All Forum Posts by: Joshua Martin

Hey gang,

  And first, @Steve Bracero. Yes google voice seems to work fine for now, and no I don't have a script, but I do need to draft something so I don't forgot essential information (like the call I almost got off the other day without asking what the mortgage balance was). Not a verbatim script, but just bullet points so I can think on my feet. I tried using one for cold calling a few weeks back, but realized that when I did get on the phone with sellers it went straight out the window, immediately.

  As for the motivated seller, I think I'll have to follow up again. I realized one thing about wholesaling though: it's hard. Because even though she is willing to sell at a 'cash buyer's' price, I need an even deeper discount to make it a viable wholesale deal. I also need to work on negotiation skills, because I came out with a low number and said that was the best I could do. I'll follow up in a week or two and if she hasn't moved it yet maybe I can move a little and take a smaller assignment fee. I should really, for my first wholesale deal, I should be happy with any money I get and not demand a 5,000 spread.

  Anyhow, I'll only post qualified and good updates from here on in.

Best,

JTM

@James Danchus

As @Paul Smythe just said, it does depend all on the area. I was driving around the suburbs the other day, you know, very stable area, high property values, seeing if I could find that one ugly house on the street that might be having troubles, and I averaged about 2 addresses per hour. 

On the other hand, in another area of the city where there are a lot of homeowners and SF rentals, I averaged closer to 40. 

Also, the grass doesn't need to be two feet high. I've been writing them down if I see any signs of distress. You know, old paint, busted up cars in the driveway, etc. One of the guys on the podcast said he writes them down if he sees an A/C unit (in a nice area), assuming that means they don't have the few thousands dollars to install central air.

Good luck! Keep driving and writing.

Best,

JTM

Hey @Rick H.,

  I was waiting for you to chime in. And perhaps I wasn't clear (or perhaps you read too quickly), but I'm actually mailing the probate leads a series of white, professional letters that I'm doing myself (at this point) because I think it's a good mail piece and I couldn't find something I thought looked good enough online. And, based on reading several of your other posts, I'm also trying to incorporate the 'themes' to the mail pieces. The first was basically an introduction, condolences, identification, and what I offer (while not pushing hard), and for the second I'm thinking still a sort of 'as you get going with all of this' theme, or 'does everyone have the same goal?' type thing. I'm in the process of writing it. What themes do you use? (As one line summaries, if you would). 

 And, sent out 65 last week, one call so far, motivated seller, but no equity to make a deal happen, even some type of sub2 that I don't really get yet looks too slim.

  The postcards are being sent in sequence to absentee and equity leads. 500 of each. Still working on better copy for the pieces, as I wasn't really impressed with the first one that's going out, but again, it's an introduction. 

  And an update: I also bought bandit signs a few weeks ago (which I don't really like for several reasons and don't think I'll use again), but I got a highly motivated call from someone who saw it today, and we're meeting at her property Monday. Owns it free and clear, and needs some work but didn't sound too bad. Tired landlord. Google pics actually look pretty good. Only thing is property is in a rough area, like, the inner, inner city, and while I would never buy property there, I'm sure there are investors who do, so I'm hoping this pans out into a small check on a first deal.

 I'll keep updates coming. 

 And as always, thanks for the advice everyone.

Best, 

JTM

@John Thedford

Totally agreed. And based on one of your other posts, and what you're talking about now, I want to line up transactional funding for just that reason. 

@Marcus Auerbach 

I switched brokers, from Coldwell, who deals almost exclusively with traditional real estate to Berkshire Hathaway. Not exactly a tiny brokerage, and their familiar with the process and okay with it. I think they're just more investor friendly. As to potential dangerous situations for having a license, I guess it's possible, but I think unlikely. Disclose early and often, and I think I'll be fine. I also plan to draft an acknowledgements addendum so they understand exactly what is going on. It just isn't the case that I am representing them and trying to get top dollar for their house, not in this situation. Buying is an individual, or with my LLC as the client, it's necessarily adversarial. I know it a hot issu, but I think I'll be alright

Best,

JTM

As for 'first contact,' I might just wait till I see them in person. It probably won't be the very first thing I say when I get on the phone.

@Johnny Kang Wow. That's simply ridiculous, and this agent must have been an idiot of the next level sort to have tried something like that. Such an obvious conflict of interest.

@Lyuba Barrington I'm trying to do the same thing, so I'll basically just describe how I'm navigating the territory. Now, this is certainly a grey area, no doubt about it, and I've talked to three attorneys and several brokers trying to navigate it.Yes, I have an LLC that I plan to wholesale under, and am currently sending out marketing. And yes also, I am a licensed agent. In Wisconsin they have laws about how many deals you can do, 5 in 1 year, without being licensed (though again, grey area, and I know wholesalers who don't have licenses), so it might be just as well that I have it. The first broker I tried to work under was so unfamiliar with wholesaling, and wanted to treat the whole thing as real estate commission, that it just wasn't going to work out. As of today, I'm at a different broker who will let me wholesale on my own under my LLC, and I will give them $500 per transaction for holding my license -- and really, any way you read the legal texts, it does constitute brokerage activity.

  But, as to your disclosure question, yes. I will always tell the individual I have a real estate license. But that doesn't mean I have to work in their interest or anything of the sort. I'm basically a 'principal' in the deal, meaning our relationship is adversarial and I am negotiating on behalf of my own interests, so just because I have a real estate license nothing like fiduciary responsibility applies.

  But anyways, sorry if that rambled, yes, I will always disclose. It seems simple enough, and the honest thing to do. I don't like to feel like I'm hiding things.

  I hope that helped a bit, I know I was having trouble finding a clear way to navigate this whole area, but that's what I've come up with. Pretty happy with it.

Best of luck,

JTM

Nice @Jason Robles! I've gotten a few calls already too. It's exciting, we're on the right track!

As for the kickback, unless you have a real estate license that sort of thing is illegal, at least in Wisconsin.

Either way, stay vigilant! They'll keep coming!

Thanks for the input everyone, and, since I'm only a few days in and have gotten a few calls, it seemed appropriate to post my little update.

  Mailed 60 yellow letters two weeks ago, 2 calls. 3% response rate. One tire kicker and another motivated but without any equity to do a deal.

  Mailed 70 probate letters (first round) only a few days ago, and got my first call today. Unfortunately again, no equity, and the margin was just not there to even contemplate flipping (for the end buyer). Although, I'm just glad I got a response. It was a property in a really nice area, mortgage balance was just surprising.

  Just goes to show you: send em out and the calls come in. 

I'll keep em coming.

Best,

JTM

Taxes, sewer, and water you can all get from the city. Look up the assessor's office and run the property. If you're trying to wholesale the property, holding costs will all be part of your end buyer's due diligence, so I wouldn't worry too much about that. Just give them the details of the property, beds, bath, garage, exterior, age of roof, as much as you can, your asking price, whether seller or buyer pays closing, and the rest is on their end. 

You're not also flipping the property, so the cost of money isn't really your personal issue. Furthermore, you can't really give an estimate of holding costs, because they will be very different depending on if someone is using private money or hard money. Hard money is expensive, but most larger flippers have more resources and are not going to pay 15% and points on their money, I assume.

Best,

JTM