All Forum Posts by: Jason McDougall

Hey @Rich Hupper congrats on your first potential deal!

I would always use a state approved real estate contract for any of your deals. Down here in Texas, I use the Texas Real Estate Commission (TREC) contract. When you fill in the section on the first page that says "buyer" use your name or your LLC name and then write "and/or assigns" after that. For instance, my contracts always list the buyer as "NextEra Homebuyers, LLC and/or assigns".

I don't use any out clauses in my contracts, but as a beginner, that may be a wise thing to do while you're still learning. You could add something like "Subject to partner's approval". Just be aware that some sellers may call you out on this, and other wholesalers that are competing against you for the deal may bring this to light with the seller.

You should be able to find buyers for your deals at local REIA groups, right here on BP, or by finding real estate investment groups in your area on Facebook. I've sold many deals to people that I've met on both BP and Facebook.

You need to know what the comparable sales are for that neighborhood. To do this, you'll need to connect with somebody that has MLS access, normally a Realtor. Once you've figured out what the ARV is on the house, you'll need to accurately estimate how much the repairs will cost to present to your potential buyers. In Dallas, my deals are going for up to 80% of the ARV minus repairs, but your market may be different.

You should put down as little earnest money as possible. If the seller accepts $10, then put $10 earnest down with the title company that will be handling the transaction. I usually put $100 down, just so the seller knows I do have a little skin in the game.

Congrats again, let me know if I can help with any other questions.

Hello Bigger Pockets!,

I'm looking for cash or hard money buyers to add to our wholesale email list. We find several deals across Dallas - Fort Worth each month, usually between 70% - 78% of ARV, minus repairs.

Our ARV estimates are always conservative, and we also include a fudge factor in all of our repair estimates.

If you'd like to receive our emailed wholesale deals, please either message me or send an email to [email protected]

Thank-you!

This 1/1 will make a great cash flow addition to any rental portfolio! It's very close to 820 and the TCC northwest campus. At 514 sq ft it's not very big, but it would be perfect for a student rental. The bedroom has a massive closet attached which is almost the size of another small bedroom. This house has sat vacant for 5 years, but it has zero vandalism. The pier and beam foundation appears to be level.

Repairs include:

• Electrical panel
• Water heater
• Some siding and exterior wood
• Paint/flooring/fixtures/bath
• Kitchen cabinets are in reusable condition

Good morning everybody,

I'm looking for cash or hard money buyers in the Dallas - Fort Worth metroplex that are looking for properties to buy. We find great deals all over the metroplex to fit almost every investing model. 

If you're interested, please send me a message with your email address, phone number, and preferred deal criteria.

Thanks, I look forward to working with some new people!

**North Richland Hills Wholesale Deal**

ARV: $105k
Repairs: $15k
Asking Price: $66k
Group walk through 10/17
Please message me for more details.

This home is located in the Richland Terrace addition in Birdville ISD. The property was built in 1958 and has a 1 year old roof, 3 year old furnace, and the plumbing from the street up to the house has recently been replaced. All systems are currently working. Some recent comps show that this house would make a great fix-and-flip, or it could also be a great cashflow property to add to your rental portfolio. The average rental rates around this area are $1200. This house is occupied, and the tenants are currently on a month-to-month lease. A group walk-through will be scheduled for serious buyers only.

ARV: $105,000

Estimated Rental Repairs: $8,000

Estimated Retail Repairs: $15,000

Asking Price: $66,000

• Verifiable Cash or Hard Money Only
• $2,500 Non-Refundable Deposit
• Buyer is Responsible for All Closing Costs
• Seller to Retain Mineral Rights

Property Will be Sold As-Is

Group walk-through to take place on Saturday, October 17

Contact me for property details.

Jason McDougall

NextEra Homebuyers, LLC

[email protected]

This home is located in the Richland Terrace addition in Birdville ISD. The property was built in 1958 and has a 1 year old roof, 3 year old furnace, and the plumbing from the street up to the house has recently been replaced. All systems are currently working. Some recent comps show that this house would make a great fix-and-flip, or it could also be a great cashflow property to add to your rental portfolio. The average rental rates around this area are $1200. This house is occupied, and the tenants are currently on a month-to-month lease. A group walk-through will be scheduled for serious buyers only.

ARV: $105,000

Estimated Rental Repairs: $8,000

Estimated Retail Repairs: $15,000

Asking Price: $66,000

• Verifiable Cash or Hard Money Only
• $2,500 Non-Refundable Deposit
• Buyer is Responsible for All Closing Costs
• Seller to Retain Mineral Rights

Property Will be Sold As-Is

Group walk-through to take place on Saturday, October 17

Contact me for property details.

Jason McDougall

NextEra Homebuyers, LLC

[email protected]

@Christian Marin - I feel your pain! I've been at this for about 6 months now, and I have just recently started getting some deals. The best advice that I can give you is to never give up, and keep trying. You'll learn from your mistakes and get better results each time.

Here are some of the mistakes I made:

Mailpiece - A poorly designed mailpiece will greatly reduce your odds of getting a phone call that will lead to a deal. This is a numbers game, the whole goal is to get the phone ringing! I use postcardmania.com for all of my mailings, and they'll design a postcard for you for $100. So test different postcards, $100 is relatively inexpensive if you consider the ROI that it might produce through more leads. A call to action, local phone number, and listing ways that you can truly help people are important to list. If you help people get what they want, you'll always get what you want.

I've tried letters in envelopes with real stamps and labels, I've tried hand written yellow letters, (I've even tried bandit signs!) but postcards just seem to work the best for me, since that's where my deals have come from. I suggest trying them all, rotating each method throughout your list mailings, and then measure what seems to work the best for you.

Your list - I get my lists from Listsource. You can play with the criteria here, but I've stuck with older residents with equity that have a last sale date of at least 10 years. I've tried different things here, and I'll continue to adjust. Keep tweaking until you find the formula that works better. I've mailed to absentee and owner occupant, and my deals have come from both.

Your frequency - You will get deals off of your first mailing, but I've read in a few places and heard on podcasts that more deals will come from consistent subsequent mailings to the same list. 

Quantity - Send out as many mailers as you can, consistently for 12 months. I started with 3000, no deals. Then 4000, still no deals. Then I sent out 8000, and I got deals! The quantity needed to close a deal will vary from market to market. Fortunately or unfortunately, I live in one of the hottest markets in the US.

The most important lesson I've learned so far is which areas to target. You need to know where the majority of the investor transactions are taking place. I mailed to where I wanted to find houses (nice appreciating areas close to my house) but I completely ignored the areas where OTHER investors preferred to invest. I'm the rookie, remember? Talk to other investors that are actually buying houses from wholesalers, and find out what areas they want to buy deals from. You might like the $150k ARV houses in the suburbs, while most of the investors are looking for $60k ARV houses in urban parts of town.

I wish you the best of luck, and please just stick with it and don't give up! YOU WILL CLOSE A DEAL!

Can anybody share with me some of the things that they ask of their cash buyers before walking them through any of their wholesale deals? I don't want to scare the seller by having 10-15 tire kickers walk through his house, so I'd like to narrow it down to a few buyers walking through the house. What's a typical number of people that you'll show the house to? Do you perform multiple showings? The house is currently occupied by a tenant. I know that I need to ask for proof of funds, but in what form? A printout of their bank statement? What else should I ask for?

I want to be completely transparent and honest with the seller, so I planned on telling him that I partner with other investors and will need to walk a few of them through the property for their evaluations.

Thanks for any help that you folks can give me!

First, let me apologize in advance. I tend to get long winded, but I like providing as much detail as possible.

I've found a house that I'll be putting under contract on Friday, the seller and I have verbally agreed to a purchase price. The only hiccup is that there's a non-paying tenant in place. Can somebody provide some guidance on how I should proceed? Specifically, these are my questions:

1. The tenant hasn't paid rent in a while, but the landlord doesn't have the heart to evict the tenant and his family. This is part of the reason why he's selling the house, because he doesn't want the eviction on his conscience. When I market the property for sale I will fully disclose the situation with the tenant, but is it typical for the end buyer to buy the property and then evict the tenant, or will the current owner need to go through the eviction process prior to the sale of the house? It seems like either way would work, but what's more typical? What are your experiences? I also thought about offering the tenant $500 to move out of the house and avoid the eviction on his record.

2. How do I set up a showing of this occupied house? I imagine that the situation with the tenant will worsen when he finds out that the house is being sold. I'm going to disclose to the landlord that I partner with other investors on most of my purchases and that I'll need to walk a few of them through the property. Does the owner tell the tenant that the house is being sold, and that some potential buyers will need to walk through the house? 

Thanks in advance for any help!