All Forum Posts by: Shaun Pruett

@Dustin Carpenter I sent you a message.

Hey, my name is Shaun Pruett. 

I've been in the REI game for just over a year. I've been reading, learning, networking, attending training seminars, being mentored, door knocking, cold-calling property owners, driving for dollars, mailing yellow letters and postcards, meeting with sellers, etc.

I would benefit from a consistent, casual meetup with other investors who want to maximize their REI outcomes. I'm guessing there are others in the greater Long Beach area who would as well. There are some good meetups in the area, but most only meet monthly, or charge for attendance. I want something that is more informal and geared towards newer investors. But experienced investors are also welcomed.

So, I'm starting a meetup. 

The purpose is to connect local investors, discuss what is/isn't working in the business, talk strategies, partner on deals if/when it makes sense, and generally help each other WIN at the REI game.  

Are you hungry and hustling to kill it in the REI game? Good. Me, too. Let's meet and help each other do great things.

DETAILS 

-Date: First meetup Wednesday, June 6, 7:00PM

-Location: Restaurant in Bellflower. Message me for info. 

-No cost. Just buy something to support the restaraunt. 

Hi everyone. I've been following this post. Has a meetup happened yet? 

When & where?

Check out FIBI Long Beach. Meets at The Grand event center. @Mathew Owens does a great job with the meetup. 

https://www.meetup.com/forinvestorsbyinvestors/

When is Property Radar going nationwide?  

@Will Barnard

My name is Shaun. I caught your webinar interview with Mathew Owens awhile back. 

My marketing is focused on the greater Long Beach area. Do you have any interest in wholesale properties in that area? 

@Ryan Phillips  @Doug W.

@Doug W. 

@David Faulkner

I'm looking for ways to wholesale WITHOUT the shady aspects. I prefer to avoid telling owners that I am going to buy their property and putting them under contract when in reality I have no plans to actually buy the property. The property might sell to my end buyer, but under false pretenses. I understand that this is more/less standard practice in wholesaling. But I don't want to lead sellers to believe I can/will do something I cannot. So, unless I have a way to close on a property if I cannot assign the contract, I would rather not enter into the contract in the first place. With the method of partnering and collecting a "finders fee", can we avoid this? Can we be up front with sellers from the beginning and not lead them to believe things that are not true?

I'm currently talking with hard money and private money lenders about obtaining short term financing that would allow me to buy the property and re-sell it to an end buyer. I like this method because I can be up front with the sellers from the beginning. In a way, I feel like it gives the wholesaler more control of the deal. If the property is truly a good deal and the wholesaler has a good buyers list, they wouldn't need to worry too much about their exit strategy - or about weaseling their way out of a contract to the seller. I've heard @Brett Snodgrass talk about this, and it makes sense to me.

The challenge of short-term financing might be the high cost of interest and fees relative to the high cost of properties in the Los Angeles market where I currently live and farm for deals. The spread on a wholesale deal would need to be pretty big to cover the interest rate, points and fees on a $500,000 to $1,000,000 property. 

@ryanphillips 

I've thought about doing this. In fact, I am developing relationships with both cash buyer investors/flippers AND real estate agents who represent investors who are not cash buyers. I've added these agents to my "buyer's list" so that when I find a property that is turn-key and cannot be purchased at a discount I still have an opportunity to make money through a referral fee. As the "finder" in the scenario, I want to be careful who I deal with so that the end buyer/flipper doesn't cut me out of the deal when it's time to pay the finder's fee. I'm sure there's a contract out there for that, or one could be created.

10% seems like too high a finder's fee for the types of deals I'm trying to do with 2-4 units multifamily properties, especially if a flippers sells a rehabbed property for $1,000,000.

A concern I have with this model is with how to communicate with the seller. It seems like it could be confusing and cumbersome explaining that I am not going to buy their property, but am going to refer it out to someone else who will buy it.

I guess that's why most wholesalers keep it simple by pretending they are going to buy a property even though that is never their intention at all. (Wink, wink)

I don't send that many pieces yet. But I'm curious what market you're mailing to. I'm also in L.A.

I'm in Los Angeles. Don't know about WV.