All Forum Posts by: Account Closed

@Cornel Smith Not a bad idea! This duplex was in pretty bad shape. In one room, I found a pool of dried blood. 

Lead Sharing - Insider Trading?

I've noticed that when I receive a lead for a wholesale deal sometimes it doesn’t end with a sale. Why? Well, for a million reasons...the homeowner is not motivated to sell at a discount, the homeowner is unreasonable regarding the actual value of their property and on and on... However, sometimes, to be honest, the homeowner and I don't always click or I say something that they cannot get over or forget. For example, I remember quoting one homeowner a price for their duplex after they flat out refused to tell me what they thought their duplex was worth or what they would accept. I normally try to at least have the owner give me an idea where their head is at regarding value and the amount they would like to walk away with. So, I had to start with a number...The deal was over as soon as the price came out of my mouth. I thought it was a good price and I backed it up with comps and repair costs, but the property owner could not get over it. He kept repeating the number over and over and was insulted. I wish I could go back in time and say something different. Something like, well I think it might be worth XXXXX but I can't pay that much for it based on estimated repair costs. Based on my current lending parameters and what my partners and I are willing to extend towards this project, I could offer you XXXX. I guess my point is that the deal was dead, he was insulted and anything I said was not going to be received well. O’well, move on, right? And that’s what I did. But after thinking about it, I thought, I located a motivated owner, who wants to sell now and contacted me after receiving a mailer, and I’m sitting on that information. The owners problem isn’t solved, he didn’t sell his duplex...and I didn’t make any profit from the dead deal. But...maybe someone else could. Maybe, I could pass this lead to another individual, arm them with the knowledge of the owner (pride, etc) and they may have a different outcome. And maybe, everyone would win, the owner would sell his distressed property and myself and the individual I passed the lead to would receive a profit. Some profit is better than none, right? Why let the lead die. Unfortunately, the story doesn't have a great ending because I passed the lead to an associate and didn't follow up. Dumb, I know. But like I said, I moved on. However, I plan to use this strategy (Lead Sharing) in the future but will enter into an agreement when the lead is passed (follow up) and share the profit. Thoughts?

That's great!!!! The first one is the hardest. @Ty Martin

Mark Redmann thanks. I'll message you.

Amazing replies and messages sent! Thank you BP. Taking all comments and suggestions into consideration...I've decided to utilize someone to install the tile and my plumber/handyman to instal the vanity and toilet. Both individuals are giving me a price for their work and I'm supplying the materials.

@Bridgette Washington Thanks for the response. 

Hey BP,

I am renovating a small bathroom (typical Philly row) and I'm thinking of leaving the tub and wall tile (needs a good cleaning) and replacing the vanity, sink, floor (install tile) and toilet. The more I look at the bathroom I may just do tile and toilet. My friend hooked me up with his contractor who has done outstanding work at my friends personal residence. The contractor wants to charge me $200 a day for labor and I'm required to pay for all supplies. The contractor stated he is unable to determine the exact amount of time it will take to finish the job because he's unsure of what he will uncover when removing tile etc. I've heard this a lot lately from contractors and feel as if it's code for... "I have five days off from work and therefore I need to stretch this job out for 5 days to make $1000." Now I will admit, this is something that I am not proficient at and maybe over time I will be apologizing for this post... but as of now I'm just not good at knowing how long a project will take and if a contractor is just stretching the job out. Add the fact that I work full time, so the contractor can work 4 hours or 12 hours and I will never know. I also hate not knowing how hard the contractor is working when I'm not there. One day I was at the property and just talking to one of my other contractors as he worked. I was amazed at how hard he was working and knew that if I was not there to see him working that I would not have realized the great work and effort he put towards his work. 

Any advice BP? 

$200 a day labor expensive for rental property? 

Unknown finish date for small bathroom project reasonable?

1st deal, MLS and seeing a lot of houses with my realtor. Finally found one with a talkative owner who told me several key reasons they needed to sell. Got a good deal and house basically move in ready. Talking to the owners really helped me with the buying process. Inform your realtor to tell the owners they do not have to leave during the showing. They will like not having to leave and you can ask them questions to feel them out. Quick Tip!

@Percy N. I couldn't agree more. I was born and raised in Philadelphia and would be scared to invest in Philadelphia without guidance or personal knowledge of the city. 

A lot of great information here. I guess I will just go with household income and select the most qualified applicant.