All Forum Posts by: Stephen Morales

 For sure, glad I could help! As long as your upfront with your process you'll make connections with great people.

I'm an agent, an investor and a wholesaler. Some places like Illinois for example require individuals to be licensed with the state in order to wholesale more than 1 deal per year. 

The biggest issue is most of these "gurus" that get new wholesalers involved teach them to be deceptive when they approach realtors. 

To anyone I've ever helped get started I've taught them that transparency is number one when you're looking to work with an agent.

I started off as an agent and I used to HATE wholesalers. They were taking my investor customers away from me and keeping me from getting a commission. Most wholesaling firms will make an agent put their commission on top of the deal so why would your investor do that when they could cut you out of the deal. Luckily my customers were pretty loyal to me but you get the point. 

I couldn't beat them so I joined them. I make way more money wholesaling and investing then I ever did as being just an agent. 

Just be transparent if you plan on working with a Realtor, you know how many times they have a "Buyer" or "investor" calling them or emailing them that " I NEED TO FIND DEALS ASAP" only to find out it's another wholesaler trying to get deals out of them. Not to mention they have a dozen other agents just like you busting their tail for them. 

 Sounds good to me, I'm always happy to share my workflow with others and making connections. I'll shoot you an email. 

 So I actually started off doing PPL but after a couple of months of using them the price exponentially increased. I'm talking $100 to now $450 per lead in my area. The problem is there is no guarantee that your lead is not being shared. In fact, there were a couple of times where I would call leads and they had a contract with someone else or was in the process of being listed. Now sometimes I would get a credit for a new lead but you have to write a detailed explanation every time I would ask for refund and wouldn't always get it rewarded. 

I had one that also did a flat flee for leads but there are other ones that do auction style. It was called Need to sell fast or something it's been several years since I used them. 

Now I just stick with a team of VAs that do my calls and lead generation and I handle all of the acquisition and dispo. We pull at least 50,000 records per month consisting of high equity and preforeclosures. I recommend using Prime Tracers for skip tracing large list if you value accuracy without exhausting your monthly marketing budget. 

No there is absolutely nothing illegal with Sub-to deals. Sounds like somebody had Seller's remorse or a disgruntled student or someone who had equity in a deal that went south. Guy has many assets he owns via Sub-to so you're gonna have bad deals.

Wise man once said. IF it's too good to be true, then it IS!

Looks like you fit the 1% rule but you would still want to look at comps in the area. 
Vintage year is also very important, is this a c-class property (which it sounds like it is, maybe c-), B-class etc. 

@Jonathan Greene makes a lot of good points here. 

To add what he is saying, You also are missing some VARIABLE cost here which should be applied to UW. Turn over cost when your tenants leave (check leases), marketing cost to add to the placement and monthly fees from PM, and utilities if those are provided by the landlord.

What's your exit strategy?

What's your cash flow looking like?

For skip tracing in REI, Prime Tracers is a great option to consider. It offers high accuracy with 80-90%+ correct contact data, which is crucial for reaching homeowners. Their pay-as-you-go model allows flexibility, so you only pay for what you need. Compared to other services that might offer lower-quality leads or require higher upfront costs/paywalls, Prime Tracers also give you free lead credits on sign up so you can actually see the results before you commit to a purchase. As a bonus when you sign up you also get an e-book that has tips to running your wholesaling business.

We normally pull 50k+ list when we do our monthly campaigns of cold calling. We have VAs that use triple line dialers and Pipedrive to run our CRM. I would recommend anyone that gets started has at least a list of 10,000 to ensure they can get 1-2 deals that first month. 

If REIPro isn’t cutting it for your skip tracing, give Prime Tracers a shot—it’s been super reliable for connecting with the right contacts without breaking the bank. They hit 80-90%+ accuracy, which means way fewer wrong numbers and dead ends. Plus, with their pay-as-you-go setup has it to where you don't have to worry about a subscription. It’s a solid option to boost your chances of actually reaching the homeowners you’re targeting. You also get free credits on sign up to try them out.