All Forum Posts by: Joe Sadusky

@Bryan Baez from our experiences, we make a call towards the beginning. 

We send out a letter immediately and then wait about 2-3 weeks to follow up with a phone call. 

Just as we do in our letters, we ensure that during the phone conversation that we are extremely empathetic and not come off as being too much of a salesperson. 

Best of luck! 

@Jeanysha Jean-Baptiste if the numbers are right, it is possible. 

You need to determine how much she owes on the property.  If what she owes is under market value enough, you have room for a cash investor to purchase from you thru a wholesale. 

You will need to determine what are other investors purchasing properties for in the area (aka... at what price will this property be worth it for someone to pay cash, fix & flip). 

If she has a large, outstanding balance on the property.. chances are that there will not be someone willing to buy at this price and bail her out. 

Good Luck! 

@Jeffrey Grieshop @Michael Randle gave a pretty good response. 

The main thing I will reiterate is the fact that a wholesaler is typically finding properties WAY under true market value. Its a different ball game then properties that are being listed for sale thru the MLS. When numbers are being figured out, they are not being based off market value. A happy medium needs to be met between what the seller needs and a margin between what the wholesaler can markup to a ready and willing buyer.

It can be a lot of work and nurturing to get a seller to sign a contract. Depending on the market your in, there may also be a lot of people trying to reach the same leads.  We have found through our wholesaling deals, that it takes multiple contacts, over an extended period of time.  There is also a huge element of being persistent. A seller that you may right off as not being interested, suddenly could be faced in a situation where there is an immediate need to sell.  For this reason, I specifically used the word nurturing.  Wholesalers will need to build relationships with people. Our goal is to help people and provide them a solution that works best for their immediate needs. 

Hard work, yes. Quick work... no. There is the occasional lucky deal, but most will require a lot of time and establishing good rapport. 

Regarding the assignment of contract. In a nutshell- there is a contract that the seller, the wholesaler, and buyer will sign.   The wholesalers job is to settle on a number that makes the seller content with signing while also finding a buyer that has enough room to make a profit to ultimately fix & flip.  There is an  assignment fee that will go to the wholesaler for bringing the seller and the buyer together. Different deals will bring different fees to a wholesaler. It all depends on the specific property and circumstances.  Yes, wholesalers can make a range on a sellers fee.  That is their payment for putting the right deal together. 

@Daniel W. welcome to the BP community!  Congrats on taking the first steps to getting into real estate investing.  

I agree that this is 100% a numbers game and it will be important for you to be familiar with the market that you will be investing in.  Start using the BP calculator to help you estimate some different properties. 

Getting your first property will be a combination of excitement along with stress!   The excitement will come naturally. You already seem to be somewhat knowledgeable in RE and finally taking the plunge is the best feeling!  But the stress will also come, and that is OK/natural.  But you can decrease your stress and anxiety right from the start by doing your homework and having a plan in place. You touched on the financing aspect, which is very important.  Now what are your plans for Renovations and hiring contractors? Property Management? Tenant Screening?  If you look through the BP forums, you can find so much advice on all of these topics.  I highly suggest utilizing them and asking lots of questions.   There are so many knowledgeable people on here that are always willing to give advice from hard lessons learned. 

Best of luck to you!

@Jamaal Johnson

I started having money to invest in RE thru my W2 9-5 job. 

That allowed me to have the steady income and get approved for conventional loans.  I find that using leverage is the best way to get started in RE investing.  Your first property should be bought at a discount- that way you have equity in the property to tap into for your next investment.  

Where I have personally seen people struggle is getting approved for the refinance. You will need to have your DTI under control...and that is why I think it is most beneficial to start out with a steady W2 paycheck.

Once you start having some rental cash flow under your belt, most Lenders will allow you to use that income to count towards your income. 

@Amy Tracey no probem! 

I like to network with other investors in the area and rely heavily on referrals.  Building up your network of other investors in your market will bring much better contractor leads in my opinion. 

It definitely can be challenging finding a reliable contractor that is willing to work on "smaller projects". When we purchase a property, we will post a yard sign with our company's name.  This usually attracts some local contractors and they will reach out to let us know what services they offer. 

I have quite a few good contractors in the NE philly suburbs area that I would be glad to refer you to. 

@Amy Tracey welcome to the BP community !!

So many helpful people on here and a ton of resources to make sure that you’re heading in the right direction.

Me and my wife are both investors in the Sj and Philly suburbs areas.

I would be glad to offer advice from lessons learned during our journey.

Best of luck !!

To get out of the rat race!

I want to be in better control of my financial future, not held back by my 9-5 restrictions. 

Me and my wife want to be able to make our own schedules, go where we want- when we want, and have the ability to spend as much time as possible with our new baby girl. 

Family is everything to me. I want to be able to provide for everyone in my life that I love.  Its a shame to see people in  your own family that have to work 3 jobs, just to be able to support their family.   Through my real estate investing, I want to get those I care about involved as well.  

Real Estate is something that I am truly passionate about. I love finding deals, talking about it, and sharing my experiences with the intentions of hopefully inspiring someone else to take the plunge. 

@Don Ferniz Tyree I agree with @Mike Roy with looking into a duplex or multifamily unit and still be an owner occupant. 

I did the househacking and rented out rooms to some friends. It worked out great while it lasted.  But as time progresses... girlfriends and relationships get more serious. Before you know it, there are babys on the way.   By this point, it may be very challenging to balance a househack that requires a shared living space. 

Another benefit of investing in a multi is that you will probably be able to collect more money in rent and increase your cash flow. 

Best of Luck!

@Brendan Jaeger I would be glad to share information that I have personally learned thru my experiences with real estate investing.  It sounds like we are in the same market/ area.  

lets talk more and figure out what your best plan of action will be. 

I'll message you with some more info!