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All Forum Posts by: Account Closed

Account Closed has started 10 posts and replied 127 times.

Post: Rehabbing Your First House

Account ClosedPosted
  • Real Estate Investor
  • West Orange, NJ
  • Posts 130
  • Votes 19

J Scott How can I compete for deals that I find myself? I'm a marketer my man. I find the deals nobody knows about. You've encouraged me so much because you've given me such a great look into what my competition is doing. I don't compete and fight for MLS deals. I have a backyard of over 2 million people. You've confused me with the guy that driving neighborhoods looking for houses with tall grass. That's not me. The best wholesalers in the US are the best marketers. They're the ones who consistently market to a large group of people. 2 million people, if you can't pull 5, 10 or even 15 deals per month out of 2 million people, its not them, its you. There's no way this could not make sense to you.

And please don't ask me how I plan on doing 15 deals myself, I don't. I know how to scale this business and automate it, which is my 2 year goal.

"Whether you think you can or whether you think you can't, you're right" Henry Ford

Post: Rehabbing Your First House

Account ClosedPosted
  • Real Estate Investor
  • West Orange, NJ
  • Posts 130
  • Votes 19

Michael Quarles I appreciate the sincere compliment brother, I'm just serious about above average results. If I can't get 3 deals per month, I'll market more. When I want to scale the business to 5-10 deals, I'll market more and hire. As far as the numbers, why would you call yourself a wholesaler if you can't produce a deal at 70% below FMV? I see these guys all day long and I don't make it my business to befriend them. We have very different visions and very different goals. I know what I want for my business, the largest wholesale real estate business in NJ. NJ rehabbers want 70% of ARV too, it doesn't matter if our numbers are higher than most of the country, so are our expenses. Like I said, I can show you better than I can tell you, stay posted.

Post: Rehabbing Your First House

Account ClosedPosted
  • Real Estate Investor
  • West Orange, NJ
  • Posts 130
  • Votes 19

J Scott my man the population of Essex County where I live is about 780,000. The population of Bergen County is about 800,000. The population of Union County is about 500,000. I'm smack in the middle and I can get to most places in any of these counties in 45 minutes. I can get anywhere in any of these counties in about an hour. How are these deals not at plentiful as I think? Its about an abundance mentality or a scarcity mentality. There are hundreds and hundreds of these deals within an hour of me brother.

Post: Rehabbing Your First House

Account ClosedPosted
  • Real Estate Investor
  • West Orange, NJ
  • Posts 130
  • Votes 19

@j scott I would rather leverage the banks money at about 4 percent versus paying cash especially with the way I'm planning on buying is this deal. even if I had the capital available I would still go with this plan because it makes more financial sense. this guy must think I don't speak that little known language called sarcasm.

Post: Rehabbing Your First House

Account ClosedPosted
  • Real Estate Investor
  • West Orange, NJ
  • Posts 130
  • Votes 19

We're getting ready to do some major business. I only deal in suburban areas where people are buying homes. I dont touch watlr zones and marginal neighborhoods. Its just a matter of marketing. I know how to market. If you market right your phone will ring. I can show you guys better than i can tell you. Stay posted.

Post: Rehabbing Your First House

Account ClosedPosted
  • Real Estate Investor
  • West Orange, NJ
  • Posts 130
  • Votes 19

J Scott, thanks for all the feedback. What I don't understand is why you think this is such an unusually big spread. As wholesalers if we can't get deals to rehabbers for 65-70% of ARV -repairs and our wholesale fee, we are out of business. These numbers reflect just that. Our numbers in NJ are larger but the rehabbers want to same thing. I think that why it may look so different, but in NJ our average house is probably $250-$300,000.
Let's use $300,000 as ARV, lets say repairs are $30,000
In order for me to sell this deal at 70% and make $10,000 I have to buy it for
$300K x .7 = $210k - $30k -$10k = $170k

These deals happen all day everyday. In my scenario, I'd have this property locked up at 170k put say 50k into it in this situation (I'm figuring 20k for above and beyond) and I'm 80k below fair market.

The deals I can find, the rehab part, I'll make my goal to learn. Even if I have to get the best rehab course money can buy, it will be worth every dime. That's my mission over the next 30-45 days. But this deal is not uncommon at all.

Post: Rehabbing Your First House

Account ClosedPosted
  • Real Estate Investor
  • West Orange, NJ
  • Posts 130
  • Votes 19

Absolutely right K Marie. One thing he did was under estimate the repair costs. The house was a rat, barely livable. I dont know what he was qualified for but it wasnt enough. 2nd mistake is the house is worth very little. This was the classic mistake of "wanting the best house in the worst neighborhood" 2 critical errors. Doing one right could have softened the blow of the other but his candle burned out from both sides. Make sense?

Post: Rehabbing Your First House

Account ClosedPosted
  • Real Estate Investor
  • West Orange, NJ
  • Posts 130
  • Votes 19

Here's a change of gears. I have to buy this house and move in by the end of the summer. What do I need to rehab my first deal. I would use a hard money loan. I can find the deals. What do i need in terms of resources and cash reserves to complete this. If im going the route of doing an investment rehab, which im not decided on or against, then im going to do it on one of my next deals. Realistically by the end of May. So to all of you experienced rehabbers, please advise. I appreciate it. God bless

Post: Rehabbing Your First House

Account ClosedPosted
  • Real Estate Investor
  • West Orange, NJ
  • Posts 130
  • Votes 19

Thanks everyone. I definitely have seen the bad. My cousin bought his house with the same loan. He thought he got a deal but it was a bad neighborhood and he ran out of money. The house has been half done for 4 years. Im not going that route. I have faith and enough serious players in this business as friends to counsel with. Im going to take the leap of faith on this one and work with one GC who God sends my way. I'll weed out the crooked ones. I think im smart enough to learn doing and to buy the deal cheap enough to have a big margin for error not that i intend to use it. If i cant find houses at 65% of arv then i shouldnt be in this business. At those margins we're going to win on this.

I know its not easy but it is pretty simple. The rest is implementation. I'll keep you guys posted the whole way. Thanks and God bless.

Post: Rehabbing Your First House

Account ClosedPosted
  • Real Estate Investor
  • West Orange, NJ
  • Posts 130
  • Votes 19

Lol @ Michael cmon man of course youre coming through. Youre a major part of my business but like Keith said youre going to have to come off the chardonnay unless youre talking about baked chicken wings, rofl.

And Michael I understand your point as well. I could certainly do some incredible things in the house but i think the things above are pretty much all i would want. No additions or anything, but i do want to find the house that has the right layout. The master bedroom, walkin closet and master bath are very important to me. I want to get these in and im praying they wont be too difficult. Other than that the kitchen, deck or patio and central air. How much do you guys think this stuff would cost?