All Forum Posts by: Tyler Weinrich

I came across a landlord that is looking to retire soon and is interested in selling their portfolio. This would be 28 SFH's in A-B areas. Rents are at or slightly below market rents. Homes have been well-maintained...dare I say turn-key or near turn-key. Owner is completely open to me wholesaling these and has provided a baseline price they want to see in return. All those details aren't really relevant to my question, just providing some colorful background....

Anyways, has anyone wholesaled a portfolio of rentals before? Any pitfalls I should be aware? Seems like same workflow as WS'ing one house, just with more time and analysis. Owner is wanting to get rid of them all at once with the idea that it will be quicker and easier. I think they'd settle for selling in smaller chunks but would need convincing.

Do I need a contract for each one even if they are sold together? Or will one blanket purchase contract suffice? 

I have a seller that owes $46k on a house. He wants to get rid of it so bad, he'll sell it to me for $40k which is a good deal on it. He will bring $6k to closing table to make up difference. Would this count as a short sale? Technically the bank is getting all their money but sales price is less than current loan balance. 

Would this require any special process or approval by lender?

Hit me up if you have any questions. I can tell what I've done and seen so far. Good to see another Oklahoma investor in the big sea of BP. 

@Paul M.

 You can post the potential deals up in the correct forum category. If you want good advice on those deals you better have done some vetting on them up front and provide your analysis in the post. Some people, not saying this is you, just post minimal information without having done their own research on a deal and expect others to spend their time running the numbers. 

That is another reason I suggested taking out loans is that you don't blow all your money at once. This is good because you still have an emergency fund if something goes wrong and you can accumulate more properties faster. 

Nothing wrong with learning as you go. I think everyone on here will tell you that is how it works. some of the most experienced people on here are still learning. You do need to understand some fundamentals first though: where you want to buy, why there, how to analyze a deal, what is a good/bad deal, etc. You can't study forever but a two-week binge using up every minute of your free time will probably help. 

First and foremost, be careful when working with family. Responsibilities need to be laid out in print and be very clear. When you jump into any business venture with a family member you have to realize and respect that you now have two relationships with this person(s): one as a family member you'd probably do anything for and another as a business partner acting in the best interest of the business. Just be careful or just don't do it to eliminate this risk.

As for the money with your parents, if they haven't said "yes you can borrow that when you need to replace the plumbing in two of your units", then I wouldn't count on it. It isn't guaranteed. Then again, I don't know them, only you do. 

With regards to your overall strategy, I suggest you study up and leverage your money (get loans). Going through nursing school you should be able to research and learn quickly so get after it. Study for a short, predefined period of time then just get out there and take action. Meet with some local investors, attend your local REIA, talk with some agents about the best areas. Being able to leverage your money is one of the benefits of investing in real estate. $100,000 can buy you $100,000 in RE or it can get you more if you leverage it.

QR codes are a waste of time. Not only are the an often misused in marketing, they really don't provide THAT much value. I'd rather make someone type in my website address then take a picture and open a browser. Why? Because now my website name or brand is in their head. 

Also, you can't assume EVERY or even MOST of your recipients have a phone with the necessary technology/app to make use of a QR code. I think QR codes cater to a small portion of your recipients unless you are sending them to 18-35 year olds exclusively.

You mention that QR codes might make someone go to your website instead of just putting your letter down and logging onto the computer. First off, if they have to logon to the computer, they aren't going to use the QR code if it was there. Second, whether you have a QR code or add your website address, people can still get to your site almost as easily through either avenue (assuming you don't have some overly long domain name, which you shouldn't). 

Outside of that @Josh Caldwell pretty much nailed it. Don't get too cute. Use what works, make some minor tweaks, but once you get off the beaten path you lose the benefits of the tried and true. 

I echo what @Zach Sikes said. Just make sure you have plenty of room in the deals you do and get your After Repair Value down solid. Make sure you have a backup price or even multiple ones. What if for some unforeseen, oil-related reason real estate prices dropped 10%? Would you break even? Lose money? Not saying this can or will happen, just using it as a hypothetical. The point is, think through the best, good, bad, and worst scenarios and see where you would end up. If you don't like the risk, then maybe it isn't worth it. I'd say it probably is though (my opinion). 

Also, you can't stress location enough as was stated. It's a good way to hedge against a falling market at least on some level. 

Lastly, 2015 should still be a good time to rehab properties. If the people panic because of oil prices and cry "SELL SELL SELL", then home prices drop as the market floods. While you may not make the most out of current rehabs with declining prices, the market would be headed straight towards where you want it - a time when others are running away and prices are low being primed for a rebound. Make sure to stay on top of the market by asking on here or talking with a Realtor (or two) every now and then. Zach is pretty on top of things as you can see. I have my license and can help answer some questions as well. 

Disclaimer - All opinions of course. Also want to say I'm not as experienced as Zach or some of the others on here. 

@Karen Margrave I see your point about going all the way pro or not. The deceiving factor is definitely an issue. thanks for the input.

@Rick H. Not trying to be new as, like you said, it's all been done before. Just trying to make a marketing piece stand out a bit in a sea of YL's. It's all been done before, tactics ebb and flow with the times. The herd eventually eats all the grass on one side of the pasture only to run to other other where there are fewer and more grass. If the herd is still doing what works (basic YL), I'm all for doing that. I am just trying to be aware of what might be becoming overworked and adapt accordingly. 

100% agree about taking action. I haven't sent out anything yet to be honest. I plan to like 10 million others. Dreaming? Yes. I also think that evaluating your competition before you make a move is smart planning. That's what I'm trying to do. If it turns out that I'm happy with relying on a hopefully superior message via YL, I'll do YL. Regardless, I'm sending something out this year. 

My goal with that idea was just to try and stick out a bit. I think I might be overestimating the need for that and underestimating the power of consistency. Still in the planning stages so appreciate the input to help me think through it. 

Has anyone tried to send a handwritten (real or printed) letter on a business formatted letterhead? Just like a YL we all know but on company branded paper. 

It would seem that most of the personal effect which drives open rates would be retained because it is still "handwritten" on the envelop and the body itself is "handwritten" (printed font or real). However, when the recipient opens it, they'd be receiving a professional looking letterhead with my name, company name, phone and website in the header with the goal of coming across as serious and legitimate. 

I'm not saying it has to be decked out with lots of ink-wasting fluff, just more professional than the other 1000 people sending YL's. One more assumption or hope is that it would help to build a brand more effectively. People see your logo, they see your company name, anything from a sign to a website to a business card with the same branding would trigger your company in their minds.

Below is a VERY (hired-a-3rd-grader very) crude mockup. Includes a logo, company motto, company name, basic-basic-basic graphics (crossing lines or something like that) but still would leverage the personal, "handwritten" angle. 

• Has anyone tried something like that? 
• Does it really even matter? Would the more professional image help at all with marketing to motivated sellers? (absentees for example, I know probate and other targets are different animals)
• Would this hurt you or negate the personal handwritten aspect because now you are coming across as the corporate, cold as steel, don't care about you acquisitions officer?

@Joshua Gordon What ever came from your first big YL mailing? Sounds like you started off great.