All Forum Posts by: Robert Wilson

Great advice @Greg Dickerson! 

I agree I think the only way to become a developer is to do your first project. With that being said, the first step is finding a decently priced parcel of land. Once you 've found that, go to planning and zoning and have them verify the actual uses for the land. They can tell you what types of buildings and uses the property is zoned for. There are a lot more steps in the process, but that's where I would start if I were you. 

Yeah low ball offers aren't working these days. The reason is because every wholesaler/cheap investor is pitching "I can buy your house in as-is condition, close quickly, pay closing costs blah blah blah." But, retail buyers are making the same pitch except they are willing to pay retail or ABOVE. I've been running into this same issue in my market. No one needs to trade equity for speed and convenience bc..... they don't need to. Someone else is offering them those same terms, but paying a lot more. It is what it is. 

I would buy a deeply discounted vacant lot that I could subdivide and build 2 houses on. I already have massive amounts of experience wholesaling so I know that in the future I would be able to find more vacant lots. (bc I've found them in the past) Then with my newly acquired development/new construction experience, I would do what I just did building those 2 houses except on a much larger scale. 25-30 new builds in a subdivision development. Take most of the profit I make from selling the houses and roll it along with debt into buying large multifamily deals that CASHFLOW!!

250k assignment fee on a 10 lot property here in Downtown Pensacola!

If you did really good in your last sales job, I would advise you to immediately get your realtor's license. Some courses take just a week to complete, and only cost like $500. Boom. Knock that out, and find another agent/broker/investor to work for. Just search FB or any social media. They are everywhere lol. Learn the ropes (financing aka how to leverage debt, the different price points for neighborhoods in your area, etc) and still have a little income flowing in from your listings, and if you play your cards right, you could easily own your first property within 6 months. 

I think the best way to learn the market is to become it. What I mean is, look at the zillow, realtor.com etc. EVERYDAY. Look at what has sold.. what is not selling (listed for sale 100+ days), how much rent is for a particular neighborhood vs a different neighborhood. Real estate is location, location, location. When you can break your city or area down into micro markets based on the neighborhood, then I think you will have a better and true understanding of what is really going on in your area. 

Wholesaling has become sooooo saturated. It was awesome 4-5 years ago, but now the cat's out of the bag so to speak, and everyone seems to be doing it or knows about it. Also, if you're telling the seller that you can pay cash and close quickly.... that doesn't differentiate you from your competition. Most retail buyers are offering higher than asking price, no inspections, and closing in 2 weeks or less. Wholesalers bring little to no value in this market. Btw, I'm a full time wholesaler, and after much denial, I've finally begun to accept reality. Sure there are still wholesale deals here and there, but like the OP said, it's a lot of work for very little return in this market. 

Do you know what the zoning is?

Absolutely! I did this exact same thing here in Pensacola. I assigned it to a local developer, with a 250k spread. After concessions and all the dust settled, I think I made around 230k assignment fee. Yes, you can absolutely assign these types of properties!

If I were you, the first thing I would do is go to the local planning and zoning board and verify that I could build that particular type of building. If they give you the green light, I would speak with a civil engineer and have them draw site plans. Next, I would contact an architect and have them draw up building plans for the particular type of building design you're thinking about going with. Lastly, I would take all those plans and go through the development review process with the county. At that point, you're out of the gate and then I would maybe start looking for financials - contacting private money, banks, etc. "Hey here's what we've been approved for. This is what we think it could rent for or sell for...etc." First thing's first, I would get official/written verification that your property allows for that type of building.