All Forum Posts by: Robert Williams

I would spend the entire amount on expanding your direct mail campaign.  

Google the term "health insurance" with your state's name and navigate to your state's health insurance exchange.  You should be able to find out what the rates are for different plans in your state.  

Next, I would encourage you to compare the cost of paying for your own health insurance with your current opportunity cost of not working in real estate full time.  That is, how much more money could you conservatively expect to make if you were working as a real estate agent/investor full time?  

When the the opportunity cost of not working in real estate full time outweighs the salary and benefits of your current job, it's time to make the transition.  

First I look for true comps, then I go to comps that need an adjustment (because they have a different # of bedrooms/bathrooms/etc).  I'll actually give more weight to a comp that needs an adjustment that is closer to a house that has the exact same characteristics, but is further away.  

I'll look at pendings and actives too, but not to establish the ARV, just to get a sense for what is currently on the marketplace. It doesn't make sense to use these as a comp since you don't yet know what the actual closed sales price will be.

I never use square footage as a valuation tool.  First, unless you took the measurements yourself, advertised and/or tax record square footage numbers are notoriously inaccurate.  Second, a house could have more square footage, but maybe the floor plan is really poorly thought out.  Conversely, you could have a slightly smaller house that has a completely optimized or open floor plan that makes it more attractive than a larger home.     

Hi Michael,

I've found that people will find you with their money if you establish a proven track record.  I did a few successful rehab deals and I now have friends just begging to have the opportunity to invest in my next one.  

-Rob

The very first thing I would research are the landlord/tenant laws in your city.  In Washington DC, it's a very time consuming and painful process to evict anyone, even a hoarder who is clearly living in conditions that must violate several of your city's building and health ordinances.  

If you want to play it safe, assume that the place is going to need a gut job and run your numbers accordingly.  

I'm pro-401(k), but it's not an "either/or" proposition for me as you stated in your post.  I'm actively putting money into my 401(k), but I'm also growing my liquid assets so that they're available for other investment vehicles (like real estate investing). From a tax advantage stand point, 401(k)s are great vehicles to stash some of your net worth.  

Sound financial planning is all about diversification (or, in other words, don't put all of your eggs into one basket.)

Hi Kristy,

I think the best way to market yourself to sellers is the exact approach you mentioned in your post; tell them you work with a group of investors and that they're looking for a house just like the seller's.  

The best way to market yourself to other investors is by networking. Attend any local REI meet-ups in your area and start introducing yourself as a property finder/bird dog. Introduce yourself to investors here on BP and reach out to them whenever you find a potential deal.

Personally, I don't care whether someone is a complete newbie or someone with years of experience.  I care about results.  Property finding is all about working the phones and pounding the pavement and just working really hard.  You may talk to fifty people before you find one that's actually interested in selling their home.  I've found that new investors tend to have the most energy to devote to this type of difficult work.

-Rob

It seems like friends and clients are always asking me about REOs.  The fact of the matter is that in Washington DC, there's a very small number of them and they tend to get bid up to the point where they are not the great deals people think they are.

You can find good wholesale deals in any part of the DC metropolitan area, but it's not easy work.  The hard part is doing the legwork to actually find the motivated sellers who need a fast closing and are willing to sell their property at a wholesale price.  They are out there, but it takes time and diligence to find them and to get a deal done.    

There are a lot of folks selling training and "systems".  The best way to learn the basics of wholesaling is right here on BP.  Check out the FREE resources in the "Resources" tab of this website.  If you haven't done so already, start with the free "Beginner's Guide..." and then go from there.  I've learned more from the free resources on this site than any training that I've paid for over the years.