All Forum Posts by: Pace Jordan Morby

Andres Diego... thank you for following me bro. YES, you can list things on the MLS without owning them as long as you disclose to the seller that you are doing it. We have only done it about 12 times but its very effective.

Link to my stuff

Investment Info:

Single-family residence other investment in Wittmann.

Purchase price: $800,000
Cash invested: $6,250,000
Sale price: $9,750,000

We are developing 50+ Brand new manufactured homes in Wittmann Arizona.

What made you interested in investing in this type of deal?

We got the lead as one of our wholesale deals and decided we would make more by developing.

How did you find this deal and how did you negotiate it?

We found it from doing outreach on our Cold Call company in the Philippines. They got ahold of the seller and we followed up and closed the deal.

How did you finance this deal?

Private money. 10% interest only.

How did you add value to the deal?

We developed brand new homes on dirt lots.

What was the outcome?

We are in the middle of it now. Corona Virus will slow us down a bit.

Lessons learned? Challenges?

Having a lot of fun doing it now.

Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?

Yes. Hard money lender. Private money lender. Developers. Manufactured housing dealers etc.

Yes. You can list and sell a SubTo on the MLS. We do it frequently. Here are a few different questions/strategies you need to look at IPO.

1. Get contract from seller on SubTo. Before you own it, start marketing it on the MLS as owner financing. OBVIOUSLY, your contract with the seller should allow you to do this and you should disclose to the seller what you are doing.

This method allows you to sell the SubTo on owner financing to an end buyer without having to come out of pocket... as long as the end buyer brings your entry fee to the table. 

2. If you already own the SubTo... you can sell it on the MLS. You are the owner. You can do what you want, when you want.

3. However, if you are listing the SubTo as owner financing and passing the SubTo over to the new owner... you need to disclose to the original owner that you are no longer involved. Just my feeling. If you are staying involved through a wrap/wraparound, you are still involved and therefore I don't see the need to tell the original seller. 

I am the owner of SubTo.com 

I do about 10-15 Creative deals a month. There is not much we have not ran into. 

Pace 

https://shor.by/gT0I

@Karen Rittenhouse THANK YOU for the reply. 

Yes, I have already brought this to the AdCouncil and we are working on how everyone in the AdCouncil can share in this new endeavor. We are happy to continue spending money with AdVestors as we always have but we are looking for more ways to get deals done. 

There are a good amount of competitors that ONLY get deals from cold calling and after speaking with some of the people who do the calling for them, they are averaging decent numbers. 

We know the best quality lead is a HomeVestors buy call but we do not want to put all of our eggs in that basket as our cost per lead has nearly doubled in the last year. 

Thank you for the reply!  

Last year I did 35 wholesale deals here in Phoenix, AZ.  This year, we have a goal to triple that number. 

We have recently hired a Sales Rep off of Upwork.com to start cold calling these lists. 

1. $0 Transfers

2. Blighted Properties

3. Cheap Condos

4. Divorce

5. Mobile Homes

6. Moving Estates

7. Notice of Default

8. Probate

9. FSBO and Expired listings

Does anyone else around the country run a similar campaign?

What does your matrix look like? For example... 

For my HomeVestors Franchise my Sales Matrix looks like this:

ON AVERAGE

20 leads come in 

4-5 are not even good leads. Meaning they are landscapers looking for a job, a sales rep trying to sell something etc. 

4-5 are leads that are already listed on the MLS and cannot obtain the number they want so they call a cash investor. Waste of time.

10-12 are good leads. 

We set 8-10 appointments

We make 5-8 offers at those appointments. 

We land 2-4 deals. 

We are averaging about 13% close ratio on our leads. 

I understand cold calling a set of lists will have a completely different outcome. Im hoping to learn from another Pro that is doing something similar in their market. 

Thank you! 

@Phillip Lanier I work as a contractor for a lot of the HomeVestors people in Phoenix. When a franchise came up for sale, I jumped on it and paid a premium to get my hands on it. 

First month I purchased and wholesaled 3 houses. Very happy with my results so far. 

Im going to start hiring a team of door knockers. Ill keep you posted. 

@Zarak Sharwani

Good morning! I just purchased my franchise from an existing franchise owner who is semi-retiring. 

How have the last 6 months go for you guys? How much are you investing? Do you already have a buyer doing the work for you or are you going out on the appointments yourself?

Thank you!