All Forum Posts by: Wayne Woodson

As @Drew Denham alluded to 70% does not work in every market. In my market it's more like 65% - repairs and even that depends on what part of town you are in. Check the sold comps on Zillow or your MLS and see what houses are selling for in your area.

Also the 70% rule came about because that's what Hardmoney and other lenders use to lend at 70% LTV.

Before everyone jumps in here and tells you that it doesn't matter I will tell you this. If you are a young investor you better know your stuff. Some people (namely older investors) will try to pull a fast one on you if you don't. Also as far as how you should dress and act, I would say dress professionally and act professionally at all times (even when you post things online i.e. Facebook). Investing is hard enough without all the stereotypes associated with being young. Just be a young hardworking professional and you should have no problems.

I started when in was 25 and I always act professional and polite but I am from the south so that is to be expected ; ).

You could be if you have a financing contingency in your contract and fail to close based on that contingency. The judge may deem that you are able to qualify and make you uphold your contract.

As mentioned above you will loose the earnest money (if any) to the seller. 90% of the time if you can't close on a deal it's because the property is priced too high. So you should try to go back and get a lower price instead of letting your contract expire and just walking away from the deal. If you back out of too many deals you may get a bad rep in your area.

...and this is why I don't go to "free" events anymore. I went to his "Stock Success System Free Course" back in 2009. I paid $400 to sit through 1 full day of preaching about mindset and attitudes. 1/2 day of basic stock info that I could have gotten from YouTube or fool.com and 1 full day of upsells into the tens of thousands. Sad thing is I actually saw people charging this to their credit card.

my saying is this...

"if the event is free, their you won't find me" - Wayne

"You don't need a rich dad seminar to make you rich, just a rich mindset" - Wayne

@David Hudson Hi there are several investment meetup groups and investment clubs in Davidson County. If you haven't checked out the REIN group you should. Also check out meetup.com for other real estate investing groups. What niche of investing are you trying to get into?

Yes all the leads I get from now on will be separate. I will probably do the hourly employee angle. What would be a fair rate to pay them?

I have been a wholesaler since 2008 and have recently became an agent. How can I hire bird-dogs to get leads for me as an Agent legally. I don't want to do anything under the table as the whole reason I got into RE was to get out of doing "shady" things. I was told I would told I would have to pay an hourly wage if I did and I was told by someone else that I couldn't hire anyone and my broker would have to do it. I was also told it was illegal too. Any suggestions?

It takes money to make money (despite what the guru's say) so never think of this as loosing money but investing money. If you do steady marketing in this business and manage your leads you WILL make money. If I was first starting out again I would start small then scale up, I had to learn this the hard way. My advice would be to start with 20 postcards a week ($9 a week is easily affordable) and work on handling the calls and creating good scripts and systems. Then after you do that and get confidence scale up.

I would transition to postcards as soon as you can as you will discover driving for dollars gets old quick. Also if you don't know how to talk to sellers it will be a waste of time.

Of the two methods listed above I would say driving for dollars would have the highest ROI. Think about it, you spend $40 to fill up your car with gas and drive around finding for rents, distressed property and FSBO's.. You can even hand out business cards and flyers along the way.

Of course you will waste ALOT of time and time is money. In my experience post cards have brought me the most leads and deals overall. Are you strapped for cash or just nervious about getting started?

1. The area that you focus on will depend on where buyers are buying in. Do a google search on "states with the fastest growing housing market's in 2014". Ask a local Realtor or go on Listsource or Zillow and do a search for cash sales in the largest cities in those states in the last 90 days. Write down the zip codes and market to those zip codes.

2. I have found that sellers don't really care where you are located but rather how you can perform. If you have confidence and do what you say you will do no one will question you more than likely. You can get a local phone number, a fancy website and a nice professional VA to answer your phone but if you can't preform or if you don't honor your promises what good does it do? Your reputation will soon go down the drain anyway.

3. The short answer is yes. Some states "like Tennessee for example" do have laws against wholesaling. The reason is to protect the public from fraud and real estate scammers "think the stop foreclosure guys". The best answer I will give is this, do what you say you will do and you probably won't have issues.

If you say "i will close on x date" and you don't have a buyer either call and ask for more time or cancel the contract. Remember that a buyer should never have to chase you down after a contract is signed and you should update them as to what is going on.