All Forum Posts by: Steven Thompson

Hi Micah,

Great to hear you are setting out on your journey to purchase another home and have a rental. Before you get contractors to give you estimates, you are going to want to look at the numbers. I would speak to some lenders in your local area, you can find them by doing a google search, and see if what you want to do is possible, along with how much each loan will cost you. There may be a equity line product that may involve lest monthly costs than those associated with doing a refinance. Put your numbers together to see if they make sense and if you will be making money on your rental or if you will be losing money. Don't forget to include all expense and build in a cost of a property manager along with a budget for future repairs.  You currently have a great idea and concept next you want to test how possible it is. Don't get discouraged if you have to make changes to your plan just adjust accordingly and look for the benefits. BP has some great podcast with some fantastic stories and tips that will help you, so I highly encourage you to listen to them. Best of Luck

Steve

Hi Helen, 

You never want to be a motivated buyer. If the numbers don't work for your investment strategy, you may want to pass on the deal. Define what your investment strategy will be and the Net Cap you want and do not deviate from your strategy, or it will could cost you in the long run.   

Welcome to BP! Just a helpful idea for you to consider possibly doing a market survey based on cities, zip codes, and potential economic growth numbers for that area. Even though you are going to hold the property for two years you want to make sure you are making your money on the acquisition and not trying to force market appreciation. BP has some great podcast, forums, and information that will help aid you in your journey. I wish you great success!

Steve

Recently I closed a deal that required me to be flexible. One of the students that I'm training brought me a deal. They worked really hard on structuring this deal, but it had foundation issues and the seller was a little unrealistic. We were finally able to get them to a realistic price of $95K and the ARV of the property was close to $160K.

I brought a buyer to the table that was okay with the foundation issues, but a few more issues popped up i.e., electrical. This cash buyer that I have done business with previously asked if I would be a little flexible on the price. I told him that I would have to speak with my partner on the deal and I would get back to him. I then explained to my student that we may have to be a little more flexible with our fee and what price could we agree on. After having to explain this for a few minutes, because this was their first deal, they were very hesitant. Once we agreed on a price that we would be flexible on, I went back to the cash buyer and I let him know that we would be flexible, but not contortionist and we talked price. In the end, we gave a little and he gave a little which allowed me and my associate to split $4,000.00 on their very first Wholesale deal. Their very first wholesale deal on a property with foundation issues and a difficult seller, we were still able to make $2,000 each. Not bad for a 2 week escrow. 

As a bonus, the seller of the property not only was happy with the quick close, but he is now looking to sell us another property that we are currently in negotiations on. Sometimes you shouldn’t be hung up on numbers. We are here to provide a service and sometimes you have to bend and flex a bit to make deals happen.

Great Post. Wholesaling is not just a way to make money in the real estate industry, its also a great way to help people get into a better situation from a bad or challenging one. Great job. 

Hello, 

My name is Steve and I work with quite a few investors and help with their strategies. As a wholesaler I have met quite a few people and helped them achieved some goals. I would like to see if I can be of some help. Maybe we can meet up and do lunch soon. 

Thanks Jason for the mentioning. I'm local in the Las Vegas area and have developed a network of new wholesalers that we have helped get over the hurdles of getting started in real estate investing. If this interests you feel free to reach out to me.  

Agreed. On my cards to sellers I keep it simple:

I BUY HOUSES FOR CASH

DIVORCE,UGLY,UNWANTED,UNNEEDED, ANY CONDITION

NAME:

PHONE#

EMAIL:

 & on my cards to investors

I have more information explaining my business my contact info and my name. 

I agree with Jon, build this in information in your contract with the seller so it can be taken care of at the close of escrow by either your escrow agent or real estate attorney. You can also talk to the IRS about the back taxes and see if you can negotiate the price down since you are buying the property. They may not do it but it doesn't hurt to ask. 

Flaure, 

Welcome to Bigger Pockets before you start with Mobile homes I would listen to podcast 75 it talk's about mobile home investing. It gives some very useful information when it comes to mobile homes and there are some very useful blogs on mobile home investing here on Bigger pockets. This link below will send to the blogs. 

http://www.biggerpockets.com/renewsblog/?s=mobile+homes 

Bigger Pockets is a great resource for new and experienced investors. I am using the information from the mobile home blogs to do my first mobile home wholesale and I found it very useful.  I wish you good luck and let me know how it goes.