All Forum Posts by: Ryan Lockstein

Hi Dyanne, what are you planning to do with the properties once you get the offers accepted?

If you are wholesaling, I would go direct to the seller using direct mail marketing, internet marketing, or if you want to go really cheap, I have done some deals just posting on Craigslist that you buy houses.  There are plenty of blogs and forums in BP about marketing for sellers. 

If you are rehabbing, you can do the above and in addition reach out to other wholesalers in your market and let them know what you are looking for.  Let them do the work for you. 

If you are looking for small buy and hold deals,  both of the strategies above work as well.  If you are looking for larger multi-fam or commercial, I can't really help you.  I haven't been able to find any good ones yet myself.  I hear that contacting broker's and letting them know what you do is the best way to go..........  

@Account Closed If you are not using a cap rate to value a property.  How do you come up with your offer price?  Cash flow preferences?

@Wayne Woodson 

I use a lot of direct mail and internet marketing (SEO and PPC) to find my deals.  I also network with experienced wholesalers from other cities that market in my area and work as their boots on the ground for a 50-65% split on gross assignment profits.  The 2nd strategy is less profitable but half of something is better then all of nothing right?

I have to disagree with @Kevin Hicks and @Hasan Hamdan though.   Finding good deals and marketing them properly with bring you a ton of buyers!   

As a matter of fact, I have found that the buyers who pay the most for my deals are usually the ones I don't know yet :)

@Joe Villeneuve 

I never said bringing a contractor is a bad thing I just don't do it.  For me it is just unnecessary.  Coordinating schedules for my contractor and a motivated seller with a hot property could lose me a deal.   Typically if someone with a good deal calls me I will head out as fast as I can schedule it with the seller.  I bring my contract with me and lock that deal up before my competition does.  No time to call up my busy GC to give me an estimate on a deal that I am not even purchasing myself and will mostly not make him any money...........

If you NEED a good estimate then a contractor is a viable solution by all means.  However, if you ask your buyers/experienced wholesalers what a typical total rehab will cost in the neighborhoods you are targeting and use that number as your highest conservative rehab number and the deal still works  or is close, why bother with a contractor?

In Philadelphia you do not need to notarize a contract for it to be a valid contract.  HOWEVER, if you want to record that contract you do need to have both signatures notarized.   

In other markets I have heard that you can just use a memorandum as @Michael Quarles stated above.  Call your cities deed recording department to find out their requirements.

@Jose Urena I don't ever bring a contractor to my deals for rehab budgets. What I have learned is to ask your buyers what they are typically putting into their projects. If you don't have any buyers yet call other wholesalers in your market. Most will help you out no problem and might even walk you through your first deal for a JV fee at settlement.

After doing a few wholesale deals in my market I was able to predict rehabs pretty easily.  Don't get me wrong, every once in a while I still get it wrong if I missed some structural issues but just put an inspection for structural integrity in your contract and you can renegotiate price with seller if you find anything you missed later.  

PS.  Concentrate on finding deals and sellers.  A deal properly marketed will bring you a TON of buyers!

Where I work in Philadelphia, all of the evictions are listing on the city's website. I just pay a VA to write down all of the landlord's addresses in a spread sheet and then we mail them.

10% sounds like a good deal to me on family money.  If you offer them the 10% guaranteed rather then 10% annually they should be more than happy.

I agree with Ralph.  South Philly is the place to be right now.  Most areas of the 19145 are still really cheap but won't be for long.  

Joe, I respectfully disagree.  I know I will be able to get in front of apartment owners of buildings of that size without brokers.  I am working a deal on an 8 unit as we speak that I found by sending a postcard to the owner (lead was mixed in with my single family marketing list).  He is older and tired of dealing with the building that is in disrepair.  We are in negotiations right now.  Again I wasn't looking for what you assume wouldn't work but rather someone who has done it and could tell me what works best.

@Jeff Greenberg The mom and pop building you just purchased, how did you find it?  Broker, personal connections, or marketing?

Just to be clear, I appreciate everyone's input and advice and I am not opposed to working with brokers or property managers that may have deals for me. I encourage it.  As all of you have pointed out though, brokers look for people they have worked with in the past and are proven to close before they send them anything good.  I don't want to have to purchase a bad deal from a broker just so I can eventually get a good one.