All Forum Posts by: Jose Flores

Hey @Jacob Pischer congratulations on your first deal.  If you decide to wholesale it you want to start marketing ASAP.  Start with craigslist.  Also, attend any local real estate auctions and pass out flyers of the house.  Last, attend any building supply auctions and pass out flyers.  Good luck  

Hey

@Jessie Lozano

Welcome, great questions. Finding a local REI group is very important. Also, having the right attorney on your team. This is difficult because 85% of real estate closings are traditional mortgage loan closings. Therefore many attorneys don't understand assignments; simultaneous closings; land contracts; structuring owner financing; or purchasing subject to. These are all strategies real estate investors use to build wealth and you want your attorney to be able to execute them. Good luck!!!

@Alexander Forrester

Inbox me and I'll send you my assignment contract when I get to a computer.  

Hey @Alexander Forrester what I have learned from my own marketing efforts and others that have really done well as wholesalers is that focus it what matters.  My advice is to focus on one marketing channel.  For me it was bandit signs.  I focused all my efforts on bandit signs.  I dominated my area with bandit signs.  That made all the difference.  If it's yellow letters for you.  Just focus on yellow letters.  

Hey @Bradley Bladon they are getting the deals from the MLS. The twist is that they are putting out a bunch of low ball offers to determine sellers' motivation. The more low ball offers the better chance of finding a motivated seller. I bought a house for 10k that was selling on the market for 55k. Given that it is still all in the presentation of the offer that counts. Good luck and offer on everything!!!

Hey @Dameon Pearson Let's start with question one. How do you estimate repairs. One is that when you walk into a house you need to know what the major components to look for are. Second is as you are looking at those components you need to know what the materials would cost at Home Depot and if you were to call a contractor what would they charge for labor. I have generated a list of all the material cost that you would expect to pay at Home Depot. Now that you know what material cost is we can move on to labor. There are two things you need to understand about labor cost. One is that many contractors will include material and labor in their estimates. That is why the material list is important because it allows you to easily subtract the material cost from the estimate to calculate labor cost. Second, is that there are two types of labor prices; retail home owner and investor friendly. Know what to look for; know cost of materials; and know cost of labor. A rehab checklist helps you accomplish this. So find yourself one to use as a guide. Your other two questions @Tim Herndon did a nice job answering.  Great questions and keep learning.  

Hey @Tim Illguth For a wholesaler the contract is an extreme important instrument to structure a wholesale deal. It is where you control the deposit you put up; communicates your “out clauses” to protect yourself in the evident you can’t find an end buyer. It is where you communicate your need for access to the property. This is just to name a few. The point I want to drill home here is that it is all about control. My rule of thumb is that if I am making 5k or less on the deal I will use an assignment. If I am making over 5k I will use a simultaneous closing. Here are the benefits and drawbacks of each wholesale deal closing. If you are closing using an assignment the benefit is that there are no closing costs. The drawback is that the buyer knows exactly what you paid for the property and the seller know how much you are selling the property for. This may be a problem if the seller or buyer thinks you are making too much money on the deal. If you are closing using a simultaneous closing the benefit is the privacy that seller does not know what you are selling the house for and the buyer does not know what you bought the house for. The drawback of a simultaneous closing is that you will have to pay closing costs when you buy the house and closing costs when you sell the property. Hope this helps. 

Hey @Rosalyn Reidt I would ask a real estate agent in your area for the contract they use. It's the contract that is most likely familiar to the attorneys in your area and the investors in your area. Remember when asking much sure you explain what is in it for them. Here's your script; "Hello my name is Jose Flores and I'm a wholesaler in the area. I just sent out some marketing pieces and should be hearing back from home owners soon. As you probably know I need to get houses a deep discounted prices in order to sell them fast. Given that many of the leads I get just don't fit my criteria. I would be willing to forward those leads to you. I don't want any referral fee but I do need access to an electronic copy our local real estate contract and access to the MLS. Is this a partnership you might be interested in?" Works beautifully. Hope this helps

Hey @Justin Turner I like Financial IQ by Robert Kiyosaki.  Not all about real estate investing but he covers principles that make you a smarter investor over all.  One thing he said in that book that always stuck with me was when he said "When people ask me if real estate investing is a good investment I tell them I don't know are you a good investor?"  It just highlights the importance of building your financial IQ.  Always keep learning!!!

Hey @David White I use Findcomsnow.com, sign up for your free account, log in, and under whats your property worth you are going to put in the zip code of the subject house. Now if you scroll down you will see 3 categories cash buyers, private lenders, and retail. We are going to go through each of them looking for the lowest comparable sales. Given that the Multiple Listing Service, or MLS is the best resource to use. And this is how you get access to it.

Step 1: Find a local real estate agent to work with.

Step 2: Now that you have a real estate agent you will tell them what you do and explain to them what you can do for them. That's the twist; not what they can do for you but what you can do for them. Here is your script. Hello Mr. Agent my name is Jose Flores and I am a wholesaler in the area and I am looking for a new real estate agent to work with. I have sent out some marketing material this week and I am expecting to hear back from sellers inthe near future. As you probably know I need to get properties under contract at deep discounted prices in order to sell them fast. Therefore, many of the sellers I work with do not meet my criteria. I would be willing to forward their property address and contact information to you. I don't want any referral fee, but what I do need help with is getting comparable sales from the MLS. Is that something you can help me with?" The would give them my search requests and have them email the comps the first few times. Hope this helps.