Real Estate Wholesaling

[cheshire]

Very nice. You can damn well believe I just scribbled that down to remember.

Have you ever considered a property manager or use a management company for things like that? Or would that eat into net revenue a bit too much?

I considered it but then I just decided to start my own Property Management company to manage my properties and other investors properties. So far this company has 2 employees. Me and a realtor.

Do you run credit checks & employment verification? Call references?

I don't do credit checks, let the corporate landlords waste their money on that. I do check references and I do verify that they are gainfully employed and have been for some time. I don't rent to the guy that has had a job at McDonalds for 6 months.

I imagine with some of these cases (low income) things can get complicated ("my brudda wanna live hurr too and wit his check and mah check together we be payin dat rent") I'm being a bit facetious but you know what I mean. I imagine the headaches can be substantial.

Yup this happens, which is why I go in every month for the HVAC thing. It's obvious when extra people are living there. I don't do mobile homes so I imagine this market is much worse about this kind of thing as its the bottom of the run and 12 meth heads typically go in to rent one. If you do trailer homes I wouldn't worry too much about damages or how many people are living there. You can buy used mobile homes for less than $1000.

Still very, very appealing since the barrier-to-entry looks cheap and there is NO SHORTAGE of cheap land and mobile homes within a 100 mile radius of me.

It is appealing. Mobile home tenants are the most uneducated group of tenants you'll ever have. You can sell them a $1000 mobile home for $250/mo for 10 years. As long as the monthly payment is good they don't care how long the term is.

Mobile home people deal on terms not dollars. So maximize the terms for them and the dollars for you.

 

[cheshire]

1. You don't find the best deals with an agent.
So how do go about it then? How do you buy a house without an agent?
He is not the kind who likes to do a lot of research.. He likes to outsource and then go look.

Maybe he shouldn't be in real estate then. You can use an agent, sure. But she's just gonna go to realtor.com and look in the MLS. The good deals are gone before they even are listed with an Agent.

2. You don't want to buy good houses. You want to buy the absolute shittiest house in an okay neighborhood.
You mean, renovating and shit will be more cost effective? He won't do anything himself.. He just isn't the kind who would even assemble an Ikea desk. Give him computer parts and he will happily assemble it though. He works and works and works and then work some more...

I don't know, I buy "good" houses that only need maybe $1000 in repairs. I let the other investors have the pieces of shit. If he can't renovate things himself tell him to hire a good contractor.

3. You're talking about buying a residence in Silicon Valley. We live in Merika where most home buyers aren't fighting w/ cash offers over a condo without beach access.

Then what exactly happened with all his deals? These houses were just close to his office, and good neighborhood.

Please give me some tips.. He is really not into this real estate thing. And I think he is doing it all wrong...

Sounds to me like he doesn't have time to be a real estate investor. He just wants to give his money to someone and have checks roll into his mailbox every month. Good luck. I'm sure there is an eBook on Wafo for him though. Shit like that takes years to setup, or a big cash outlay. This guy sounds more like an armchair real estate investor. I tend to eat those guys for breakfast. He just wants to sit at work and say "Yeah I own X number of rental properties, look how much smarter I am than you with my real estate mogul smarts"

Tell him to get his fucking hands dirty... he might even like it.

 

[Beach Affiliate]

Mobile home tenants are the most uneducated group of tenants you'll ever have. You can sell them a $1000 mobile home for $250/mo for 10 years. As long as the monthly payment is good they don't care how long the term is.

Mobile home people deal on terms not dollars. So maximize the terms for them and the dollars for you.

I just came.

Thank you, Cheshire. You've successfully thwarted any and all of my previous plans for work for the day.

BRB building my mobile home dynasty.

 

[BigWill]

I can't help but wonder if you were serious about that link or not. Because that looks like some pretty interesting passive income. (no redneck)

100% Serious.

Its a very good place to start / train and does not require much capital.

 

[cheshire]

I just came.

Thank you, Cheshire. You've successfully thwarted any and all of my previous plans for work for the day.

BRB building my mobile home dynasty.

Haha, sorry. Real Estate is my passion. I do IM to fund real estate so if you wanna talk, bounce ideas, etc .. PM me for some contact info. That Pretty much goes for anyone here.

I started in Mobile homes.
Moved up to single family homes
Working my way to multi-family apartments now.

Also if you're already a high net-worth real estate investor I'd like to talk to you too. Seriously hit me up.

 

[Beach Affiliate]

Haha, sorry. Real Estate is my passion. I do IM to fund real estate so if you wanna talk, bounce ideas, etc .. PM me for some contact info. That Pretty much goes for anyone here.

I started in Mobile homes.
Moved up to single family homes
Working my way to multi-family apartments now.

Also if you're already a high net-worth real estate investor I'd like to talk to you too. Seriously hit me up.

I just ordered the book that Big Will mentioned. ($40 new...$500+ used...lol wut)

I've been looking for something to park my cash into that will yield returns, that I control (important to me), and that I can dip my toes into with minimum risk (and again, maximum control).

This looks very good for that. The IM monies will work quite well here.

I'll shoot you a PM when I do some local research so I have can speak intelligently instead of bombarding you with stupid questions.

Thanks again.

 

[JoseArmando]

A few years ago I was doing 2-5k real estate leads a day (including mobile homes) and would love to know you guys back then to work on it with some of you.

 

[blogspotter]

Maybe he shouldn't be in real estate then.
-- He is looking to buy his own house. His first.

I don't know, I buy "good" houses that only need maybe $1000 in repairs. I let the other investors have the pieces of shit. If he can't renovate things himself tell him to hire a good contractor.
-- I asked a question to Danke when he said that I should look at shitty house in good neighborhood.

Sounds to me like he doesn't have time to be a real estate investor.

-- He is looking to buy his own house for personal use. I just asked because you guys seem to know a lot about buying homes, personal use or otherwise..

I will rephrase my question. I will ask in first person. Think of myself as the brotha.

I have been looking to buy a house past few months. I have more than 25% of my budget in my bank account. I have excellent credit score.

I submitted by proposal to at least 3 great condos and a house. They sold the property to some other person, all the time. They were of course in great locations near all the Big Tech companies.. So, am I not gonna get a house of my liking. Properties that I didn't like are still lying onsold. All the properties I liked, sold. In one I even counter offered.

That is my situation.
I have solid employment history. 3 Tech Companies. Never laid off. Good salary growth.

So, how do you send a proposal so that the seller finds me to be the best match.

 

[cheshire]

If its for personal use just hire a realtor. It sounds like he doesn't want to get into the knitty gritty of it.

 

[Ailia]

I have been surfing, found the following site valuable...
Step by step way to conduct the business.
Wholesaling Real Estate Step by Step

It is great...

 

[danke]

Maybe he shouldn't be in real estate then.
-- He is looking to buy his own house. His first.

I don't know, I buy "good" houses that only need maybe $1000 in repairs. I let the other investors have the pieces of shit. If he can't renovate things himself tell him to hire a good contractor.
-- I asked a question to Danke when he said that I should look at shitty house in good neighborhood.

Sounds to me like he doesn't have time to be a real estate investor.

-- He is looking to buy his own house for personal use. I just asked because you guys seem to know a lot about buying homes, personal use or otherwise..

I will rephrase my question. I will ask in first person. Think of myself as the brotha.

I have been looking to buy a house past few months. I have more than 25% of my budget in my bank account. I have excellent credit score.

I submitted by proposal to at least 3 great condos and a house. They sold the property to some other person, all the time. They were of course in great locations near all the Big Tech companies.. So, am I not gonna get a house of my liking. Properties that I didn't like are still lying onsold. All the properties I liked, sold. In one I even counter offered.

That is my situation.
I have solid employment history. 3 Tech Companies. Never laid off. Good salary growth.

So, how do you send a proposal so that the seller finds me to be the best match.

tl;dr version

If you can't delegate and hustle...

Fuck off.

 

[flaw3d]

Honestly their realtor needs to get their shit together. I honestly would recommend getting someone else.

Try to find out who sells the most volume in that area and go directly to them. Have them put you on their list of when homes are listed and about to be put on the MLS. Agents are greedy so if they can double end a deal and the buyer (your brother) is a good buyer then they make sure that he gets it.

To update everyone else on my RE ventures.

A.) Got into trustee delay, pretty good recurring income.
B.) Foreclosure Defense - Kinda after the trustee delay we sue the bank and get paid.
C.) Eviction Delay - Get paid to have delay someone getting evicted. Yeah it's a douchebag biz model but it pays bills and it's legal.
D.) Looking into transaction funding. Don't have that large of a capital but returns of 1-2% for 5-7 days is not bad.
E.) Building out some sites to get real estate leads who are motivated sellers. Currently running nationwide and getting some good leads however shortsales are still taking 7+ months to close.

 

[blogspotter]

tl;dr version

If you can't delegate and hustle...

Fuck off.

Hey Chill out bro.
I was just asking a personal question, as we are not experienced in "Home Buying" and my bro hasn't been able to buy a house he likes despite having more than the required down payment, and have great eligibility.

Not sure what you mean by delegate and hustle. You only said we should NOT go to a realtor. What has hustling got to do with buying a home to live in?

Anyway I am sorry for wasting your time...
Thanks for taking out some time to reply though.
Also Thanks to the others who gave some sound advice.

 

[cheshire]

Hey Chill out bro.
I was just asking a personal question, as we are not experienced in "Home Buying" and my bro hasn't been able to buy a house he likes despite having more than the required down payment, and have great eligibility.

Not sure what you mean by delegate and hustle. You only said we should NOT go to a realtor. What has hustling got to do with buying a home to live in?

Anyway I am sorry for wasting your time...
Thanks for taking out some time to reply though.
Also Thanks to the others who gave some sound advice.

My mistake I thought you were looking to buy houses for investment. Hit up a realtor, or use something like RealtyTrac to find foreclosures if that's your thing. Honestly if neither of you are handy I'd have a realtor find things within your budget and then hire a Home Inspector to come out and tell you if its falling apart. Typically home inspectors are cheap and well worth the cost. Even if he tells you the house is in good shape he can find things wrong with it to help you negotiate on price a little.

 

[johnmatrix]

Holy shit the numbers in this thread seem amazing.

Average house here is $500k (and our dollar is now worth more than yours).

Need about $100k for a deposit, the variable interest rate is around 7.36%, so on a loan of $400k we have interest repayments of almost $3000 a month to pay back the interest and the principal in 25 years.

Damn our strong economy.

 

[danke]

Hey Chill out bro.
I was just asking a personal question, as we are not experienced in "Home Buying" and my bro hasn't been able to buy a house he likes despite having more than the required down payment, and have great eligibility.

Not sure what you mean by delegate and hustle. You only said we should NOT go to a realtor. What has hustling got to do with buying a home to live in?

Anyway I am sorry for wasting your time...
Thanks for taking out some time to reply though.
Also Thanks to the others who gave some sound advice.

I was paraphrasing the quote I mentioned in my post...

 

[REIMktg]

@blogspotter . Are the cash offers from people buying their personal residence or for fixing/flipping? I know a lot of old areas in that area where buyers fix then re-sale becasue there are plenty of buyers willing to pay a premium for a fixed/ turn-key home. This would take a little more effort, actually not much. If he's been looking for a few months get me the addresses of the properties he was interested in and I will see if they were re-sol or for re-sale or not.

I am thinking what others ITT have already said, his agent is not very good.

If he does not have full cash, he can always go in with a full cash offer and then switch it out last minute to see what the bank says, if they want to pull the offer then do a transactional funding deal to seal it - but none of that should be necessary if he is looking for turn-key properties. Though that area is tough given all of the people around their with loads of cash.

Hit me up with questions and I will look at what I see if you want.

 

[charlesmartel]

Holy shit the numbers in this thread seem amazing.

Average house here is $500k (and our dollar is now worth more than yours).

Need about $100k for a deposit, the variable interest rate is around 7.36%, so on a loan of $400k we have interest repayments of almost $3000 a month to pay back the interest and the principal in 25 years.

Damn our strong economy.

Plus, if someone breaks into your place, you have to literally fork the intruder because of the country's restrictive gun control laws. At least in the US, you can shoot intruders dead in most places.

 

[johnmatrix]

Plus, if someone breaks into your place, you have to literally fork the intruder because of the country's restrictive gun control laws. At least in the US, you can shoot intruders dead in most places.

Yeah but thankfully we don't have a problem with crime, most of our malcontents are riding the mining boom and banking $150k a year.

 

[danke]

Yeah but thankfully we don't have a problem with crime, most of our malcontents are riding the mining boom and banking $150k a year.

Wow, it totally doesn't sound like the economic bubble the rest of the western world experienced--just years later.

You're right, Australia's economy is so strong... I mean, it must be the 18th largest in the world.

And if you're sensing any sarcasm, just flush your toilet. If it's flushing clockwise I'm probably being sardonic. Then again, most asset classes never go down in value, especially real estate...