All Forum Posts by: John Zajac

50/50 isn't aggressive if it's a partnership and like you said you're bringing the marketing dollars and marketing skills. Capital comes in many different forms which can be social capital, intellectual capital, financial capital etc... Just because you don't have money that you're bringing to the table doesn't mean you're bringing anything less of value. I've come to realized that wholesalers or marketers are worth more than buyers for a couple of reasons. 

1. Marketing skills
2. Can find discounted properties
3. Process and System knowledge
4. Deal Flow

Money is easy after that. Asset deal flow that return capital fast and with minimal invested capital is extremely valuable. Depending on your experience in wholesaling and marketing I wouldn't cut myself short.

I use 15-17% of the most recently sold new construction in the area with the same square footage or you can use price per square foot in the area depending on what information you have access to. If you really want to learn and get your hands dirty and always know I would use something like FlipperForce and get the actual numbers yourself.

I personally like to have cash buyers, their portfolio, property types, recent cash purchase date, purchase price and contact information before I contact them or have a deal. Having everything eliminates me having to contact them and ask them their buy box and not waste anyones time. I'm used to dealing with real estate cash buyers with corporate entities who purchase a handful of properties a month. There are currently 24,675 active real estate cash buyers in Missouri. You can search by location yourself at Agreedment https://agreedment.com/us/Missouri. I've used other services and software before but I've never was able to get their contact information of the actual buyers behind corporate entities before using early versions of Agreedment. Other services and software help me get some but not all the cash buyers actively buying properties.

I've done virtual wholesaling. It's good to market to areas and snag properties in areas where opportunity is and help more people out. Wholesaling can be tough without having grit, systems and processes in place before hand. If you are just trying to wholesale that's one thing. If you are trying make real estate a profession for yourself you'll need to think long term and understand that short setbacks are apart of the 'game'. You'll never waste time as long as you are continuing to learn. For me personally speaking, wholesaling in Palo Alto California sounds pretty insane but anything can happen. One deal there and you'll be well paid for sometime. I advocate virtual wholesaling somewhere you can easily pick up on building codes, climate, timezone and culture. I have a southern accent so I tend to talk to people more in the south and it's easy to relate to people more. For you it might be different. Whenever you select a location think about marketing there for sometime to get a feel for the market. I tend to have cash buyers or a cash buyers list and other real estate investors data with contact information in the area first. There is nationwide cash buyers software called Agreedment that I think will make it easier for virtual wholesaler and ease the tension of building a list of cash buyers. The early version works for me! Starting out can be frustrating and discouraging especially when you are doing virtual wholesaling. My advice is to just stick with it and you'll learn a lot.

I've been using a map that I bought from this RE data guy. I'm not going to put his information here but it has a map and list of builders and cash buyers of vacant lots in Dallas and other parts of Texas. He told me he gets the builders/new construction data somehow. I really didn't understand. It comes with contact information so far I can't complain. I found the other processes when wholesaling vacant lots to be time consuming.

I would pay for it. There are not a lot of people I trust in this community but Pace is one I trust. Pace adds a lot of value and I'm not even in his course I only follow the guy. It's a shame people here talk and don't even do their own homework on what he offers. I agree it's a lot of money but if someone is willing to hold your hand and walk you through the process and then stick around with you afterward I think it's worth it. Plus be a part of a community. Some people out there need it. I personally would spend that much to fail a couple of times to learn. But that's just me. I agree with @Steve Haag

Welcome to BP Tomas, some helpful tip for investing out of state.

1) Join Facebook groups in that area so that you can learn about property structures and market trends in the area. Also, it would help to learn from other investors in those markets from Facebook post in those groups.

2) Look into creating your own lead pipeline with some systems and processes once you feel you know the area well enough. If you have a little bit of money you can start generating your own leads in that area once you become comfortable. 

Your mentor/friend is a great resource if they live in the area.

Usually when I have a great deal the cash buyer comes. But I know this isn't the case in all cases. I had a situation where I had a couple properties I knew were at good discounts but I couldn't find buyers for. Usually I find buyers if I didn't want the properties myself. But go here https://knoxcad.com/ and email the county for the database of all the properties and filter it to find buyers based on criteria. 

Create an inbound and/or outbound marketing strategy. Inbound consist of SEO, joining Facebook where property owners are, newspaper ads from owners, Zillow FSBO etc... Most of what I said can all be done free of charge.

Outbound is cold calling, snail mail, sms messaging, paid advertising, etc... pretty much anything that involves reaching out to property owners. They need to have some sort of pain point to be willing to sell. This technique usually involves having a system in place because it cost real money to do.

Most wholesalers focus on outbound marketing instead of creating inbound marketing efforts. Outbound is tough and your deal will come around just don't give up and keep going. If you get a great deal the buyer will come but having some buyers in place first is better because you'll know what they are looking for.