How to See my First 100 Houses

How to See my First 100 Houses

Austin, TX · Member since 2013 · 40 posts · 2 votes

Hey Everyone!

I have spent a bunch of time reading forums and blogs and listening to BP podcasts. The recurring first bit of advice is to make basically my business plan. Why I am going into REI, my price range, my niche, my financing strategy, as well as finding a mentor and developing a marketing plan and exit strategy.

I keep hearing over and over to go look at 100 houses, basically meaning to look at all the houses in my territory to get a beat on the market.

I did a tour of about 10 with a realtor, which was nice because she was able to get me inside the houses and tell me some things I didn't know.

However, I don't want to make her drive me around to 100 houses while I just chalk it up to learning. How do I go about seeing all these houses and getting the most out of the experience? Do I just go look at the house after seeing the listing price? Do I call the agent listing each house in my territory and set up appointments?

Thanks in advice for any advice,

Christopher

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Residential Real Estate Agent · Cookeville, TN · Member since 2013 · 1k+ posts · 948 votes
12y

I agree with J Scott. And then stop wasting time with a business plan, a marketing plan, a website plan, an SEO plan, an entity plan, a business name, a logo and all the other stuff that gets newbies bogged down. Go find a great deal and buy it (or get it under contract) and sell it.

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  • J ScottPro Member
    Moderator
    Investor · Sarasota, FL · Member since 2008 · 18k+ posts · 17k+ votes
    12y

    Open houses or call the listing agents. Though my favorite method is getting your real estate license and letting yourself into all the houses yourself...

  • Residential Real Estate Agent · Cookeville, TN · Member since 2013 · 1k+ posts · 948 votes
    12y

    I agree with J Scott. And then stop wasting time with a business plan, a marketing plan, a website plan, an SEO plan, an entity plan, a business name, a logo and all the other stuff that gets newbies bogged down. Go find a great deal and buy it (or get it under contract) and sell it.

  • Real Estate Investor · salem, OR · Member since 2013 · 105 posts · 32 votes
    12y

    there used to be a sports commercial for Nike

    "Just do it"

    Get into action, you are going to make mistakes no matter how much prep you do.

  • SFR Investor · Dallas, TX · Member since 2011 · 604 posts · 243 votes
    12y

    I agree totally with @Bryan L. , you can have all the written plans you want (and you should have some), but the plans will change as the market changes, as you get to know your area better or other areas.

    go look at anything vacant on your own,,you don't have to get inside to have an idea what the house is like (and the listing agent probable has pics of the interior so you can tell the condition.

    You want to not make a mistake, but remember until you start taking action (and you are taking action by looking at those houses), nothing happens....

    Make sure you have all your 'ducks in a row' financially to be in the position to buy the house when you find the first one

    andy

  • Jerry W.Pro Member
    Moderator
    Investor · Thermopolis, WY · Member since 2012 · 4k+ posts · 4k+ votes
    12y

    @Christopher Sica I agree with all of the above advice. On Zillow or similar sites you can look at the price of the property and see pictures of the inside. Often it has the most recent sale price and date, and many times you can look at prices of others in the neighborhood. Since it contains square footage and year built it really help compare properties. Good luck.

  • Real Estate Investor · WI · Member since 2013 · 125 posts · 33 votes
    12y

    Hey Christopher, You have a good question. I feel the same way with My realtor.

    We haven't done a deal in over a year and She has probably shown Me about 35 properties (I requested) since. And about 30 before the last deal.

    I try to research as much as possible before hand and sometimes know more then She does about a property. To Her credit She kept asking Me to go and see the last deal several times before I actually went to see it in person, it was ugly in pictures the numbers looked iffy, the taxes were to high, it was vacant, two years on the mls ect. I had no interest.

    It turned out to be My home run. I think about the RE license all the time but not yet. I also think about slipping My Agent an envelope.

    I thought about asking here on BP, if greasing your Agent was OK and I guess I just did.

    John ;)

  • Residential Real Estate Agent · Cookeville, TN · Member since 2013 · 1k+ posts · 948 votes
    12y

    @John Adamkewitz - In most states, a Realtor has to be paid "through the broker". If you want to pay her a bonus, you can surely do that. Or, you might just want to give her a gift card for a nice meal.

  • Investor · Chicago, IL · Member since 2013 · 2k+ posts · 1k+ votes
    12y

    @Bryan L. is a smart dude. He is correct on saying forget about a written business plan, a website, SEO, putting up an LLC and all the preparatory things that you need to do BUT WILL NOT MAKE YOU MONEY. You have to spend 90% of your time finding a good deal and talking with prospective buyers or in activities that will make you money first.

    Regarding your original question though, how I did it in the past or to get my first deal is to literally make 50 offers on the 50 houses that my realtor showed me. You have to make offers - lots of them. Do not be afraid to make offers. You can always put contingencies in there to help you back out of the deal if it does not make sense to you. If I am a realtor, I will be pissed if you waste my time and my gas looking at 100 houses and you did not make a single offer.

  • Austin, TX · Member since 2013 · 40 posts · 2 votes
    12y

    Wow.

    Sounds like it's time to just get busy.

    Its funny how people are able to spot my biggest weakness with just one post. I am all about gathering information because I want to make the perfect approach but never actually pull any triggers.

    @Bryan L. Thanks for the input. I will go out and find a great deal and vet it on BP and with friends and pull the trigger.

    @Andy Collins I am working on the financially have my ducks in a row part. I have a bunch of cash but I have poor credit from some stupid decisions in college. So i am trying to get a better credit score with a credit card but its not really changing. I was hoping I could do Seller financing or maybe bring on a partner for co-sign.

    @J Scott I have always wanted to have the license and I have some free time this summer so maybe I'll take that idea and run with it rather than having to schedule stuff with other people all the time.

  • SFR Investor · Dallas, TX · Member since 2011 · 604 posts · 243 votes
    12y

    My realtor has sold me a few houses that she has never seen,,I go by and look at a dozen houses or so every few days when I'm in the mood to buy,,I actually fill out the contract, scan and send it to her with a copy of my earnest money check,,,,other times (like a short sale I'm in the middle of), she make it for it with all the hassle she is putting up with getting the deal done.

    Anytime she is meeting me at a property , she knows I am planning on writing a contract if all checks out,,,be respectful of your realtors time,,,they can really help you

  • Investor · Brighton, TN · Member since 2013 · 78 posts · 17 votes
    12y
    Hello, I understand both sides of the conversation here; pressure to go look as many as possible and then feeling the pressure of looking at so many. I feel like I'm wasting the agents time. That's where I'm at now. I am still new to REI. I have only looked at a few properties that seemed like too good to be true values and the ARV turned out to reflect that wonderful price. However, that's not a bad thing, just saying. The point that was made to not worry with letting the systems and plans bog you down and is true to the extent of the type of personality one has. You see, I have felt like quitting and thinking this isn't for me many times because I didn't know how to setup a LLC, for example. I didn't know contracts. I don't want to bother agents......etc. I could go on and on. That's is when I decided to go ahead and get my license. I am almost done with it and I'm glad I made the choice to go ahead and set up the business, make plans that can adapt, while getting my license. Now I have a operating business while obtaining my license. I don't worry about the pressure of looking at so many properties. I have met some agents give them my business card, explained to them what I'm looking for and I keep an eye on homes in my area until my license is done. If a property comes along, great! I also make sure to attend my local meetings. Now I'm not even going at touch the subject of finances! But one does need to know how to acquire a property when it comes along. That's part of the plan! The part about personality, I am the type of personality that needed to have all of these things done before I felt completely confident and comfortable. Didn't mean to ramble on but this conversation struck a lot of thought in my mind.
  • Hamilton, NJ · Member since 2013 · 20 posts · 2 votes
    12y
    Bryan L. So interesting that you would suggest to hit hit the pavement and get going on making deals. Most often I'm told as a newbie to get all those things in order first so we'll have a focus on the goals we're trying to achieve. I think I like your idea because I am a very hands on person, I learn better doing than just learning through reading. I too just hooked up with a realtor to start learning the area as a way of learning my local market. I also intend on attending open house to not bog down the REA. Klee
  • Residential Real Estate Agent · Cookeville, TN · Member since 2013 · 1k+ posts · 948 votes
    12y

    @Kleefenzie Lightner - A lot of newbies get bogged down on stuff that really doesn't matter. You truly don't need an entity, a business plan, a marketing plan, a brand, a logo, goals, a mission statement, etc. You need a vision, education, and action.

  • Residential Real Estate Agent · Cookeville, TN · Member since 2013 · 1k+ posts · 948 votes
    12y

    @Christy Glenn - I understand the personality thing. So many people want to tell you that you can't be successful in life without have written goals, and written plans, and written budgets, and blah, blah, blah. Well, that ain't my personality at all. I know what I want and I know what I want to do. It's in my head. I don't need to write it down. And I don't need Zig Ziggler types telling me that I must have everything written down.

    Now I understand that there are people with the other personality. But truly, you can be successful in this business without ever choosing a business name, without ever ordering business cards, without ever setting up a website, without ever writing a business plan, and on and on. But you can NOT be successful without looking at houses and making offers. And so many newbies never make the first offer or never get a house under contract or actually buy a house. And they've spent thousands to "set up their business", and never make a penny.

    So, how many offers are you going to make this week?

  • Contractor · Easton, PA · Member since 2013 · 152 posts · 58 votes
    12y

    having a license is key, because I look at over a hundred homes each day on the MLS. The numbers have to work first of all. You have to buy right and it is you that determines that and not your agent. Every day I open up my search that is on my initial search " Bank Owned and Estate Owned". I don't hear much about it on this site but estates sometimes are great bargains! In my geographical area there are about 90 of each on the market at any one time. Once I see some properties I like and make financial sense then I go look at them.

    The thing with being a realtor is you see the properties right when they hit the market or you see when there is a PR.iCE drop. I have purchased properties the day they were listed or the house was on the market less then a week. I could do what I do unless I had my license. I unless you have a partner that has a real estate license or your an attorney that gets estate homes you will have a hard time getting the best properties. Get a license and be in an office where there are agents that do this business. I work with another agent that feeds me deals that don't fit his criteria but fits mine so now I have another pair of eyes working for me.

    Hope this helps.

  • Hamilton, NJ · Member since 2013 · 20 posts · 2 votes
    12y

    @Bryan L.

    Makes a lot of sense. Thanks for the insight!

  • Landlord and Rehabber · Newton, MA · Member since 2010 · 2k+ posts · 877 votes
    12y

    @Bryan L. - En Fuego!

    Awesome points. Nothing wrong with getting some of that stuff in order but just do it. Naming a business, making a logo, getting a phone number and URL and ordering business cards with all that stuff on them should take a few hours over the course of a few days not 6-12 months of anxiety.

    When getting started get educated, get out and see places and make offers.

    Nobody is going to sell you their house if you don't let them know you want to buy it.

  • Investor · Brighton, TN · Member since 2013 · 78 posts · 17 votes
    12y
    Bryan, I wasn't trying to disagree, I was actually agreeing with you. I was just agreeing with you from my perspective. I actually had a misunderstanding of that it would be better to have all of these things in the beginning. I DO AGREE that all of these things is not required to be successful. I had never worked with REI before, therefore, I didn't know any better.
  • Landlord and Rehabber · Newton, MA · Member since 2010 · 2k+ posts · 877 votes
    12y

    @Christopher Sica

    You do have to go out and see places when you are getting started. It is good to be sensitive of wasting your agent's time. Sometimes you have to realize that as an investor that you are going to look at a lot of places you aren't going to buy. However you should be putting offers on anything that is even close to working and at some point you will buy something and they get rewarded.

    However in your case I do think that you should make sure that your agent knows YOU can't get a loan on your own and that you want to find a place that the seller will finance you. Most MLS stuff won't really have that work so you ARE just wasting their time for your education.

    If you really need to bring in partners or use owner financing to be able to buy anything you need to market to non listed properties. As for looking at places to get a feel for the market then hit Open Houses and go out to every lead you get from this marketing at first. As in go and look at the house and talk with the sellers without doing much screening (normally a waste of time but if you need to learn houses and talking with sellers chalk it up to education time).

  • Specialist · Rockland, MA · Member since 2010 · 7k+ posts · 2k+ votes
    12y

    @Christopher Sica

    Welcome. Locate and visit 15 properties look at the area, neighborhood and as much of the property you can see, pick 3-5 worth getting into that your willing to offer on now you max your time and the agents.

    Go to IREM.org search for ARM certified property managers call 5 ask them what parts of the city they like and dislike and why, what they see them selling for what expenses run per unit per category. Ask if they know of any properties coming up for sale.

    Your international connections should be a huge source of private money. When your looking for PM the business plan should be a useful tool remember its educational in nature and a living document.

    Good luck

    Paul

  • Wholesaler · Dayton, OH · Member since 2013 · 172 posts · 16 votes
    12y

    @Chuck W. I'll eat nacho's to that.

  • Flipper/Rehabber · Tampa, FL · Member since 2008 · 403 posts · 109 votes
    12y

    @Christopher Sica

    I think you have it backwards, dude. i would make your business plan the last thing you do. start at the end and work your way back. put it on a napkin. and, if it's too much to fit, then it's too complicated. this is one of the first things i do with my new students. here is an example:

    i ask... how much money do you want to make flipping houses?

    answer (example): $10k/mo

    so, lets make that happen by working back from there.

    $10k/mo = 2 deals = 3 contracts = 105 leads = marketing plan/business plan

    ensure your success by quantifying your business. and, if you don't hit your goal, then all you need to do is look at the numbers.

  • Austin, TX · Member since 2013 · 40 posts · 2 votes
    12y

    This was an amazing thread. Thanks everyone!!!

  • Investor · Riverside, CA · Member since 2011 · 2k+ posts · 3k+ votes
    12y
    Originally posted by @Bryan L.:
    @Kleefenzie Lightner - A lot of newbies get bogged down on stuff that really doesn't matter. You truly don't need an entity, a business plan, a marketing plan, a brand, a logo, goals, a mission statement, etc. You need a vision, education, and action.

    But I'm really trying to come up with a cool company name so I have something to put on my business cards!!!

  • Real Estate Investor · WI · Member since 2013 · 125 posts · 33 votes
    12y

    @Christopher Sica My RE Agent just called Me to thank Me for a referral I gave out about a month ago, that ended up with a "Good offer" yesterday. She was very happy.

    Now I wont feel so bad about having Her show Me the next 30 property's. Lesson learned, keep handing out Your RE Agents cards!

    John

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