All Forum Posts by: Ryan ODonnell

Naw man, I should have just kept my opinion to myself.  I'm sure you're just trying to give people a solid place to network and see actual deals, which I shouldn't discourage.

I'll definitely try to make it out to one of these.

$10 at the door?  This seems more like a BYOC event to me....just sayin'.

Be careful here because you don't want to give away too much just because you want to do deals or because you think there's a 'future' relationship.  People are people and change their mind a lot.  I speak from experience of giving more than I should to get the deal done and then having guys say Thanks, see ya!  A good Contractor even will tell you they put no stock in some Investor saying "I do a lot of deals and there's always more work".

If you're doing the execution, I would negotiate with confidence and a little advantage.

Good Luck!

Van...THANK YOU!! 

As an Investor this is such good advice to wholesalers!  

Also, be careful trying to wholesale mls properties. Many investors have their license too.  If it hasn't been scooped up already then it's probably not a deal.  10k off of list price may not make it a "deal".  Make sure it can be assigned and whether or not you'll have to double-close.

I have used HML for my last few deals and Johns right, you will need 'up to' 20% down if you've never done a deal before. Then the rehab money comes as reimbursement so yeah, if you want to start your rehab and get anything done then you'll need a little more than the 20% as well.

It's not ideal, but lets say you have a 100,000 purchase and the place needs a roof. You're going to put 20k down and need 5-7k for the roof. So you have the roof done right away and then do a draw and they inspect and reimburse that cost. A roof is pretty straight forward though. Where people run into problems is mis-managing that 5-7k on the 'other' items. The last thing you want is to spend 5k and not get approved for reimbursement!

I've NEVER done a deal where I didn't have at least half or more of the rehab money in the bank.

You can do it, but find the money first....you'll sleep at night!

Dante,

We have a GC type guy who is VERY good at tile, drywall, plumbing, etc. BUT we still use separate guys for HVAC, Floors, Plumbing (in certain situations), etc.  That's always been the more profitable way for us and we never give profit share or partner.  Most GC's like the idea of getting paid as they work.  One of our guys thought he was prepared to be an Investor and partner with someone, but found out quickly that it wasn't the best deal for him because of how he was used to getting paid.  

You should really need a GC for tile, drywall, cabinets, etc.  It's not that hard to pick out and pick up the materials and have them there on site.  Pay guys for the work they do and keep the deals as your own.  That's just my opinion.

My grandfather was a developer in Iowa and had a saying "You're worried about the mule going blind, LOAD THE WAGON!"  People constantly worry about failure, mistakes, and what other people think. IMO it's about the 3 M's...MONEY, MENTOR, MISTAKES.  You will not get started appropriately without Money or access to it.  You will not create solid strategy without a Mentor.  You will not avoid Mistakes. 

A Mentor isn't there to give you money or hand you successful decisions.  If you don't take action, I assume you will lose their interest.  If you don't learn from your mistakes, I assume you will lose their respect. 

Stop writing down your goals!  Why is that still even a thing?!  I used to write down my goals and then realized I wasn't getting any closer to them no matter how hard I thought I was trying.  Just take action and let your goals appear day by day.  It's a moving target anyway and will just frustrate you or make you feel bad.  You know your goals!  You don't have to write them on a mirror so you have to look at them every morning to achieve them.  Your going to miss all the great things happening each day that are actually getting you there.

Don't believe me? I'll make it hit home.  I gave someone on BP an opportunity to see my business first hand.  Walls were open, permits were being applied for, draws were being done, etc. etc.  That person never contacted me saying they were busy with work.  When I called them out on their BS they told me they "were just writing down their goals and so my tough love was perfect timing"!  lol  Guess how soon I heard from them?...........I still haven't.

*Mic drop

I'm certainly no hater but I'm kind of confused by BP.  How does a post on a Real Estate 'forum' asking about collaborating on a real estate deal get taken down, but this dribble is allowed to stay up?.

I'm certainly not going on model train club websites and saying "All we do is talk about trains!"

It's like you wandered into the wrong conversation and cover it up by trying to sound deep and philosophical.  

I get what your 'trying' to stimulate, but maybe that last MD can prescribe something...

Markets will tell you what's really going on even though you might not like it, take the sale and the experience and get to the next one smarter for it.  If  20k is your net goal then you haven't hit that yet (and won't on this deal) so I like to think you should naturally be better on the next one in terms of Every aspect. I think one of the biggest things that separates the Investors from the Hobbyists is 'velocity of money'.  

I've hired separate trades for most of my deals and only recently used a GC.  Aside from the comment about the GC's personal finances implying that he's not a good GC, I would say in most scenario's he would/should have to bring money to the deal.  Maybe he could bring access to more money and you could do more deals.  There doesn't seem to be a great way to partner with a GC that isn't bringing money to the deal even if he does have investing experience.