All Forum Posts by: John Santero

The first thing a wholesaler does is CONTROL the property., not necessarily purchase it.  To control means to have it under contract whereby you take it off the market, have the clauses described above to get you out of a final purchase (ie- contingencies) as well as give you time to send the property through your buyers list to see if there is any interest. Many times I secure a buyer before I close on the property. Other times, the deal that I thought was good - turns out it is not - and I dont purchase it and divert a potential mistake.

Do not advertise or market a property to outside parties -ie craigslist, zillow, since in many states it is considered acting as a Realtor without a license if you are not the registered owner.

Not sayin its not worth it. I just see a lot of new investors get bonged down with the legal stuff prior to getting their first deal. Cross all the T's and dotting all the i's for it to be perfect - than the market changes!!

I call it controlling the acquisition. While alot of Realtor hate the practice, I put in multiple bids to take the property off market, then have an inspection as well as a financial out if my due diligence does not meet my expectations or I negotiate a better deal on the other property. 

In a multi bid environment, the seller might not take a offer with contingencies, but you can try. 

On a side note, the house that is more expensive and the owner is using it as retirement monies. A possibility is giving him his price but you take terms. IE - He seems to be looking for an income- offer him (thru owner financing) an income stream better than the 2% he will be getting from the bank- also -there may be a strong tax savings he can use too- just sayin??

Arlington is a great city. If you were planning on partnership within a LLC, I would first write out LETTER OF INTENT where you both spell out what you want to accomplish and how- detail where the funds are coming from, who is doing what as well as what the percentages are loss or gain.

I would not spend the money on a LLC. You can title your first property where you both are vested , I dont know Texas law but maybe a Land Trust??. Anyway, dont let the legal stuff get in the way yet. But plan to institute it. Also, back in the day, we used to call it farming an area, but pick a neighborhood and walk around and talk to neighbors about buying in the area. Its cheap, you get alot of information as well as exercise! Finally-direct mail campaigns work with constancy. you need to send several mailers - I would suggest giving away some free info on the market to value their home and grab their emails on a landing page. good luck

first of all - congrats that you are actively looking and ready to pull the trigger on your first RE investment.

I didnt see what the end game is? Are you looking to build a RE investment portfolio with long term holds?Or is this for you and your family? You need to get a strategy and goals first before you look at purchasing- let us know...

welcome - Chattanooga is a great place for RE investing. I have been here since 2003. hosted a radio RE show on and off and was the former president of the local REIA group and buy/sell/refeb too- Give a shout and we can do coffee sometime-

I dont have an open house- rather I schedule every 15 minutes within an hour. I give two options - either in the early eve or first thing in the morning. I text them to remind and ask them to bring income verification, application fee and a deposit if they decide to take it.

When they see others looking at the house, that normally motivates the decision.

Depending on your end game- rental -flip - hold, for rentals- I get 12x12 granite tiles (under 5 bucks each) butt them together and trim it with 2" wood that matches either the granite or the cabinets. That is less than 12 bucks a linear foot! I can pop out a damaged or stained tile if need be-

If you think its a good deal first thing I would do is control it. Are you in direct touch with the owner or is it thru a realitor? If its thru a realitor you have to go thru proper channels. make an offer that allows both inspection and financial outs. try to get them as long as possible- say 30-60 days minimum.

Once you control the deal- you can do your due diligence to see if it really is a good deal. If is is- I am sure others would agree with you too- banks- hard lenders- equity partners etc.

Zoning is the number 1 issue and utilities is the other.  My suggestion is to talk to a RE atty in your area or, if you have the time, go down to the city yourself and see what restrictions they may have. Alot of times, if you are outside of an incorporated city, zoning pressures are less.

Hooking up to electric (separate meters) as well as waste water (city or septic) and figuring out separate or one meter for water (sep bill or inclusive) is another issue as well as land features and leveling pads.

Another aspect is maintenance. Mobile homes is a different animal compared to SFH. You need to find a person competant in mobile which will cut down your mistakes and save you money.

That is why not everyone paves a driveway and sets mobile homes on it- it takes work and planning- good luck