All Forum Posts by: Doug Pretorius

@Gabe Cole Just once, so I'm not an expert on it. But yeah, that's pretty much how it works. You could also set a minimum profit for yourself. Say it'll be worth $600k when it's done and it needs $100k to get it there. You could require a profit of 10%. So that seller will get $440k and you'll make $60k when it's done. Or if it only sells for $550k, then you take $55k and the seller gets $395k.

@Malcolm Howard What's a neighborhood contingency?

You could use an option. Options don't require any contingencies.

@Gabe Cole Have a lawyer draft a rock solid Joint Venture agreement. Partnering with the seller can be a great way to keep costs down for rehabs.

@Austin Works It's going to be tough because right now you're just a name on a list with no track record of closing deals with them. Naturally they're going to go to the people on their list who are proven closers first. Which means when you do get contacted, the deal isn't going to be as good because it was passed over by the top buyers.

I suggest getting on more lists, and don't try to hit a home run on your first deal with them. If it's 'good enough' buy it to start building a reputation as a closer with them.

I would also be inclined to work with investors who I've met in person. So invite them out to lunch.

@Kaliya Nikole Very few rent to own sellers list with an agent, there's usually no need.

However, you can set up a rent to own business for yourself where you market for tenant/buyers, have them select a property from the MLS, and then sell the entire deal to an investor. You can collect the buyer side commission from the seller of the house, plus an assignment fee from the investor.

You may want to discuss this business model with @Roy Cleeves.

@Dave Carella It depends on what kind of buyer she wants to work with. Blue collar first time buyers are going to require an entirely different marketing strategy than corporate execs transferring into the area.

@Tony R Fox If I was in your position I would do an advanced househack. Call FSBOs and FRBOs looking for a house to buy on a lease option. It's MUCH easier to find an owner to agree when you plan on living in the house yourself. Rent out the extra rooms and live for free while your tenants build equity for you.

The difference between this and a regular househack is that you don't need a down payment, you don't need to qualify for a mortgage, and if the market tanks you can walk away.

@Lavada Lindsey As @Jim C. and @Russell Brazil already said there are so many reasons why the agent could be doing this it's not worth listing them all or speculating which one it might be.

Just go straight to the seller yourself.

@Shelly Floyd Like @Caleb Heimsoth says you need to know the sold ARV, and the cost of repairs. Then you need to know who you want to sell it to. Professional flippers will want the lowest price but are likely to move the fastest and pay cash. Landlords will pay more but might need financing approval. End home buyers will take the longest and have the most hoops to jump through, but pay the most.

@Jared G. Deals aren't waiting around to be snatched up. YOU create them by seeking out motivated sellers and solving their problems.

My advice to get started is learn about a problem (debt relief) and a solution (lease options)  then go out and look for sellers who need that problem solved. Once you master that you can move on to another problem and solution until you know how to solve enough problems that you are making the amount of money you want.