All Forum Posts by: Joshua Martin

@Kevin Townsend PM me your number. I'll connect you.

Hey gang, 

Thought I'd ask away as I'm brainstorming the best ways to go about this. So I've been hunting deals for a while, have come across 2 in the lots of them that made a lot of sense, and got beat out on both. Or, on the one they sold to a cash buyer at a higher number, and on the second the seller listed on the MLS. But it does seem clear, I'll have to pay cash to get the best deals, as the recent one I wrote on was a rehab loan and obviously a cash offer looks MUCH more appealing.

  As for cash, I have 10k, and easy access to another 38k. These numbers don't put me in prime flipping locations. I have a mentor whose also something between private and hard money at around 10% no points, or would be open to partnering on good deals. He likes to operate with ARVs around 110-125 and has done it successfully for years.

  I do have another line on cash, however, and I'm just wondering how rookies have structured one off partnerships. They bank and I work and project manage and we split 50/50? Or is that not enough if the person has the cash? I would have the deal, and ostensibly an off market deal as that's what I'm still looking for. 60/40 they bring the cash and rehab cash?

  There's lots of ways to set these up, obviously, and I'm just wondering what people have done that has been a win win for everyone. 

  I ask because I have another interesting lead but it's in a slightly higher price point than what I could scrape together.

  Thanks in advance,

Best,

  JTM

There's on obvious distinction we're treading between something being legal and something being ethical. 

While the local wholesalers I know are beyond honest with sellers, and provide actual comps for a property, often telling them they could sell it for more on the MLS but what they provide is a quick and easy cash sale (often better when a property can't be financed) the gray area is when wholesalers do not accurately represent or reveal the true value of the property.

I accidentally did this with a seller who contacted me in a capacity as a real estate professional when I thought based on the context she wanted me to buy the property. Brokers have, for whatever it's worth, a fiduciary responsibility to understand the market in which they operate and help people make the best choices given the available facts. By going in and telling her that I would buy the property for X dollars in cash, I understandably lost her trust and totally misread the situation, but it made it obvious to me how people that are not market savvy put their faith and trust in real estate professionals.

Because wholesalers operate beyond the bounds of this 'fiduciary responsibility,' while their contracts may be legal and above board, the dynamic they have with the seller is not necessarily so. And to the OP, I am not saying this is how you operate! But there is obviously room within the profession for this type of unscrupulous behavior...

And to be fair, Realtors can also be shiesty. Codes of Ethics don't mean all that much, and I was just reading one of the precursors to NARs code of ethics drawn up by the Chicago Real Estate Board in the 40s or 50s, holy cats, is that thing chock full of open and obvious discrimination and prejudice, and all the realtors, just 'minding the code of ethics'...

Along with Brie Schmidt, lots of other people own property in Milwaukee ;) Come to our local meet ups and you're sure to start meeting lots of them.

Timothy Hero Dude, 545 doors, knock em. I'm early too, and the only ROI I've had yet is mailing probates and working my sphere. DO NOT underestimate the value of your circle. Referrals are gold, and you'll have to call people and ask for them. I'm still getting better at this and trying to routinize it. I'm going to ramp up the probate mailing from the realtor angle, and spend time trying to build relationships with attorneys and make this my niche. I've been cold calling too, and ROI as of yet has been not existent, which is probably a combination of competition for expired listings and FSBOs, and me not having a conversion rate over the phone ;) Going to go back to géo-dialing. 545 doors, knock em and talk to everyone, and mail them in addition. You can crush a farm that size if you get in front of people enough. Come warm weather I'm back to door knocking. Impressive ROI considering it costs almost nothing (I am going to take door hangers when I start up again). Interested to hear what more established people have to say. Good post. Best of luck, JTM

Welcome to BP Shawn D. ! Get involved and go to whatever events you can, there's some good ones in Milwaukee here. You might have trouble finding a partner by just throwing that out here, unless you have a lot of cash. But keep coming and keep networking and you'll build those important contacts. Best of luck, JTM

@Charity Bauman! Welcome to BP. This sites the bomb.

Best,

  JTM

Hey @Shawn Davis,

  I am an agent who works with several investors in that market, I also know someone who's looking to pick up some multi-families, and I also know several highly recommended property managers who not only manage but own properties in the areas you're talking about, so... 

  I'll shoot you a PM and maybe we can connect.

Best,

   JTM

@Shawn Davis While I'm just getting into the purchasing game as opposed to the selling game, I know lots of investors who have built their entire portfolios (very well performing portfolios) in this market. As @Marrio Barnes was just describing, all about tenants! And a concerned landlord who takes care of his property and looks out for his tenants will be able to find solid tenants even in these very low price points.

Best of luck!

  JTM

@Cedric Daniels Welcome aboard! BP is the bomb!