Originally posted by "Ryan Webber":
Do you need a personal mentor for a couple months? Hawaii is calling me. :D
Realize that just making low ball offers on listed property will require you to make a TON of offers to find the motivated seller. I would recommend finding a newbie realtor that is hungry (literally) and have them make 50 offers a week with Letters Of Intent. A LOI is a one page summary of your offer. It states that if the seller is open to the terms then you will move foward with a contract. Some residential realtors don't like them, but they are very common in commercial deals. They can save a tremendous amount of time in a situation like this.
I would also start looking for your financing now. Getting preapproved or developing hard money relationships is always a good thing to do before you're in a time crunch.
Wholesaling is what you described, and when you do get a property under contract, your asking price will determine how long it will take to sell. The cheaper you offer it for, the faster it will sell. If you ask FMV, you will be holding it for a while and will need to probably use a realtor to sell it. If you sell it at a discount, 80-90% of FMV, you will be cutting down the sell time drastically and can probably sell it yourself. If you get a good enough deal on it and could even make a decent profit selling it at 70-75% of FMV, then you could probably sell it before you even close on your contract.
If you could mentor me that would be the greatest way for me to start! I always thought that working with other people would cut profits out of myself, but I can't do everything by myself! I'm heading out to a real estate investors meeting this week, just to network.
I can do many offers, all day if it takes me that much. If I get one ok out of 100 properties for 70% LTV then I'd be happy to do it. I just need to find the realtors. I know what you mean about "hungry" realtors, I just started out as a loan officer a couple of months ago. I'm blessed to have my mom put me up while I'm becoming full-fledged... I thought I was thrifty before, now I know the true meaning of that word working without pay.
I've looked for financing before, but since I can't show an income of some sort I wouldn't be able to get conventional. I went to a couple conventional, so hard money would be my choice. So your saying before I even submit offers I should see how much I can qualify for?
Wholesaling would be after I get a few contracts in. I don't have the capital for weathering that storm yet right now. By finding deals and assigning them to investors I can make some money, also build a relationship with investors for future projects.
Ryan, I'll be sending you a PM soon about Hawaii, if your interested. Thanks again.
