All Forum Posts by: Don Konipol

Quote from @Jay Hinrichs:

deal maker in Chief !!!!

GEORGE WASHINGTON DEALMAKER-IN-CHIEF: THE STORY OF HOW THE FATHER OF OUR COUNTRY UNLEASHED THE ENTREPRENEURIAL SPIRIT IN AMERICA

Cyrus A. Ansary (Author) 640 ratings

These are the two basic real estate investment strategies I used to build a 8 figure net worth - with almost no debt.  The 2 strategies are related. 

1. Go with the “deal” that adds the most to your net worth rather than adding the most to your cash.  Most people go for the cash.  I’ll give you two specific examples.  When selling a property, I almost always advertise that I’m willing to seller finance, with a decent down payment.  Because this increases  the potential buyer market tremendously, I’m able to obtain offers to purchase at a significantly higher price with seller financing than all cash offers.  When the seller finance offer is greater enough to offset the risk, I accept the offer and carry a note.  If I need cash for another deal, I borrow using the note I now hold as collateral, or use the note in a more creative way.  If I am able to wrap the new note with a higher interest rate around an existing lower interest rate note, I’m further ahead. 

A second example is when "syndicating" deals, or JV, or any partnership. Most investors putting together a deal want to get their initial investment in appraisal costs, earnest money, inspection fees, etc out in cash when the transaction closes. I instead take an additional ownership interest in the subject asset - at 50% of greater valuation than the money I invested. Passive investors in the deal love this - shows my commitment and confidence in the deal (which is true), and aligns our interest.

Third example - I’m always willing to entertain a trade of properties, not for 1031 exchange benefits (which I believe is overhyped and over rated), but as a method for adding to my net worth - IF the exchange puts me in a higher wealth position.  Surprisingly, people will do exchanges that DECREASE their own net worth IF the trade enables them to accomplish a more important goal. 

2. Buy properties or notes FOR CASH where the use of cash enables you to obtain a LARGE discount.  While these deals are somewhat rare, they do exist. Here are two actual examples. 

25 years ago I was offered an automotive repair facility that was an asset in bankruptcy court.  The kicker was that there was an environmental concern.  The court was suggesting a price of $300,000, and the trustee had no interested buyers. I obtained a few quotes from licensed remediation companies and the quotes ranged from a high of $55,000 to a low of $3,000.  I visited the state environmental branch office, and in speaking with the chief engineer found out that the firm with the low quote was highly recommended.  I made an offer for the property, which the court countered at a small increase, and ended up buying the property for $115,000.  No financing was available because of the environmental situation which eliminated all the “wanna bes” with no capital; eliminated those who had assets but no liquidity, eliminated those that had credit but couldn’t use it on a property that was not “financeable”.  I remediated the property for$3,000, rented it out for $3500 per month while waiting for a certificate attesting to no environmental hazard, and sold it to the tenant for $325,000.  

Another example. I was offered 50% ownership in an LLC which owned a single property worth about $250k. The owner needed to sell fast - like that day. He was asking $100k. I told him to get realistic. He said $50k. My response was "I said realistic, not optimistic." He said 25 k. I knew his "partner" the owner of the other 50%, was well known to be difficult to deal with. Further, I had dealt with this seller before, and he screwed me for about $10k on a deal, so I was not about to help in out with a short term loan as I would have anyone else. I offered $5k. We "settled" on $10k. Now here's where it get weird LOL. The next day I visited the other 50% owner at his office. He couldn't believe that his "partner" had not offered the 50% to him - although they had not been on speaking terms for 2 years. I told the partners that he and I had done three or four deals in the past, all profitable for both of us. It would cost us too much money in opportunity cost to end up never doing any more deals because of a partnership despite. Further, since we both had capital, getting attorneys involved was the same as each of us taking $30k and flushing it down the toilet. I further told him a partnership could never work because he's an a - hole. So, here's the solution. I buy him out for $100k - or he buys me out for $100k. After much hemming, hawing, crying, anger, etc. he said he'd buy me out. Writes a check for $100k on the spot. I know this guys checks are as good as gold, so I accept it, sign the sale agreement we drew up right there, and made my biggest single percentage profit in one day.

Quote from @Joe S.:

So the question is what’s your thoughts on networking and is it over rated.

From my own experience, going to meet ups and talking big game with newbies was l not all that beneficial.  Going to meet ups and being exposed to a pitch fest was not all that beneficial either. Being somebody’s lap dog probably would not be beneficial for me…I never gave that a shot. Lol

What I have found for myself to be beneficial was marketing and getting in front of sellers and pretty well closing my ears and eyes from those that were talking big game so I did not get discouraged.. I’ve never had anyone take me under their wing, but that’s possibly because my personality does not seek out that kind of arrangement.

I am not a realtor or a lender so I do not have any perspective personally for that when it comes to networking.

What’s your thoughts on networking?

PS my Title was supposed to be (is networking overrated,), but I cannot edit it. Maybe a moderator can.

GREAT responses!   GREAT question? 

Traditional networking, exchanging business cards, handshakes, slap on the back, etc., while sometimes effective, was inefficient.  However, before on line marketing, virtual webinars, social media marketing, SEO, SEM, the basic alternatives were paid advertising and in person networking.  I raised $8 million for my first funds in 2002 - 2004 100% by in person networking. I also created a deal flow of about $5 million a year in loans from same. I was attending, speaking at, 15 - 20 events monthly!

when I switched to SEO, social media marketing, and on line marketing I was able to grow my business 10 fold (over 15 years) “without leaving my house” LOL.  That’s the power of the internet!  

There’s a place for networking, BUT, to be EFFICIENT it needs to be done with a lot more targeting than we did it back 20 - 50 years ago.  There are some high level business networking groups where relationships with monied people can be made - BUT, these require an annual fee of $10,000 + per year to be a member.  

Quote from @Andy Horobec:

Hey everyone,

I’m looking to dive deep into short sales and would love to connect with anyone currently doing them or who has experience. I’m interested in learning:

• How to find properties that would be good candidates for short sales
• The best way to reach out to sellers and contact their banks
• How to navigate the short sale process and help stop foreclosure effectively
• Any tools, scripts, or systems you recommend for managing the process

If you’re actively working short sales or have any advice on how to get started the right way, I’d really appreciate hearing from you.

Thanks in advance — looking forward to connecting and learning from you all!

The Dodd Frank Act and Consumer Finance Protection Bureau regulations have made engagement with a homeowner regarding any attempt at “helping” that homeowner via a vi their mortgage by anyway other than a licensed mortgage originator subject to numerous civil and perhaps criminal penalties.  If your intention is to purchase a property, you can make an offer; you may be able to suggest that the seller can ask their note holder to accept a payoff for less than the principal amount, though even this may be violating Federal statutes and administrative rulings.  After that it’s up to the seller to obtain the advice and guidance of licensed professionals.  

If your intention is to tie up the property at a below market price and “flip” the contract (Wholesale it) you may be in violation of state licensing laws. If your intention is to 
help” the seller navigate short sale for compensation, you are in violation of Federal licensing laws.  Either way when the attorneys who search public records in search of people to sue come across your ‘successful” completed transaction, they will contact the seller, explain how you violated consumer protection laws, and offer their services on a no risk contingency basis.  

Quote from @Trevor Neale:

What is the procedure of changing your investment property to a LLC to protect you ?

A warranty deed is drawn up and executed by yourself with notary acknowledgment transferring title from yourself to the entity LLC.  This deed instrument is submitted to the county recorders office for “filing”.  The county recorder will time stamp it “recorded” and send the original back to you.  Any real estate or transactional attorney can handle this for $300 or less. 

Quote from @Eshe Harvey:

I had a coffee meeting today with a well-respected figure in real estate that turned into something far beyond what I expected. This wasn't just networking - it was a shift. He told me he sees something in me. He said he'll personally mentor me to help perfect my pitch and business plan - and he wasn't playing. He gave me real homework assignments, and we'll be meeting again to make sure I can articulate the vision, not just dream it. And the most life-changing part?

He said I don't need to worry about funding - he and his team will provide that once the vision is solid and well-crafted, he insisted that money isn't an issue. He is helping me make sure that my vision is solid. But he says he sees my potential or else he would have not taken time out of his very busy schedule to meet with me. He says I am on his radar.

He also told me something that stuck: move intentionally - and be willing to cut ties quickly with anyone who doesn't align with the mission. This journey isn't about pleasing everyone. It's about precision, purpose, and positioning. I'm still taking it all in, but I wanted to share this as a reminder: the right people will meet you where you are - if you're willing to show up prepared, focused, and open.

So this from @Eshe Harvey page

“This project reimagines a large, underutilized property in Chicago's South Shore neighborhood as a multi-use cultural and economic destination. Anchored in local pride but designed with global appeal, the vision includes ghost kitchens, creative studios, flexible event space, and marketplace for emerging entrepreneurs. AI driven tools will be integrated as well to assist with day-to-day operations, vendor coordination, and overall efficiency.

Strategically positioned just minutes from the forthcoming Obama Presidential Center, the development is designed to complement the anticipated rise in tourism, investment, and foot traffic across Chicago's South Side. It presents a rare opportunity to activate an iconic site with both community impact and scalable economic returns.

Currently in the planning phase-focused on gathering resident insight, cultivating brand partners, and aligning with forward-thinking investors and civic stakeholders ready to help shape a legacy project rooted in culture, commerce, and change.

Due to the unique nature of this concept, additional project details may be shared upon request and may require a mutual non-disclosure agreement (NDA).

Serious inquires only.”

So, assuming this is the venture the OP is referring to in her post, we can see this is NOT the normal beginner investment we usually see or hear about. 

We don’t know the education, knowledge, experience, ability, network, etc of Eshe Harvey, nor do we know the outside support this project may generate.  What we can assume from her posts is that she has great passion for the project; has a genuine belief that the project can be accomplished; and has positioned the project in a way that can attract both private and private funds, and possibly equity as well as grants. Also, Eshe Harvey appears to understand that she needs to bring in many individuals into the fold to help her achieve this projects success.

She’s shooting for the moon; but what’s wrong with that?  She’s heeded the warnings (which I see as real concerns) but she being in the best position to judge doesn’t think the individual she’s met with has underhanded motives.  Most people wouldn’t have made it as far as she already has. 

I hope she succeeds beyond’s her wildest dreams.  The best “American Success Story” are those who started with little or no capital and still were able to “put the deal together”.  I’ve seen a number of successes in my almost 50 years in real estate, and far too many failures, scams, and bankruptcies.  I hope this one is one of the successes.  

Quote from @Jay Hinrichs:

https://www.biggerpockets.com/forums/49/topics/1239975-do-pr... 

This thread was last week.. yesterday  I funded this deal for this investor.. Not saying this is common.. however the investor had his title work done he had some cash and I liked the project so I started working on it with an email Monday the 21st to the title company and Title company referred me to local attorney for doc prep ( note and TD) Docs were to me by Wednesday to review and approve .. Docs were approved within 30 minutes by me .. ( I happened to be in Milwaukee that day touring RE with @Marcus Auerbach of BP)  I approved them Docs went out fed X to the borrower he signed Thursday and fed ex back to title .. And I sent in the funding wire on Friday and it closed.. Borrower had a hard closing date he needed to make and well we made it no problem.   So when the question comes up on BP can a deal get funding in 5 days in some cases sure.. Not generally going to happen with a Broker .. PM it can.. I do my own valuations so no appraisal etc etc .. True Equity based transaction. 

But Borrower has to have some cash which this borrower did and a very nice plan to build a custom spec home.. So hoping it all goes great for him.. 

Great deal.  About 7 years ago we were approached with a slam dunk deal where the lender couldn’t come up with the money to close - probably a broker disguising himself as a lender - anyway the transaction had to close in 48 hours and we did it.  BUT - everything g was lined up and since I am the sole underwriter/decision maker we are able to move fast when necessary.

More typical is the borrower who comes to us through a broker who has not ordered title work, doesn’t have a survey (necessary for commercial property in most states) needs an MAI appraisal, and whose contract to purchase has probably already expired.  Also typical is the borrower who came to us through a broker 3 days ago; he has to close by the 30th or he loses $50k earnest money.  He was all gong ho for us to get him a term sheet, which he promptly took to the seller to get an extension, and once that was achieved began shopping for a “better” loan.  He’ll be back in 30 days when he hasn’t obtained 
better” financing and he has 5 days to close or lose his earnest money.  I will either reject his application or go ahead with the loan adding 2% to the interest rate and 2 points additional origination fee for “aggravation”.  

Quote from @Brian Zellner:

Relatively new investor, and just bought my first house with a mortgage. My other properties are in my LLC's name because I purchased them in cash. How hard is it to transfer this property into that of the LLC after closing?

This is a field in which there is a lot of misinformation.  So I’ll try to clarify since asset protection is an area I studies and practice in depth.

Theoretically, should you own a property in your name (personally) you can and will be held personally liable for any liability arising out of that property.  Should title be in the name of an LLC you control, you will only be held liable personally for liabilities for which you, personally were the direct cause and liabilities you personally accepted responsibility for via a personal guarantee. 

The posters that state there is no difference assume that you will maintain sufficient insurance coverage to handle any claim.  However, any claim for which the insurance provider denies coverage, or any claim in excess of the amount of insured liability, will be incurred personally under personal ownership but only to the LLC under LLC ownership. 

99.5 % of the time there will be no difference.  BUT, investing in enough properties, your odds of needing this basic and relatively inexpensive protection is increased exponentially.  I recommend (and I utilize) a SERIES LLC where each series separately holds title to each property and is not liable for any claims arising from a property held in a different series of the same LLC. There is only one LLC formed, and hence only one time cost of formation; further accounting/tax prep fees are less because tax returns are filed for only one entity.  Further, ownership of each series is separate and hence can differ from the other series. 

As a side note, there is a common (incorrect) believe amongst investors that entity protection is not worth it because a good plaintiff attorney can easily “pierce” the corporate veil”, meaning get the court to agree to declare you as personally liable as an “alter ego” of your entity.  This was never “easy”, and the burden of proof was on the plaintiff.  However, under extreme instances where certain commingling actions took place, some suits were successful.  This has been eliminated 98% by the use of LLC structure instead of corporations.  Since LLC don’t require the formality of meetings, votes, board of directors, resolutions, etc like corporations do, the only charge someone attempting to “pierce” the LLC can bring is commingling funds.  This usually isn’t sufficient, but even if it is simply open a separate LLC bank account and deposit only property revenue and pay property expenses only from this account. 

Quote from @Garrett Brown:

How do you feel about this as hosts? I am slightly torn but do believe this is the way to go.  https://skift.com/2025/04/21/airbnb-makes-total-price-displa...

Why it’s good for you as a host:

• Transparency builds trust. Guests seeing the real price upfront means fewer surprises and angry messages like “I didn’t know cleaning was 150 dollars.”

• Fewer abandoned bookings. Guests are less likely to bounce mid-checkout when the price doesn’t spike at the end.

• You can stand out. If your pricing is clean and fair, you’ll look great next to listings that inflate fees.

Why it might sting:

• High-fee listings could suffer. If you rely on low nightly rates with big cleaning or service fees to look cheap in search results, this change exposes that.

• It forces you to get competitive. Pricing strategy matters more than ever now, no more burying the true cost.

It’s ultimately good for the guest experience, which long-term is good for hosts who run a tight ship and price honestly. If you’ve already been transparent and thoughtful with your pricing, this levels the playing field in your favor.

The problem has always been that the “public” is used to hotels, and hotels are priced per night, so three nights is 3 times one night, for TOTAL price.
Since most STR hosts provide cleaning one times per STAY, the fee will of course result in a one night stay costing significantly more per night than a 7 day stay (even double on a nightly basis).  Add in the other fees and the platform isn’t so “user friendly”.  The hotel frustration most like this for the user is the hotels that, in certain areas, add on a “resort” or “facility” fee, which they define as use of all the resort amenities, to be paid whether or not the guest utilizes the said amenities.  More annoying is the limited service motels in a resort area that add on a “resort fee” despite having no resort amenities.  

I’ve been both an owner of STR housing and I am a “guest” at least twice a year for the last 15 years.  In my opinion this is long overdue.  Give the user all the information upfront and easy to use- STR is in numerous instances far superior to hotel stay.  

Quote from @Zoe Leal:

Hello. I am brand new to wholesale and would like to know what you did to motivate your first prospect to trust you with the whosale strategy and process. Any guidance or info for that first sale would be greatly appreciated. 

The first step is you need to know what value you bring to the “prospect”.  Why are they better served by signing a contract with you rather than signing a listing agreement with a licensed broker?  If you can’t answer that question truthfully, then you need to go no further.  While there may be “lines” you can feed a seller that may make them “bite”, do you really want to “sell” your service with a lie? 

If you’re able to understand the role of the wholesaler, and believe that wholesaling can be more beneficial to a specific seller than listing with a broker, AND you believe that given your knowledge, experience and expertise YOU can provide that service in a competent and efficient manner, then you can consider step two: Are you legally able to operate as a wholesaler in the legal jurisdiction in question? Some jurisdictions require people engaging in specific actions, which may define the wholesaling you are attempting, be licensed as a real estate agent; and or comply with certain disclosures, and or outright ban certain operating methods. 

Assuming you are able to comply with the legal requirements of the subject jurisdiction, the next question to answer is are you committing fraud when you produce a purchase contract? If the contract calls for you to complete the purchase (close) of the property, and you have no ability to do so either because you lack capital or lack credit, then the contract was fraudulent EVEN if the contract legally has enough “outs” so you can terminate without penalty.  

Getting past all of the above, the next question is can you make any money - and if so is the money enough to compensate for your time, effort, and expenses?  Do you have a “stable” of ready buyers, vetted so that you know who’ll be interested in a property, and at what price before you’ve even made an offer?  Can you accurately estimate repairs so that you’re not wasting your time and the seller’s time tying up property that needs more repair than the price you’ll pay justifies?  

The final question is relatively simple: despite what gurus state, wholesaling is NOT investing; it is SALES more than anything else.  Essentially, wholesaling AS ITS DEFINED TODAY is a commissioned independent SALES position. So, is THIS what you REALLY want to do?  Understand, wholesaling is not a first step to real estate investing.