All Forum Posts by: Michael King

Hi everyone,

    Does anyone have a quick list of the benefits of selling a property to a wholesaler (either for cash, or using creative acquisition strategies, i.e. buying subject to or using lease options).

    How about a list of the benefits of buying a property from a wholesaler?

    Thanks,

                  Mike

Well that's the catch. I have priced out the mailings that I plan to conduct in the future, and I am going to budget $1,500.00 to do them. For the time being my funds are too low to do mailings. I have been cold calling people, and meeting with about one seller a week. I can order 100 tri-fold brochures or print up some brochures at home and spend roughly 30-50 bucks on them. If it helps me build credibility early on, while I budget for mailings, I think it would be worth-while.

But what some lists of benefits?

    Thanks,

                  Mike

Hi everyone,

    I've read that it is a good idea as a wholesaler to have some nicely printed, glossy, tri-fold brochures that tell the consumer a little bit about your company and list the benefits of doing business with you. They said that you should have a pamphlet for buyers, a different pamphlet for sellers, and a third pamphlet for lenders. Supposedly they are also good to help give you credibility when you're first starting out like I am.

    I was hoping you could help me create a list of the benefits of doing business with a wholesaler from those three perspectives? I know the obvious ones; i.e. avoiding foreclosure, fast closing, guaranteed offers, etc.. But I am looking for a bit of a larger list to reference while I design the brochures.

    Thanks,

                  Mike

Thanks Paul, that's actually what I wound up doing. I pulled up the registry of deeds and found all the information I needed. Their site was pretty easy to use too... I'm not very technically savvy.

                 Mike

Also, @Andrew Davis,

    I figure I may as well ask you while I've got you right here... What is a tactful way to ask someone for a referral?

    Thanks again,

                            Mike

Okay, sounds good! I appreciate the help! In the meantime I'm going to brush up on how to figure out rehab costs and hopefully pick up a book or two on seller financing deals. Just read another one of my posts where contributors got a little bit off topic, but I realized how much I don't know on the subject of the financing.

Thanks again,

                        Mike

Hi @James Klafehn 

    I met with the gentleman, and the appointment went smoothly. Unfortunately the house did not live up to my expectations. There's more information on it here in one of my other posts (but if you don't feel like reading that, long story short the house was not in a very good condition and the tenants were not ideal):

http://www.biggerpockets.com/forums/93/topics/1671...

    As for the seller financing, I am just starting out my investing business, so I am looking for creative ways to finance deals. I currently own a three family house which I live in, and work full time as a teller at a bank. So on the income as a teller, I've got to get creative with the financing (i.e. I have good credit and am hard working, but my debt to income ratio isn't ideal according to banks and CU's).

    Thanks for the input guys,

                                                Mike

Also, I've been really thinking hard about this house, and have delayed getting back to the owner. I told him I would let him know either way. Any suggestions on how to tactfully tell him my thoughts?

    Mike

Hi @Tim Soto,

    Thanks for the response! The appointment went fine. I wasn't nervous at all, and we built rapport throughout the appointment, but I was a little bit surprised by the state of the property after he had described it as close to turn-key. The property was occupied with some 'questionable'tenants. I went at noon time. All the tenants were home with the shades pulled shut, the two apartments on the first floor smelled of cigarettes and were rather messy. One of them had people sleeping in it, so I was only able to peek into one of the bedrooms. The second floor apartment was larger, but kept very messy; i.e. pet hair everywhere, spilled food, and the very heavy scent of unwashed clothing/bedding and cat spray (the tenants had 3+ cats in there). The third unit was kept a little bit better than the other two, but slightly cluttered. The hallway spaces and throughout a few of the apartments were floored with cracked tiles (not ceramic tiles but like the type they use in Walmart). The owner said the cracks were because he didn't lay underlayment because he thought the subfloor would be fine, but the imperfections in the subfloor caused the tile to crack. There was dirt and clutter throughout the building, and all 4 of the apartments needed some updating/repairing. The gentleman kept showing me the "new" plumbing he had put in, which ran rather callously through various areas of the house (not boxed in or neat looking). It just came across as very shoddy - rather than having stickers or nice little plaques to label the apartment numbers on the doors, they were drawn on with permanent marker...

    Long story short, it was good experience, but I am still trying to figure out the best course of action. He mentioned he may let me list the property for him, but I don't feel he would get the amount he is looking for and would hate to waste both his time and my own especially since the property is about 25 minutes away from my home.

    The comparable sales of 4 Family properties in Gardner are going up and down like a heart monitor from year to year. Every other year since 2008 they've sold for around 60K, then the next year up to about $109K, then back down in the 60's. According the the pattern, 2015 is in a '109'-type year, but it is very hard for me to tell realistically what the property is valued at, especially with all the work that would need to be done to make it presentable, and the effort of putting some different tenants in there. (I am slowly working on familiarizing myself with rehab and updating costs).

    Being one of my first deals, I am not looking to hold the property for too long or take on another landlord project, but rather flip the deal to another investor or retail it. Not sure this is the ideal property to do that unless I could get it for a really good cash price with a buffer for the work that needed to be done. But where he is asking 160K, I think he is being very unrealistic with his price. I don't think it would be worth it to list the property, or buy this early in my career, but I do believe it was a good experience!

    Also, being a newbie, I may very well be missing something here too, so suggestions are always welcome and appreciated!

    Thanks,

                  Mike

Hi everybody,

Can anyone give me a brief overview of a Letter of Intent? How do you fill it out, and what exactly does it do?

Also, does anyone know where you can find a template LOI?

    Thanks,

                  Mike