All Forum Posts by: Blaine Alger

Without seeing the actual #'s and details behind the deal I cant give you my best response but i'll try.

Normally, I would advise a newbie  to run from a deal like this because it is not cash flowing and  it'll require a rehab which can be hard for someone to manage who is starting out. BUT... I see you do have some construction experience and have a working knowledge of what it'll take to get the rehab done.  This definitely gives you an edge and if you feel confident in your ability to do most of the work by your self to save money, then i say go for it. 

Another thing to consider is the $500/ out of pocket to pay the mtg. I would compare this to what you would be paying for rent and if you are able to live cheaper owning compared to renting, then I would consider that a win.  

Message me if you have any other questions. Best of luck.

-BA

I don't have a direct feel for the situation but at first perception it doesn't look that good.

Anybody who wants you to pay some type of money in order to hang out with them rather than just being happy with the value you bring them within your current relationship, is  full of it. 

Now I am not saying, don't pay for masterminds and education opportunities because I have definitely done that but all I would suggest is to do your due diligence  and see if it is right for you.

Another thing I notice from this pitch, is it is awfully confusing and doesn't make sense to me which is another red flag. But i am not the sharpest tool in the drawer so take that with a grain of salt. 

Best of luck!

P.s. I know a couple Nigerian princes who have some very exciting investment opportunities. Let me know if you are interested and i'll get you in contact;), haha.

Well welcome to BP, you are definitely in the right place to find like minded individuals and get educated. It sounds like you have done your research and have your goals focused in the right direction.

Now it is time to take that knowledge and take action. I am a big advocate of taking action and figuring it out as you go. Might seem a little risky to some but you are a young guy and probably don't have to many liabilities at the moment and RE itself is fairly forgiving. Just know your #'s and everything else will play out.

Feel free to reach out, I would be happy to chat with you and answer any other questions.

-BA

Welcome to the Roller Coaster of RE, glad you were able to make it.

I would suggest the first thing you do is network, network, network. Go talk with lenders, investors, builders and anyone else who has their hand in RE. 

Tell them who you are, what you are trying to do and found out how you can bring value to them. This will get your foot in the door and set you off in the right direction.

I don't know what your financials look like but go talk to a lender and see what you can get approved for. You don't know what you can't afford until you ask.

If you can get a loan, great. Go out and buy a investment where the #'s make sense and learn the rest as you go. Will you lose money? Maybe. But you will learn so much more by taking action opposed to just "educating" yourself. 

Feel free to message me if you have any other questions!

-BA

Personally, I use a contract that my RE attorney drafted and that is simple and has all of my addendums that provide protection for me as the buyer.

It is 12 pages long, so it is not that short and you won't find too many "short ones out there because you want to have all the necessary requirements and protections. Technically, you can have a one page contract that can be binding, but would i really want to use a short cut on a legal matter? probably not.

I know people who use TREC's for wholesaling and they do fine, but I understand my contract better and I believe it is easier for the seller to understand as well. 

This is a big part of the equation for investing and you want to make sure you have the knowledge and understanding of all the legalities, especially when it comes down to wholesaling side because it is kinda in the gray area.

So financing would be the biggest question mark.

I would go talk to a lender because they will have better advice for you then anyone on here. Depending on what your parents make, they could get approved but once again a lender will be able to give you more specifics.

If traditional financing is off the table, I would then try to approach the owner with a creative solution. I would get in contact with him and explain your situation and see if he would be open to owner financing opposed to an outright sell. They may be more open to it than you think because there are multiple benefits that come along with it ( true mailbox money, tax advantages in regards to cap gains, not having to manage tenants).

Let me know if you have any other questions.

-BA

Sounds you have big goals set for your self, good for you!

In order to find a mentor, I would continue to network on BP, facebook and any other local meet up groups you can find. When you approach these conversations, never ask anyone to be your mentor because that is just super cringy. Just introduce yourself and try to figure out what type of value you can bring to the relationship.

I will say that wholesaling is not for everyone, it is a lot of hustle and you have to know how to work it. The best way to get into it would go meet with an investor and found out what they are looking for. Then you can target those kind of deals and send it their way. This would be more considered bird dogging than wholesaling, but it's a start.

Let me know if you have any other questions, hope this helped.

-BA

Congrats son the early start.

I would suggest that you first try to find an investor  in your market that you can help out and get a feel for the business. You can do this by reaching out to people on BP in your area and letting them know who you are, what your are trying to do and see what you can do for them to bring value to their business. 

Next thing I would focus on is the money side of things. With being so young, it will be very very tough to get any type of financing,I don't think you can even sign into contracts at 16. So your best bet would be finding some type of partner (parent, older sibling, relative, etc) that could bring the money/financing to the table and you could bring the deal. This is probably a little too big picture but that gives you a better idea on what you need to do. If you don't know of anyone who could help you out with financing, i would just focus on finding a job and saving money, so whenever the right time comes around you will be ready.

Hope this helps. Let me know if you have any other questions.

-BA

Not necessarily. 

It all depends on what your personal goals are. The rules that are not a end all, be all, they are more of a genral rule to give you an idea of where you are headed. 

I am not sure exactly what your numbers look like but for me the only metric I care about it CoC (cash on cash). This is a ration between the amount of money i have in the deal (down pmt, rehab cost, etc) and the amount of yearly cashflow. I could be only getting 50 bucks a door but my CoC is 25%, then i might be okay with that.

That is just my personal outlook so take it with a grain of salt. In conclusion, don't let the textbook rules keep you from pursuing this deal. Compare it to your personal goals and if it makes sense for you, go for it. 

Congrats on the success yall have found so far.

In order to find a mentor, I would suggest you network, network, network. And then once you find someone you click with I would then approach it from more of the partnership angle opposed to the mentor. 

So this could be bringing them a deal, being a private lender or just bringing some type of skill to the table that they don't have. To sum it up, you have to bring something of value to the relationship because most people will not share all they know with you for free.