All Forum Posts by: Doug Minton

Mark,

As an agent and investor, I would never want to write that many offers for one of my clients. However, in NJ as a listing agent, they are supposed to submit all offers as long as the property is in an active status on the MLS. So, with that said, get a copy of your state contract and submit your offers to the listing agent/broker, and submit a form that makes them acknowledge that they submitted the offer to their seller.

Another thing you can do, and I have done this for an investor before, is have all your contracts pre-filled, and signed, so all you need to do is add any necessary information, and date them. You may be able to find an agent to submit them for you if you have that system in place. Otherwise, it's a pain in butt to write up all those offers. 

Lastly, now a days, forms are done electronically, so if the template works for you and you can do it online, the agent can just click a few buttons and you're on your way. Still time consuming for the agent, so you have to find a way to make it a win win. 

If your rehabbing, then prove to them that you're serious and have the funds to buy, and promise them the sale on the back end. If you're buying to rent, then again prove you can buy and have them find the tenants, or even manage the property for you. 

Hope this helps.

Awesome Chris! Hey, can you share some of the formulas your mentor used in analyzing his investments? I work with investor in my market and not one analyzes a property the same way. I mean their close, but no cigar as they say in the vernacular. :-)

I swear by direct marketing! It's old school, but as long as you touch a person several times, it works. 

As an agent, we are told to do cold calling to expired listings and FSBO's. If we can capture a persons information, then we set up a campaign to send out emails, letters, and also follow up phone calls to the prospect to get the deal/listing.

I'd recommend that you read the books Millionaire Real Estate Agent, Millionaire Real Estate Investor, and FLIP. Also, check out the books that Bigger Pockets has to offer. 

But yes!!! By all means do the direct marketing!!!

I actually used to invest in Rochester, NY. Good for you getting started in the business. 

So, you want to build a dream team, then the first step is to find the local REIA's in your area, and reach out to others in Bigger Pockets that live in your area. I am sure you will find references to help support your business.

To find out who owns the abandoned properties, then just go to the tax records. Get the address of the home owner and send out a letter, or a post card stating that you want to buy their property. Also, talk to the neighbors and see if they can give you any additional information concerning the property. And if you want to be bold, then put a sign on the property stating that you buy ugly houses...CA$H!!! 

So, what are you looking to do? Are you a buy and hold guy, or did you want to do flips? 

Negotiating 101... 

Find out what the seller needs, and find out their motivation level.  If they need to net a certain amount, then that can tell you something. If they need to sell due to distress, then that can tell you more about their motivation. 

Negotiating is a skill that must be practiced as often as possible. A negotiator needs to know what the other persons needs are, and then they need to know the available options to present to the person in need. 

For example, to find out what the person may need as far as selling price, always ask, " is that the best you can do?" Keep doing that until they give you their bottom line. 

Another option is to see if they need their money right away, or if it can be deferred, i.e. ask them if they are willing to hold the financing, or part of the financing. 

You also can ask, "if you can't sell you home to me, then what are you going to do?" This can tap into their motivation. 

As an agent, we do a lot of role playing and use certain scripts that ask a lot of questions to draw out the potential clients needs, and motivation. So, work on a good script, practice it and role play, then make the script your own, or make it fit your personality so it doesn't make you sound mechanical. 

Also, get some books on negotiation, and look into Tom Hopkins, and others like him. They train on negotiation and sales techniques.

Lastly, see if your agent can allow you a face to face meeting with the seller. You can start by sending a letter via your agent to the seller outlining what you mentioned concerning the repairs, etc... and how you really love the home and why you want to purchase it.  If you can't get the face to face meeting, then there may not be much else you can do, and if the numbers don't work, then just move on.

Hope that helps.

I don't think you can do what you are asking. However, you should contact your 401k custodian and ask them directly. My current 401k limits me from transfering funds to a different 401k. But back in 2004, my company was bought out and I rolled over my funds into a self directed IRA, and used that to purchase real estate.

With that said, even if you had the option to roll over into another 401k, I would advise against it. A self directed IRA is what you really want. Also, you should consider starting a Roth self directed IRA and consult with a CPA. The tax benefits are way better with a Roth. Just don't roll your 401k into a Roth, otherwise you will be hit with taxes.

Bottom line.... Consult with a CPA.

Join a REIA and network with other investors. Be sure to ask them what kind of investing they do, as well as how many deals they have under their belt. Once you make a few good connections, then just ask them if you can shadow them, or ask them out for coffee and ask them questions about what you want to do in the real estate industry, letting them know you would like their guidance.

You'll be surprised how many investors love to share their knowledge. 

Another thing you can do is get your real estate license, and find an investor/agent that you can work with. However, keep in mind that as an agent you will need to pay monthly and yearly fees, so if money is an issue based on your budget, then this may not be an option for you.   

NO! He didn't mention hoding costs, or contignecies. Do yourself a favor and buy the book FLIP. It is a Gary Keller book and shows you how to esitmate repairs and holding cost, and contigencies, etc....

Learn how to be a rehabber, then you will understand how to become a wholesaler. Keep in  mind that you need to find deals, and that means marketing dollars. Sure, you can work craigslist, but learning how to do direct mail, door knocking, and SEO, if you have a website, are key, simple and cost money and time. 

Then you need to know how to negotiate the deal.Not everybody is going to want to sell you their property at at discount no matter what their situation is, because of one simple factor....PRIDE! 

You have to know how to use the art of pursuation to show why they need to sell you their property at a discount.

Also, some buyers do not want to do an assignment, and you may not want that as well. There are different methods to closing on a deal. 1. Assignment 2. Back to back closing 3. Selling the LLC that you bought the property under. NOTE: The LLC must be created before you can purchase the property.

Bottom line is that wholesaling can work, and there is more information you should consider before doing a wholesale deal. If you find the right deal, then you will find a buyer, so a buyers list is not so important. Just become a member of your local REIA's and network, and find your buyers. Yes, ask them their criteria and make sure it's realistic. I have met buyers that have unrealistic goals and as my mom said, "they don't have a pot to pee in."

However, if you learn how to estimate repairs, understand holding costs, and do realistic marketing, you can be very successful. So, learn how to be a rehabber first, so you know and understand what a rehabber really needs, and if you can't wholesale the deal, at least you can rehab it yourself for a profit. Learn how to market, and learn how to negotiate.

As Flavor Flav said, "Don't belive the HYPE!" Lastly, find a wholesaler, and rehabber, who is successful in your area and network with them, and partner up with them until you can become established yourself.

John, I am an investor and an agent. I represent North Jersey, and I used to live in West New York, and also North Bergen near the JC and Union City boarders. My family is from Newark and the Oranges as well. If you still want to consider Hudson county, then I have some connections you may want to consider. I was recently told that for landlords, that area may be challenging due to the rent control issues. 

However, I work in Essex county and can turn you on to some deals and some contacts who have deals. I'll send your a request to connect and we can set up a time to meet in person.

@George P.: Funny, I use a calculator. I guess I should create a spreadsheet, since I am also a network engineer. That would make things easy, but I just love to run the numbers. Also, there is a ton of software out there to help you evaluate properties. I won't name any of them here, but if you want send me a message and I can tell you what I use to get a full analysis. However, I hear that biggerpockets has some great calculators. :-)