$1000 for a coach on finding motivated sellers?
Investor · Houston, TX · Member since 2019 · 274 posts · 61 votes
$1000 for a coach on finding motivated sellers?
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Investor · Columbus, OH · Member since 2017 · 861 posts · 1k+ votes
6yI wouldn't, because #1: you said $1k would delay your plans, and #2: you just want one or two deals, you aren't trying to set up a business.
I would instead concentrate on stalking REO sites, sheriffs auctions, and your local wholesalers (even though I gripe about them all the time)... and get a realtor to set you up with MLS emails. Plus tell anyone you meet at local meetups (are you going to those?) that will listen that you are looking for whatever you are looking for. Plus you can send your own postcards or whatever for about that price.
Finding a deal doesn't really take mentoring, but it does take personal connections and a bit of hard work.
Honestly I think 99% of the "find motivated sellers" stuff is just to get newbies to shell out big money for SEO, mailers, "ringless voicemail" (aaaaaa hate!), mentorships/training, etc etc.. I dont know about your market, but my area is completely saturated with these goobers all harassing every old person and landlord to sell for pennies on the dollar. (and old person landlords seem to get hit twice as hard it seems!)
36 Replies
- Investor · Columbus, OH · Member since 2017 · 861 posts · 1k+ votes6y
I wouldn't, because #1: you said $1k would delay your plans, and #2: you just want one or two deals, you aren't trying to set up a business.
I would instead concentrate on stalking REO sites, sheriffs auctions, and your local wholesalers (even though I gripe about them all the time)... and get a realtor to set you up with MLS emails. Plus tell anyone you meet at local meetups (are you going to those?) that will listen that you are looking for whatever you are looking for. Plus you can send your own postcards or whatever for about that price.
Finding a deal doesn't really take mentoring, but it does take personal connections and a bit of hard work.
Honestly I think 99% of the "find motivated sellers" stuff is just to get newbies to shell out big money for SEO, mailers, "ringless voicemail" (aaaaaa hate!), mentorships/training, etc etc.. I dont know about your market, but my area is completely saturated with these goobers all harassing every old person and landlord to sell for pennies on the dollar. (and old person landlords seem to get hit twice as hard it seems!)
- Investor · Vancouver, WA · Member since 2017 · 11 posts · 21 votes6y
@Pete Storseth I personally would not recommend paying for this kind of help. There is a wealth of information inside of the Biggerpockets community.
I was in the same position you are in now, 6 or so months ago. I began listening to different wholesaling podcasts like “wholesale inc” and whatever show Max Maxwell does. Both podcasts constantly discuss how deals are found and what successful wholesalers have done to find deals and motivated sellers.
After researching for several months I decided to just start cold calling home owners and getting my feet wet with having conversations with random homeowners. Initially, I was able to find a few homeowners who were interested in talking but didn’t end up selling. After working on my own for about a month I reached out to a local wholesaling business here in Vancouver, Wa and started working for them as a cold caller.
Fast forward another 3 or so months and I now have a fairly good understanding of what it takes to connect with homeowners and what kind of strategies are needed to find motivated sellers. I am now actually getting paid while gaining experience and knowledge in the field.
Long story short, you are better off saving for a down payment. Put your head in the books and reach out to local investors/wholesalers for information and or work.
If you have questions on how we find motivated sellers feel free to PM me and I we can email or talk on the phone.
- Investor · Houston, TX · Member since 2019 · 274 posts · 61 votes6y
@Nicky Reader
One or two deals would make the $1000 back. That would be a response from the potential coach.
I contacted him because of his knowledge about lease option in Texas, which everyone thinks is illegal, but the sandwich is all that's illegal.
My issue is I wouldn't be able to do a wrap around mortgage or lease option anyways without specific knowledge in what I'm doing. This guy doesn't have a script, just legal docs and contracts, that he said he WOULD cover fully.
Thanks for the simple answer though, since the 1000 would slow me down on the house hack, I probably shouldn't do it.
- Investor · Houston, TX · Member since 2019 · 274 posts · 61 votes6y
@Daniel Lane
How would you find a wholesaling business? How would you get into it without paying them 20k or more? They've been helpful in getting you excited but end with the "pitch."
At least this guy is one on one over skype and he's local. He is very adamant about doing it the right way, knows about lease options in Texas, so that's what attracted me to him
- Investor · Columbus, OH · Member since 2017 · 861 posts · 1k+ votes6y
Originally posted by @Pete Storseth:
@Nicky Reader
One or two deals would make the $1000 back. That would be a response from the potential coach.
I contacted him because of his knowledge about lease option in Texas, which everyone thinks is illegal, but the sandwich is all that's illegal.
My issue is I wouldn't be able to do a wrap around mortgage or lease option anyways without specific knowledge in what I'm doing. This guy doesn't have a script, just legal docs and contracts, that he said he WOULD cover fully.
Thanks for the simple answer though, since the 1000 would slow me down on the house hack, I probably shouldn't do it.
Oh gotcha. I'd talk to a known local attorney then if you need legal docs and contracts, and get them custom tailored to whatever complex deal you are working on.... I "have legal docs and contracts" also, doesn't mean they are any good! Also its pretty dangerous and likely illegal for a non-attorney to be offering you any legal advice or documents.
- Investor · Houston, TX · Member since 2019 · 274 posts · 61 votes6y
@Nicky Reader
Yeah, I was hoping he'd just answer some questions. Maybe find a friend who wouldn't mind taking a call from time to time.
Didnt expect the "pitch."
So short answer- just start calling, marketing, and searching.
Drive for dollars, get an agent to send me properties to analyze, and what else?
- Investor · Columbus, OH · Member since 2017 · 861 posts · 1k+ votes6y
Originally posted by @Pete Storseth:
@Nicky Reader
Yeah, I was hoping he'd just answer some questions. Maybe find a friend who wouldn't mind taking a call from time to time.
Didnt expect the "pitch."
So short answer- just start calling, marketing, and searching.
Drive for dollars, get an agent to send me properties to analyze, and what else?
I think that's pretty much the sauce. It's how I have found deals, I just talk to everyone and always keep my eyes open from as many data sources as as I can.
In my area there are "off market property" facebook groups where wholesalers post deals, and one of the local RE investor groups has a daily email with any new deals their members have. There are also "deal maker" sessions about once a month where other deals get posted. Your area may have all of those and more.
One thing, a lot of really good deals will need fast cash up front to close, it likely won't go FHA until substantial repairs are made. I dont have any experience with hard money lenders or rehab loans, cannot advise there. (I do BRRRR with cash up front and then either conforming or commercial cash out)
- Investor · Houston, TX · Member since 2019 · 274 posts · 61 votes6y
@Nicky Reader
Great tips. Thanks
- Investor · Vancouver, WA · Member since 2017 · 11 posts · 21 votes6y
@Pete Storseth I am not entirely sure how the market is where you live but here in Washington there’s loads of buyer money in the market and not a lot of sellers or inventory. Wholesalers are always looking for bird dogs and cold callers to help them find sellers.
I imagine you could find some wholesalers in your area on this website. Personally, I would reach out to them first and see if they have any positions available inside of their operation. Or at the very least see if they would be willing to meet with you and let you pick their brain.
I just hate seeing people pay thousands for information that is available to them on the internet. Hell, you could honestly go out and find some houses that are in disrepair, look up the property information in your county website, then skip trace the name and get their phone number. From there just call and see if people are willing to sell. That’s the baseline of what most people are doing. Obviously, wholesalers are streamlining the process with softwares and applications and there’s technique and strategy with how they talk to homeowners but all that information is online and in podcasts.
I just listened to a podcast Brandon Turner did and he talked about his favorite deal from when he first started. He targeted a list of homeowners that met his specific criteria and he then sent them all personalized post cards explaining he was interested in buying property. Lots of people called him back and he ended up landing a fourplex from one of the people who called him back. That is not a hard process to copy and do for yourself.
- 6yJeff CichockiBusiness MemberLender · All 50 States · Member since 2015 · 401 posts · 250 votes
@Pete Storseth,
There is a lot of free help here on BP. Some of its good, some of it awful. All of it is given by well intentioned people. The problem is, you have to figure what's good and what's not good on your own. It's hard. You don't know what you don't know. Lots of bad advice sounds good.
A good mentor will accelerate your growth and help you weed out out the garbage advice. Remember, you get what you pay for. Those that say to never hire one are not giving you the best advice. They are just giving you their opinion. It may or may not be right for you. In the end, you have to decide on your own if it's something you want to do and if feel it's worth it.
It's not an easy choice. I've hired mentors who sucked and I've hired mentors who were life changing.
Good luck. I wish you the best.
Best REI Funding4.36 Reviews - Specialist · Toronto, Ontario · Member since 2012 · 2k+ posts · 891 votes6y
Originally posted by @Pete Storseth:
I met a guy online that seems very ethical, so I reached out to him.
I scheduled a skype meeting with him even though he's local to work around our schedules.
After a generally good conversation, he offered to work with me, but asked for either $1000 for 6 sessions or $2200 for 6 months of 2 sessions a month.
I'm saving for the initial costs to do Fha loan, house hack. Any amount of money will definitely delay when I can get into my house hack. However, if he can hold hands with me through getting at least one or two deals, wholesales or wraps, it would be worth it.
I'm not considering a guru type mentor, but does anyone think it would be foolish to pay for this?
Why would he ask $1000 for 6 sessions and $2200 for 12? You pay more per session when you commit to more?
is he gonna coach you to underwrite, analyze and hold your hand through a deal too?
- Investor · Houston, TX · Member since 2019 · 274 posts · 61 votes6y
@Hai Loc
Honestly I dont know. I'm more likely to team up with newbie wholesalers to learn, but still save for my house hack and stick to my goal.
- Specialist · Toronto, Ontario · Member since 2012 · 2k+ posts · 891 votes6y
Originally posted by @Pete Storseth:
@Hai Loc
Honestly I dont know. I'm more likely to team up with newbie wholesalers to learn, but still save for my house hack and stick to my goal.
Do yourself a favor and learn from an expert and not other newbies..
- High Desert, CA · Member since 2019 · 319 posts · 161 votes6y
Hello @Pete Storseth I honestly wouldn't pay that right now for your position. I would open a credit card on Amazon and buy some books, or heck watch YouTube videos and Podcasts of what you're trying to accomplish.
Also I would save up for a Conventional loan as you wouldn't have Private Mortgage Insurance.
I've been looking for property in Houston, TX. And I have a realtor out there helping me, I could send you his contact information and we can network from there.
- Investor · Houston, TX · Member since 2019 · 274 posts · 61 votes6y
@Trevor Aydelott
Yes I'm open to that.
I'm all over books, youtube, bigger pockets podcasts. I'm aware of PMI, it'll need to factor into my numbers.
I told the guy I wasn't comfortable paying for coaching at this time, and his reaction was quite surprising.
Why do gurus and people like this get upset when you say no, if they have money anyway? Or are they just frustrated with how many people ask for help and dont follow thru?
I'll follow through, I promise. But not his way.
- Real Estate Broker · Cleveland Dayton Cincinnati Toledo Columbus & Akron, OH · Member since 2013 · 30k+ posts · 20k+ votes6y
Originally posted by @Pete Storseth:
I met a guy online that seems very ethical, so I reached out to him.
I scheduled a skype meeting with him even though he's local to work around our schedules.
After a generally good conversation, he offered to work with me, but asked for either $1000 for 6 sessions or $2200 for 6 months of 2 sessions a month.
I'm saving for the initial costs to do Fha loan, house hack. Any amount of money will definitely delay when I can get into my house hack. However, if he can hold hands with me through getting at least one or two deals, wholesales or wraps, it would be worth it.
I'm not considering a guru type mentor, but does anyone think it would be foolish to pay for this?
Pass.......Wholesaling as it's taught is a myth. You need a license to Broker real estate. That's all wholesaling is as it's taught in these programs, it's brokering real estate except instead of being up front & telling the distressed seller that you'll sell their property for X amount & take X amount as your commission / fee you are taught to lie to the seller & pretend you are going to buy the property while you secretly attempt to "assign" your contract.
It doesn't work. Nobody has any respect for wholesalers. The only people making money wholesaling are the guys selling you all of that education.To be successful connecting buyers and sellers you need to have
- An in depth knowledge of the market.
- Marketing skills.
- Sales skills.
- Negotiation skills.
- Accurately estimate rehab costs.
- Understand how to much time it would cost to run a renovation on the properties you are presenting.
My advice get a real estate license. Way cheaper, no legal issues, more respect and there is a decent chunk of cheap or free training out there from the mega brokerages. Soak it all in while you're trying to get off the ground. It's not an easy job, 90% fail rate but it's better than the 99.9% "wholesaler" fail rate.
- Investor · Houston, TX · Member since 2017 · 1k+ posts · 871 votes6yHmmm. Assignments are legal in Texas. There is a line for it right in the HUD. But other than that, I agree with every word of what @James Wise posted above. Even if it is, technically, legal in TX (which it is), it is still amazing difficult to do. You need to make the stars and planets line up, and you better be in a position to take the property down if you cannot move it - otherwise you WILL be another wholesaler out there harming sellers. Sooner or later, it happens, despite all best intentions, disclosures, full transparency, etc. You still have to learn all the tools of the wholesaler trade - marketing, sales, negotiation, and all that. And you don't actually have to BE a broker. Just go buy stuff.
- Investor · Houston, TX · Member since 2017 · 1k+ posts · 871 votes6yPete, if you like we can go have a brewed beverage. I'll tell you about some local gurus.
- Investor · Houston, TX · Member since 2019 · 274 posts · 61 votes6y
@Mark Sewell
I'm game for that. I'd rather talk real estate than real estate gurus though.
PM your email or number
- Investor · Los Angeles, CA · Member since 2017 · 110 posts · 52 votes6y
@Pete Storseth
Bro... don’t do it. You’re better off spending your money on quality lead generation and tools that actually work. I’m happy to jump on a call and give you some insight for free. We’re all a little lost when first starting out, and gotta help each other out.
- Contractor · Pittsburgh, PA · Member since 2014 · 885 posts · 359 votes6y
Please do not give anyone $1k for information that you can get for free, in this case from reading the titles of the podcasts on this site. There is SO RARELY information about real estate investing that is worth paying to learn, and without meaning to offend, generally speaking, if you need your business strategy explained to you so that you can do it, I'm worried that you're not prepared to perform the work.
I've seen other people offer this as well, but I'll throw in my hat too: I'd be more than happy to get on a phone call with you FOR FREE and answer as many questions as you have that I can.
I give the same advice constantly; you'll learn more if you take any money you were considering paying a guru and just buying property with it, even if the entire thing is a tire fire from start to finish, it'll be a better value for your money that pretty much any guru course ... and DEFINITELY the case here.
- Specialist · San Antonio, TX · Member since 2012 · 865 posts · 351 votes6y
@Pete Storseth for what it’s worth you probably shouldn’t be talking big game if 1k will sink your ship. If the guy “ “Really” is successful 1k is small fries. I have paid a ton in actuall paid boot camps, courses and a mentor or two. One of which helped a lot. I paid almost retail prices for second hand real estate training material many times, I didn’t know any better of course. Why would this guy want to give you the training he probably paid for? I paid $200 dollars for a second hand Carlton Sheets course almost 20 years ago. I paid $500 for second hand Ron Legrand Cd’s as a noob. I paid 3k for my first 3 day boot camp and they up sold me on a mentor of sorts that gave me his contracts and did help me somewhat. For the right person and training I would be willing to pay big bucks again. At this stage in the game I wouldn’t know who to seek out for training per say. The last person that wanted to change me suggested 20k, but I wasn’t sure that he really knew much more that I did. He told me about how he worked 18 hours days in his first few years and how he was broke when he did his first 50 deals. I felt he was dishonest making statements like that and my wife thinks I’m smart already and didn’t agree to the lastest mentor training.
- Investor · Houston, TX · Member since 2019 · 274 posts · 61 votes6y
@Joel S.
Where was I talking "big game" when I have newbie written all over me? Hehe
- Investor · Houston, TX · Member since 2019 · 274 posts · 61 votes6y
@Siobhan Kelly-Roberts
I Really appreciate that
- Investor · Houston, TX · Member since 2019 · 274 posts · 61 votes6y
@Jeremy Pace
That's very generous and so welcome.
You BPs are the reason we should all realize there are people out there that know how to treat people.
When I get to that position, I WILL offer free calls and/or analyses to beginners who bring me REAL deals they got from the real world. Or as I call it, the field
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