All Forum Posts by: Ryan Wilson

1622 Polk Way, Stockton, CA 95207

Come take a look at this handyman special in Stockton’s desirable Lincoln Village Neighborhood. Lincoln Unified School District. Near Lincoln Center. Community Pool. This is an incredible investment opportunity for a fix & flip or a fix & hold in one of Stockton’s most sought after areas. Call Now!

For viewing, call Ryan at 209-425-5166

For more photos, information, and to view our inventory of incredible deals at 20%-50% below market value, go to

caliwholesaleproperties.com

Fixer Upper with huge spread in Lincoln Village. Lincoln Unified Schools. Community Pool. Great flip or rental opportunity!

After Repair Value: $260,000+

• Eppraisal: $288,000
• Zillow: $261,000
• Redfin: $260,000
• Trulia: $261,000

Minimum Suggested Offer: $179,000

• CASH ONLY
• CLOSE IN 10 DAYS OR LESS
• SOLD AS IS
• SERIOUS INVESTORS ONLY (No Wholesalers on this one. Contract is not assignable)

There will be two showings:

• Thursday, August 30th from 6:30 pm-7:30 pm
• Saturday, September 1st from 11:00 am-12:00 pm

PLEASE READ:

All offers are due no later that Saturday, August 1st at 8:00 pm Pacific. Proof of funds are required with offer. $4,000 non-refundable earnest money deposit will be due at title company by 10:00 am Pacific on Tuesday, September 4th or property will be offered to 2nd highest offer. No exceptions. SERIOUS INVESTORS ONLY. Must be able to close on the property no later than September 13, 2018.

For any questions or information, call Ryan at 209-425-5166

Quick question for all you experienced flippers in Texas.  My title company told me that you can't do hold open title policies in Texas.  Is this true?  Anyone in Texas using a title company that does hold open title policies/binders?

A hold open policy allows you to save on title insurance premiums when you know you will be flipping a house within a 12-24 month period.

I am writing to clarify a misconception I have seen on BP forums and I have heard from REI Gurus as well. I keep hearing that most or a majority of the wealthiest people have built their fortunes through real estate and that the Forbes 400 is comprised of a majority of RE investors and developers. I thought I'd fact check that assertion and it turns out to be false. You can go to the link below but the following is straight from Forbes:

Following are the top 10 industries ranked by number of Forbes 400 members:

1. Finance and Investments: 93

2. Technology: 55

3. Food & Beverage: 42

4. Real Estate: 33

5. Fashion & Retail: 32

6. Media & Entertainment: 29

7. Energy: 25

8. Sports: 19

9. Service: 18

10. Healthcare: 16

https://www.forbes.com/sites/kerenblankfeld/2016/1...

Now, before anyone gets mad at me, I want to clarify that I love real estate.  I own apartments, single family homes, and notes secured by real property.  I am an active investor and have been for years. 

Real estate has phenomenal advantages and is a great wealth building tool.  I happen to think it is THE best and safest (when done properly) wealth building tool for the 99 out of 100 of us that aren't Mark Zuckerburg, Elon Musk, Seth Klarman, or Joel Greenblatt.  What other asset class allows you to buy a $1M apartment, put down $200K or much less if you get creative, and have other people pay for your asset!  If you buy a property correctly, you should rarely have to pay a penny of your own money while having tenants build your wealth for you.  

However, I want to set the record straight that the Forbes 400 is not mostly made up of real estate investors and developers and that probably holds true for the top 1% as well.  Most of those people have built successful businesses outside of real estate.

Do I really care?  Of course not.  I don't need to be the next Steve Jobs.  I think most of us would be content building a portfolio of properties that other people are paying for that gives us monthly cash flow, principal reduction, and potential appreciation on top.  You can build a nice fortune for yourself while creating value for others and our communities by using real estate even if you don't make it into the Forbes 400 someday!   

But let us look at the data, be honest, and stop telling everyone that most of the wealthy people in the world achieved their wealth through real estate.  That statement is simply not true.

I am looking to hire an acquisition rep to take over the the process of meeting and negotiating with sellers for many of my off market leads.  

TO ALL INVESTORS WHO HAVE A SALESPERSON/ ACQUISITION REP going out on appointments, how do you structure their compensation? 

Your question is probably too general and open ended to really provide you with good answers.  I suggest that you start by listening to all the multi-family podcasts on BP.  Read a few of the many good books on multi-family investing. Visit the BP forums on multi-family.  

Follow the same process for learning about financing options- private money, hard money, bank financing.  Then start pounding the pavement, beating the bushes, and working it. 

I've never had an equity partner in all the deals I've done. I've only used my own money, private money and bank financing to fund my own deals. However, this has limited me to doing a fixed number of deals per year as I have not sought additional private money outside of a few people I know.

I have a very high net worth individual that wants to become an equity partner. She came along at the right time as I am motivated to build my business and add additional multi-family and other commercial assets to my portfolio.

If we partner together, we would be buying assets to hold long-term together as we share that common goal. Most of these projects will be value add and, at least in the beginning, I will be handling or overseeing everything (marketing, acquisition, rehab, property management, etc...). She will just be providing the capital as she lives 4 hours outside of my market.

I want to be very fair and I want to keep it simple. My thought is that a 50/50 equity partnership would be the best way to go but I have zero experience here. Additionally, I see these syndication deals where the syndicator/sponsor charges a 1-3 percent acquisition fee, a 1-2 percent management fee, a 1-3 percent disposition fee and then a 25-60 percent profit split after the investors make a preferred return. When I see those arrangements, I wonder if I should be charging some type of management fee (like 10% of rents or something along those lines) to compensate me for managing all the work that is required on a value add project.

Advice??? What is fair? What is standard practice? What is a standard equity split in this situation? Should I even bring up some type of management fee for handling the projects from A to Z?

Please let me know your thoughts. Any advice or experience is appreciated. Thank you so much.

Ryan Wilson