All Forum Posts by: Joe Horan

@Tyler Bains what kinds of ratios were you seeing on the wholesale side. How are you staying compliant and not upsetting people?

@Kevin Chapel Will send you PM shortly. 

Interesting. 

I thought you might do it the other way around. I send you pictures, tax info, address, repairs I plan on doing, etc. and you send me your best guess of what it’s worth and what it could be worth. I’d pay for that. Not on every deal because some are easy to comp. I’ve had to do it with hard money lenders and I’ve also liked confirming the numbers, even if I have a good idea going in. 

I’d also look at your reports that you’re describing. It sounds like what you’re doing is driving for dollars but you’re way more qualified to pick out the good ones.  

Are you planning on doing this based on pictures and tax records or would you need to walk the property? 

It think it used to. I used to get 1 or 2 deals a year with almost no effort. I haven’t gotten anything in the last 12 months. 

I'll go. This does NOT include my salary or the salary of my AM. Strictly direct mail marketing costs. I also shifted my strategy to flipping/wholetaling medium value assets (125-250k ARV) which means my max allowable offer might be a little higher than a typical wholesaler. Not sure.

1. $2,109 cost per acquisition 

2. I go on appointments on 50% of my leads that call in. If they have equity, I go on the appointment. 

3. 13.5% of my offers are accepted. I offer on almost everything. 

4. I track leads per deal primarily rather than appointments to deal. On average for every 23 leads that call in, I'll get a deal. 

They're good. They were responsive to any of my questions and were quick to get mail out. I only stopped using them because I brought my mail in house (don't recommend that by the way. 

I recently used LendingOne. I'd do it again since it all worked out. They were pretty fast and were ready to close within 10 days. 

I paid, what feels like a ton, in fees. But I didn't have a track record with them. They based underwriting off the deal, my credit score and my bank balance/statements. Even with the fees, I made a pretty good amount on the deal. Combined with that and their speed, I'll use them again. 

Haha. Your title worked. Led me right in. 

Biggest aha moment... I have a lot but I'll share just a few..

Be consistent every day. You don't need to be perfect. Just be consistent in your efforts and things will snowball into success. 

The typical formula for wholesaling/buying houses is just a guideline. If you literally do ARV * .7 - repairs - your fee, you're going to lose deals and money. That goes both ways. Offer too much and you won't have enough of a cushion when something inevitably goes wrong. Offer too little and you'll lose the deal because people in that area are paying more.

You don't have to have some huge business that does 300 houses a year. It doesn't have to be all or nothing. It can be 'some deals' and can be a lucrative business while earning a nice living. 

@Brenna Crowe

Congratulations!! Celebrate and then go do more. Be smart about it but turn that money into more money.