All Forum Posts by: Sean Terry

Hey Andrew,

First I would say your in the right place, I wish I knew about BP when I first started.

I would recommend learning as much as you can as fast as you can. Larry Goins has a good book out for cheap you can learn a lot. Also I'd check out some podcasts in iTunes. There's a wealth of information for free.

Next I would Google "We Buy Houses San Antonio" and click the ads and call several of the investors. Ask them these questions:

1. Are they buy/taking down the property or flipping it?

2. What is their criteria?

3. If you brought them a house could they help with the transaction and split the profit 50% - 50%?

4. What price range is most of the properties they buy or their buyers buy?

This will give you a good basis to start, NOW go to work and locate deals, and tee up ONLY the deal sthat meet their criteria. Don't bring garbage...

Hope this helps,

Cheers :)

Edward nailed it on the head. I use a Realtor for one reason only, to determine real value of the property. The online tools are not as effective.

Also any experienced fix & flip investors or landlord will have a Realtor which will provide them a CMA. If they have a CMA and you don't, your at a slight disadvantage in my prospective.

I know all the comps inside and out prior to selling a property thus a cash buyer can't use low comps to negotiate the price, I can call them on there BS.

It doesn't hurt to have a Realtor friend, or you could marry one like I did.

Cheers :)

Here's my wholesaling daily tasks:

1. Post Ad on Craigs List, Back Page for buyers driving them to a squeeze page: ( I have my VA do this)

2. Post Add "For Sale Properties" on CL & BP (again VA does this)

3. Call all Seller Leads to set appointments.

4. Call all buyer leads to answer questions and sell properties.

5. Make Sure all Marketing is Set Up.

6. Make All Offers as Needed.

7. Manage Closings: (VA's Job)

This is a quick list and I think what you we're looking for. This of course is JUST wholesaling. Having many projects on my plate makes it difficult to do everyone of these tasks daliy but I outsource what I can.

Cheers :)

Sean

Nick,

You need to find a hard money lender in town that will issue you a POF with no contingencies. Make sure the POF is addressed to the LLC and references the property. Have him cover the entire purchase price if you can.

As for the EMD, you'll have to write the check yourself or borrow the money or get a partner to help with these funds.

I assume you're trying to flip an REO, make sure you have an inspection period in the banks addendum they send over.

All the offers I write have NO IP and is a cash deal with a COE 10 days after acceptance. That's MY offer. The bank will come bank with their addendum roughly 20 pages that will 99% of the time have a 7 day IP. If it doesn't, cancel the deal or you'll loose $500.

Make sure its a deal...really. If you can't sell it, you'll have some upset agents.

When I flip REO's what seems to work well is to offer the property to a buyer for 3%-5% below list price which means you have to get it cheaper to make money.

As for transactional funding, most hard money lenders have this service and for the promissory note, the title company or attorney will handle that for you.

I hope you got the deal and make some money, good luck!!

Cheers :)

Sean

Hey Levi,

We have a licensed appraiser give us a "mini-appraisal". The mini appraisal is a 4 page PDF report that compares 4 properties to the subject. He gives a tight value range like $150K to $160K. He asks us what renovations we plan on doing and will compare them to like properties that are in similar condition. Thus giving us the ARV (After Repair Value"

He charges us $40 for the report, it take 24-48 hours to deliver and it comes in a PDF report.

I would ask, when interviewing appraisers, if they can provide a service like this. We had to speak to roughly 12-15 appraisers before we found someone that would do this for us.

I can tell you it works great for wholesaling properties, it completely eliminates the "what's it REALLY worth?" question cash buyers ask..

Hope this helps,

Cheers :)

Sean

Knowing the mortgage amount is obviously a very important question, buy the remaining time left....maybe. You can just come out and ask "how much do you owe?" and 99.9% of the time the seller will tell you. I don't beat around the bush, just get to the heart of the matter if that's the true information you're looking for.

Now I can tell you knowing the mortgage amount, payment amount, interest rate is crucial to a wholesale deal, here's why.

Roughly 4-5 of the 10-15 properties we do a month are negotiated with the seller leaving the existing loan in place for 3 to 5 years. Thus buying it "subject to" the existing loan. You can agree to give the homeowner several thousand dollars for their equity.

Now you have a wholesale deal that doesn't need "hard money financing". The buyer can put a down-payment of more than you have to pay the motivated seller and you can keep the rest.

Here's an example: We just closed on a deal last week where we contracted with the seller to give them $500 and leave the existing loan of $84K in place for up to 5 years.
We then assigned the contract for $10K of which $9,500 went to us, $500 went to the owner and the buyer got a below market property for only $10K out of pocket with 6,5% financing.
We have the title company service the loan, which I suggest.

This is a great strategy the cash buyers LOVE to take advantage of.

Cheers ;)

Sean

Hey Dan,

I listen to podcast's from iTunes. They're free with tons of great information. Just go to the iTunes store type in the search box in the upper right hand corner "Real Estate Investment" and a ton of great informative podcast's will show up.

I listen to about 5 or show shows that update weekly. You'll also see my podcast in there as well.

Cheers :)

Sean

Hey Tershant,

This is what I would suggest. Find the 2-3 of the biggest wholesalers in your market. Call them up and ask if you found a deal would they help you out for a 50% profit split of the transaction. Big wholesalers are always looking for motivated "bird-dogs" to find great deals.

When talking to several of these big wholesalers, try to find one that you connect with and is willing to help.

(Let me define "help": They are willing to take your call and answer several question.)

It will take some digging, don't call two people and give up, there will be a large wholesale in your market that will be willing to spend some time with you IF you able to produce results.

Now, let's talk about producing results. You've got to get the phone to ring first with motivated sellers. This is the easiest way to break into the market with the least amount of capital and no risk. Stay away from REO's & short sales.

Here are the 3 best ways to find motivated sellers:

1. Bandit Signs going to an eVoice.com number or Google Voice. Hand written saying "We Buy House Fast 4 Cash" then your phone #.

2. Yellow Letter Marketing, just Google "yellow letter" and find out more.
The best list to mail:
1. Inheritance List
2. Absentee Investor
3. Free & Clear
Your phone will melt with curious motivated sellers.

3. Internet Marketing: Pay Per Click ads to a squeeze page. (A little more advanced)

Expect 1 deal out of 25 calls.

Now, tie up a property and bring it to your new wholesaler friend. Even if it's an OK deal you'll show them that your serious and are willing to put forth some effort. If you have questions along the way give them a call.

If you want a cheap source to lean some great information you can check out Larry Goin's book at Amazon or Barnes & Noble called "Real Estate Day Trading" this is a very well written book.

The idea is to build a relationship with one of these wholesalers and the best way is by producing results. They're busy making money and that's what you want to be doing as well, so dive in and offer up a way you both can generate revenue together.

Hope this helps,

Cheers :)

Sean

I use Freedom$oft.com. It's by far the most comprehensive program to handle all your needs as a RE Investor.

Andy hit the nail on the head, good job Andy!

The formula I use to sell deal in hours is this:
ARV x .70 - Repairs = wholesale price

It is critical to nail the ARV down solid, here's the formula for that:
3 comparable sales within a one mile radius that closed within 90 days and are within 200 sqft of the subject Make sure they are LIKE property. Once you have a list of these homes look at the pictures to determine if they've been renovated. Narrow it down to 3 good properties and average them out and that's your ARV.

Now to determine repairs there's a formula for that too. square-footage x $10 to $15 = repair cost.
this is a quick and dirty way to determine repairs, the worse the condition use the higher number.

Now take the deals you've got, run the formulas on them. If you still got a deal you'll have no problem answering any question regarding value, repairs or pricing.

You'll gain credibility because you know what your talking about and you'll soon find that buyers will be calling you looking for deals.

Once you have an interested buyer, meet them for lunch or coffee and take the time to build rapport. I have thousands of buyers on my list but I do 99% of the business with about 10 guys and we're all friends.

Hope this helps,

Cheers:

Sean