All Forum Posts by: William Johnson

@Wendell De Guzman  What would you do if  somebody came to you with a great deal that met all your criteria but they didn't have a much experience as you would want? 

Hi Kelvin and welcome to bigger pockets.

My answer to you will depend on many factors.  If you want to instill confidence in the seller then it is about how you structure your offer and how you act when you meet with the agent.

If you are confident that you can easily get the money to purchase the property than don't even make the offer conditional on financing.  Make it a cash offer with proof of funds within 10 days of the acceptance of your offer, afterwhich if you fail to show proof of funds (i.e. an approval letter from your mortgage broker) than the offer is null and void.

You also could make the offer conditional upon you performing your due diligence.  If you want to convey confidence than just act confident.  When the agent tries to put you through the ringer than have responses prepared, the shorter the better.

i.e. "We will need to see your bank statements"

Response "I will provide proof of funds within 10 days of my offer being accepted, I will not waste my time doing that until I have an accepted offer."

Whatever you do don't babble, that conveys a lackof confidence.

My opinion is based on my area of operation and the particular challenges that it holds. For me the most important skills to work on are evaluating the ARV, evaluating the rehab costs, estimating what your holding costs are going to be, creating many personal connections with other real estate professionals through networking, making offers, managing renovation projects and negotiating with sellers.

Unless you have already mastered these skills I believe they are more important than learning how to renovate with your hands.  There are many different ways to look at it though so for your particular case it may not be the right advice.

Thank you for sharing your story it reminds me very much of the autobiography of Benjamin Franklin and his principals of success. 

Here is a followup to the above post for my first deal in Laval, Canada.

I met with the women and signed her.  This is about as ideal as it comes to a good situation to get a deal.  She was getting ready to go to the bank and hand them the keys thinking that it would be like taking clothes back to Walmart.  I explained the advantages of selling to me over get the home eventually foreclosed on and she signed with me.

I spoke with her about the best strategy to get her ex to sign and we decided on me calling him and directly explaining the situation and attempting to get an appt. where I could get his signature.

I called him but he wasn't ready to meet me and we decided it would be better if she met with him to get his signature.  She will be meeting with him on Christmas eve to get his signature on the purchase contract.

In the meantime I am attempting to wholesale the deal although I would much prefer to buy it myself.  My GF is not yet comfortable with the idea of flipping so I believe I need to wholesale a few times before she will be comfortable with me buying and flipping or buying and holding.

This is exhausting and I can only hope that once I attain mastery (after 10,000 hours so 5 to 10 years) that it will not be so fatiguing to go through all this for every deal that closes and for many deals that will not end up closing.

Closing date is set for 15 january and I really need to find somebody to take this deal.  I am not sure whether I should just contact all buyers at the same time or if I should take them one at a time, or maybe two at a time.

Thoughts anyone?

Tim Taylor is unquestionably the real deal.  I was mentored for free by one of his students (who paid the money for his course )  and I can tell you that you will get your money's worth.  Better yet do what I did and find one of his students and offer them value to learn his stuff without the large price tag. 

I have my first scheduled signing for a deal tomorrow morning.

Details:

Amount to be paid: 105,000

Resale value as is (to wholetail @Michael Quarles ): 140,000

City evaluation: 204,400

Renovations needed to reach ARV: 50,000

Exit strategies possible: 

1.  Sell as is for a rough net profit of 20k

2. Renovate and resell for a rough net profit of 15 to 30k

3. Rent out after renovating for a rough cash flow of 200 dollars per month with possibility of refinancing to take cash out for other investments.

Possible hindrances to closing the deal.

1. Ex boyfriend who I need a signature from who has been out of the picture for four years.

Actions that I can do to maximize my chances of closing this deal.

1. Followup with women tonight to remind or confirm appt for tomorrow morning. It will also serve to determine whether or not she has reached her ex boyfriend

2. Followup with the son to offer him the referral fee of 500 dollars and also to see if he can be of help to ensure that his mother is present at the meeting and to see if he could accompany me to his fathers home to get the second signature that I need.

3. Get the women's signature and attempt to contact and close the ex-boyfriend myself.

I am getting closer to closed deals, even if it is just a few percentage points at a time.

Next step to work on my business is to refine my website so that I start getting phone calls from that and, also to order business cards.

@Amaika Chib

Welcome to BP!  This site is great and as long as you are willing to invest time in your education and work hard for a long time and also ask a lot of questions questions you are virtually assured of success. 

Three pieces of advice:

1. Start before you are ready. 

2. Learn how to find deals by working for experienced investors for free. 

3. As you work for these experienced investors build up your contact list. 

As you push forward and learn you will see that assignment of contact is no big deal, as long as it is not explicitly forbidden in your promise to purchase you can sell your contract. The only concern is doing it in a way that does not create bad blood between yourself and the original seller.  I prefer the idea of whole tailing (see podcast 71) because it pays better and is less time sensitive. 

@Olivier Lepage I wish I would have gotten this message last night because I have a meeting this morning at 11 a.m. I would have invited you to come along with me. Let's hope I close it anyways. At any rate you can be sure that I will be in contact with you if I do close this deal.

@Rob L. I have not done any mailings, this is all Bandit Signs and networking.  As you can imagine it would be impossible for me to meet face to face with all of these prospects but I agree that I need to get more face to faces, at the very minimum with each person who verbally agrees to my price over the phone.  I do use @Michael Quarles "Do you prefer x time on y day or, a time on b day?" and it does work but not every time.

Any other ideas on how to get more face to faces?