All Forum Posts by: Paul Shannon

I've heard wholesalers mentioned a few times, but in my experience you're not going to have that much luck there either for reasons mentioned by @Kevin Romines. I'd recommend going direct to seller. Direct mail, driving for dollars. Tell everyone you know you are looking for these types of deals too. You never know who knows someone in a tough spot looking to get out. Distress is your opportunity.

You have to get creative in this market. But if it doesn't meet your criteria, don't overpay. No deal is better than a bad one. There's also a lot of other ways to make money in RE. And a lot of ways to make money investing outside of RE. Try to bring more tools into your investing toolbox.

2 Votes

Business is business. Price, time frame to complete the job, reliability/quality of work are the big 3. Just be honest. You have a budget and you feel another contractors price gives you the best chance to hit your numbers and reach your end game. There shouldn't be hard feelings.

0 Votes

No deal is better than a bad one. Set your criteria and don't budge. Go out of that market if it doesn't meet your investing criteria. Don't force it. Or invest in something else. There's plenty of ways to make money outside of real estate. There's also plenty of ways to make money in real estate, so maybe adjust your strategy. There's funny money out there right now.

0 Votes

Originally posted by @Jeffrey Donis:

Hey Paul!

Depending on the size of multifamily properties you are after (the more units typically means the more sophisticated the seller and the less likely that it is a mom and pops) the VA's effectiveness could vary. On smaller buildings it could work since the VA could get basic information using a normal script with a few added lines so they can get information that you need (with training and practice they will get better and more comfortable). If you are after larger buildings, most VA's that are not from the U.S will most likely not have to much experience when it comes to these complex deals therefore the chances of them being able to carry a conversation with a seller I would say is small. There could be a VA somewhere who is experienced, however with the ones that I have worked with in previous businesses it took time and practice for them to be able to get comfortable calling single family property owners.

I have heard of VA's (from the Phillipines, Honduras, Nicaragua) ranging from $3-$7/hour.

Thanks for the feedback. That was my primary concern - the ability to carry a conversation with the seller. I'm after larger deals, so perhaps best to really narrow the scope and make the calls myself.

1 Vote

Originally posted by @Scott Bottomley:

@Paul Shannon

Have you tried PropStream vs listsource? The beauty is you can see the results instantly as you change search filters vs buying sight unseen lists from listsource

No, hadn't tried PropStream. Thanks for the recommendation.

0 Votes

Is anyone using a virtual assistant to call and qualify apartment seller leads? If so, how do you pay them? Any tips on scripts, what to qualify, frequency, etc? Where are you getting your data? I've tried list source, but the lists are much better and easier to filter for SFHs I've found. Much appreciated ahead of time.

1 Vote

HELOC is a great option. You can stay invested in other assets instead of sitting on cash while you try and find a real estate opportunity. Use the HELOC only when you need it, so you aren't paying interest otherwise.

I only like it as a short-term loan to myself, though. Its much cheaper than hard or private money. But with a variable rate, and it collateralizing my primary residence, I like to refi into longer-term fixed rate debt if I'm going to hold. Then payback the HELOC with the refi money.

If you're using it as a DP, I'd just have a plan as to how you can pay it back asap.

4 Votes

Originally posted by @Alex Penalva:

@Paul Shannon

Pretty straight forward. I’m actually at the point where I am able to save a good amount of money. The hard part is what exactly do we invest the delta in? Yes I know, RE: rentals, flips, etc. but how is it that some “normal” 9-5ers are able to amass such wealth, in what appears to be a relatively short time? What’s the key that I’m missing? Any ideas you can share, or personal “blueprint

Everyone's path is different. The easiest way to invest is dollar cost average, every paycheck, what you can afford to put into a basic index fund, like SPY (an etf representing the S&P 500). Start there and get more sophisticated as your experience and knowledge grows. Read everything you can get your hands on about investing. Not just real estate. It'll help you figure out your investing style and risk tolerance.

I was very risk averse. My wife and I both had well paying jobs. We moved all over the country to advance both our careers and got lucky in the sense that we had companies that supported not just our careers, but the career of the spouse as well. For example, I got promoted and we had to move to accept the job. B/c my wife had pedigree with her company, they moved her as well (and paid for the move!) into a lateral position. It was brutal at times. Dual income was paramount in my case. And the ability to grind.

Remember too, that the W-2 workers that amass a large amount of money in a short period of time, as you say....spending money to look wealthy, and actually being wealthy, are two very different things.

1 Vote

Scaling from BRRRR of 1-4 units to attempting to reposition a 40-unit apartment has required building trust between my team and I. Trust comes with time. Good property management and a process to execute rehabs are the two pieces of the puzzle to solve.

2 Votes

@Tri Le

There are definite opportunities in the midwest for mid-sized, value-add projects. We just acquired a 40-unit in Evansville, IN that we are starting rehab/reposition on today. Most difficult piece to figure out with these types of properties is the management. Too small for on-site, institutional quality management. So you've gotta do it yourself or hire a local 3rd party company. Both of which have challenges, respectively. Challenges you can solve are opportunities, though.

DM me. Would welcome connecting.

3 Votes

All Forum Posts by: Paul Shannon

Paul Shannon has started 15 posts and replied 328 times.

Post: Market is so hot!! Dont have 100k cash

Post: How to politely reject a contractor?

Post: I keep getting outbid on home offers I’m making

Post: VA For Direct-to-Seller Deal Flow

Post: VA For Direct-to-Seller Deal Flow

Post: VA For Direct-to-Seller Deal Flow

Post: HELOC, Home Equity Loan or Your Savings?

Post: Financial Independence blueprint

Post: Multifamily investors: What has contributed to your growth?

Post: 50 doors in 3 years, Help!