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All Forum Posts by: N/A N/A

N/A N/A has started 7 posts and replied 16 times.

Post: Researching RE Options in California

N/A N/APosted
  • Posts 20
  • Votes 1

Hello, I think I may have found my niche to begin my investing career, but I still need some basic answers to go forward. It involves putting undervalued or preforeclosures under an 'option to purchase' for a small consideration fee and then finding an end buyer to sell the option to. This minimizes my risk and does not bind me to buying the home legally. My question for your knowing people out there is simply do you know anything about straight options and using them in California? I'm not talking about 'lease-options' at all, this is a stand alone option to purchase only. I plan to use this as my beginning investing technique and flip options instead of Real property. Thank you in advance.....Timo :wink:

I have found in all my years of research on various businesses, that motivation has it's place, but not until you have the meat and potatoes down so you have somewhere to utilize it! Getting all pumped up with nothing to do is just a tease and it wears off fast, but if you have quality information to apply your high energy and attitude to, YOU'LL TAKE ACTION! :beer:

Post: Looking to partner in multifamily rentals

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  • Posts 20
  • Votes 1

Hey SoBeREI, If you are interested and have CASH to invest, I have a deal right now on a multi-family lot, 3 duplexes, worth 750K to 950K, under renovation, 6 total units, vacant, rents go for $1100 per month in Ceres, California, investor asking $599,000 recently reduced to sell faster. Let me know, I can send you more details. Thanks, Timo

Post: Some things I have learned so far...

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  • Posts 20
  • Votes 1

Hello all....I started here not too long ago and have learned some things I think newbies might appreciate knowing ahead of time before jumping into wholesaling, especially in California. First of all, DO NOT DEAL WITH REALTORS if you can avoid it! They don't think wholesale, they think RETAIL and you can't blame them, they want top dollar for their expertise and often times promise their clients' the moon. If you do use them in California, expect to pay a hefty earnest money deposit on your contracts, in the neighborhood of $1500 to $5000 dollars each otherwise they won't take you seriously! Instead, find the truly motivated seller who doesn't have the money or time to list their property and be a PROBLEM SOLVER just as is recommended here on this site! You can use less earnest money and can negotiate more with them as well. Also, DO build your buyers' list BEFORE you start putting property under contract. Compile a never ending list of potential buyers and their criteria, it will come in handy, trust me. You also have to have someone on your payroll to look up owners of property you are researching if you are not able to quit your day job. It takes time to find property owners of record, ALOT of time. Offer them a flat rate or a fee if any leads they give you turn into deals that you flip. Websites offering this information are far too incomplete and costly in my experience so far. Regarding mentors, don't expect them to work with you for nothing, their time is valuable and their pain and sweat has gotten them where they are now, an instructor once told me, "there is no such thing as a free lunch" so expect to trade something with them, time, money, grunt work, something. Ask them to allow you to piggy back on their deals. What I mean is, ask them if you can help them sell it and offer it with your fee tacked on to what they want for it. For example, to allow you to find potential buyers, and just add your fee on top of their asking price. In many wholesale deals, this is possible, just don't get greedy! Keep your fee reasonable, say 1 to 2% of their asking price or just a flat amount like $1000 or $2000 depending on the size of the deal, so there is still plenty of profit and attraction in it for the end buyer. Remember, the end buyer/investor should always have the Lion's share of the profit, then they keep coming back to you because they know they will make money and you will close more deals, just makes sense. I'm currently doing this with an investor who runs my REI club because we happened to discuss how I was going to start my investing career. They actually gave me the idea and helped me formulate a reasonable fee as well. REI clubs are a GREAT resource for knowledge and potential deals! Utilize them! I'm still learning myself, but the foundation has been laid and I'm building now! Happy Investing! :superman:

I refer potential deals to investors, and I charge a referral fee to do so. This is legal in all 50 States. I charge more for any research I do or leg work involved. Your examples above refer to someone "retailing" properties or the confines of such. I'm a wholesaler if I put a property under contract below market or retail, and refer or assign the contract to an end buyer or investor for an assignment fee, this is legal and has been a legal way of doing business for decades involving other types of transactions also. The IRS says you are a Dealer if you flip enough properties, but the law doesn't stipulate you have to be licensed to do so, nor does the IRS. Now if they change laws to stipulate that if you buy or sell such and such a number of properties as a dealer and sell them at market value OR wholesale value, you have to be licensed, then we will get licensed. If I were doing enough referrals or being classified as a dealer by the IRS, i would want a business entity name and structure set up to benefit from tax advantages as well irregardless, but as an individual, I am not required to. Birddogs are simply referring potential deals, it's the substance of what they do, not brokering or acting as an agent for anyone. Now if they say they broker or represent the buyer or seller in the actual transaction, and have not been hired and specifically licensed to do so, they are breaking the licensing laws as you say. Normally, I don't put properties under contract, I just find out if the owner needs or wants to sell, do my diligence on it to be sure things are what they say they are and then refer it to an end buyer who pays me a referral fee at a predetermined amount or rate, again, all below market or retail. I'm a specialist because I do more research and look up comparable sales in the area surrounding the property, sometimes even having a Title company to help me but again I don't have to be licensed to do this either or the companies or homeowners that give me the information would require it. This is why most information on properties and ownership is available from public records, so anyone (FSBO's) can buy or sell their homes without having to have representation or a license to do so. You as a agent or representative, contracted by a retail buyer or seller, and licensed to do so, are subject to the laws and standards required of you as such, I am not. I would suffice to say, if you call yourself a bird dog or referral specialist or jobber or wholesaler, and that is what you actually do by the aforementioned descriptions, you are still operating within the spirit of the law and what it was intended to be and should not have legal problems. If you or someone you know is agonizing over this, consult with an attorney to be more sure if you desire to since my reply here is not intended as legal advice, just common sense. -Thank you.

Post: Is Property Shark Worth it?

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  • Posts 20
  • Votes 1

I would be weary of any business or service with the name "SHARK" in it because SHARKS are symbolically and literally PREDATORS! Still, after reading their post here, I would at least take them for a free spin around and see how good the service is if it gives you enough time to evaluate sufficiently. There are enough free services out there to save your hard earned money though and read the posts here and hit up Ryan and Eric for advice, they know what they are talking about! At some point, enough tire kickers will have tried out services like them and have better feedback I'm sure. Happy Investing! :mrgreen:

Post: How to get started with no money

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  • Posts 20
  • Votes 1

I worked in the mortgage industry for 3 years, and trust me, lenders will check on you to some degree. It's better to just have the cash to put down for many reasons, a few being; you'll show you are serious about your investment and intent, and you'll SAVE MONEY on your payment/principal amount! I would follow Ryan Webber's advice and start out WHOLESALING so you can build up the cash reserves quickly to buy houses to hold. I am just beginning my career in RE now and have researched just about every type of investment strategy out there, wholesaling is by far the EASIEST and QUICKEST...and it's LEGAL!! Talk to Ryan if you need advice on getting started, he has helped me tremendously already! Happy Investing! :wink:

Post: LOST: Wholesaler Basics

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  • Posts 20
  • Votes 1

Hi Ryan,

as usual, you are right down to earth. I just breathed a large sigh of relief on reading your reply to my post. I was hoping I would not have to come out of pocket for these types of expenses because that could add up fast. Two questions, one, can you tell me your process on wholesaling and two, can you recommend a course to help me learn these basic steps? Thank you in advance and happy new year! -Timo

Post: LOST: Wholesaler Basics

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  • Posts 20
  • Votes 1

Hello,

Okay, I've been reading here, searching and I still have some questions and fogginess about wholesaling, probably real basic to many, but nonetheless, I need to know. In a nutshell, as a wholesaler, my plan is to get the property under contract, with a consideration fee, let's say 10.00. I then find a buyer to sell/assign the contract to, and collect my fee at closing. I have read a lot of different how-to's from this simple description to having to appraise and inspect, open title and buy comps before assigning the property at a cost to me of at least 1000 after all is said and done from what I gather. My concern is this, I've read in many places that this process does not take any money out of pocket for me except some advertising cost and my consideration fee. Am I missing something? Do I really have to go to the added expense of appraisal, inspection, title searches and comps on all my wholesaling deals for them to sell and for me to make money? I really don't have any money for these high expenses, my day job will bankroll my advertising and consideration fees until I get off the ground with a few deals. I've listened to several 'investors' on Wholesaling, none of them say the same things. I really need some consistency from someone who is doing deals right NOW in real time. Any help available? I appreciate it very much, thank you. -Timo

Post: Title searches when wholesaling

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  • Posts 20
  • Votes 1

Hi everyone, hope your holiday went great. I am just starting out in wholesaling, I have a partner in another area of the state, so we will be working two areas in Northern California to find properties. I also have another partner so to speak, who will be doing the negotiating for me on the buying and selling of my properties for a 20% fee. My question, is related to articles I've read on wholesaling where it is recommended that after I contract the property, then open title on it. I would prefer not to be on title or involved with this process for obvious reasons. How can I set up my business to keep things as simple as possible and yet not get burned in the process? Is doing property inspections, title searches and repair estimates a necessity for me as a wholesaler? I appreciate your advice and suggestions ahead of time. Thank you very much. -Timo :violin: