.

Now, I did some quick research and there are a lot of opportunities in OKC.

Here's a video I shot for your area (although it applies anywhere): 

Here are three excellent zip codes in OKC: 73099, 73036, and 74801. An added bonus is they're all right next to each other.

Plus, there are other options besides buying and flipping properties.

For instance, I love lease options because I can essentially negotiate the right to buy a property in the future while I rent it out now. The home seller gets the amount they want, I fix it up to rent (with a hard money loan) and then rent it to tenant/buyers. After two to three years, the tenant/buyer buys the house from me and I buy it from the original owners.

Stay Awesome!

Hey David,

I just sent you a private message so we can talk on the phone because I'm actually looking for some JVs to partner with. I provide hot leads because I'm an expert digital marketer, they close the deals.

First of all, don't set a goal of doing your first deal by the end of the year. Set a goal of doing it by the end of March. It's totally possible and I might be willing to show you how.

I haven't done a whole lot of deals but when you're looking for mentors, you don't need people that have been doing it for years. You just need people that are a few steps ahead of you.

And oftentimes, while a lot of really successful people want to mentor newbies, they're often so far ahead that they've forgotten what it was like when they started. I can't tell you how many times I've heard something like, "You got to spend about $5K to get a deal."

Of course, if you barely have two nickels to rub together $5K might as well be $5M.

But when you JV with people like me who have the money and expertise in marketing (and buying houses is all marketing) but don't have the time because they run other businesses, you can jump in do the leg work and make huge commissions as you learn.

You are right to have tenants pay for utilities because it makes them take more responsibility like not leaving lights on or running a washing machine during peak times. Same thing with water and trash.

A lot of utility companies will set up separate meters for free (or a nominal fee that is totally worth it.)

And "sell" it to your tenants by telling them that you're going to reduce the rent by $100 per month. They probably don't have any clue how much water and power costs so they'll be happy when they're actually going to be paying more.

You see, if the utility prices remain high, you're going to save $200 per month ($300-100) and if they drop back down to normal, you'll be saving $50 ($150-100). Either way, you save money and never have to deal with the utility companies (extra bonus!)

I've got a deal that I'm working on that I am thinking of creating a joint venture we a wholesaler/investor that has a property under contract in Texas.

I'd be putting up the money which is basically around $120K ($80K down so the seller can move plus about $40K in repairs.)

After the repairs and the sale of the property, we'll be paying the seller another $95K.

So basically $215K all in although I just have to come up with $120K.

The joint venture partner did a great job finding this property and negotiating a guaranteed sale price of at least $400K. If we get less than that amount, the difference will be deducted from the $95K that we owe the seller.

For instance, if the house only sells for $390K, we will only owe the seller $85K.

The joint venture partner will also be managing everything that needs to be done with the property (i.e. finding and managing contractors) because we're both out-of-state. I've never done an out-of-state deal but I don't think I'd be more difficult than doing a deal in my own backyard.

They're also a licensed real estate agent in their home state so we might have them also market and sell the property. However, I'm a little hesitant to do this because I'd always prefer a Realtor with knowledge of the local market.

What I'm trying to figure out here is what is a fair balance when splitting the profit of around $185K?

Normally, I'd expect to pay about a 5-6% wholesale fee on the price I'm essentially getting the property for ($185K.) Which, in this case, the wholesale fee would be around $8,750-10,500.

But the joint venture partner will also be managing everything else and I do want to do future deals with them.

So, what do you kind folks think is a fair deal?

Double a typical wholesale fee? 20%? 50/50?

Should it be less if we hire a Realtor to sell the property?

I'm leaning to 25-33% of the profit but I definitely don't want to run the risk of insulting them.

Hi @Franky Aikens. Sorry, I hope you didn't think I was ignoring you. The notification that you posted got buried in a ton of other notifications.

Yeah, since I posted that it's been interesting.

One, online advertising pricing plummeted and so my clients are able to get double the number of leads than before.

I launched a Facebook group where I'm doing daily coaching for realtors to help them market their agencies. One of the methods I showed them was doing 360 virtual walkthroughs that we record to their websites.

Then we also do what are virtual open houses that are essentially webinar walkthroughs to groups of qualified buyers.

Finally, I've encouraged all of them to shoot a video detailing how they are sanitizing everything each time they show a house. We then have them post a link to the video in a red bar at the top of their website. It's now the most clicked page of the site and the video has a nearly 100% watch through rate. Many of their new prospects are telling them that's the main reason they chose them.