All Forum Posts by: Cornelius Garland

Hello all! I'm back with an update. After conducting research on the "wholetailing" strategy, I decided it is not something my business partner and I will pursue. Additionally, Mr. Vaughn's guidance contradicted a lot of the solid advice given here on Bigger Pockets. The only book I would suggest reading is the Ultimate Beginner's Guide and then use the forums to fill in the gaps. Save your money, and invest those funds in your marketing campaign. With that being said, the $85 I spent for the program is worth it primarily due to the contract software included. However, I would not invest in the additional $45 per month for the VIP membership. I hope this thread helps anybody looking into his program!

@Wesley Merville I apologize for the delayed response. I have not talked to Bill since then and will schedule my monthly call with him next week. I found out through Bigger Pockets that his method of MLS investing is called "wholetailing." From what I read, it sounds like more hassle than what it's worth if you don't have your liscence. Additionally, creative methods aren't really necessary when you have a lot of median-priced homes in your area. He's from Maine, and it may be more difficult to find typical wholesale deals there. I will definitely post my update next week!

First off, welcome to Bigger Pockets! I'm always ecstatic to see a fellow South Carolinian come on board. I second what @Dustin Smith stated about education. You should definitely check out the Ultimate Beginner's Guide and set up keyword alerts to notify you when topics of interest are posted in the forums. Since you're from Ridgeland, I would put that as an alert, as well as South Carolina and wholesaling to start off. You will get an email every time someone mentions those topics. Here is the link to the UBG.

http://www.biggerpockets.com/files/user/brandonatbp/file/ultimate-beginners-guide-to-real-estate-investing

You should have a lot of your questions answered after you read it. Also, don't get caught up in all of the hype of finding a mentor at this moment. Once you build a solid educational foundation and start networking at your local REIA, you will eventually find a mentor.

Best of luck,

Cornelius Garland

@Account Closed Hello Jmar! I am currently investing in Fayetteville as well and recently met a lawyer named John Briggs at the local REI. His expertise is real estate law and is very familiar with executing wholesale transactions. In deals where you're the seller, he charges 250.00 for the seller documents, which consist of the deed, lien waiver(s), any required corporate resolutions, and the 1099 IRS reporting form. Once signed by you, they send them over to your buyer's closing attorney. For deals where you're the buyer, he charges $800.00 if using a loan to fund the closing, but if the deal is funded by cash (most of the time it will be) then his firm charges $300 to $500.00 depending on the amount of time required. You won't be required to pay these costs if your contract is structured correctly; however, these numbers are good to know when calculating your MAO. His email is [email protected] and phone is (910) 672-4600. Let him know that CC recommended you and please contact me if you have any additional questions.

@Curt Smith I totally agree about being creative, which is why I am going to focus our next call on the MLS strategy. He caught me off guard with this, and I didn't have any questions prepared. Unfortunately, I just don't see this strategy being effective in my area. Following the call, I realized I should have asked him how to locate the motivated sellers besides the MLS or the newspaper. I was thinking about going on Zillow and calling individuals who have had their homes listed for 60 days or more. Additionally, he suggested making friends with a local realtor who can negotiate on my behalf. I rebutted and asked him what realtor will agree to do this because they get paid based on hiking up the purchase price, not lowering it. He then instructed me to tell the realtor that you will provide him with repeat commissions instead of a seller who will provide him with only one. Bill said he's been working with the same realtor for over 40 years and the partnership is very lucrative. It just seems like no one else wants to be creative these days and only want to stick to proven methods. I fell like the more people on my team, the more I'd have to convince them to deviate from the norm and do something that is not guaranteed to be successful, which is more trouble than it's worth. Later in the conversation he asked me where I could find homes for 50-60 cents on the dollar, and I immediately thought of a lot of decent neighborhoods in Fayetteville, NC. He's from Maine so the market may be completely different than in the south, and I do believe he is disconnected from current REI practices. I will keep you informed following the next call. I am going to wait a few weeks so I can do some research and hopefully test this out.

I realize this in an older thread, but hopefully the following information can assist someone who is considering purchasing Bill Vaughn's course.

Overview of the Course Materials:

I read through the Simple Man's Guide to Real Estate three times and also listened to the audio CDs multiple times. The course comes with several smaller bonus books that cover topics ranging from handling short sales to creative problem solving. Like most novices, I bought the book with the intent of learning primarily about wholesaling; however, the book only touched on the topic briefly. Nonetheless, this provided me with enough information to begin the process of thinking like an investor and learning the REI vernacular. Mr. Vaughn places an emphasis on unconventional and creative deal making (e.g., discounted mortgages, triple-net-lease agreements) and deviates from the typical approach most gurus pitch to new investors. The contract creation software is solid and well worth the price of the course. The purchase contract has enough weasel clauses to buy you 130 days until you're required to close a deal; of course, doing this will be very unfair to the seller.

Overview of the Mentoring:

I purchased the VIP membership with the course since it was only one dollar and received my 20-minute phone consultation with Mr. Vaughn a couple of days before I was to be charged $45 for the next month. I was on the fence about canceling the membership, but decided to keep it for another month after I spoke to him. He gave me some great advice, and I will go into detail about what we spoke about. I prepared some questions regarding wholesaling, and told him I planned on targeting vacant homeowners using direct mail. Surprisingly, he stated that direct mail was not a good marketing method and he found little success in his campaigns. He then stated that I should target homes listed on the MLS or FSBO homes and create motivated sellers by calling these homeowners and offering to purchase their property 80% below FMV. He then stated I should turn around and sell the homes to a family who is planning on living in the property, not an investor. What he said contradicted what I've been learning from the experienced investors on Bigger Pockets and my REIA. While I am not disregarding his suggestion due to his extensive REI experience and familiarization with the North Carolina market, I do believe Mr. Vaughn is a bit removed from updated practices in the REI world. I'm assuming he lives in a location where dilapidated blue-collar properties are not as abundant as they are in my area. Also, I did not ask him how I would actually motivate these sellers to sell at such a discount. However, I understand how purchasing a home that requires no repairs and has 20% or more in equity is advantageous to an investor or homeowner, which is why I am currently considering this approach. Lastly, he stated that he should have covered negotiating more in the book and indicated that 90% of his success is credited to his ability to effectively negotiate. He encouraged me to read every book I can find on the topic.

Summary:

Mr. Vaughn's course is definitely worth the price; however, I cannot justify spending $45 on the VIP membership. If you happen to get him as your mentor, then I see no need for the monthly phone call. If I have a deal that needs evaluating, I can simply send the information to him via email and use the money I saved on other business expenses. Overall, it is a great place to start, and I will experiment with some of the techniques in the book later in my career. It is worth a read and priced reasonably considering the quality content you receive. Let me know if you have any specific questions regarding the course.

-Cornelius