All Forum Posts by: Paul Logsdon

@Zapata Tate that is awesome congrats!! Yes bp podcast used to be very heavy on wholesaling, if you go back to the early episodes. But now you fever hear about wholesaling on the podcasts, one time they interviewed a young guy who was doing very well and they were just so unenthusiastic about it. I felt bad for the guy.

In January 2020 I got my first property under contract and it closed in march, just days before the entire country shut down dues to COVID-19. I was working full time and became inactive at my sales job because they stopped generating in home sales appointments. I eventually quit in June partly due to frustration but mostly because I just closed on a $35,000 gross profit wholesale deal. 

It's safe to say my wholesale business is doing alright, I even managed to pick up a rental property. 

I have completed over 10 deals and each one has been unique in itself. To be honest none of them have been like I was taught in wholesaling books or like the videos/podcasts/gurus say. 

I think there's an old school group of wholesalers out there who are teaching a bunch of ancient crap to our community. 

Through my post I will be documenting my unorthodox "new school" method of wholesaling. 

Also I noticed that the BP community has different views on wholesaling and wholesalers across the board so let me say this:

My business is always conducted in a honest and transparent way. I operate under my own set of core values which will never be compromised and as a wholesaler who takes pride in serving homeowners and investors alike I hold myself to the highest degree of ethics and morals.  

With that being said I am going to begin documenting every deal I close her on BP. these posts will include how I found the deal, how it was negotiated, how it was analyzed, how it was closed, and any difficulties that I had to navigate or anything new I learned.

Enjoy!

Persistently,

-Paul Logsdon

@Shayleen Minott I can not stand REI skip! I still have unused credits with them, such low quality data. I use batch skip tracing and I honestly believe it is the best there is, I have had great results with them.

@Frank Zondlo

Frank, I work for a company called TFS( the foundation specialist) and Aquaguard is one of our partners, we carry the same products. Did they offer you a 10% discount? The price sounds reasonable for 18 piers but I have a feeling you’re being up sold.

These types of companies are geared towards residential home owners and sometimes aren’t too investor friendly when it comes to price

HOWEVER- with aqua guard I can almost guarantee you will be getting the best fix, the best warranty, the best guarantees and the best workmanship.

As others have mentioned I would recommend getting other opinions from other reputable companies, and then see who can price match and negotiate. If you’re really good you can probably get 15-20% off the quoted price.

Ready for the secret sauce?

As a sales rep for a foundation repair company we typically give homeowners 3 options:

1 the minimum fix

2 the minimum fix + some extra protection

3 the Lamborghini (best of the best)

From what I’m hearing you have been quoted a mix of option 2 and 3. Remember the contractor you met with is a sales guy, he is paid on commissions bigger job= bigger pay check.

Here’s a easy rule of thumb:

The minimum fix for your foundation with push piers should span from crack to crack and always wrap a corner.

With foundation problems there is nearly always 2 cracks, we call them sister cracks, and they form the hinge point of your settled foundation. The key is to pick the corner up and fully support the broken area from crack to crack. Anything more is added protection.

Hope this helps!

If you want to send me your proposal I can look it over to help decipher it.

@Jonah Korchin

I love propstream!!

Now with that said, I DO NOT TRUST THEIR SKIP ABILITIES.

Why?

They started as a data company and I believe that’s what they are great at. You will notice they are adding features like skip tracing to be more competitive in the software industry. Which is fine.

However, you have to ask yourself where the data is coming from while also weighing other factors such as price/accuracy.

To me accuracy is most important because you don’t want to pay for bad data or waste your time/ money marketing to the wrong people.

The other person that replied said they tried it and got 30 accurate number out of 100, YIKES!!

Personally the only service I will ever use is batch skipping tracing. I have used a few others like rei skip (Max maxwells skip service) and true people search (free service) with no luck. I was actually pretty upset with how bad rei skip was in my market, i still have credits that I’ll probably never use with them... you can have them.

Batch has given me great success and they gave me a discount code after my first batch of skips for .15 cent skips. I believe they have a minimum of 50 skips per batch.

Hope this helps! Best of luck!

@John Hall yes and no

you want to research the area by zip code to make sure the area you drive for dollars in is an area that cash buyers currently invest in. If you’re wholesaling in your home market you probably already know the hot zip codes.

You calculate the ARV on a property when you're getting ready to make an offer.

So the main goal of driving for dollars is to identify potential distressed properties that you can market to.

After you contact the owner and they show interest in selling then you do some deeper research on ARV, repairs, etc

@Antoine Smith this sounds like you could have a potential wholesale deal.

I have a big list of buyers in your area we can partner on it if you want. I have mls access shot me a message and I can get you some better comps.

A flipper most likely wouldn’t be adding that many beds or baths to the property just updating to 2020 standards. What do you think the repair cost would be?

@John Hall wholesaling is gods gift to newbie real estate investors.

I just completed my first deal and made 26k gross.

From what I can tell it seems you are looking for wholesale deals on the mls, while this is possible I don’t recommend it. (If it’s on the mls why would an investor go through you to purchase it if they could just go around you?) also the mls usually means you have to deal with realtors(think extra fees)

As a wholesaler you do not need proof of funds to get a property under contract.

I suggest going driving for dollars, this is how I got started. Do a quick YouTube search on driving for dollars and that should get you on the right path. Basically you drive around looking for distressed homes and then you start negotiations with the property owner.

Your goal is to be a problem solver for homeowners, they need to be motivated.

Hope this helps! Good luck!

Investment Info:

Single-family residence wholesale investment in Louisville.

Purchase price: $84,000
Sale price: $110,000

This is my first ever real estate transaction, I must say it has been enlightening. I have studied many real estate strategies and focused on wholesaling because it is a great way for newbies like myself to come in and learn the business from the ground up (also the low barrier to entry means truly anyone can do it.) This deal is special because it came from true grit, no fancy marketing, no lists, no cold calling, it actually cost me $0 to generate this lead.

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

After nearly a year of studying all types of real estate from multiple sources, I decided I needed to focus on wholesaling since it would be the most reasonable way to get my foot in the door of real estate without using my own cash or credit while still working my w2 job.

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

One day while on lunch break from my w2 job I went driving for dollars. Instead of making a list of houses I wrote handwritten yellow letters and left them on homeowners doorstep. My letter was simple and a few days later one of the homeowners called me wanting to sell his house so we set up a time to meet. He just went through a divorce and wanted to move on, he told me he just wanted the pay off on the mortgage and some cash to put in his pocket. We agreed that $84,000 would be fair.

How did you finance this deal?

Other People Money

How did you add value to the deal?

I was a problem solver, the home was very distressed and the homeowner could barely keep up with the payments. I added value by closing at his convenience, giving him cash to walk away with, and allowing him to take what he wanted and leave behind any unwanted belongings (mostly trash.)

What was the outcome?

$26,000 gross profit

Lessons learned? Challenges?

I learned that you can make money in real estate by solving peoples problems and having a solution oriented mind to provide a win win for all parties involved. It is possible to make money in real estate with no cash or credit!