All Forum Posts by: Eric N.

Quote from @Jay Hinrichs:

Quote from @Eric N.:

Quote from @Jay Hinrichs:

Quote from @Eric N.:

Quote from @Jay Hinrichs:

Quote from @Eric N.:

Quote from @Jay Hinrichs:

Quote from @Eric N.:

Quote from @Jay Hinrichs:

Quote from @Eric N.:

Quote from @Jay Hinrichs:

Quote from @Ned Carey:

@S Arely Cavazos Serratos
       "So how do you know someone has a great marketplace if they don't get the chance to pitch?"

That is a legitimate question. Sometimes I take a call. I can tell in 5 seconds whether the person calling has clue about what they are doing.  I have NEVER had someone cold call that could help me. I have on occasion taken a few minutes to help people calling me if I thought they were sincere.

i turn the tables on them.. most of the time its someone just reading off script but if I can get to the owner then I end up pitching them for my services.. especially as states are clamping down on assigning contracts.. thats how I found my Baltimore clients. they cold called me on a deal I took over from ABC.. 125 fundings later still going at it.. And I got out of ABC without getting burned.. One of the very few from what I hear. 

 Why I Don’t Chase Commercial Landlords for Wholesale Deals

I regularly meet investors at local meetups who are deeply involved in commercial wholesaling. I respect their hustle, their skill sets, and the persistence it takes to make those deals happen. That said, it’s just not for me.

I have zero interest in cold calling commercial landlords and trying to convince them to sell me their multiunit property at a discount. These are folks in the same business as we are—why would they agree to offload a property to me at 60–70 cents on the dollar when they know the game just as well, if not better?

There’ve been a few times when I’ve ended up talking to landlords anyway—mostly took calls from them when they received our DM, or I accidentally included them on a cold call list , in both instances due to lead source improperly filtering our lists. Most of the time, they want above retail, not even close to wholesale numbers. And frankly, I’m not interested in wasting my time chasing those kinds of leads. 

thats fine if your talking to me I have zero interest in buying anything.. I just rent my money out to those guys who need to buy inventory so they can either refi and keep or sell to a buy hold investor..  I am just a money renter.. short term and I work in the low balance markets were many in the lending business wont tread.. 

I do that too. I work with the lending company that does HML, bridge and DSCR. Do you mean the wholesalers who reached out to you were so clueless that they were unaware of funding options until you pitched your service to them? If yes, this is amazing. I always feel amazed when I stumble upon successful people who don't know some basic stuff related to their line of business. If they were all newbies, then that's self explanatory. But if these were seasoned wholesalers crushing it locally, and still unaware of asset based financing, then that is amazing. :D 

Keep in mind I am NOT a Broker I lend my own money HUGE difference I dont have to ask underwriting I do my own valuations no apprasials I travel to the markets meet the clients walk the properties set up a program and launch I have done over 4000 of these since 2012. IN the lower priced and lower balance markets I do nothing were i live on the West coast for instance.. Its an under served area of the market that I have penetrated and of course like I said when its our money we can do things NO Broker can do if its in our funding box.

I will do brokerage, but right now working with one lender. I won't lend my own money on deals. I have people in my network who do it, that's called PML. There are ways to mitigate risks, by lending 70% of as is value, but I don't like the liability. Set aside competitive disadvantage (flippers can get up to 90% of purchase price if experienced) , even if I had clients willing to borrow at 70% I would still have to deal with foreclosures when they fail. I see flippers fail all the time. Things look viable on paper and pass the scrutiny, but what happens in real life is another thing. Most get screwed by underestimating rehab budget and being ripped off by contractors who take money and procrastinate or just dump them and run away. But if you have large enough capital to lend I guess you can mitigate the risks by writing off bad loans and foreclosure costs as cost of doing business. 
What other ways are there to finance a deal? If you talk about creative financing, that doesn't take any money to purchase. You just pay back lump sum when loan is due or you pay seller the interest on money you owe them for deed you take over. What is your funding box?

I dont use the project as collateral so I never have to foreclose .. 200k and under.. I do a ton of real small balance stuff 20 to 50k.. those are where the money are .. 

So, what do you use as collateral? What do you do if your borrower is inept and blows all the money you lend? On flippers side, you are correct about a low range niche that other lenders don't want to enter. But even if there was the lender willing to lend 20K (say, to buy a house in rural area Ohio or Pennsylvania for 7K and spend 13K to rehab and rent it), the biggest issue for borrower would be the profitability. How does borrower make enough money to justify going through all this trouble? Unless he is then flipping the property to rent-to-own buyer, who pays him hundreds of dollars a month on a house acquired for $20K plus closing costs/interest? I am just curious how you make this work. Or how borrower makes it work. May be I am missing a point and you are talking about gap funding or EMD financing, like Pace Morby's gators do?

no gator lending LOL..  low value to me is anything under 200k.. but I do a ton of deals like this buy for 30 to 80k put 20 to 75k value 175 to 225k sell retail.. my clients make 20 to 50k per deal and we do well also.
the 10k stuff is generally my land flippers product that I have. and on those its simply a 50/50 profit split..  but most land deals are in the 25 to 150k range.. although I did just close one for 1.2 mil but thats not my main product.  the 175 to 225k fully rehab starter homes fly off the shelf in most parts of the US I work in..  Keep in mind I only have 10 clients I dont work with one offs or begineers.. Just high volume repeat. 

I did own a traditional HML company back in the day but we got wiped out from 08 to 2011 in the melt down. at that time I had over 600 loans out and ended up like your alluding to owning 250 some homes.. And I made it through but at tremendous personal loss.. So coming out of that I created a new model in 2012 so that I would never have to foreclose again and its not for everyone and I dont want to work like a broker Its a different model. I create long term relationships and pump our funding in those companies. This precludes the need to do normal HML function of underwriting new borrowers constantly ordering apprasials never seeing in person what I loan on.. I am in fact right now in one of my markets for the next two days and will look at about 8 of our projects and then fly home. Brokers never leave their desk unless of course they are old school and only loan in the city they live in and work in.. And thats OK there are plenty that work that way as well

 Glad you found the niche that works for you. Earlier you mentioned how you recruited wholesalers who were bombarding you with cold calls to use your lending product. How did it work with them? I assume you recruited 10 of them and done looking for more, so you still must be bombarded with cold calls that you can't flip and convert to become your clients?

 I turned two wholesalers into wholetailers  and helped them control inventory as assigning contracts is becoming tough in some markets. So elevated them into TRUE equitable interest through my company. 

The majority of my clients buy rehab and sell to turnkey rental investors or they refi and keep .. I have clients that I have helped go from 20 units to over 200 units  SFRs that they now own.. I help them scale and of course we make a premium for this service and thats why I stay in that niche.   And yes I get bombarded with robo calls and text and so on so forth.. 90% of the time i cant get by the set up person. 

But when I do most of the owners of these companies dont want to do anything but what they are doing but the few that want to create thier own portfolios or want to control inventory then we are there to help.

As a full time wholesaler, money for me is not an issue. I work with a lender who pulls my score every six month and keeps my HML qualification and pre-approval limits handy. It takes into account reserves I have to cover the closing costs, fees and interest for the next 6 months. I would say getting money and OWNING something is the easiest path in this business. I am not a proverbial "doesn't have a penny to print his contract on a paper" wholesaler. Owning, buying, getting equitable interest in something is not a big deal to me. What I care about is liability, risk versus reward. I still like wholesaling because it provides the least amount of risk and cost to me. I am all about ME, not someone else. As a sensible for profit business I have to above all think about my priorities, just as other business owners must think of theirs.

Is it tough to find deals in or around big cities saturated with thousands of wholesalers and big players with big budget? You bet. But it's still doable. And still less risk than any other endeavor in RE. But if market keeps cooling off, then it will be a good time to buy and hold, and that's when I may decide not to wholesale or even flip, but buy and hold until numbers go up again. 

Quote from @Denise Supplee:

Not sure what you mean? I was speaking of receiving. I do not do any cold calling at all for our club. As a Realtor, I used all other means. People get annoyed at random calls. Nowadays, unknown callers can be silenced or blocked. It does not make sense. Texts would be a better option but even those can get annoying.

You said you prefer emails, I thought you mean you prefer to reach out by email. As a wholesaler I care about two things: KPI and TCPA compliance. No DNC calls. If my KPI justifies cold calls, I will continue hiring VA's to make those. If KPI drops then I have a problem, and it's usually due to data quality or the dialer. Sometimes it's the VA's who can't convert connections to qualified leads.

Cold texts are illegal under current laws and regulations. There are ways to fall into grey area and make it less likely for recipient to complain, but the risk of being hit with $1500 fine per SMS is still there. So, we don't currently do it. 

Quote from @Jay Hinrichs:

Quote from @Eric N.:

Quote from @Jay Hinrichs:

Quote from @Eric N.:

Quote from @Jay Hinrichs:

Quote from @Eric N.:

Quote from @Jay Hinrichs:

Quote from @Eric N.:

Quote from @Jay Hinrichs:

Quote from @Ned Carey:

@S Arely Cavazos Serratos
       "So how do you know someone has a great marketplace if they don't get the chance to pitch?"

That is a legitimate question. Sometimes I take a call. I can tell in 5 seconds whether the person calling has clue about what they are doing.  I have NEVER had someone cold call that could help me. I have on occasion taken a few minutes to help people calling me if I thought they were sincere.

i turn the tables on them.. most of the time its someone just reading off script but if I can get to the owner then I end up pitching them for my services.. especially as states are clamping down on assigning contracts.. thats how I found my Baltimore clients. they cold called me on a deal I took over from ABC.. 125 fundings later still going at it.. And I got out of ABC without getting burned.. One of the very few from what I hear. 

 Why I Don’t Chase Commercial Landlords for Wholesale Deals

I regularly meet investors at local meetups who are deeply involved in commercial wholesaling. I respect their hustle, their skill sets, and the persistence it takes to make those deals happen. That said, it’s just not for me.

I have zero interest in cold calling commercial landlords and trying to convince them to sell me their multiunit property at a discount. These are folks in the same business as we are—why would they agree to offload a property to me at 60–70 cents on the dollar when they know the game just as well, if not better?

There’ve been a few times when I’ve ended up talking to landlords anyway—mostly took calls from them when they received our DM, or I accidentally included them on a cold call list , in both instances due to lead source improperly filtering our lists. Most of the time, they want above retail, not even close to wholesale numbers. And frankly, I’m not interested in wasting my time chasing those kinds of leads. 

thats fine if your talking to me I have zero interest in buying anything.. I just rent my money out to those guys who need to buy inventory so they can either refi and keep or sell to a buy hold investor..  I am just a money renter.. short term and I work in the low balance markets were many in the lending business wont tread.. 

I do that too. I work with the lending company that does HML, bridge and DSCR. Do you mean the wholesalers who reached out to you were so clueless that they were unaware of funding options until you pitched your service to them? If yes, this is amazing. I always feel amazed when I stumble upon successful people who don't know some basic stuff related to their line of business. If they were all newbies, then that's self explanatory. But if these were seasoned wholesalers crushing it locally, and still unaware of asset based financing, then that is amazing. :D 

Keep in mind I am NOT a Broker I lend my own money HUGE difference I dont have to ask underwriting I do my own valuations no apprasials I travel to the markets meet the clients walk the properties set up a program and launch I have done over 4000 of these since 2012. IN the lower priced and lower balance markets I do nothing were i live on the West coast for instance.. Its an under served area of the market that I have penetrated and of course like I said when its our money we can do things NO Broker can do if its in our funding box.

I will do brokerage, but right now working with one lender. I won't lend my own money on deals. I have people in my network who do it, that's called PML. There are ways to mitigate risks, by lending 70% of as is value, but I don't like the liability. Set aside competitive disadvantage (flippers can get up to 90% of purchase price if experienced) , even if I had clients willing to borrow at 70% I would still have to deal with foreclosures when they fail. I see flippers fail all the time. Things look viable on paper and pass the scrutiny, but what happens in real life is another thing. Most get screwed by underestimating rehab budget and being ripped off by contractors who take money and procrastinate or just dump them and run away. But if you have large enough capital to lend I guess you can mitigate the risks by writing off bad loans and foreclosure costs as cost of doing business. 
What other ways are there to finance a deal? If you talk about creative financing, that doesn't take any money to purchase. You just pay back lump sum when loan is due or you pay seller the interest on money you owe them for deed you take over. What is your funding box?

I dont use the project as collateral so I never have to foreclose .. 200k and under.. I do a ton of real small balance stuff 20 to 50k.. those are where the money are .. 

So, what do you use as collateral? What do you do if your borrower is inept and blows all the money you lend? On flippers side, you are correct about a low range niche that other lenders don't want to enter. But even if there was the lender willing to lend 20K (say, to buy a house in rural area Ohio or Pennsylvania for 7K and spend 13K to rehab and rent it), the biggest issue for borrower would be the profitability. How does borrower make enough money to justify going through all this trouble? Unless he is then flipping the property to rent-to-own buyer, who pays him hundreds of dollars a month on a house acquired for $20K plus closing costs/interest? I am just curious how you make this work. Or how borrower makes it work. May be I am missing a point and you are talking about gap funding or EMD financing, like Pace Morby's gators do?

no gator lending LOL..  low value to me is anything under 200k.. but I do a ton of deals like this buy for 30 to 80k put 20 to 75k value 175 to 225k sell retail.. my clients make 20 to 50k per deal and we do well also.
the 10k stuff is generally my land flippers product that I have. and on those its simply a 50/50 profit split..  but most land deals are in the 25 to 150k range.. although I did just close one for 1.2 mil but thats not my main product.  the 175 to 225k fully rehab starter homes fly off the shelf in most parts of the US I work in..  Keep in mind I only have 10 clients I dont work with one offs or begineers.. Just high volume repeat. 

I did own a traditional HML company back in the day but we got wiped out from 08 to 2011 in the melt down. at that time I had over 600 loans out and ended up like your alluding to owning 250 some homes.. And I made it through but at tremendous personal loss.. So coming out of that I created a new model in 2012 so that I would never have to foreclose again and its not for everyone and I dont want to work like a broker Its a different model. I create long term relationships and pump our funding in those companies. This precludes the need to do normal HML function of underwriting new borrowers constantly ordering apprasials never seeing in person what I loan on.. I am in fact right now in one of my markets for the next two days and will look at about 8 of our projects and then fly home. Brokers never leave their desk unless of course they are old school and only loan in the city they live in and work in.. And thats OK there are plenty that work that way as well

 Glad you found the niche that works for you. Earlier you mentioned how you recruited wholesalers who were bombarding you with cold calls to use your lending product. How did it work with them? I assume you recruited 10 of them and done looking for more, so you still must be bombarded with cold calls that you can't flip and convert to become your clients?

Quote from @Greg Scott:

My phone rings 10+ times per day with garbage calls, some asking to buy properties I haven't owned in well over a decade.  

Texting me spam is an immediate addition to my blocked numbers list and spammers often receive a colorful emoji as a reply before they are blocked.  Texting is too intrusive. I block callers regularly and have more phone numbers in my blocked list than my contacts

My email fills up with spam created by AI agents that found my LinkedIn profile and used a database to grab my email.  (I de-contented my LinkedIn profile as a result.)  I've had proposals to do my bookkeeping, generate more leads, buy my business, buy my properties, loan me money, etc. etc. It gets annoying.  

Best thing that works for me is make it easy for me to find you when I'm looking.

I totally get your frustration. My phone rings with the same types of annoying calls—people trying to buy properties I haven't owned in years, offering services I don't need, or pitching products I’ve never heard of. It's a pain, and like you, I block numbers as soon as I get a spam call.

That being said, as long as businesses are trying to reach people who might be interested in their services or products, cold calls will remain a part of the landscape. It’s just a reality. Businesses don’t always have the budget for major advertising campaigns on prime time TV or clairvoyant skills to target individuals who need them, so they often rely on cold calls to cast a wide net. Sure, it's not ideal, but it's one of the few cost-effective ways they can try to connect with potential customers.

Texting is a whole different ball game. There are serious TCPA implications for sending cold texts and relatively few do it since new regulations and laws went into effect post COVID. 

Quote from @Denise Supplee:

Hello, I prefer email. I like to have all the stats in front of me. And then, if it matches up, I usually will schedule a call. 

 What is your KPI on cold emails?

Quote from @Marcus Auerbach:

The biggest issue for flippers (and builders) is controlling their cost. It is too easy. If you pay your drywaller $12,000 instead of $10,000 it does not seem like a big deal, but if you have 25 trades to pay, that is $50,000. 

On top of that a few "oops" extra items that where not in the budget you loose money quickly. Flipping is hard. To get good you need to flip a lot, like 10 houses per year. Thats when you can start really controlling your cost. But at this point this is also a full time job and you are running a full fledged business. Might as well open a car dealership. Nothing passiv about that.

Frankly, before I would flip houses I would rather run a contractor business and charge 100k for a kitchen remodel. But guess what, that's not so easy either..

 The easiest way to handle that problem is to hire GC. GC will add 15% fee for project management, but free your time and remove stress. To be a good flipper you have to have a general contractor you can rely on and buy at the price that allows you to profit. If you don't know how to do that don't flip. 

Quote from @Erik Estrada:

Quote from @S Arely Cavazos Serratos:

We provide a great value to investors but sometimes they don't seem open to new opportunities. What approach works best on you?

 It's a numbers game. For every 100 calls, you might get 1 qualified lead. You are better putting your effort in social media marketing, and networking. 

It does work, but only if you are highly targeted and specific in your calls. 

That's a good rate. My VA rings 1200 numbers a day using multi-line dialers. Our contact rate is 4%. Which sucks. And we hardly get a lead per day. While we need at least 2-30 leads to close a deal. Sometimes I think using Google voice with manual dial would yield better results, due to much higher connection rate.

I would ultimately scale up to 12000 dials a day and hire 10 VA's if I could increase our contact rate to 10-20%. It's a numbers game and you have to hit thousands of people to find ones who are motivated and willing to close in less than a month.

Quote from @Jay Hinrichs:

Quote from @Eric N.:

Quote from @Jay Hinrichs:

Quote from @Eric N.:

Quote from @Jay Hinrichs:

Quote from @Eric N.:

Quote from @Jay Hinrichs:

Quote from @Ned Carey:

@S Arely Cavazos Serratos
       "So how do you know someone has a great marketplace if they don't get the chance to pitch?"

That is a legitimate question. Sometimes I take a call. I can tell in 5 seconds whether the person calling has clue about what they are doing.  I have NEVER had someone cold call that could help me. I have on occasion taken a few minutes to help people calling me if I thought they were sincere.

i turn the tables on them.. most of the time its someone just reading off script but if I can get to the owner then I end up pitching them for my services.. especially as states are clamping down on assigning contracts.. thats how I found my Baltimore clients. they cold called me on a deal I took over from ABC.. 125 fundings later still going at it.. And I got out of ABC without getting burned.. One of the very few from what I hear. 

 Why I Don’t Chase Commercial Landlords for Wholesale Deals

I regularly meet investors at local meetups who are deeply involved in commercial wholesaling. I respect their hustle, their skill sets, and the persistence it takes to make those deals happen. That said, it’s just not for me.

I have zero interest in cold calling commercial landlords and trying to convince them to sell me their multiunit property at a discount. These are folks in the same business as we are—why would they agree to offload a property to me at 60–70 cents on the dollar when they know the game just as well, if not better?

There’ve been a few times when I’ve ended up talking to landlords anyway—mostly took calls from them when they received our DM, or I accidentally included them on a cold call list , in both instances due to lead source improperly filtering our lists. Most of the time, they want above retail, not even close to wholesale numbers. And frankly, I’m not interested in wasting my time chasing those kinds of leads. 

thats fine if your talking to me I have zero interest in buying anything.. I just rent my money out to those guys who need to buy inventory so they can either refi and keep or sell to a buy hold investor..  I am just a money renter.. short term and I work in the low balance markets were many in the lending business wont tread.. 

I do that too. I work with the lending company that does HML, bridge and DSCR. Do you mean the wholesalers who reached out to you were so clueless that they were unaware of funding options until you pitched your service to them? If yes, this is amazing. I always feel amazed when I stumble upon successful people who don't know some basic stuff related to their line of business. If they were all newbies, then that's self explanatory. But if these were seasoned wholesalers crushing it locally, and still unaware of asset based financing, then that is amazing. :D 

Keep in mind I am NOT a Broker I lend my own money HUGE difference I dont have to ask underwriting I do my own valuations no apprasials I travel to the markets meet the clients walk the properties set up a program and launch I have done over 4000 of these since 2012. IN the lower priced and lower balance markets I do nothing were i live on the West coast for instance.. Its an under served area of the market that I have penetrated and of course like I said when its our money we can do things NO Broker can do if its in our funding box.

I will do brokerage, but right now working with one lender. I won't lend my own money on deals. I have people in my network who do it, that's called PML. There are ways to mitigate risks, by lending 70% of as is value, but I don't like the liability. Set aside competitive disadvantage (flippers can get up to 90% of purchase price if experienced) , even if I had clients willing to borrow at 70% I would still have to deal with foreclosures when they fail. I see flippers fail all the time. Things look viable on paper and pass the scrutiny, but what happens in real life is another thing. Most get screwed by underestimating rehab budget and being ripped off by contractors who take money and procrastinate or just dump them and run away. But if you have large enough capital to lend I guess you can mitigate the risks by writing off bad loans and foreclosure costs as cost of doing business. 
What other ways are there to finance a deal? If you talk about creative financing, that doesn't take any money to purchase. You just pay back lump sum when loan is due or you pay seller the interest on money you owe them for deed you take over. What is your funding box?

I dont use the project as collateral so I never have to foreclose .. 200k and under.. I do a ton of real small balance stuff 20 to 50k.. those are where the money are .. 

So, what do you use as collateral? What do you do if your borrower is inept and blows all the money you lend? On flippers side, you are correct about a low range niche that other lenders don't want to enter. But even if there was the lender willing to lend 20K (say, to buy a house in rural area Ohio or Pennsylvania for 7K and spend 13K to rehab and rent it), the biggest issue for borrower would be the profitability. How does borrower make enough money to justify going through all this trouble? Unless he is then flipping the property to rent-to-own buyer, who pays him hundreds of dollars a month on a house acquired for $20K plus closing costs/interest? I am just curious how you make this work. Or how borrower makes it work. May be I am missing a point and you are talking about gap funding or EMD financing, like Pace Morby's gators do?

Quote from @Jay Hinrichs:

Quote from @Eric N.:

Quote from @Jay Hinrichs:

Quote from @Eric N.:

Quote from @Jay Hinrichs:

Quote from @Ned Carey:

@S Arely Cavazos Serratos
       "So how do you know someone has a great marketplace if they don't get the chance to pitch?"

That is a legitimate question. Sometimes I take a call. I can tell in 5 seconds whether the person calling has clue about what they are doing.  I have NEVER had someone cold call that could help me. I have on occasion taken a few minutes to help people calling me if I thought they were sincere.

i turn the tables on them.. most of the time its someone just reading off script but if I can get to the owner then I end up pitching them for my services.. especially as states are clamping down on assigning contracts.. thats how I found my Baltimore clients. they cold called me on a deal I took over from ABC.. 125 fundings later still going at it.. And I got out of ABC without getting burned.. One of the very few from what I hear. 

 Why I Don’t Chase Commercial Landlords for Wholesale Deals

I regularly meet investors at local meetups who are deeply involved in commercial wholesaling. I respect their hustle, their skill sets, and the persistence it takes to make those deals happen. That said, it’s just not for me.

I have zero interest in cold calling commercial landlords and trying to convince them to sell me their multiunit property at a discount. These are folks in the same business as we are—why would they agree to offload a property to me at 60–70 cents on the dollar when they know the game just as well, if not better?

There’ve been a few times when I’ve ended up talking to landlords anyway—mostly took calls from them when they received our DM, or I accidentally included them on a cold call list , in both instances due to lead source improperly filtering our lists. Most of the time, they want above retail, not even close to wholesale numbers. And frankly, I’m not interested in wasting my time chasing those kinds of leads. 

thats fine if your talking to me I have zero interest in buying anything.. I just rent my money out to those guys who need to buy inventory so they can either refi and keep or sell to a buy hold investor..  I am just a money renter.. short term and I work in the low balance markets were many in the lending business wont tread.. 

I do that too. I work with the lending company that does HML, bridge and DSCR. Do you mean the wholesalers who reached out to you were so clueless that they were unaware of funding options until you pitched your service to them? If yes, this is amazing. I always feel amazed when I stumble upon successful people who don't know some basic stuff related to their line of business. If they were all newbies, then that's self explanatory. But if these were seasoned wholesalers crushing it locally, and still unaware of asset based financing, then that is amazing. :D 

Keep in mind I am NOT a Broker I lend my own money HUGE difference I dont have to ask underwriting I do my own valuations no apprasials I travel to the markets meet the clients walk the properties set up a program and launch I have done over 4000 of these since 2012. IN the lower priced and lower balance markets I do nothing were i live on the West coast for instance.. Its an under served area of the market that I have penetrated and of course like I said when its our money we can do things NO Broker can do if its in our funding box.

I will do brokerage, but right now working with one lender. I won't lend my own money on deals. I have people in my network who do it, that's called PML. There are ways to mitigate risks, by lending 70% of as is value, but I don't like the liability. Set aside competitive disadvantage (flippers can get up to 90% of purchase price if experienced) , even if I had clients willing to borrow at 70% I would still have to deal with foreclosures when they fail. I see flippers fail all the time. Things look viable on paper and pass the scrutiny, but what happens in real life is another thing. Most get screwed by underestimating rehab budget and being ripped off by contractors who take money and procrastinate or just dump them and run away. But if you have large enough capital to lend I guess you can mitigate the risks by writing off bad loans and foreclosure costs as cost of doing business. 
What other ways are there to finance a deal? If you talk about creative financing, that doesn't take any money to purchase. You just pay back lump sum when loan is due or you pay seller the interest on money you owe them for deed you take over. What is your funding box?

Quote from @Jay Hinrichs:

Quote from @Eric N.:

Quote from @Jay Hinrichs:

Quote from @Ned Carey:

@S Arely Cavazos Serratos
       "So how do you know someone has a great marketplace if they don't get the chance to pitch?"

That is a legitimate question. Sometimes I take a call. I can tell in 5 seconds whether the person calling has clue about what they are doing.  I have NEVER had someone cold call that could help me. I have on occasion taken a few minutes to help people calling me if I thought they were sincere.

i turn the tables on them.. most of the time its someone just reading off script but if I can get to the owner then I end up pitching them for my services.. especially as states are clamping down on assigning contracts.. thats how I found my Baltimore clients. they cold called me on a deal I took over from ABC.. 125 fundings later still going at it.. And I got out of ABC without getting burned.. One of the very few from what I hear. 

 Why I Don’t Chase Commercial Landlords for Wholesale Deals

I regularly meet investors at local meetups who are deeply involved in commercial wholesaling. I respect their hustle, their skill sets, and the persistence it takes to make those deals happen. That said, it’s just not for me.

I have zero interest in cold calling commercial landlords and trying to convince them to sell me their multiunit property at a discount. These are folks in the same business as we are—why would they agree to offload a property to me at 60–70 cents on the dollar when they know the game just as well, if not better?

There’ve been a few times when I’ve ended up talking to landlords anyway—mostly took calls from them when they received our DM, or I accidentally included them on a cold call list , in both instances due to lead source improperly filtering our lists. Most of the time, they want above retail, not even close to wholesale numbers. And frankly, I’m not interested in wasting my time chasing those kinds of leads. 

thats fine if your talking to me I have zero interest in buying anything.. I just rent my money out to those guys who need to buy inventory so they can either refi and keep or sell to a buy hold investor..  I am just a money renter.. short term and I work in the low balance markets were many in the lending business wont tread.. 

I do that too. I work with the lending company that does HML, bridge and DSCR. Do you mean the wholesalers who reached out to you were so clueless that they were unaware of funding options until you pitched your service to them? If yes, this is amazing. I always feel amazed when I stumble upon successful people who don't know some basic stuff related to their line of business. If they were all newbies, then that's self explanatory. But if these were seasoned wholesalers crushing it locally, and still unaware of asset based financing, then that is amazing. :D