All Forum Posts by: Frank Woodin

I think the key here is to find out what the place would be worth after it has been rehabbed (ARV). You can then work your way backwards using the "wholesaling calculator" from bigger pockets to see what that offer should be on the place. Since she owes 60K if the offer is less than that then she might just want to try and sell it (worth a shot if she wants to) if it is more than 60K I think it would be worth trying to wholesale it another investor. There are several threads on BP about getting started in wholesaling. This could be a great opportunity but the numbers are key and that calculator should give you a good idea if it is worth your time or not.

Two last ideas:

1.  You can call up the local agency and see if they will give it to you

2.  You can buy one online from several websites, they might not have the logo at the top but the content will be the same essentially

The place that I got my last one was from a Real Estate Agent that I had a relationship with that I had used to purchase properties in the past.  I told them what I was planning on doing and they just gave it to me.  They could also be a good person to help you through it if you have a question.  Most agents will want to help you because you could buy more properties from them in the future.

If you give them this one break make sure it's only this one time and communicate that to your tenant.  I have seen many times that the tenant thinks that they will get a break every month, it's the classic give an inch they take a foot.  Hold them accountable next time and this will be easier.  If they don't pay on time next time I would serve them with a five day notice to pay or vacate and I have found that really catches their attention and they fall in line quickly then.

Use the Michigan Realtors Association Sale Contract that you would have used for your other purchases off the MLS. I did this with a house lead that I got through a friend of mine years ago, this way when you go to the current owner you have an actual professional looking contract to present to them. I also walked the owner through the contract as well when I sat with him (took about an hour) that also put them at ease that they knew what I was doing.

Are you wholesaling these properties?  What situations are you looking for?

Everyone's situation is different, my suggestion is to talk with your attorney, your CPA, and your insurance agent. Just make sure they all have extensive experience with real estate. As you may have noticed on BP everyone has a differing opinion on the LLC topic so I would make sure you get professional advice on your specific situation with your future goals in mind.

Got this from a previous post from @Robin Secord so you can thank her for compiling it.  This is the book list from podcast members.  Also a great way to learn in my opinion, and I also suggest the books on the list below.

From Robin:

I recently was in search of new book to listen to in the car but wanted to make it a good one (audio books are expensive!). Faced with this dilemma, I decided to look at what some of the best recommend. So I went to the show notes of the pod cast. From there I compiled a list of all the books that had been recommended (349 recommendations in all, as of podcast 105). Then I looked for books that had been recommended multiple times and listed the books by top recommendation. Here is a glimpse of the top 5. If you want the whole list, send us a message and we would be happy to send it to you (I don't see a way I can share it here).

1. Rich Dad Poor Dad - 38 Recommendations

2. Four Hour Work Week - 28 Recommendations

3. E-Myth Revisited - 14 Recommendations

4. Millionaire Real Estate Investor - 11 Recommendations

5 (tie). E-Myth - 10 Recommendations

5 (tie). Think and Grow Rich - 10 Recommendations

This whole business is about relationships, find a realtor who is experienced and you feel comfortable with and cultivate a relationship with that person. They have access to the MLS and can help with showing you things that you might not know about an area or neighborhood. Just like stated before, the MLS is the best way to get the most accurate comps.

One idea that you could potentially do is to find another successful flipper in the area and offer to split the profit of your first flip with him/her for them advising you on the flip.  I would make sure you spell out exactly what you expect so you don't get in disagreement in the middle of the flip but this might give your husband some piece of mind that you have a person who has experience by your side for the first one.  You and your husband would purchase the property front all the costs of the flip and you and the "adviser" would split the proceeds 50/50.