All Forum Posts by: Bryan L.

There's other ways, such as doing joint ventures and equity partnerships.  For example, what if you went out and found a good deal, negotiated it, got it under contract, and then flipped your contract to a buy-and-hold investor.  But maybe you get an equity position instead of a wholesale fee.  So, you might then own 10% of it for example.  Do this 10 times and you have the equivalent of a free and clear rental with no money out of pocket (except for your marketing).

Honestly?  Well, back when I started trying to learn this stuff while unemployed about 12 years ago, there were two other sites that were much bigger than BP (I can't even remember if BP was even around back then).  One of those sites was run by a great guru that I very much admired and respected (still do).  He eventually sold his site to another person, and it started to decline in traffic.  And BP started to grow.  So, here I am.  (even so, I am still taking coaching from the other guy and he now has a new website).

It depends on the area and the comparables around it.  Many people must have been on pot or LSD or something back in the 60s and 70s when this stuff was being used a lot cause it sure is ugly.  In my area, people often paint over it (me included).  It can be done, and it doesn't look too bad.  Works fine for a rental or for a house in a blue-collar first-time buyer kind of neighborhood.  But I wouldn't do that in a more upscale neighborhood.

Just my opinion from talking with a few newbies and wanna-bies - but I think that a lot of people are attracted to this business thinking that it will be easy.  And a lot of these same people are looking for something easy because they've really never had any success at anything in their lives before.  I'll just say this - if a person has never had any real success at anything, they're not going to be successful in this biz either.

Hey @scott 

@Scott Hearne.  I guess it's up to everyone's individual goals.  But I would say that's it's generally wise to consider the after-tax return on an investment.

Of course, when you go in and give someone 50-cents on the dollar - and they are happy with it - and then you flip it for more, they can still sue you, even if you have done everything right.  To prevent that from occurring, it has been suggested that maybe we Realtor/Investors should have the sellers sign something that states that they do indeed know that we are going to flip this thing for a profit.

I recently got a question about this and I've seen it from time to time on the boards here.  I could probably write a full-length book on this subject, but I'll try to just hit a few high points here now.  Please add your comments or questions by replying and maybe I can go into more depth later.

First, let me disclose that I am both a Realtor and an investor (rehabber, flipper, wholesaler, bird-dog, landlord, etc.)  Second, please know that I am no attorney and can not give legal advice.  Third, your local and state laws may vary, so please check them out accordingly.  Fourth, in most every state, you will have to "hang your license" with a licensed broker and will have to abide by his/her rules as well as the laws.  Of course, if you don't like his/her rules, you could always go to another broker, or become one yourself.

Now, with all of that being said, being both a Realtor and an investor (of any type including a wholesaler) IS COMPATIBLE.  It can be done - legally, ethically, and morally.  And the two businesses can actually compliment each other (more on that later).  Here's some key points below:

- As a Realtor, unless and until you have an agency relationship with a buyer or seller, you do NOT owe them the responsibility to get them the best deal possible for them.  Check with your state and local laws on agency.  For example, if they are perfectly willing to sell you their home for 50-cents on the dollar and you know that you can flip it tomorrow for 70-cents on the dollar, you do NOT have to disclose that to them.  Yes, you do have to disclose to them that you are a Realtor, but that is so easy to do (again, check your local laws about specifics and details on disclosure).  And yes, you have to be truthful and honest with them, but we all should do that whether we are Realtors or not.  But, you are acting as a principal in the transaction, so you do NOT have to disclose information to them such as how high you might go (for example, 60-cents on the dollar), or how much you can flip the house for.  So, how do you do this?  What if they say something like "how much is my house worth?".  You answer as this: "Well, all houses are worth different amounts to different people.  To me, as a buyer, I can only pay you $25,000.  It will be worth more to some other people.  I buy houses to make a profit, so obviously I intend to do that.  Another option for you Mr./Mrs. Seller, if you want to get full dollar amount for your house, is that I could be your Realtor and list it for you.  But of course, it will likely take longer for it to sell for full value".

-  Having the two business compliment each other:  Here's what I do - all of my marketing for houses that I am trying to sell for someone else as their Realtor - it all includes a statement that says something like "I also buy houses (buyer/agent)".  And when people call me, I can possibly either buy their house if they have enough equity, OR I can maybe get their house as a listing if they are not motivated and/or don't have enough equity.

@Pyrrha Rivers 

 - Well, if you want to get a really good deal like 60% of asking, then you are obviously still offering too much at 30.  Do you want a deal, or do you want the house?  You have an emotional attachment to this particular house.  You most likely won't get a great deal that way.  You get great deals on HUDs and REOs by making low offers and being willing to move onto the next one if you don't get it. 

Hey everyone.  I just wanted to put this out there and see what you all think.  I'm in the process of developing some software to automate my internet searches for deals.  Once this software is complete, I can use it to search for great deals in most any city in the USofA.  This software would be great for virtual wholesalers or virtual bird-dogs.  But I can't decide whether I want to use this myself to find deals for others (to bird-dog or wholesale), or maybe I could sell copies of the software.

What's your interest level in this (if any).  I'll explain a little more below.

I've been investing since 2003.  About 4 years or so into this career/habit, I learned some key parameters to use when I search the internet for potential deals.  And I started finding better deals, with better pricing, and with less competition from other investors.  Since then, I have done about 20 deals, and pretty much half of them have been associated with some of these key search parameters.  (Yes, 20 deals may not sound like a lot to many of you, but I am mostly a rehabber, so I only want to do 3 - 5 deals per year anyway).

So, how many of you would be interested in buying this type of software (along with training on how to use it)?  Or, would you rather that I just sign you up on my list and search your area for you and provide you with the results in return for a bird-dog fee if and when you buy one of the houses?

Even HUD houses will sometimes sell for less than 50% of the list price. You never know till ya go.