BP Nation I need your HELP!

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BP Nation I need your HELP!

Tony WooldridgePro Member
Rental Property Investor · Walla Walla, WA · Member since 2016 · 480 posts · 346 votes

Hello BP nation. I need a little help. I live in a smaller community (approx: 45,000 pop) in S.E. Washington, Walla Walla Washington to be exact. It is a GR8 community and has been coming into its own in the Winery community that has contributed to its interest/investment opportunity.

I am fairly new to the REI world but I have been extremely active since making the decision to start my REI business. I have been educating myself for quite awhile. I have got my LLC, RE Attorney, CPA, RE agent(s), the usual team. My wife and I have decided to build a house flipping business. I dove head first and started a DMM campaign (I haven't been able to locate a wholesaler in my area as of yet/so I must learn and become a deal flow expert as well!) and have made offers but no takers yet. I spend a great deal of time building my new business.

My farming community currently doesn't have a REIA or meeting place for RE investors. My goal this year is to get one successfully off the ground. Here is where I need your help BP nation. I obviously don't have my first deal yet (not lack of trying) but am constantly working towards making that happen. I know how valuable it is to have a REIA and I am quite confident that other investors would feel the same way. But would you come to a REIA started by a guy that doesn't even have his first deal yet?

I want nothing from the other investors who would attend other than an opportunity for all of us to gather and network together and share in what we all love REI. I don't want to sell anything to anybody or have anyone for that matter to take advantage of the investors that attend. I just want a place we can network. However, I have visited with community folks, RE agents, RE attorneys, CPA's, Mortgage folks, Title Company Managers, to see if they would be interested in educating the group on their areas of expertise (once again NO sells stuff just educating us on a topic in their field and how if would help us as investors). All of these folks I mentioned above stated they would be interested in educating us on a topic that I/We decide we want to learn about.

So once again, is this something I should pursue as a newbie without a deal what do I have to offer anybody? I know what I have to offer but do others see the value in bringing groups of people together for the greater good of the group? Thanks ahead of time BP nation and here is to wishing each and everyone of you success in your 2017 REI ventures! Thanks for allowing me to share.

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Jay HinrichsBusiness Member
Real Estate Consultant · Summerlin, NV · Member since 2014 · 45k+ posts · 66k+ votes
9y

@Tony Wooldridge  in the for whatever its worth file.

I would skip past this.. and get your RE license and get with a brokerage there in town..

suspect 95% of the deals done their are done by agents..

its too small of an area.

this will give you better foundation better networking etc etc.. does not cost but 500 to 700 to get your license and study for 60 days and boom your in the club.

REIA's are long game a very long game.. full of folks that are simply curious.. and of course there are some that are successful.. but I bet in Walla Walla most the guys that do anything of significance are not going to go to meet ups.

At least that's how I see it in small towns like were your located.

If you want to see how they work I suspect there is one up in Spokane you could go up spend the night that kind of thing to get the feel for it.

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  • Matt Gragg
    Flipper/Rehabber · WASHINGTON State · Member since 2015 · 179 posts · 67 votes
    9y

    Sounds like you have a great list of speakers that could also be investors.....

    I would put something up (flyer for the meeting) at the nearby colleges, restaurants, stores etc.

    By the way. You wont advertise the fact you haven't done any deals. Just list your speakers and where they are from and that they will be there to answer any questions one might have.

    1Reply
  • Tony WooldridgePro Member
    OP
    Rental Property Investor · Walla Walla, WA · Member since 2016 · 480 posts · 346 votes
    9y

    @Matt Gragg, thanks so much for the reply.  I intend to be extremely transparent and let everyone know that I haven't done a deal yet but am actively seeking and search daily.  I figure by bringing everyone together we will eventually be able to help steer one another to deals that might not work out for your criteria but may for theirs and visa versa.  I intend on keeping it simple at first just having a meetup at a restaurant or something laid back at first.  After I see how much interest I get then we will advance to getting the community folks I  mentioned above to help educate us on  their areas of expertise and how to help us better understand that topic.  Thanks again for your input.  Thanks for allowing me to share.

    0Reply
  • Jay HinrichsBusiness Member
    Real Estate Consultant · Summerlin, NV · Member since 2014 · 45k+ posts · 66k+ votes
    9y

    @Tony Wooldridge  in the for whatever its worth file.

    I would skip past this.. and get your RE license and get with a brokerage there in town..

    suspect 95% of the deals done their are done by agents..

    its too small of an area.

    this will give you better foundation better networking etc etc.. does not cost but 500 to 700 to get your license and study for 60 days and boom your in the club.

    REIA's are long game a very long game.. full of folks that are simply curious.. and of course there are some that are successful.. but I bet in Walla Walla most the guys that do anything of significance are not going to go to meet ups.

    At least that's how I see it in small towns like were your located.

    If you want to see how they work I suspect there is one up in Spokane you could go up spend the night that kind of thing to get the feel for it.

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  • Wendy Vaidic
    Real Estate Agent · Indialantic, FL · Member since 2014 · 182 posts · 80 votes
    9y

    Sure, why not?  You could list  the meeting on Meetup.com as well as on BP.  I don't think people will be so concerned about your experience as you are bringing in experts in other areas to educate.  Also, you are now experienced in running a DMM campaign and although you have not gotten a deal...YET...I'm sure you've learned some interesting things from it that others would love to hear about.  Way to go jumping in :)

    1Reply
  • Tony WooldridgePro Member
    OP
    Rental Property Investor · Walla Walla, WA · Member since 2016 · 480 posts · 346 votes
    9y

    @Jay Hinrichs, thanks for reaching out! You give solid advice that a lot on BP should listen to, to include myself. However, (not that I don't agree that there is value in getting my RE license) I in addition to my new REI business also have a full time JOB and the time I spend to do my REI is limited already and I feel it is more important for me to put in work towards getting my REI business off the ground as oppose to spending that time getting my RE license. Maybe when I have my business off the ground and running like a well oiled machine I will look into the RE license (as I realize the many advantages associated with getting it).

    I have attended the Spokane REI club years ago and you are absolutely right it takes a GR8 deal of work time and effort to lead the way. However, I feel that even if it is just a few it would be worth it! But hey what do I know am a Newbie. Thanks for your valued advice Jay do appreciate your insight. Next time you and the Mrs. are in town you should reach out and we can go do some wine tasting! Happy investing to ya!

    1Reply
  • Tony WooldridgePro Member
    OP
    Rental Property Investor · Walla Walla, WA · Member since 2016 · 480 posts · 346 votes
    9y

    @Wendy Vaidic, thanks for stopping by and sharing.  It is my lack of experience that is my major hurdle.  However, I have talked with some people whom inform me regardless of my level of experience there is value in stepping up and bringing folks to gather for the greater good(?)  I guess there is only one way to find out.  And you certainly are right I have learned a ton already as it relates to my DMM campaign.  Thanks again for your input!

    0Reply
  • Jay HinrichsBusiness Member
    Real Estate Consultant · Summerlin, NV · Member since 2014 · 45k+ posts · 66k+ votes
    9y

    @Tony Wooldridge  NP like I said it was in the whatever its worth file.

    I just see small rural towns like WW as pretty tough markets to be in the business of direct mail and buying distressed assets.. maybe that happens a little more over in Milton Freewater .

    If I was in your area I would be following every NOD ( and of course look up the laws on those they are quite strict if your not an agent).. and tax delquencie,s. I would look at Land as well. don't get tunnel vision on houses.

    My first 15 years or so in the business I never touched anything with a house on it I only flipped rural land and made a killing.. NO COMPETITION> lol.. now I did not partake in what you see these guys who taught the landacadamy and such most of the stuff they buy and sell is worthless junk.

    I bought buildable small acreages  would perc them put well in maybe septic  drive way pad and make a bunch on the resale.. a lot of folks just can't put their heads around how to do it.. it seems simple but to most its not... just like buying a junker house fixing it up and selling it to a home owner homeowner could do it and cut our fee's for doing a fix and flip but they can't see it.

    your area is FULL of Acreage.. and then if you can get some with Timber.. well then you just hit the mother load.. I spent 10 years in the timber business in Portlandia area.. boy was and is that a fun one.  its a business you can literally make a million a year at with not HALF the problems of cashing crap box houses.  LOL

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  • Tony WooldridgePro Member
    OP
    Rental Property Investor · Walla Walla, WA · Member since 2016 · 480 posts · 346 votes
    9y

    @Jay Hinrichs you are spot on. I currently do focus on NOD as well as TAX DQ, however, I haven't looked into the whole land thing. I do however remember listening to Podcast 39 with Seth Williams, it sounds like land can be very lucrative as it is a cornered market without competition.

    I have found some land TAX DQed properties that I am not sure what to do with as this is outside of my wheel house?  Thanks again Jay!

    0Reply
  • Tony WooldridgePro Member
    OP
    Rental Property Investor · Walla Walla, WA · Member since 2016 · 480 posts · 346 votes
    9y

    @Jay Orlauski do you have anything to add as it relates to the heading of this thread?  Thanks hope all is well.

    0Reply
  • Carlos Aleman
    Contractor · Walla Walla, WA · Member since 2016 · 16 posts · 6 votes
    9y
    Hey Tony Wooldridge i would be interested in an REI club in our area. Maybe we can have lunch again and catch up. Jay Hinrichs that's some great info. Im going to look more into land flipping. I always had land in the back of my mind but didn't know how great it could be in this area.
    1Reply
  • Eric Duran
    Handyman · Denver, CO · Member since 2015 · 16 posts · 3 votes
    9y

    I would say just do it. What can it hurt? Maybe some emotions if no one shows? I am still learning as well and wouldn't expect anyone to listen to me lol. But like you and others have stated you have experts that are willing to share their knowledge and help people learn. It sounds like it would be like throwing a party. Eric Thomas style. Go for it and let us all know how it goes. 

    1Reply
  • Tony WooldridgePro Member
    OP
    Rental Property Investor · Walla Walla, WA · Member since 2016 · 480 posts · 346 votes
    9y

    @Carlos Aleman its always GR8 to hear from you.  And we absolutely have to get together again for lunch sometime in the near future.  When I kick this thing off I will make sure to post it on BP meet up page https://www.biggerpockets.com/forums/521-events-an...

    I will also send out a personal invite via colleague mail.  Thanks again for sharing Carlos, hope we can connect soon!

    @Eric Duran, thanks for stopping by and I appreciate your insight. I guess what it ultimately comes down to is I will throw down the invite and hope for the best. That is about all a person can do. Have it and they will come (at least I hope so, LOL). I definitely intend on doing this. I have already reached out to a few local investors that I know that have shown interested and stated they would come. I definitely will keep everyone posted as to how it turns out. Thanks again and here is to wishing you well and GR8 success in your 2017 REI ventures!

    0Reply
  • Jay Orlauski
    Realtor · Fresno, CA · Member since 2013 · 471 posts · 225 votes
    9y

    @Tony Wooldridge - I think I pretty much summed it up previously when we covered it together - I think Jay had some good insight to offer - however , even though I got my license first - ultimately, I ended putting together a REIA group because I wanted to surround myself other investors and I just wasn't making happen through traditional real estate agent related tasks - I was getting home buyers and tire kickers and certaily had a network of professionals like CPAS, Insurance agents, etc. - but it wasn't until I started the group that I really started building a solid network of local investors. Granted , Fresno is probably a lot bigger than Walla Walla - I actually don't really know , but based on all the talk , it sounds like a small town, so could be only a small pool of investors to begin with.

    However, one thing I like to tell people, is that even though you may end up meeting a lot of people , or very few people - it really only takes a couple of like minded individuals to really turn things around and change your life and your business. If you meet someone who shares the same passion real estate as you do and they have other connections that complement you  - you could end up business together for many years. 

    Don't overthink it - look , your objective is to meet other investors, build your network,  and find some people you can work with in the future. Inviting some people to sit down to get to know each other and see if you have common ground between you doesn't require to you be an expert in anything at all. Do a meetup and see how it feels- if you enjoyed it and the people who showed up indicate an interest in getting together again,  then make a day to meetup again - it really can be as simple as that. 

    If you would like to get more involved and do more to grow the group - that is certainly up to you - but you don't need to come out of the gate trying to offer a full blown REIA - keep it simple and relaxed and I believe that the group will start to take on a life of it's own.

    Hope that is helpful. Bets of luck to you!

    1Reply
  • Tony WooldridgePro Member
    OP
    Rental Property Investor · Walla Walla, WA · Member since 2016 · 480 posts · 346 votes
    9y

    @Jay Orlauski, thanks so much for reaching out again.  I wanted to post it to BP and see what everyone else thinks.  You definitely gave me valued advice when we discussed this earlier and for that I am very appreciative.  There is always GR8 value in learning from individuals that are where you want to be and doing what you want to do.  

    Full disclosure: I was surfing different BP forums on starting meetups/REIA (what ever you want to call it, a place for investors to network) and I discovered Jay's post: @Jay Orlauskihttps://www.biggerpockets.com/forums/223/topics/29...

    if you haven't checked it out please go take a look. After reading his post I reached out to him via colleague request and like most if not all of BP Nation he responded with open arms and extremely helpful and more than willing to share how he has gone about starting his own Meetup/REIA in Fresno California. So once again Jay thanks.

    I guess now would also be a time to thank other BP Nation members whom have encouraged me to do to do this: @Ashley Wilson, @Brian Garrett.  So with all of that said it appears I better get busy and start this thing! LOL.  Thanks again BP Nation I will keep all posted on the results and outcome as it transpires!

    3Reply
  • Paul Hitchings
    Alhambra, CA · Member since 2015 · 142 posts · 78 votes
    9y

    I say start a group. You will position yourself as an expert, in the long run.  I learned about half of what I know about real estate from working in the field and half from listening to others who have spent years or decades investing. 

    Here in California there is no shortage of participants, but it isn't about how many people show up. 

    As far as getting a real estate license, you don't need one. Yes it would give you access to certain useful tools, like the full MLS, but imho, investing and being a Realtor are not remotely related, aside from sharing an industry.

    Along with the DMM, you might try "driving for dollars", or touring your local area and looking for run down or vacant homes. Just knock on the door, talk to neighbors, get a lay of the land.  Eventually you will find a motivated seller or vacant home with an absentee owner that might be more than willing to get rid of it. The DMM letters sent to a vacant home without mail forwarding don't do much good :/

    Are there trustee sale auctions in your county you can attend? What about tax lien sales?

    Also, this might seem like a silly question, but is your Realtor sending you leads on homes that have been on the market 120-180+ days? Because they do exist and they often have a myriad of problems, or challenges, depending on the type of person you are :)

    Lastly, consider sending letters to all the Realtors in your area letting them know you'd love to get a home that needs work for a flip.  You can still use your Realtor as a buying agent, so they don't feel slighted (although unless you signed an exclusive representation agreement, you can typically work with whomever you want)

    1Reply
  • Tony WooldridgePro Member
    OP
    Rental Property Investor · Walla Walla, WA · Member since 2016 · 480 posts · 346 votes
    9y

    @Paul Hitchings, thanks for stopping by and sharing your thoughts. I could only imagine you guys in California have a REIA/Meetup on every corner. Must be nice! There is a lot of value in surrounding your self with like mind individuals that share the same/similar goals and aspirations as you do. I have sent countless hours in the car in preparation for my DMM campaign DFD. You are right it is a good way to get it started and force your hand in being proactive to find your own deals and not have to rely on others to supply them for you. However, I must say it is a GR8 deal of work (I have a new found appreciation for what Wholesalers do, good job guys!). I am currently employing multiple strategies for finding deals to include auctions, tax DQ properties anything to locate the elusive "Motivated Seller". Good tip on the 180 day RE agent thing. I will make sure that I get a hold of them and implement that system. Thanks again for your thoughts and helping to enhance the learning for us all. Here is to wishing you well and GR8 success this 2017 in your REI ventures!

    0Reply
  • Connie Bhimireddy
    Real Estate Agent · Morgantown, WV · Member since 2016 · 100 posts · 41 votes
    9y

    Hi @Tony Wooldridge  Chiming in since you invited me to in the other thread - LOL! 

    In starting our group here in Morgantown WV this month, my thinking is simply this: I cannot believe in a college town with this much RE activity, and rental activity, that there isn't one. Hmmm, why not? Who cares; there should be! I'll organize it if my broker doesn't mind us holding it here! If it flops, it flops. What's the harm? None." 

    That's it. HAHA!! A bit more seriously, I simply have learned the lesson from watching my mom @Beckie Pahner's, success in her personal B/Hs, as well as the many investors she's helped begin investing, that the BEST way to learn anything about REI as a beginner is to learn it locally, the right way, and through meeting/talking/watching others. You get a feel for what they've done, how/why they've done it and if they'd do it differently. Period. From there it's up to you (or your attendees) to choose a specialty/strategy and read/attend webinars, etc to learn how to GROW/COMPOUND wealth.

    My 2cents on your concerns about ur group: I think it's fine you're new. You're passionate and people will see that ur "serious" about it. Plus, you are at least "self-aware enough" that you do have some things to bring to the table, like books you've read, local professionals in your network, DMM that's worked/not worked, webinars you've taken part in, whatever! It all counts! The only prerequisite on an attendees part is your willingness to handle the date setting, the emails, an planning, etc on the backend. (Also, it benefits everyone involved to be self-aware of what we are weak in, cuz then you know where to grow, and where to safe-guard your deals, right!?) So, as I see it, as long as you're super-passionate/motivated to attend and "hold space" for people to gather, and handle the emails/invites, that's the only prerequisites! What people 'get out of it' is up to them. 

    I will ADD only that for me, words matter. I'm not creating it as a formal "REIA," nor do I ever plan on holding the title of "leader" - LOL! Likely just "Organizer," but no investor should look to anyone as their leader/mentor unless that person has demonstrated success in the specific TYPE of strategy they plan on doing! Or better yet, think of it this way, even if you WERE a big-time "Pro Flipper" and everyone knew your name and what you had to offer..you likely could not help teach a big Commercial investor a single thing, and would likely have little value to give a B/Her even -- cuz you'd be wanting to sell at retail prices. But the big-league Comm investor may still attend(!) cuz they already KNOW the power of networking, and the B/Her might because, like me, they're enjoying passive income, have the time to, and want to "talk real estate" WAY more than their spouse can stand -- HAHA!!  

    Hope that helps reassure you. It's always nerve-wracking doing anything "new" but that's how we grow...!  "The BEST things in life are waiting for you on the OTHER side of fear." Right!? So go for it. See what happens!

    1Reply
  • Brandon McLean
    Investor · Knightdale, NC · Member since 2014 · 122 posts · 74 votes
    9y
    I would say concentrate on you and your family and your first deal first. When getting started, there are literally 1000 things you could do on every day. You have to be constantly asking yourself: "does this activity make me money right now?" Starting a REIA is a lot of work, very time consuming, and the answer to the "does it make me money right now?" question is NO. Go out and find some deals, see if you even like REI first. You may not. Most beginning RE investors do one deal and quit. There are reasons for that. Very stressful, a lot harder than the gurus said it would be, very stressful. If you like it still want to do deals and bring people together a year or two from now, then start your group. It'll be easier when you have some money in the bank and some experience to share and things to contribute to the conversations.
    1Reply
  • Kizzyann Bonitto
    Brentwood, NY · Member since 2017 · 1 post · 1 vote
    9y

    Hi Tony,

    I have been a Real Estate Broker, Rehabber and Developer for close to 20 years and the main and most important thing is always and without fail to MAKE DEALS!!  When you make deals everything else comes together naturally.  Great idea with the REiA, but I won't make it my first priority. 

    Sorry for not having a picture yet. I just joined.

    1Reply
  • Brian Garrett
    Real Estate Investor · Palm Beach County, FL · Member since 2017 · 3k+ posts · 2k+ votes
    9y

    @Tony Wooldridge Go get em' Tony and let us know how it goes!

    1Reply
  • Albert Bui
    Lender · Bellevue WA & Orange County, CA · Member since 2013 · 2k+ posts · 1k+ votes
    9y

    HI Tony,

    I was also informed by the local auction agents like Vestus and Caliber real estate that in WA state there is no recording for NOD like CA or other status. I've seen a lot of title reports and I see notice of trustee sale or NTS but no NOD.

    With out this being on title, do you buy NOD leads from credit companies or how did you plan to follow it?

    1Reply
  • Kevin Romines
    Lender · Winlock, WA · Member since 2013 · 1k+ posts · 1k+ votes
    9y

    I find that there is always value in being a connector. Be the person that brings the parties together. Invite those that are not in the business that want to be. Invite the experienced people as well. The experienced people love to dispense advice and maybe even mentor someone. It may not be where you immediately find your next deal, but it is invaluable to your business for the long haul. 

    As far as your business, you can drive for dollars looking for any properties that have deferred maintenance, vacant or whatever criteria that you are looking for? Do a direct mail campaign and mail it 7 times. The bulk of your success comes in the 5-7 mailing. I am averaging a 6% response rate on the initial mailings in my area, and it only adds to that response rate then next times that I mail out. 

    You can also get together with experienced realtors to tell them of your criteria and tell them so long as the numbers work, you will buy. They will be motivated and can guide you as you go.

    Don't let anyone ever tell you no, its your dream, its your business, its your future, go make it happen and be prepared for bumps in the road!!! BE HAPPY!!!

    1Reply
  • Steve Vaughan
    Rental Property Investor · East Wenatchee, WA · Member since 2014 · 10k+ posts · 16k+ votes
    9y

    Hi @Tony Wooldridge

    A couple years ago, we were in the same boat here in Wenatchee.  About the same size market with no meetup.  @Aaron Barber started one by reaching out to the few member here on BP, a Craigslist ad inviting investors to play cashflow101 and via meetup.com 

    For the first few, there were just a few of us meeting at Aaron's house.  We introduced ourselves and just hung out.  No speakers or anything formal.

    Because we are 'real' real estate investors, one of us owned a bistro in town and offered that as a venue.  Pretty soon others heard about it, including vendors and lenders and last month they had 50 people!  Too many for me, honestly, but talk about growth!  I never thunk that would happen here.

    So go get 'em.  As entrepreneurs, we are used to starting things and filling a need.    Good luck to you. Our first deal comes when we least expect it! 

    1Reply
  • Barbara McArthur
    Jamestown, NY · Member since 2016 · 23 posts · 5 votes
    9y

    I would show up.  I might even bring cookies.

    1Reply
  • Tony WooldridgePro Member
    OP
    Rental Property Investor · Walla Walla, WA · Member since 2016 · 480 posts · 346 votes
    9y

    @Connie Bhimireddy, thanks for stopping by and lending your valuable insight. I certainly understand what you are saying as it relates to not considering myself a leader I just want to bring people together. I don't have anything to offer anybody besides wanting to learn from others and share in what we all love REI. I also intend on being extremely transparent and let everyone know what experience I have and what I don't have. This is how we can all learn together by sharing our strength and weakness and helping each other with become better in those areas. Thanks again for stopping by and sharing your expertise. Here is to wishing you well and a successful 2017 in REI!

    0Reply
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