All Forum Posts by: Daniel Francis

@Fabian Alvarado - I'm in Austin, but we have investor/agents in DFW, Austin, San Antonio and Houston.  We are coming there in February to do a luncheon about how to grow a business and make the most of leads.  Connect with me and I'll make sure we hook up in February!

Nice, Alisa!

The problem you would have with the 2nd buyer, assuming you don't take the deed to the property yourself, is that their lender probably won't approve the loan on a double close.  And they definitely won't approve an assignment fee (unless their loan is a portfolio loan from a local bank).

This is exactly why we advocate getting a license.  Any "hindrance" to your investing business is probably a myth, but when you embrace the creative and the traditional side, you can forget "exit" strategy and work more to sell the homeowners that you are their solution no matter what.

You may put it under contract and find there are no buyers at that price.... if you've convinced the homeowner you ARE the solution, its easy then to switch it to a listing and still monetize the lead.

Not to mention, sounds like MLS access would help you with your research.

Good luck!

If you are able to meet with the seller, I'm not sure I would "present a contract". I would try to negotiate a deal THEN sit with them and write up a contract. By talking to them, you can find out a lot more what they really need and the contract may take a whole new shape. You'd be surprised how quickly $90,000 cash can turn into -- Take property Sub2 with a loan balance of $86k plus drop-off a u-haul trailer and give them $1,000 cash for a security deposit on a new place.

I agree with Chris... find the deal first.  Once you do that, you can work the deal into a good set of buyers.

-- Post to your local REI Board/Club

-- Post to Craigslist

-- Search the MLS for cash purchases in that neighborhood in the last 2 years... call that agent (another reason we teach to have a license)

-- Search the MLS for active and rented in last 2 years... call the agent (finding landlords)

-- Drive the neighborhood and look for self-made "For Rent" signs... call the number

-- Put out "investor special" bandit signs

I wouldn't be concerned about the homeowner being "angry" if you set it up correctly.  Work on selling yourself as the solution... that really makes everything so much easier.  If you ultimately are the guy that gets them a price they can live with, they should be thanking you.

Of course, if you are worried about this, you could always close it in a simultaneous closing.  It won't completely "hide" you did a resale, but at least it does hide the amount you sold it for and probably easier to finesse with the seller.

I would actually be more concerned that "FSBO's" probably aren't the best market to hit up for wholesaling contracts. They tend to want more than full-price and are doing a FSBO to avoid realtor commissions (they want their cake and eat it too). I would rather focus on marketing to distressed sellers.

I can't say of there being state specific laws governing the HUD's or not... but generally HUD's are governed by HUD (hence the name) and that is federal law. I would think you could blind-side a HUD anywhere.

Nothing is a substitute for MLS access. You need it. Get licensed, or hook up with a very very friendly agent who will make you an assistant or otherwise get you access to the MLS.

I look at all comps individually to determine which are the most like what I plan to bring the house up to, then average those.

I am the investor half of an investor/broker marriage.  To me, that's the most powerful position to be in... to either be an investor/agent or be an investor/agent team!

We have drastically increased lead to appointment ratios and appointment to contract ratios (about 50% each) because we don't have to screen calls, we just make an appointment, and when we get there, we can offer just about anything.

I'm typically working on 4-6 investor projects (rehab, wholesale, owner-fi, etc) at one time while my wife is rarely listing less than 10 and usually closer to 15 at a time... and it all comes from marketing to distressed sellers.

Melding the traditional with the creative and being able to offer any solution.... that's powerful.

A good private eye should be able to get that for you for about $100.00