All Forum Posts by: Justin Cooper

Love this post Scott.  I couldn't agree more.  Except that you will probably not be a fool if and when the crash comes because you are buying on sound principals (I hope!) A good deal today should be a good deal tomorrow.

I agree, Denver is not an easy market right now to be buying in, we have a ton of competition, other fix and flippers, both pros and newbies who hear that the market is great so they try to jump in, landlords, who are running their numbers in a very different fashion and are not concerned with fix and flip profit dollars but who are still making money because rents are skyrocketing and interest rates are low, and owner occupants that are willing to put in some sweat equity because prices are going up so fast they are getting priced out of some neighborhoods.  Add to that that sellers are less willing to sell because they don't know if they would be able to find a place to move to! 

Sounds like you are taking a ton of action and I agree, it is all a numbers game.  Keep up the good work with the marketing and offers and more will hit.  Don't get frustrated and keep pushing!  The deals will come!  

Hi Trey and welcome!

How is the wholesaling coming?  have you gotten some deals closed? 

Regarding the Bank REO's, I think that ship has sailed for the most part in Denver. We are well removed from the crash and the number of foreclosures are minimal these days. It is even slim pickings at the auctions. If you are focusing on the Denver market, I would not waste my time learning how to get in with the REO departments or loss mitigation departments of the banks, there just isn't the inventory available to make it worth the effort, I think think.

That being said, sellers and their agents are certainly getting savvier and are not as willing to accept an assignable contract as they used to be. If you are doing direct marketing for sellers then you should have luck with this but anything on the MLS is getting more difficult. I think spending the time and effort in understanding how else to wholesale would be valuable.

The 2 ways, other than assigning the contract, that I know of, are the double close and using a "throw-away" LLC. The double closing refers to literally having two closings, ie. you close and buy the property in the morning, then have another closing and sell the property in the afternoon (A to B then B to C). This might be the cleanest but also the most expensive way as there are 2 closings that need to be paid for as well as the possibility of needing flash cash to fund that A-B closing. The "throw-away" LLC route involves creating a brand new LLC, for the sole purpose of making that offer and wholesaling that property, getting the contract with the new LLC as the buyer, then selling the LLC. This way the seller always sees the LLC as the buyer, but the owner of the LLC changes hands. You would sell the LLC for the cost of your wholesale fee. There are certainly costs associated with this, especially up front to make sure you have all of the right documentation to create the LLC and then properly convey ownership of the LLC but once you do it once, it becomes cheaper and easier to do so. I would certainly consult your local RE Attorney to make sure you do this all correctly.

Hope that helps a bit and makes sense!

Hi Garett,

I think the meetup was just this past Monday.  I heard it was a good one.

There is the IRROC, Investors Resource of Colorado, meeting tonight. http://www.irrofcolorado.com/ I will be there.  If you can make it, find me and say Hi!

There are 2 meetings next Wednesday the 15th.  DAREI and CAREI. 

CAREI - Colorado Association of Real Estate Investors -

http://www.carei.com/

DAREI - Denver Association of Real Estate Investors -

www.DAREI.Club

Hope that helps!

Coop

Hi Chelsea!

I think @Connor Swalm gave some great advise there.  The big thing to remember and understand is that you are new and do not know everything.  Certainly share what you do know and what you have heard and the local investors will either laugh at (with) you because what you have heard is so crazy and then correct you at least with what might be going on and working locally or how to do it better.  And you never know, there might be something where you are actually a great fit for something other than real estate!  If you do connect with an experienced investor, be respectful of their time, they might be there to specifically talk to someone or they will want to network with other folks, don't overstay your welcome but if they let you, feel free to listen in on the conversations between the experienced investors.  

You might also want to spend some time on yourself before going.  What I mean is, know what you can offer to other investors, what you need from other investors and what direction you want to go with your investing.  This certainly doesn't have to be perfect for tonight but have a rough outline at a minimum so you can answer the age old question, "So what do you do?"

Don't worry about the biz cards.  Like Connor said, most investors are horrible networkers, which means even of you gave out 100 cards tonight, chances are, no one would reach out because bad networks do not know how to follow up.  Be the better networker, take their card, or write down their info, and then tomorrow reach out and connect with them. Even if nothing comes from it, it will leave an impression and will make the next time you seem them a bit easier.

Have fun!

Coop

Hi Matt,

Great idea! I just got a notice of violation for one of my rentals in Aurora for the grass being too tall.  

what are you doing to track down the owners after you get the addresses?

Coop

Where in Central Maryland are you heading?  I know some folks out that way and might be able to connect you.

I can understand your resistance to working with hard money lenders (I am one!) and partnering, both because you are shy and you also probably don't want to pay the HML's fees and give up part of the deal to a partner, but there will not be a better way to learn your new market then to be networking, going to local REIA's and talking to lenders. I hate to say it but you might have to step out of that shyness comfort zone.

Good luck and let me know if I can help.

Hi Jeremy,

Great question and I like your last line. Yes, I think a lot of it comes down to personal preference. That is what is so great about REI, we can really make it our own and do not have to follow any certain path if we don't want to.

That being said, what is it that you really want to do, and how easy is it for you to do it? If you want to own rentals in the new town, and you want to buy fix and hold, are you in a position to do that right now? do you need money from the GA property to make that happen? what is your risk tolerance, specifically regarding having a rental 4 states away and also the loan to value you might be at if you refi and pull cash out.

It seems like you already know or at least are leaning a certain direction.  Sometimes you just need to trust your gut and go for it!  What's the worst that could happen?

no seriously, what is the worst that could happen?  if you think that through and are still OK, then go for it.

Coop

I have!  Are you looking for recommendations in Chicago? warnings about who not to deal with?  or just some cool stories to get you over the fear of working with a hard money lender?

Hi Evan and Welcome!

You are definitely in the right place and I am sure your prior experience will help you down the road quicker than most.

What can we all help you with?

Coop