All Forum Posts by: Walter Roby jr

I agree with @Jonathan Holmes. What makes you like that title company? Even though you have a done a few deals with them, continue to shop around and see what others charge to get your rates lowered. Also ask if they do free preliminary title checks so you can get in front of the problem immediately and let the seller's know its going to take some work so you may need a discount. As far as a non refundable deposit from your buyer... Don't do that if the fault is not their own. If it is the seller's fault that the price doesn't work then get a reduction and explain why. I put clauses to get my deposit back if the fault is of the seller ex: title is not clean, inspection, etc.

So here I am in the corporate world like many 9 to 5'ers here on BP and trying to build a portfolio of passive income. As we all know this takes time and is by no means a get rich quick play.

It seems about every few months someone new in the company gets laid off in each department. Although I am confident in my work and needs within the company, I continue to try and remind myself that my role is just a number that can be pulled at the slightest moment.

How can we as corporate employees combat unexpected layoffs aside from debilitating unemployment lines? Apply vacancy rate to your salary requirements.

The math is simple. Supposed that you see on average employees with the company who have been around for 5 years get laid off. Assume it takes them 6 months to find another suitable job (being conservative). That means 6 months unemployed / 60 months of employment = your 10% vacancy rate for an employer. Let's you make $60K per year. Add your vacancy rate on top and you get $66K as your new salary requirement. Now it may be a stretch to be asking for more than market value but that's when your analysis, pitch, and negotiation can take precedence. Also note that this is before taxes.

Also note that when you get the increase in pay, set this aside and treat it as future lost rent/pay.

Thoughts?

Get familiar with skip tracing. Contact the local assessor for owner info, skip trace them, make an offer contingent on inspections.

First see what the area standard is at other units. Do the tenants normally pay or do the owners (call rentals)? If the tenants pay then that should be a plus for you! Offer based on actual NOI and cap rates, not the seller's price. Then you can add value by sub metering the utilities back out etc.

What about refinancing to get the free money then rent it out and have someone else pay the bill and keep the property?

Figure out a marketing budget you can actually spend monthly and commit to that expense monthly. Consistency is the best marketing channel so just make sure you can commit to that for at least 6 months. Then fit the budget into the marketing types and execute on which one suits your current situation.

Ex. $500/month

Direct Mail @ $.50 = 1000/month = 250/week

Signs (if legal in your city) @ $2 = 250/month = 62.5 week

Ads $17/day

When you get the contract, you have to deposit at minimum $1 to have a valid contract. When escrow is opened (via deposit), they will order title reports from the company you choose and uncover any existing liens on the property including delinquent taxes. When you/or an assignee wires in the total funds required to purchase the property, they escrow company will use a portion of the funds to pay the delinquent taxes and other liens, prior to you or the seller getting paid.

Send me a PM I can help you out with contacts. I would let your escrow company know what the agreed upon terms are that you want in addition to the AOAA and they should be able to recommend the right solution. Additionally you could use a different contract from an attorney that has the contract drafted the way you want instead of using the Realtor forms.

Learn how to do basic maintenance, look for clean title deals on Craigslist, buy around $4k with less than 140k miles, drive for 5 years, maintain the condition, and sell with 200k miles for $2k.

I agree with @Jo-Ann Lapin to some aspect. Consider going to meetups, interviewing the various boot-camps and courses before going into Direct Mail all on your own. You could pay for some very costly mistakes or you can invest in your education and possibly shortcut the learning curve by learning from others.

But of course, try to get more educated in books and forums with RE investing then wholesaling in general before jumping into any programs. That way you are more prepared and can ask better questions, and essentially get more value out of anything should you decide to invest in your education.