All Forum Posts by: Josh Caldwell

@Steve Babiak is right the problem is that many of the so called property managers in PA are not licensed. They give the legit property managers a bad name. 

Your English is a lot better than my Spanish, so no need to apologize, you are doing fine. My question to you, is why on Earth would you choose Baltimore and Detroit?  Let me put Pittsburgh forward as the nations leader in cash flow.  We are also the most profitable house flipping market in nations.  NOT my opinion, Attom is the name of the company that collects meta data on the US market for the big companies, that is their conclusion 

There are two things to consider. The SDIRA rules, those come from the IRS, and they suck but there is nothing you or anyone you will ever meet can do about that. The IRS is the IRS. 

The second part is the SDIRA companies. There are a handful of large, very legit SDIRA companies. I happen to like Equity Trust in OH but there are others that do just as good of a job. they are not there to advise you about investing but to make it possible to do so, tax free or tax differed. This is where a lot of the private lender money comes from. 

SDIRA is what you make of it. If you are turning deals you can build a large nest egg without a great deal of risk  You can also lose all of your money if you choose bad deals. In the end it is up to you. 

Before you go spending money to join a club whose value you cant determine, how about you start hitting some of your local REIA clubs and meetups? Start networking with people who are already flipping in your area. Ask them questions, ask to see their projects. You will be amazed by how much investors will share with you. If you were in my area, I would invite you to see my projects.

There are 3 things that make a deal sexy in my world

1 The most obvious is that I can buy it below market price. 

2 Great terms, think owner financing, and me using as little of my cash as possible, like zero down payment

3 huge upside. This is flip territory. Give me a deal where I can buy at X put Y into it and sell it for Z where Z is much bigger than X+Y and I am drooling all over it. 

Wholesalers usually forget to explain what makes their deal sexy, they just throw up a price.  That is wrong. If you want to make money as a wholesaler, do two things.

1 tell your buyer what is great about your deal, that fact that you have a house  for sale means nothing to me.

2 find a way to make the house easy to buy.  This simple step will set you apart from every other wholesaler in the market, and make your buyers list massive. 

The sequence isnt as important as you would imagine. What matters is that you are reaching out in multiple ways at multiple times. I would suggest that you add direct mail to your list. Direct mail is persistent. I once bought a house 7 years after I sent them a yellow letter. No SMS is going to do that for you. As an added trick. I print a 3 year calendar on the back of my letter to give them some reason to save it. 

that really depends on two things. What you can rent the ugly side for right now?  Also, what would it cost to update the ugly side in terms of time and cost, VS what would the rent increase be worth.  You might want to look at a bank line of credit if it makes sense to do the renovation right now. 

It sounds pretty cool  The first thing any investor is going to want to see are the numbers. What will it cost to build this thing and what with the income and expenses look like once it is up and running.  Put together a proforma package so that you have something to share with perspective investors. 

Getting a property under contract means that you and the owner have come to an agreement and you have each signed a contract expressing that agreement 

@Josh Caldwell thank you for the explanation! I really appreciate it, would you.mijd explaining to me what getting a property under contract means? Would I have to spend money to do so? I am extremely new to all this so please excuse my lack of knowledge

The crux of wholesaling is dealing with sellers. Focus on that as a first step.  You need to talk to as many sellers as possible. Motivated sellers will nearly drag you through the process. When you are talking to your sellers, you want one vital piece of information. What do they want? The answer isnt always cash. Find out what their problem is and solve it. Nobody sells a property unless there is a problem present. 

Once you have a property under contract, you are in the game. 

At the far end of the process, you will want to learn about financing and how to make it easier for your buyers to buy. but start by talking to any seller you can find.