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All Forum Posts by: Peter K.

Peter K. has started 7 posts and replied 110 times.

Post: Massive RE Investor Summit!! SF Bay Area, Oct 2014

Peter K.Posted
  • Investor
  • San Jose, CA
  • Posts 115
  • Votes 76

Sounds like a blast, J. I'm in like Flynn. Let me know how I can help.

Post: SF Meetup - Fri, 4/25 in SF w/ Josh Dorkin & Brandon Turner

Peter K.Posted
  • Investor
  • San Jose, CA
  • Posts 115
  • Votes 76

Sorry to hear about the cars.

Great meetup! Thanks again for organizing it J. Glad I got a channce to meet Josh and Brandon and many of the local fellow investors. Had some great conversations at the Dogpatch Saloon with @claire @Andrew N. A little disappointed that Brandon didn't fight anyone but no meetup is perfect.

Definitely looking forward to the next mext meet-ups in the city and east bay. Stay tuned for upcoming info for a South Bay meet up. I'm going to organize something local in the next few weeks.

Peter

Hey Chad

Congrats for taking action.

I'm making a couple of assumptions here so please verify them.

1st assumption: It sounds like he's asking for a 5k wholesale fee / assignment fee (which would be for every property). That is a very reasonable fee if he's getting properties where the numbers work for you.

2ns assumption. The 5.5% is likely to list the property on the back end. If he finds the buyer he makes the whole commission. If another agent brings a buy he will split it.

If the above is accurate, it seems very reasonable to me. I would take that deal in a heartbeat for good rehab projects. But I'm in ht e SF Bay Area the completion for deals is fierce. I haven't found any good wholesalers that are regularly bringing me deals in my area. So aside from web marketing, networking and direct mail,what I'm doing is offering a few agents a double ended commission if they find me deals. I'll pay them commission on the purchase and ill list it with them when completed. This gives them an oppty to make around 5-10% total commission, which can possibly be more than I make after splitting with JV partners. But I try not to worry too much about what others make, if the numbers work for me.

You may also want to check out the Homevestors guys in your area. They have several properties in Tulsa listed on their site. Google 'we buy ugly houses' and look at their online listings. This will give you something to compare the deals to.

Good luck and happy investing.

Peter

Post: CA State Exam Prep

Peter K.Posted
  • Investor
  • San Jose, CA
  • Posts 115
  • Votes 76

Hi James.

I just took RE Practice Course and a exam cram course from Quick Learning School in San Jose, Ca. Not sure if you are nearby, your profile doesn't show where you are from.

I would highly recommend them. They are competitively priced and their trainers are top notch. I had Sherry who has been teaching the cram course for many years. She knows the material well and gave some great strategies and tips for studying and for exam day.

The State gives you 3 hours and 15 mins to complete the exam. I was done in less than an hour and a half, and KNEW that I passed before they gave me the results because most of the questions were nearly identical to what we want over in the class and study material. I've had a lic 2x before and let it expire both times (never again). So this wasn't my first time in this rodeo, but years had passed and I had forgotten much of what I had learned in my RE Principals course from 20 years ago.

I believe that Quick Learning School has an online and study at home package, but whatever route you take, a good live cram course is a highly recommended supplement.

Good luck,

Peter

Post: SF Meetup - Fri, 4/25 in SF w/ Josh Dorkin & Brandon Turner

Peter K.Posted
  • Investor
  • San Jose, CA
  • Posts 115
  • Votes 76

I just realized that the meetup us next week. I need to adjust my mental calendar. Luckily the calendar on my iPhone was accurate. :-)

Looking forward to seeing you all next week!

Offer still stands if anyone wants a ride from South Bay or Pennisula.

Peter

Post: SF Meetup - Fri, 4/25 in SF w/ Josh Dorkin & Brandon Turner

Peter K.Posted
  • Investor
  • San Jose, CA
  • Posts 115
  • Votes 76

@J. Martin thanks for putting this together. I'm looking forward to meeting you and some of the other Bay Area contingent that I haven't met yet.

It will be great to meet @Joshua Dorkin and @Brandon Turner as well. I'm hoping they may start a bar fight. I'll have my camera ready.

Late notice but if @Joan C. Or anyone else wants to a ride from South Bay or Pennisula, I'm leaving San Jose around 5pm. Best to call or text me at 408-390-9069.

Peace,

Peter K

@Adam Hofmann @Eric Kennedy @Sarah Lam @Yu L. @Guan Lian @Robert Musallam @Evan R. @Eleanor V. @Jordan Thibodeau Hope you guys are able to make it out tonight.

Post: Looking for Wholesale Deals in SF Bay Area

Peter K.Posted
  • Investor
  • San Jose, CA
  • Posts 115
  • Votes 76

Hello BP Community,

Id love some feedback, ideas, introductions, whatever. I'm in a position where I now have more cash available than deals. I've had worse problems in my life. I'm getting my mail campaign and website up and running. However these can take time to produce good deals. Meanwhile, I'd love to hear ideas on how to find a good wholesaler.

With all of the gurus selling training and saying how easy it is, there must be hundreds of wholesales right here in my back yard! :-). Ok, maybe not hundreds, but there must be 1 or 2 that are looking for a good rehab buyer that can perform.

So far I've been networking at REI events, got on a few local lists from a google search. I've networked with local realtors. In the past few months, I've looked at a grand total of....wait for it...0 opportunities from wholesalers. I've looked at lots of deals from a bird dog, mls, craigslist, but from wholesalers I've only heard the sound of crickets chirping.

I am thinking that there must be someone out there right now that has more deals than money. Maybe, maybe not.

Currently, I'm interested finding good wholesale deals in the San Francisco Bay Area. Especially on the South Bay, East Bay, Penninsula areas. I'm interested in SFR, 2+ units and construction-ready residential land deals.

Everything is negotiable, and here is my basic criteria for a real deal.

1. A desirable property or one that can be made desirable.

I don't mind rough areas, as long as they are relatively safe, no true war zones. 2 bed, 1 bath is ok if converting to 3/2 is realistically possible or if 2/1s sell easily in that neighborhood, that's ok too.

2. 15-20+% net profit with a min of $50k net profit in the deal.

Meaning a 100k deal still needs about 50k of net profit, while a 500k deal should have 75-100k+ in net profit.

3. At least 1week to close. I have cash, but sometimes it's good to have a few days of buffer to inspect, move IRA money (or investors money) around, etc.

4. I don't care what the wholesaler is making, as long as they are leaving enough meat on the bone for me.

Like Monty Hall use to say, "Let's Make a Deal", if you're too young to remember that show, think Howie Mandel, "Deal or No Deal?"

Good luck and Happy Investing!

Post: 2014 Bigger Pockets Summit

Peter K.Posted
  • Investor
  • San Jose, CA
  • Posts 115
  • Votes 76

I 3rd the motion. I agree with @Graham Mink

@Joshua Dorkin

@Joshua Dorkin and @Brandon Turner You guys have nothing but free time on your hands, get to work! Jk

Seriously though, if time is an obstacle, I'm sure that many of us in the community would step up to help with tasks, ideas, planning.

Btw, my completely unbiased opinion is that Northern California would be the ideal place to host the event. :-)

Post: New Investor in San Jose, California

Peter K.Posted
  • Investor
  • San Jose, CA
  • Posts 115
  • Votes 76

Welcome Joseph

I'm also in San Jose. It's great to see that there are many us of in the South Bay...and growing.

I try to make it to the SF meet ups and East Bay, but with travel, traffic and timing it doesn't always work out. I'd like to start a South Bay meetup. It would be great to have a local meet up occasionally. We can share goals, strategies, tips, wins, etc.

@Robert Musallam @Jordan Thibodeau would you guys be up for it? There are a few others that I know of and could invite.

Post: Purchasing seller leads

Peter K.Posted
  • Investor
  • San Jose, CA
  • Posts 115
  • Votes 76

Hi Jeff,

Great question. I'm interested in this topic too as I'm working on fine tuning my marketing budget and strategy.

$52 per lead sounds reasonable, assuming the quality is good. This morning I was working on calculating what a lead is worth to me. The math may be a little different if you are buying leads as an agent vs. as an investor. But, here is what I came up with. I'd be interested in your feedback and anyone else's feedback on my math.

1. Value of a successful transaction ($5K): For my case this is a good deal that I can either fix/flip or wholesale. I estimated the value at $5K as that is a typical, conservative wholesale profit. Obviously, fix/flip profit is substantially higher, but also more work, capital, equity partner, risk, etc. In your case, a transaction is probably worth 2x-3x that to you in commissions.

2. Conversion ratio - How many leads equal 1 deal? I estimated 25 leads to close one great deal. This can vary wildly depending on quality of lead and sales process. But I feel 25 is relatively conservative. For you, 25 may be a bit high for listing leads, if the quality of leads are good.

$5,000 / 25 = $200 per lead in total profit / value to me.

At $52 per lead, that would be around 26% of the profit towards my marketing budget. That is in line with what many businesses put towards marketing.

I'd want to know the quality of the lead. Have you seen the website that these leads are coming from? I'd look at how much qualification is going on before they enter their information. For example, is the website simply promoting a free home valuation? Or are the leads more qualified, like expired listings or unsuccessful FSBOs?

Keep us posted, I'd love to hear how this works out for you.

I'm always looking for great deals in the East Bay. My last two flips were in Oakland and Castro Valley. Keep me in mind if you come across a fixer that needs some TLC. If I buy a deal you bring, you'll get commissions on the buy and sell side as I'll list it with you when selling too.

Good luck and happy hunting!

Peter