All Forum Posts by: Tony Hernandez

@John Thedford

 He wants me to buy it. He's OK with me assigning it but would prefer that I buy it outright. I told him that I'd like to buy it outright but I might be in over my head with all the repairs that are necessary. I've been upfront since the beginning that I have multiple exit strategies including assigning the contract. He is a commercial broker in another state and started his career the same way I'm starting mine so he understands.

@Guy Gimenez

 Would you want to see an engineer's report for the foundation? It is pier and beam. What about a GC quote? I would assume that this is useless sense a buyer will have his own contractor to work with.

Thanks @Guy Gimenezand @Chris S

Thanks everyone. I will definitely do the video.

I've already seen the house once and I told him I'll need to go over again which he is fine with. He just doesn't want people over there everyday for 1 month.

For me, I decided to use a pro to help me get off the ground. I bought 1000 names for my area to target for the next 6 months. So far things are slow. I've had very few phone calls in my first month (< 10) but I know it's a numbers game.

The one thing that is going well is that I'm learning how to be on the phone and take those calls. The thing I think I can do better is stick with my script and try not to sound like a bumbling idiot.

I decided to do direct mail marketing to generate leads in my area. The market is hot and I'm taking the stance that getting deals off-market might be more fruitful than watching the MLS.

So for those of you who are doing direct mail, how's it going? What is one thing you are doing right? What is one thing you can do to make it even more effective?

With all the recent posts about wholesalers, I thought I might ask what I should do on this one.

My seller inherited a house that is currently occupied by a family member. He wants to sell to me but is OK if I assign it later. He just doesn't want people going through the house. I understand his concern.

What can I do up front so that anyone I might want to assign to won't necessarily need to peek inside to make a decision?

Here is what I have so far:

• Inspection by a licensed inspector
• Engineer report on the foundation (It's Texas and the house was built in the 50's)
• Lot's of pictures
• Room dimensions
• Should I get a GC in there to do a bid?

Thoughts?

Hi all,

I ran across this blog post by a texas lawyer: http://drewshirley.com/a-lawyers-guide-to-the-trec...

Anyone disagree with the points this lawyer makes? In particular the following: 

Section 15: If you are the Buyer in a TREC form contract, do not, repeat, do NOT sign the contract unless you have crossed out the specific performance remedy for Seller. Specificially, you should cross out a portion of the first sentence of section 15 and replace it with some other language, so that it reads: “If Buyer fails to comply with this contract, Buyer will be in default, and Seller may (a) enforce specific performance, seek such other relief as may be provided by law, or both, or (b), as Seller’s sole and exclusive remedy, terminate this contract and receive the earnest money as liquidated damages, thereby releasing both parties from this contract.” This is the most important change in the contract, and I would not sign this contract unless this change is made. A deal breaker. If you, the Buyer, defaults, then the Seller can keep the earnest money and find a new buyer. He doesn’t get to force us to buy a house we don’t want or can’t afford. Period.

Also, make sure you reach out to @Jerry Puckett, @Michael Quarles and other direct mail marketing experts when you're ready to take the plunge. Jerry has helped me a ton.

There is also the guide to wholesaling that you might interesting. http://www.biggerpockets.com/renewsblog/2015/01/31/ultimate-beginners-guide-real-estate-wholesaling-2/

Thanks everyone!

@Micah Copeland - Agreed. I won't want this lead in the future. I'm definitely taking this as batting practice.

@Alexander Felice - I think he saw the 1890's house across the street sell for a ton and thinks he can get something similar. However, his house is nothing like that one and would take $150k to remotely come close. I think he wants what its worth if someone fixed it like that. 

@Brent Coombs- I'm trying to figure out what I can do for this guy. Sure, I can wholesale the deal to some cash investors who can close quickly. However, the rents in the neighborhood would only net someone 5% Cash on Cash ROI. If you used leverage (assume 25% down) you would likely lose money on monthly cash flow. Maybe an investor would see appreciation as the exit strategy?

@David Wurzel- There is only one comp that is close to this guy. The house is an a historic district where there are really old homes next to stuff built 10 years ago next to stuff build 40 years next to a 1900 house. Do I just show him the one comp that is close? The one comp is pending. I know from calling the agent on the property that they are getting asking.

@Jim Viens- Great advice! Seems like a good way to start off.

@Nat C.- Thanks Nat. As I said to David, I only have one good comp and its pending. Thoughts?

Hi all,

I'm meeting with a seller today that I got through my direct marketing campaign. This is my first lead. On the phone he told me what he wanted to sell it for. He must be in a delusion because the house is worth $150K less than that. Since I'm still new at this, I decided to take the appointment if only to practice my in-person skills.

What should be my approach with this seller? You could argue my time is worth more than this but I need the practice. 

Thoughts?

Thanks!

Tony