All Forum Posts by: Jeff Warner

This is a good post, just thought I'd bump it back up to the top. Keep up the good work Eric.

Jeff

Making 243 phone calls would be a little much, in that case emailing to your list would be the best route.

I agree with the other posters about quality over quantity. I'd rather have 10 buyers on a list that I have built up rapport with then 243 who most likely don't remember who the heck I am. Since you already have that list it will be pretty simple to blast your listings to them...more then likely you'll only hear back from 3% or so of that list, those are guys to build rapport with. As time goes on you'll more then likely shrink that list down and eliminate the tire kickers. Best of luck.

Jeff

My pleasure. Just make sure to be his shadow and pay attention to anything that makes him concerned or causes him to pull the red flag.

Another thing to keep in mind is what your buyers are looking for. If they are fix and flip rehabbers they'll put in nicer floors, counters, cabinets, etc. then your section 8 landlords will. For that reason I'm only concerned with the MAJOR issue's, let your buyer determine the ACTUAL costs based on their exit strategy.

Jeff

I hear you, I think I misunderstood your point with my last post. I'm not a rehabber but I would be most comfortable doing a rehab if I could afford to pay for it out of pocket if it came down to it. I would still use the HML for the whole project but having the reserve capital in the bank would make things sit a little easier when an unexpected problem or longer then expected holding period occurred.

In other words, I'm saying that if you had a home you bought for $50k that needed 20k worth of work, I would prefer to have the 20k in the bank but still borrow the full 70k from the HML. Make sense?

Jeff

I use to have a contractor friend of mine do an inspection for me, usually around $50.00. He is licensed but it's the professional opinion your looking for, not a license. I've since learned enough to inspect on my own. I think it's a good idea to go with a contractor to inspect a few homes at first, that way you'll learn what to look for. I learned quite a bit from him in a short period of time. Worst case, if a home is a train wreck and I'm just not sure I can always call on him to take a look for me.

Calling a contractor in for inspections might save you from putting a complete tear down under contract. Ultimately, your buyer will need a contractor of their own to determine what costs they will incur during a rehab but I like to be informed so that I don't waste anyone's time.

Jeff

$1000.00 a month? For how many calls? I've made cold calls for so many years in different business ventures that it just doesn't bother me. I'd honestly consider setting up a side business if people are willing to pay for someone to make cold calls.

Jeff

The problem I see here is the lack of capital. Without capital, how are you going to make your monthly payments to the HML? Also, if you could not move a property quickly it may not be a good enough deal to begin with. I think it's great to be able to look someone in the eye, tell them your going to buy their home and then follow through and close on it yourself....BUT, at what point does a deal like that not make sense? Personally, I would question any deal that I could not sell quickly.

I'm just trying to be realistic here, so don't take my comments negatively. I just see some potentially devastating results because of the lack of capital. Another thing to consider is that a lot of HML's these days require some $ up front either from points charged for the loan or a down payment.

In my opinion, if a deal is marginal just use an Option Contract.

Jeff

Blake,

I would contact your counties Housing Authority office and get a list of the section 8 properties for rent. From there you can market to section 8 landlords.

Most poverty stricken areas will have quite a bit of low income housing and you as a wholesaler could help facilitate those deals and put some extra $$ in your pocket at the same time.

Jeff

I mean that LLC's are just one method that people use when flipping properties. The strategy is to set up an LLC for the property you are flipping...this is just for the property, not your entity, name it 123 main st. or whatever the address is and sell the LLC (not the property) for your assignment fee. Make sense?

As Jon mentioned not all methods work all the time. Different banks have different rules, etc.

Jeff