All Forum Posts by: Wendell De Guzman

Do you want FUNDING for your deals? I do GAP FUNDING - meaning, I can partner with you and fund even your downpayment on a hard money loan. That means 100% funding!

If you're in Chicagoland, do you want access to wholesale and JV deals before everyone else?

Do you want to see my proprietary software that allows me to analyze deals not just based on the numbers but also based on the ZIP CODE it is in? This is so good - I am thinking of filing a PATENT on it. More importantly, this software has made me money and prevented me from making costly mistakes by buying in the wrong area.

If you say "YES" to any of the questions above, watch my Facebook Live Event.

I did a Facebook LIVE Event yesterday and the video already has over 1,000 views!

Check it out

http://Facebook.com/TheDiligentWholesaler

 Hahaha - OK...what about this?

ARV: $237,500

Repairs: $7,000

Acquisition price: $162,500

Is this a good deal or a bad deal?

 You're very welcome. Even if your intent is to wholesale a deal, it makes sense to line up funding and have cash in your bank account so you can close on deals quicker. When word gets around that you can close, you will have more people forwarding your deals.

 Well said Tammie. I also lend money to other investors as well and we also broker hard money. If they don't know how to calculate the profit in a deal, I don't lend them money. I tell them to have something like this to calculate their profit:

 Well said Elpidio and thanks for sharing that. The first deal is always the hardest. It took me 3 months to buy my first deal. I probably over-analyzed 10 or even 20 deals before finally getting my first deal. So you're even better than me since you only have 1 deal you missed out on! (LOL)

Thanks @Brian Gibbons

 totally agree with you. I teach my team different ways to monetize a deal - we have 53 ways to make money on a deal (53 different combinations of entry and exit strategies). Here it is:

One of phrases from that book that stuck with me is

"If you're a major COG in the organization, you're also the major CLOG."

And I find that to be true. When I started my real estate business, I make all the decisions and as it grew, that limited the growth of my company. Now, I have 6 full time employees plus myself (2 acquisitions, 2 sales, 1 project management and 1 who oversees the operation). 

Also, if I am a major COG, then I can't really leave the business.

Now, with all these folks I trained, I don't make the day-to-day decisions on what property to acquire, which property to sell or lease, etc. I can now focus on expanding the business and raising capital so we can do increase our portfolio.

 Michael, you're funny and I agree with you. Politicians try to say whatever to get elected so the answer as to how having Trump as President will affect real estate investors - is that no one really knows. Whatever he said to get elected is not necessarily what he would do - so it's a "wait and see".

But, the key in real estate investing - as in any investing - is to buy properties (or investment) with good fundamentals. Buy low in good locations and you won't go wrong - regardless of whoever the president is or regardless of how the economy is doing.

I was a newbie once (back in 2003) and I was so scared to buy my first deal. It was overwhelming as well since there were so many things you have to think about.

Today, buying a house is "routine" for me. I built a real estate company that has 7 full time employees and we buy 1-2 houses a week (some wholesale, some lease options and some are fix-n-flips). Just today for example, we are closing on 2 deals today (Virginia Glen Ellyn and Wesley in Berwyn) and I am not even in these closings (since I have a team).

Anyway, if you're a newbie and you have not bought your first deal yet, let me simplify the process for you so you're on your way to BUYING your first deal.

Step 1: Line up CASH and your FINANCING - this has always been a debate: which one do you do first: find a deal or find the money? A year or two ago, I would say line up a good deal first. However, given how competitive the market is now, you should line up your cash and financing first. Why? Because if you can show a broker you have cash in your bank account and you've lined up financing from a hard money lender and a conventional lender, then the broker will know you can close a deal. If you can't proof up (or provide proof of funds by showing your bank account statement), then brokers and wholesalers won't deal with you.

How do you get the cash?

I wrote a post on how a newbie can get $40,000 or more through an unsecured BUSINESS LINE OF CREDIT. In fact, the title of the post is How You Can Fix-n-Flip with $0 Cash Out. Here's the LINK to that post. 

Also, you should line up HARD MONEY FINANCING  as well as CONVENTIONAL FINANCING. Hard money is good for buying a house that needs work while conventional financing is good for refinancing out of hard money and now you can keep the house as a rental because conventional financing has very low interest rates.

Step 2: Learn what a Good Deal Looks Like - pop quiz:

If the ARV (After Repair Value) or the value of the house when it's renovated is $200,000, your purchase price is $150,000 and the house needs $20,000 in repairs...
Question A: is this a good deal?
Question B: is the profit $30,000?

If you answer YES to both questions - then you don't know what a good deal looks like. If you answer NO to both questions - then that's the right answer.

How do you know the profit on a deal? Use the calculators here on Biggerpockets.

Another aspect of learning what a good deal looks like is getting yourself familiarized with different exit strategies. For example, a property that does not look good as a fix-n-flip, could be a very profitable deal as a lease option. We love lease options! We make $50K, $60K even $80K on our lease option properties. Here's a comparison of the profit you will make on a $200K house (ARV) that you buy for $120K and you put $30K of repairs into it - fix-n-flip vs. lease options.

Step 3: Look for DEALS Using My Science of Finding Deals

I started a post more than 6 months ago entitled "The Science of Finding Deals". It's a 6-part series of forum, blog and video posts - all here on Biggerpockets. Here's the LINK to post #1 (you can search it in the search bar by putting "Science of Finding Deals".

In these 3 steps, if you click on the links, you will learn MORE vs. what a guru will teach you. 

And it's all FREE.

So - when will you buy your first deal? 

What struggles or challenges do you encounter? Is it lack of deals, lack of funding or not knowing what to do? Share it here and let BP Nation help you so you will finally BUY your first deal!

 James, yes we use hard money to buy and renovate the property, then 6 months later or earlier, we do a cash out refinance with a conventional loan. You can also buy the property with all cash and then do cash out refi with conventional. Lastly, you can also just use conventional if the property does not need any repairs.