All Forum Posts by: Rob Rice

Great.  Lol.  I already sent you a request.  I did a search for active people in Talladega.

I'll probably wholesale the thing.  Any info you could give me would be helpful.

I'll make it worth your time.

Message me when you have a chance.

Does anyone own rentals in the North East of Talladega.  (Munford to be exact.)  

Trying to get an idea of what to market a property at.  Rents are all over the place.

3/1.5, 1100 sq ft, not a lot of comps, or Sales online.  Just looking for someone who knows the area, before I take the drive tomorrow.

Hey Parth.  

You are not giving a lot of info about the population, or the type of area you are trying to find tenants for, however here are some ideas.

Look in your zip code for property just like yours that are for rent.  Contact the owners and management companies and ask them what they are doing.

Find all of the nearest apartments in the area, and send everyone in them a letter stating the benefits of renting from you.

Whatever you are trying to rent out, Offer 1 month's free rent, buy having them only pay 1/2 month's rent for the 1st month of their lease, and 1/2 month's rent on the last month of the lease.  Raise your rent slightly to cover a good portion of the loss. 

I hoped that helped a little.

Good luck.

Congratulations on being ready to pull the trigger Ashley.

But first here is some food for thought...

The 70% rule only exist as a frame of reference for most fix and flip, buy and hold, and BRRR investors because it is right around the LTV Maximum that most Hard Money Lenders will lend at.

That is an overall industry thing put in place to protect lending.  That is all.  It does not mean a deal is bad if you go over 70% of value when you purchase.  For instance, if you paid 80% for a property appraising at $500,000 you would have 100k in instant equity.  The scales of the dollar amount go up as the percentage of price does.  I know a lot of people that would pay for that 100k in equity, especially with interest rates rates low, and rental rates high.  Just something to think about.....

I have found that in your part of the country when I get a deal.....

The 70% rule does not work there.  When I go to wholesale a deal on the west coast, I use the following technique to evaluate the numbers, find a buyers, and see what the investor buyers are up to in an unknown market.  Every investor buyer that I have sold to on the west coast could care less about the 70% rule.  

I simply go to Listsource or use realeflow, and pull absentee owners in that zip code that have purchased for cash in the last 3-6 months.  These are investor buyers in the zip code of my deal I'm trying to get rid of.  I purchase the list.  I will research the deals they bought and run comps on their purchases.  I now know what they will buy and what is working in that market for those guys.

It is a little time consuming, maybe a couple of hours, however, after that. I now have a list of active buyers, I know what price they bought at, and I know how much their properties are worth now. I know whats happening, and at what price to buy at compared to the properties on the MLS. You will often see duplicate buyers. When you do. Look at their last 5 properties. You will see what they are doing and understand how they are finding good deals.

I hope that helps.

Good Luck.

OK Kyle glad to see you taking action.  I will try to answer each of your questions using real world experience.  Forgive me if it gets long winded.  

The investor told you probate sales are very effective because they are a type of lead that could possibly show some form of distress, most likely are an absentee owner, have no personal attachment to a property they own,  and also possibly have a lack of real estate knowledge simply because they never bought the house they now own in fully, or partly.  This makes them a good lead source for an investor.  It may sound grim, however that is the fact of the matter.  Understand that going in.  It is nothing more than a lead that is a little tougher to get (equals less competition), and a lead that you can make more money from by getting away with a lower offer rather than a lead who actually is a landlord, a traditional home owner, or has more real estate experience.

You said you retrieved these Items:

Date of Deaths, the Names of the deceased, the addresses, the personal estate, and the Next of Kin.

Your objective by going to the court house is to gather the following:

All probate fillings within the last 6 months. (until you get current on the list and understand what is old and what is new.)  After that, you will go once a week, have someone go for you, or use the legal instrument, or website, that list obituaries in your county to update your list instead of the courthouse.

Name of person who passed that owned real property. (Real estate)

Address of the real property they owned.

Name and mailing address of Executor, or Administrator, or Attorney (Attorney or person on will most likely)

Name and mailing address of any and all heirs.  I recommend using no more than the first 4 heirs and the Executor.

This is your list to contact to make offers to.  Your contact method is totally up to you.  Do your homework.  Most people who have done probate deals use direct mail.  You use a letter or postcard of your choice saying that you would like to buy the property that was owned by the deceased.  Some people use a message showing care and consideration for the time of loss that the owner is going through.  That is totally up to you.  Your personality will dictate your message.  Just make sure it states your objective, and the benefits to the now owner or parties involved.

Things you should know about these deals are that they can be very profitable for the reasons I have mentioned above.  The probate information is public info and very available.  I would suggest not being a hardcore personality when dealing with these people.  Show some class, and be understanding with these type of leads.  I try to deal with probates in this manner.........

I will conduct myself just like I would want someone to conduct themselves in dealing with my family that I care about....IE...Mother, Father, Son, Daughter, etc.  

Be kind to people, and remember that you are their to solve their problem, if one exist.

Remember, your success in business is in direct proportion to the amount of service you provide to others.

Good Luck.  I hope this helps...

PS...If you are serious about this business...Join your local REIA...

Heck Yeah Mindy....

whoo.....hoooo

Way to keep us straight.  

I love the BP team when they pop the hands of the kids reaching for the cookie jar, when the kids are using a 2 legged stool, on 4 phone books, with a homemade teeter totter of a tennis ball under a 2 by 4.  

Way to keep us from falling and hurting ourselves...

........High 5's to Mindy.........

Thanks.....Luv U Guys...

LOL...

The 2 that I have belonged to over the years here in the Atlanta area are:

www.gareia.com

www.atlantareia.com

check out the calendars on both, and get active.  If you are truly interested in the multifamily investing, the reia's will do the rest if you get involved and take action.

Good Luck.

Way to go.  You will get there.  This is part of the process.  Trust me... We all have gone through the same things you are dealing with.  The good thing is that you want to do things the right way.  That is very important, and speaks volumes about your character.  

Good Luck.

OK Aaron.  I'm glad to see you are taking action.  I will try to help.

The last thing you need to do is get yourself in trouble.  I will first point out your mistakes in my opinion, then try to give you a solution for them.  I'm not giving you hard time I just want you to know Real Word Stuff and not some opinionated words based on how someone feels.  

Lets start with the seller.  You never lie to them.  You should never tell them that you intend to buy the house yourself if you don't.  If they directly ask you if you are buying it yourself, and you intend on wholesaling you simply say.  "No.  I will use a money partner who will provide the funds for the purchase.  My objective is to get you the amount we agreed upon through whatever resources I can.  There is no way I can make any money unless I can get you the agreed upon amount."  That is it.  To be honest If you have to do a lot of explaining to a seller about your money, and where its coming from, then you are going into the area of trouble.  Work on your phone confidence and pre-screening.  You only want to do business with people who are truly motivated.  You shouldn't have to do a hard core salesmen closing technique to get a property under contract.

You should also be clear with the seller that you will need to come to the house with different individuals for property evalutions, estimating repairs, and funding needs.  Basically the truth.

Remember.  You can't stop them from talking to your buyer.  Your security is that their contract is with you.  There is another form you can have them sign called and affidavit and memorandum concerning real estate that ads a layer of protection to your deal, however If you need that you don't have a motivated seller in the first place.  

Also It would be a good idea to set up some transactional funding prior to getting a house under contract.  You can get proof of funds from them. Be ready to do a double closing if needed.  ALWAYS BE PREPARED TO CLOSE.  I don't care what any GURU teaches you.  To be honest.  If it isn't a deal that you would buy and hold, or fix and flip yourself, then it probably isn't a good deal anyway.  That is my rule.  Every deal I wholesale is one that I would buy myself if it fit my need at the time. 

If you don't know what I'm talking about then you need to do some more homework.

Now lets get to the buyer....

Never do business with any buyer, or anyone for that matter without having a clear meeting of the minds.  I personally don't do business with any buyer until I know what level of experience in real estate they have, and letting them know clearly that I will be wholesaling them properties hopefully using an assignment of contract.  If that doesn't work I will do a double close.  Any buyer who will not take 3 minutes and have a conversation like that with you so you both can understand each other is not someone that you should be doing business with.  

You see Aaron, people who REALLY do this business in a moral way have no problem discussing what they do with other people who can help them progress in their business.  If you take time and really listen and hear what they are talking about you will learn more about them then you ever realized.  Don't be in such a rush to give them the address of the deal.  Let them know that you are assigning the contract.  Tell them not to discuss price with the seller if you are worried about the seller backing out.  In my case.  I usually give my buyers a copy of my original agreement with the seller along with my assignment.  They already know how I work and what I expect, because I told them. 

Wholesaling is not a slick talking, underhanded, sneaky business unless you make it that. 

You are not even in the real estate investing business.  You are actually in the marketing business, and volume business.  Learn how to Market for sellers and buyers.  Learn how to Negotiate with sellers and buyers and  Learn  Basic Sales.  Most people in this business never really learn those things.  Until they do its not even a business to be honest.

I hope that helped you Aaron.  I didn't mean to be long winded, I just like to give real world advice like i said.  Hit me up if needed.  I'm an open book.

Good luck.