All Forum Posts by: Muhammad Ali

Brandon,

Good question,

The major benefit of FSBO would be that you can cut out the brokerage fees. Thats pretty much it. Unless you can price the house accurately to the market and can get buyers into the door of your house and deal with all the contract work on your own without a lawyer or agent I think its a good route to go. But if you are not sure about the price or your ability to properly sell and take care of the contract work then you might be better off with an agent.

Probably the biggest reason you aren't getting buyers is because agents don't want to show homes that are FSBO. Simply because the FSBO is such a hassle to deal with. You have to have a permission slip signed and the moment that comes out owners freak out and think they are signing a listing contract.

The other reason could be marketing the property. Zillow and trulia are probably going to be your best bet to get a stream of people coming in. Most buyers tend to go on zillow first before being picked up by a realtor and at that point you aren't going to be able to get them to come in. A well connected agent in your area might already have the buyers for your home but since its not on the MLS he isn't going to bother showing it.

If you are offering something unconventional like seller financing or rent to own then it makes sense to post it on facebook groups and craigslist as these crowds generally like going after such deals.

Good Luck,

If you need a recommendation for a realtor or anything else give me a pm

Hi there Robert, I am currently in my last real estate class as I type this paragraph to you here at Lorain County Community College. It is definitely a drive from Elyria to Youngstown but I would gladly love to help you out. Lets talk and see what I can do for you. 

Thanks

Any new updates guys? I have seen a guy do this in southern Ohio and he talked with a mom and pop brokerage to get best of both worlds. I personally see money as a real estate agent and am going to run it full time till I become a broker then I can run my own show and don't have to worry about listing my broker because I will be my own broker. Let me know what you think.

This may be a little late but this is something to consider. If it was me, I would go to see what the "free" event has to offer. Most likely it will be up selling and sales pitches about how great the 1500 dollar program is going to be. If that's what happens I would literally get up and leave as the show is going on. 

For fifteen hundred dollars (maybe a little more or less depending on where you live) you can get real estate education that is TONS more useful than what information you will get from these "gurus". Today I just received my certificate for passing my second real estate class (Highest test score too!). I am more than half-way done with my real estate classes. I live in Ohio and the total time is 120 hours of class time before you can sit for the test. 

Just stay focused on what you want to do and your classes will be MUCH more beneficial than the workshops these guru's provide. It is literally up to you as to what you do with your education.  I have been taking classes this semester and trust me my mind has totally opened up as to how to effectively make money in this business. 

Originally I wanted to wholesale and I learned everything I could about it. In my honest opinion there really isn't much to know about wholesaling. Literally you find homes for 70% off minus any "work" needed to be done and flip them to "cash" buyers which are usually investors or flippers. I personally find it easier than flipping and it would provide more connections to learn how flipping works. I would rather watch someone else receive a flippable property and see it happen in front of me and then try it out rather than go out and get myself caught up in something I cannot fix. 

Seriously take the real estate classes, its worth it and you might even consider becoming a real estate agent. Make money selling houses. If you want to be a flipper you can save money on comissions. If you want to be a wholesaler you will have law knowledge (you will know a lot more about law and how to avoid lawsuits), credibility, access to the MLS to easily find CMAs/Property Values, and a broker to help you become a successful R.E agent.

I got free funding for the classes at a local community college. Look around, you might be surprised. The college doesn't list that they have the classes so make sure to ask. 

My thoughts to this are. Okay I can wholesale without a license now but what happens in the future if regulations get tougher even on wholesalers? For this reason I am just going straight for the license. It's safer, I am more credible, I get access to the MLS, and TONS of connections. And even better, some schools will provide funding for taking real estate classes so basically you could get them for free.

I live in Elyria Ohio, a city in Lorain County. I have noticed that there are A LOT of properties that are for rent. This could be due to everyone's leases ending. There are two people that just left my neighborhood and they were both renting. I am just trying to get input from someone who owns and rents properties out with their experience in the Northern Ohio market. Houses are relatively cheap compared to other states in Ohio but is is that because there is a lack of renters in the market? Listening to the podcast and hearing the numbers is really sort of insane what people are paying for some properties. When you work out the numbers it doesn't sound really that bad. What do you think? Bear in mind I have no experience flipping or renting. I don't even own a home yet. 

For example this 2 bed 1.5 bath home for only 15k on zillow?

http://www.zillow.com/homedetails/803-East-Ave-Ely...

I mean sure it needs some work. New carpet, maybe new paint, new bathroom, updated kitchen etc.

But when you do the math at just a 5% DP you only pay about 150 a month (not including other expenses). So if you can get 250 for this place you are still making money. Not planning on buying that but I just wanted opinions and info on the renter market.

My advice would be to get it in writing. From both the A/C company and the tenants.

That way if you don't have it in your contract you at least have something in writing that a court will uphold. A/C units should not be breaking this fast you need to tell that to both your tenants and your A/C repairers. 

Either the tenants aren't taking care of your A/C or your repair service sucks.

HaHa, I would first start out listening to all the podcasts and learning real estate vocab before finding a mentor. What do you bring to the table that would make you worthwhile to coach? Honestly no one is going to teach you for free there has to be something in it for them.

 When you say new investors don't have many good deals what do you mean by that? The standard in wholesaling is the 70% rule and I plan to get a property at about 60% if I can. After I analyze deals in my area of course since it is rather depressed up here. It might turn out that I will have to get a property at 50% for it to be worthwhile for someone. And I actually run a landscaping company and have some networking with other contractors in roofing hvac etc. so I think if I present a good report to my investor he will buy it. 

I have a question for you. If I presented an even more detailed report that the wholesaling calculator to you as a wholesaler with all the numbers figured out and contractors already found would you take it? I am basically handing the deal to you. I just don't have the cash to do it myself. 

Let me know what you think

I was thinking about going to a REIA meeting up here in Cleveland because I will be starting wholesaling soon. I was just curious what other peoples' experiences are going to REIA meetings to sell a wholesale deal. Or is it just better to avoid the REIA meetings and just market the properties as I get them?