All Forum Posts by: David Tower

I've read thousands of posts on this site and others and I don't recall ever hearing this idea, at least not called out specifically.

I was thinking, since a licensed agent can't give a non licensed person a fee/commission for deals (short sale, low equity, unrealistic seller, etc), how about partnering with an agent to split marketing costs? I know some investors sell leads to agents on a per lead basis, but I think maybe approaching it like a partnership would be better, and if I were an agent I sure would appreciate someone doing the heavy lifting for me.

Since I would be doing the initial legwork and pre-qualifying the sellers, I don't think it would unreasonable to also get comps and MLS data out of the deal also.

AFAIK, that wouldn't be a violation for the agent and it would ultimately mean more deals for everyone.

thoughts?

This is the most frustrating type of post on BP. The kind where the OP sucks you in with a great story, or a great deal they are working on and then, when it's time to hear the big finale.......they stop posting.

I'm sorry you're going through this Jhansi, I once had a very bad tenant situation when I was very young and in way over my head.

Any updates to share with us?

Josh, I was planning on contacting you before starting my own thread but i'm 2/3 done with my own little project that may be of some help.

Basically what I've been up to is reading every post in the wholesaling forum and saving all the best links. I started from oldest to newest and I have 51 pages to go. So far I have 87 of the very best posts.

I expect to have over 125 by the time I'm done so I was going to ask you how you recommend I post them for other newbies like myself. I do have them categorized by content.

If that content won't help your new project, I'll be in touch when I'm ready to unveil the final list.

Grettings Bigger Pockets Veterans, Noobs, Mods, etc,

I don't think I'm alone in thinking that NOW (or yesterday) is the new time to buy and hold.

I know that people are acquiring multiple rentals, SFH and multi, with a lot less cash out of pocket than most noobs like myself understand how to do.

I'm looking for some general advice for the masses and some personal advice for my situation with goal being to get as many cash flowing properties as possible in the shortest amount of time.

I feel like I need to know about cash out options, refinancing, and getting equity out of deals to purchase in to new deals.

First...if anyone can recommend good books on this subject i'm happy to do the research myself.

Given the following list of assets and circumstances...how would YOU amass an empire?

[/u]Primary home, currently being rented (moved cross county)

mortgage 150k - approx appraisal value 200k = 50k equity

q: can i cash out refi to buy more properties?

asset- 25k cash
asset- 401k loan available for 20k

credit score - not exactly sure. It's good enough to get financed for 250k in 2009

I could also partner with my mom who has a lot of available cash but I feel like I need to be an expert before I bring her on board.

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I plan on getting help from local REIA with owner financed deals to keep for myself until i know how to structure them. (typical marketing for motivated sellers)

what other suggestions would you creative and knowledgeable people have to expand my mind?

Thanks!!!

Hi Kristin,

It really depends on what the after repair value of the house is if you intend to wholesale the deal.

A typical formula (some adjustments are made for market strength or location) is that a cash buyer is going to want to spend no more than 70% of ARV minus the fix up costs.

So for a 100k ARV house that needs 10k of work, they are going to typically pay no more than $60,000. Tack on your wholesale fee (we'll say 5k) and you want the contract for $55,000.

If the owners owe 75k, yes they would need to come to closing with 20k cash. Since it would be unlikely that could happen, it would either be no deal or you can try to refer them to a realtor/short sale expert.

So, if I understand you correctly, we should focus on using marketing that doesn't stand out? :wink:

Rich,

I was doing some searching on the forums about "Texas" and noticed your posts regarding having homes for sale in E. Fort Worth area. That's exactly where I'll be looking to buy. Do you still have any available? Any SFR's?

Thanks

Hi folks,

I'm moving to TX and will be starting my wholesaling business there. I'll be renting initially but will look to find the right house to buy as a primary residence.

I assume that if a house I find through my marketing is habitable and is one I'd like to live in, that I wouldn't have trouble using traditional bank financing.

It could be tricky though fielding calls from yellow letters, speaking to someone as though we "pay cash and can close quickly" and then deciding that I want to buy it outright and use bank financing.

Does anyone have any suggestions or insight on either using bank financing or other creative methods to purchase a primary residence at a wholesale price?

thanks again BP!

Hi folks,

I'm about to sell my home that I bought in 2009. It was originally a 3/1.5 raised ranch. In the finished lower level (all above ground) I added a bedroom and turned what was a crappy half bath in to a luxurious pimp bathroom.

My potential issue is that the work was all done without permits and the tax assessor's website doesn't reflect the correct # of bed's/baths.

Will I have to market the house based on tax records and then have the buyer see the extra added value on their own? Will I have to disclose unpermitted bonus rooms (these are not additions)

Thanks!

I think it would raise a red flag if Sean came on and claimed to be the final and best authority on all things wholesaling, what's wrong with recommending someone else's material?

Sean's material "mostly" focuses on the standard, high equity, wholesale deals. He doesn't talk much about REOs because those aren't his focus. He doesn't do virtual wholesaling either. If Joe's course has more info regarding lease option, or no-equity wholesale deals, what's wrong with Sean recommending it?

Sean is not affraid to admit, based on someone's passion or focus that maybe he's "not your guy". If you want to learn rentals, he'll recommend Jason Hartman. I hope you don't think He and Jason are in cahoots too.