All Forum Posts by: R. Kerry Brooks

Kaz Phillips it sounds like you are trying to market properties that you do not have a contract on. If you are, there is no way other than having them sign something first. As someone who does wholesales that is going to be very difficult for many reasons. The main two are; with out a contract you don't know what price you can get the property for and are stuck taking list price and adding to it. Most real buyers have already seen most if not all on MLS. The second reason is even if you are dealing with FSBO, you lose credibility with your buyers if they find this out. You are marketing them a property you do not control. You also have the problem of marketing the property, getting a buyer, only to find out the deal is already sold to someone else. Then you have to use the same old tired line when you call back "I'm sorry that property was already sold by one of my partners, let me see what else I can find".
Wholesaling is a good way to get started in this business, so not saying it doesn't work. Just not as simple as everyone thinks. You always run the risk of getting the property under contract and then not having someone bite. You can avoid this by getting to know your buyers better, so you know what they are looking for and make sure you know what a good deal is. In this market many deals that look good by running the 70% - rehab- wholesale fee wont even get you a second look. Most investors that are the buyers you want are buying at deep discounts, you have to learn the market and what works for them.
What I would suggest is talk to a couple of the buyers on the list and see if you can work with them to help locating properties. The fees you get are not as good as wholesale money, but the lessons you learn will make you so much more money in the end.

Doni Healy no quick money, sorry just not how it works. You can do deals with no money and no credit, but they are few and far in between (least in my market) The biggest hurdle you face is learning the market in your area. What is a good deal and what is not, who are the buyers and what are they looking for in a deal. I am from ATL and last time I was there, their were a lot of big player in the wholesale market. Hard to compete with someone with 15 employees looking and big adv budgets. Plus to get the good deal you need some type of adv campaign. Which cost money I am sure you don't want or need to spend.

Call some of the "we buy houses signs" see if you can work as a property locator(bird-dog). Most of the smaller investor like myself love to have all the people we can looking for properties, and will even train someone on what we want and were. We also pay a fee to you if you bring a deal that works.

As to the REI meeting I am not so excited about them. Lost of newbies and sharks so be careful who you listen to. Good Luck, REI is a great business, you can make lots of money, but just like everything else, it is not get rich quick and no easy free lunch.

Congrats Karen Margrave

Ok so I have a lot of experience with SF homes, I can evaluate them and negotiate with owners just fine, but this morning I got a lead from one of my guys on a 22 unit apt building with a motivated owner offering to sell with something down (asking for 50k) and take over payments.

Before I call the owner I would like to get some help on questions I need to ask to be able to evaluate this deal. I also must tell you I am not looking to try and buy it myself. I will either look to do a partnership on it or just wholesale or assign to another investor.

So question is:
1. What is a good set of question to ask when calling owner.
2. Main things to find out or look for on site visit.

By the way I am a contractor by trade so pretty comfortable with looking for maintenance issues, mainly looking on evaluating from money side and structuring deal.

Thanks in advance
Kerry

Rob Brewer It all sounds so simple when you hear about wholesaling, quick easy and fun. Yea..... As you said " The low-cost/low risk benefits of wholesaling are very attractive to a newbie like myself".

Just that is not the truth. Ever watch a surgeon do surgery???? He makes it look easy, but you or I could not do it without training. Same thing with wholesaling.

If you done much reading on this site you will see that there are a lot of HOT post on this subject. Many people on the site are very negativity on wholesalers and bird-dogs. Why, because it is were a lot of newbies try and start. The problem is do you know what a good deal is??? I get emails and calls all the time from wholesalers, I don't even look at most. Why because they are not good deals!!!! Most successful wholesalers have been at it a while, learned there market and buyers and they spend a lot of time and money marketing.

Finding deals on properties and selling them to other investors is a viable way to make money in REI. I however would not recommend it to someone in your position. You need money now, how will you market to find the deals? MLS, Craigslist, adds in the newspaper. We already have them covered. So the odds of you finding a great deal there is slim. Can you afford to invest in mailing lists and supplies, bandit signs and or other types of advertising? Who will you sell a property to if you get one under contract? Do you have a buyers list and know what they are looking for? What their idea of "a good deal" is?

I am not trying to discourage you Rob, just hopefully give you a few things to think about. REI is a great business, you can make lots of money. You will find some overnight success stories, but most who have turned this into a full time career either started slow and had other sources of income while they learned and grew. Or they had enough capital to last that long ( I don't know any like this but hey I am sure someone somewhere has). There is no experience like doing it, and I encourage you to do so, but don't put yourself in a bind. The big dream of hitting it big over night is like the lottery... odds are way up there.

Kerry

Sean I put them out every week. Usually around 2-3 am start. Usually I just pull over on the side of the road, or park close. If on a side street I will just stop in the road. Like the rest have said parking is still probably the least of your concerns. I have had cops drive right by me, they know what you are doing and usually leave you alone.

I put them out Friday night 1 or 2 am but I never take them down. Lose some to other investors (they take down lol) some the city but some stay.

When selling I use Craig list and other free posting for local stuff and put up 4 or 5 signs near the property.

Plus have a couple of investors that I know who buy some. Sign depends on what you are marketing. Since you are wholesaling maybe

If Rent Ready- Investor Special
Rent Ready 3/2
30k
999-999-9999
Needs work - Investor Special
3/2 Fixer-Upper
999-999-9999

Just my take, I am sure that others may other ideas on the signs. To me the best thing is to learn who is buying in your area and what there hot buttons are. That way you can focus on finding properties and know when you have one you can move fast. Not getting a property then having to market hard to sell, and run out of time before you do.

Dan H. you will find that you are still learning even after 50. People have there ideas what there prop is worth and we have ours. Just try and educate them as best as you can. Like you said it takes thick skin... LOL Make offer move on the deals are out there, just got to be willing to do the work.

By the way I am a big fan of bandit signs, might want to try that as well, get the phone ringing.

Dan H. Congrats on getting properties under contract, Jerry Puckett is correct you can read all the books and post you want. There is nothing like doing it. You have made a big step and it should be an encouragement to others who are still waiting and reading and ......

Nothing wrong with learning, it is a very important first step. again congrats on taking the second, you are are well on your way!!!!!

Hi Pj Baptiste, I think the same advice as the above posters is still the most appropriated. Find an experienced investor in you area, talk to them see if you can partner with them on some deals. Learning from them and making less profit in the beginning is so much better than finding yourself on the losing end of a deal. I have seen people get in and out of real estate investing on the first property.

If you still want to go at it on your own then use this site and the folks on it as a safety net. When you think you have a deal just post numbers and exit strategy and watch the responses. If it is a bad deal we will let you know. Biggest thing is listen to the advice you get, so many want to argue that this "there first" deal is good. Even though pros on this sight are telling them it is not.

Lots of great knowledgeable people on this site, working in many different areas of Rei. Take advantage of that. And welcome to BP!!!!!

Kerry