All Forum Posts by: Jeff Warner
Jeff Warner has started 19 posts and replied 483 times.
Post: Potential Property!
- Real Estate Investor
- North Central Arkansas
- Posts 509
- Votes 178
Originally posted by Steve Babiak:
http://www.biggerpockets.com/forums/30/topics/17926-meth-labs-in-trailers
http://www.biggerpockets.com/forums/84/topics/8789-clean-up-help-
Good find Steve.
Jeff
Post: Potential Property!
- Real Estate Investor
- North Central Arkansas
- Posts 509
- Votes 178
Originally posted by Byron Oliver:
Meth lab was exactly what I was afraid of. STAY AWAY! Too much $$ to clean up.
Jeff
Post: Who flips REO Properties
- Real Estate Investor
- North Central Arkansas
- Posts 509
- Votes 178
Originally posted by Tim Silvers:
I was reading some of your previous comments from over a year back on doing REO flips in which a few of you state that you were successfully buying off the MLS, finding good deals - and bottom line, making a profit.
I don't know about other states, but all I can say is that EVERY agent I've talked to as of late in both California and Nevada sound like a broken record -that because of the increased demand and lack of inventory, the REO market from single deals to bulk deals has largely become a seller's market and the banks are NO LONGER desparate to get rid of inventory at deep enough discounts for the flip business model to be pencil. The REOs are listed at market and, in many cases, are even getting bidded up over list. It is therefore impossible to make enough of a spread in order to flip on a simo close.
That being said, the only investors buying REOs (including the so-called bulk discounts) are the buy-and-hold and rehab-and-hold guys. A large percentage of them are Canadians paying cash and holding strictly for cash flow - and getting about 8% ROI, a model which does not suit my goals.
Are you guys still using the MLS for your flips and still making a decent spread?
Is it just my market that is basically tapped out for REOs flips?
What's wrong with this picture?
Tim,
First off, I'd say that as long as your being legal and ethical I would avoid using the word "impossible"...realtors love that word as much as "illegal".
In my market, there are 2 games being played with REO's, one is to put a property on the market BELOW value to get tons of offers and start a bidding war. The other is to list it at or higher then market value and let it sit for 30 to 60 days before lowering the price. The price drop triggers tons of offers and in most cases that I've seen on this type of listing they are selling above asking price. BUT, these are in almost all cases in my area RETAIL buyers.
What that realtor told you is happening in lots of places but like I said, this is Real Estate and the word "impossible" just does not apply in my opinion. There are people getting GREAT deals nationwide on REO's even with the games that the banks are playing. Know your market and get in with the REO listing agents, then try to get the deal BEFORE it goes on the MLS (got that one from Will).
Don't take a realtors word for it. Study your market, and when a home sells check the tax assessors website and see if these really are investors OR if they are retail buyers buying the home to live in. I've been doing that in my area and an overwhelming amount are retail buyers.
Jeff
Post: Marko Rubel Wholesaling Program
- Real Estate Investor
- North Central Arkansas
- Posts 509
- Votes 178
Originally posted by LaBlanca Ponder:
Originally posted by Jeff And Cheray Warner:
Originally posted by Robert Burns:
I totally agree with you Jeff...I havent exactly bought any courses but i have purchased some e-books on wholesaling and read alot and every teacher has a diff perspective and ideas and i think that it does just truly screw you up because once your finished with one persons stuff .. you think youve pretty much got everything down and you know how your going to do it and your ready to get out there but then you read someone elses material and it makes you rethink everything you learned previously and makes you feel unsure of your plans and it just keeps repeating each time you pick up someones elses stuff...or maybe thats just been my personal experience.
That's my point exactly. There are good courses out there, the problem is when your focus becomes "learning" rather then "doing". Sometimes people are afraid to fail and because of that the come up with excuses about why they have not found a deal, such as "there are no motivated sellers near me" or "I just need to read this new book", etc.
My advice: get out of the house and make offers...fail and then report your failure here on BP so you can learn from it. Repeat that process a few times and you'll be well on your way. Stay confident, focused, work hard and learn from your mistakes and you'll be fine.
Jeff
Post: Investing Etiquette - "Cash Buyer"
- Real Estate Investor
- North Central Arkansas
- Posts 509
- Votes 178
Originally posted by Tim Wieneke:
Strategic middle finger? Now that's funny.
Jeff
Post: Marko Rubel Wholesaling Program
- Real Estate Investor
- North Central Arkansas
- Posts 509
- Votes 178
Originally posted by Robert Burns:
Thanks for your input. Can you be give more specifics on a direct mail campaign? Do I get absentee owners lists, preforeclosure lists, etc? I would appreciate as much information as you can provide on constructing an effective direct mail campaign.
Thanks again for your interest in helping me. I MUST get on the right track and get some results, time is of the essence.
Bob Burns
Absentee owners are a good list for a number of reasons, one being that in most cases they are not attached to a house that they raised their kids in. Sentimental value can be a major stumbling block. Personally, I like Absentee owners living out of state. The answer to that question depends on what your buyers are after.
Here is a great article about marketing to absentee owners:
http://www.biggerpockets.com/articles/589-7-criteria-to-make-massive-profits-from-absentee-owners-
I have heard great arguments when it comes to letters vs post cards and I honestly don't think one is better then the other...post cards are cheaper in bulk but the message is the most important part of either.
Since your working a J-O-B at the moment, you can pay a high school or college kid $1.00 per bandit sign to put out for you.
As far as craigslist add's...look online at different cities and see what other investors are doing. Pick a couple that jump out at you, add your contact info and give them a try. You can modify it yourself if you have photoshop or just email it to a local print shop to make changes for you. It's free so make changes and see what works for you. I like to link the craigslist add to a picture located on photobucket (which is free).
Check out this thread on how to do that:
http://www.biggerpockets.com/forums/87/topics/33390-non-tech-way-to-use-craigslist-images
Before doing any of the above, take the time to make sure that you've carefully thought out your message. I know you want to get things going but a couple days or even a week or more to carefully put together your message won't kill you.
Jeff
Post: Marko Rubel Wholesaling Program
- Real Estate Investor
- North Central Arkansas
- Posts 509
- Votes 178
My first question is how are you finding comps? Once you have the phone ringing with potential deals you'll need to be able to quickly pick out the good leads and be able to make an offer right away.
Do you use Title companies out there? If so I would recommend getting in touch with them and seeing if they can pull comps for you. I use a local title company here and they pull comps and email them to me for free.
To get the phone ringing your going to need to do some direct mailing as well as bandit signs. "Driving for dollars" can be effective but I think it's more common to find yourself wasting valuable time without getting any results...it just depends on the area.
You can also use Craigslist to post adds looking for deals. When I'm posting regularly on CL I usually get one or two calls a day. Not bad for a free service.
I think you need to do all of the above simultaneously and be sure to have a clear and consistent message. When you post an add here and there on CL, then send out a few letters, then maybe put out some bandit signs your chances of getting a deal are going to be pretty slim. You need to create your message, pick your target audience and go after it FULL SPEED until you get results. Make sense?
Jeff
Post: Marko Rubel Wholesaling Program
- Real Estate Investor
- North Central Arkansas
- Posts 509
- Votes 178
UPDATE!!!
I decided to google this guy to see what his course was all about....I scrolled straight to the bottom and found the $4997.00 price tag. Is that the course your asking about? If so, you can be sure to find a deal with 5k as an advertising budget....even if you spread it out 5 or 6 months.
Jeff
Post: Marko Rubel Wholesaling Program
- Real Estate Investor
- North Central Arkansas
- Posts 509
- Votes 178
Originally posted by Robert Burns:
You respond frequently to BP questions and your replies are always appreciated. I am always interested in the comments I get back. I quite frankly feel some desparation in my efforts to get my RE Investing off the ground. I have plans to retire the beginning of next year and don't have a finite plan of action. I'm really in information overload and it's challenging to develop a step by step plan. I want to focus on wholesaling in that I need the quick income to pay off some credit card debt and reinforce my retirement investments that were hit hard last year with the stock market decline. What areas of REI do you do most? I would appreciate any advice, suggestions, or comments.
Sincerely,
Bob Burns
Thanks Bob, glad to help. My main focus is Wholesaling. I threw up the red flag because I don't want to see you or anyone else make the mistake of buying tons of different courses and over analyzing Wholesaling. This is a numbers game and and like I said before, if your sending out 500-1000 post cards or letters a month and making tons of offers, you WILL find a deal. I don't know Marko Rubel and I'm not questioning whether he's legit or not...I am questioning the need for another course, which I think is a waste of your hard earned money. I know there are several good courses out there but when it comes to Wholesaling I think there are plenty of people on BP that can help you get started in the right direction. Your money will go much farther on a direct mailing campaign then it will if you buy another course on wholesaling.
As far as the desperation, I think we've all been there. I've learned from past mistakes that your much better suited to take a step back and assess the situation with a clear head rather then charge full speed ahead. Not that your not planning but it's hard to think straight when your unable to focus and stick to a plan. Often times a new course will do more harm then good because it takes another point of view which in the end just causes your head to spin.
I'd be happy to help you focus and get a plan together and I'm sure others will pitch in their ideas as well. How much money can you afford to spend a month on advertising? Do you have some cash set aside for (earnest money) to make offers on REO's? Do you have a buyers list put together?
Jeff
Post: Wholesaling in small towns
- Real Estate Investor
- North Central Arkansas
- Posts 509
- Votes 178
Originally posted by LaBlanca Ponder:
Originally posted by Troy Michaels:
I was just about to ask the question myself. i know a smaller market where there are always houses, but limited investors. maybe instead of wholesaling in that particular area, doing a different investment strategy would work. (lease purchase, subject to, etc.)
yea but if you do it that way dont you have to have money yourself?
You DO have to have money to do a Subject2 or a Lease Option. Don't listen to the guru's who preach these $0.00 investments...what happens if your tenent doesn't pay? You need to have some reserve capital in case that happens. This is the real world, not the sunshine and lolli pops that the guru's make it to be. Ethics in this or any business will take you a long way, if you can't afford to make the payment on your own month after month DON'T sign the contract.
There are lots of ways to invest in Real Estate and it can be distracting, especially when you hear of something that sounds like easy money. Bottom line is there is no easy way to make money. Wholesaling is a great way to get started so that you can learn the business, build up some capital and eventually move on to other methods of investing. Whether your in a small town or a large city, you need to be able to demonstrate your ability to follow through with your end of the deal. At the end of the day, your reputation is on the line, not the guru's who preach their nonsense.
That said, I have read Wendy's book and I am familiar with her approach I just don't think it's a good idea to follow her course unless you have some money in the bank and some experience in this business.
Jeff