All Forum Posts by: Rochelle Ray

I think the issue that I have is not with wholesalers making lowball offers.  Anyone, including Zillow has a right to make any offer they want and the homeowner has the right to accept or refuse.  It is capitalism at its finest.  I love America for this very reason!  And I think @Robert Adams is being misunderstood here, but my issue and I think the bigger issue is the manipulation to the homeowner of theirproperty value.  I am a stickler on professionalism to keep our business as investors (wholesalers, flippers, landlords, etc) having a good reputation or else we will end up where homeowners will run like we are the plague when they see us coming, which many already do.  We don't need that reflecting on us.  

The homeowners trust Redfin, Zillow, and all those sites.  They don't know any different.  They don't understand the algorithms that are used and how it can be totally wrong to value the homes and that many factors are left out.  If Zillow uses this to their advantage to manipulate a homeowner into thinking their home is worth less so they can make more money, this is pretty much fraud!  They are gaining the trust of the homeowner by pretending to be an expert in their field and falsifying the info into their advantage so they can make money.  Wholesalers do not do that.  Good ones are up front that they have to make money, too and that they will have to sink money into the home for resale.  This is their best offer, take it or leave it.  They will not falsify the value of the home to other homes in the area.  Zillow already does this.  We all know their values are unreliable.  As they say in the movies:  It is more of a guideline, lol!  

Sorry to be wordy but just wanted to put my two cents in that I feel it is an ethical thing more than anything.  I certainly hope it doesn't catch on.  At least most wholesalers are professional and do many a good service!

Jonathan,

Just remember time is money.  I love your ambition and drive.  Keep that up!  I, too, am based out of Vegas (no longer live there) and work Kansas City and southern Texas.  My experience with doing distant project as you are doing is that unless you plan on being there full time, just hire it out.  Time really is valuable.  Also, you need to be several steps ahead in the planning process to keep things flowing on your project.  Any hold ups cost money and there will be hold ups.  Count on it.  Unless your going to hire a GC, then your time will be better spent doing the leg work of keeping costs low, shopping the best values, making sure everyone is working and inspections are happening, etc.  All that will keep you plenty busy.  Let the guys who can work really fast and get in and get out quickly do what they do best so you can get the project making you money, whether you intend to sell it or rent it.  I hope you have your contractors lined out because they are very hard to find in KC and expensive.  Build relationships if you plan on staying in the area.  You'll need them for future projects.  Good luck.  Although I am not commercial or multi, let me know if you need anything.  Be glad to help refer you to any resources I can.  I grew up in the area and know lots of people.

Thank you @Alan Rohrer.  It is a fix and flip. Thank you. That clarified a lot for me.  I appreciate your help and prompt reply.  Sorry for the confusion on thinking you did not handle taxes.  I don't feel so overwhelmed now.

@Alan Rohrer, I know your not a tax person but a CPA but maybe you could answer one question that I can't seem to find an answer for and it is driving me insane.  If I haven't sold the property yet, just like Spencer's situation, and I am going to write off the costs in 2018 when it is sold at that time, do I still need to list the items to improve the inventory under Sch C Cost of Goods Sold this year, which is the year of purchase of the items to track inventory or is there no inventory because it is all capitalized under Sch D?

So important to get referrals with everyone we bring onto our team.  This is a great example.  This person should be reported so we can weed them out.  They only get away with it because they figure no one will take the time or money to go up against them.  Lynn, don't let them get away with it!  It is one thing when someone makes a legitimate error and corrects it but this is wrong!  I'm so sorry this happened to you.  Don't let it change your opinion of everyone in the business.  The rare few ruin it for all but make sure in the future you do your due diligence!  Some lessons are hard learned.  Don't feel bad, we all have horror stories and I'm sure I'll have more to come.  Pick yourself up and keep going strong.!  

I was not in the LV market very long before I moved so I don't feel I can have a valuable input into this conversation other than these few points (although I would point out I love the above posts and agree with the majority of them).  My first observation is, compared to other areas of the country, yes, LV does have tight numbers to make it hard for wholesalers but that doesn't mean it can't be done and I agree with Omar that you shouldn't change your model much to adjust for the market because your time is valuable and worth something but It is my opinion, and it is only an opinion, it is better to do less deals with quality than a bunch of deals not worth your time.  Again, time is valuable.  So I think new or part-time wholesalers may not survive very long in LV.  I physically moved with my husbands job unexpectedly and I found LV is too difficult to do from afar with all the competition.  I'd rather refer.  

Second observation as to why it may also be hard for wholesalers in LV is all the new guru's selling how easy it is to never leave your desk to make a buck by wholesaling.  What a joke!  Do people not care about their reputation anymore?  I would never put my name behind a product that I didn't know at all.  I know wholesalers do it all the time but not ok in my book.  So now you have an influx of new wholesalers who want to make a quick buck and realize it actually takes work and time and you actually have to know a little something about real estate and maybe even construction!  Then with the numbers tight, they get frustrated and think it just won't work, they can't find anything or there is just too much competition and they give up.  So sorting through a lot of bad ones to find a good one is tough.  It is sad to have the HGTV effect but I think it will go away in a few years.  Maybe after another downturn? 

Hopefully the ones who truly love it will stay and learn from you guys! 

@Matthew McAlarney and @Brent Kiger I grew up in the Johnson County area of the Kansas side and know the area well. I used to be an agent there years ago and as of this past year added KC to my REI business area. I am amazed at how fast properties are moving compared to my other areas. I have one property in Mission that we are rehabbing and I'm watching the neighborhood explode with houses getting offers within hours to a couple days with full price offers to boot! I think it is hyped due to the spring excitement but I can't get my rehab done fast enough, hahaha!!!! I am working my KS REI from out of state as well even though I grew up there. I can tell you that my most difficult or challenging thing is contractors. They used to be easy to get. Now they are booked up (the good ones) and expensive! It is very frustrating. I prefer the Kansas side but it is because I know it well and I feel the the properties move faster but I guess it depends on if your flipping or renting. Rentals will serve you well on either side. Taxes may be cheaper on the Missouri side. It will be city dependent. There are definitely some areas to avoid but I think every city has those! Let me know if you have any questions. If you want the KS side, pm me and I'll give you my realtor info. #2 in the area.

@Martin Lewis thank you for the "tag". I am no longer in the LV area but I'm sure Omar or Mr Davis are more than happy to take your info. May I make a suggestion to help you out with wholesalers to help you get the best response whenever you reach out to get on their listings? We are always happy to add more business contacts to our buyers lists however we get a lot of people asking to just be added to our lists and most of them never truly do business. They seem to be "shoppers". If you want to be taken seriously and get a wholesalers attention, don't just ask to be put on their list but be specific as to what you are looking for and don't be afraid to let them know. It helps them know what to send you and tells them you have specific goals and are to be taken seriously. It will separate you from many. Give them your price range, MFH vs SFH, amount of rehab, #bed/bath, location area, etc. The more info, the better. Some wholesalers don't store that info but many do. Hope this helps you in the future! Good luck in your business! If you ever decide to buy in the KC or Houston area, let me know know!

@Troy Peters congrats on the project and never feel bad for asking (we all know better or we'd all be skinny, rich people running around, lol!)  Sometimes we just need held accountable or reminded or someone to just say the right thing, the right way at the right time.  I apologize again for being abrupt just didn't want to see you sell your asset for a quick fix.  Good luck on the project and do keep us posted!

Welcome to BP @Les Leslie.  I lived on Lihue for a few months and then the Big Island for a year.  Hoping to retire on the Big Island.  It is my "why"!  I think I left my heart there when I left, lol!  Thinking of buying a lot and building a rental house to have it paid for by the time I retire there, not sure yet.  Would love to see what you think the market is doing on the islands these days.  I'll put out a friend connection to you so I can follow you.  Good luck in your endeavors!