All Forum Posts by: Patrick Henderson

Years ago Zillow always had higher valuations. The true value of anything is what the buyer is willing to pay. Just because some similar ones sold much lower last year does not mean it's not worth more. Things like appreciation which probably isn't the case but maybe it is The others could have had massive damage.
You could try to contact the present owner assuming they did not buy it after it was repaired. But I would want solid comps and trends before I made an offer.

If I found a lead on my own, I would approach them directly. If the agent found it, I would go through them. If you don't feel comfortable with that, you could use your agent. However, if we never get out of our comfort zone it can be very difficult to grow as a person or for that matter, grow a business. But you obviously have to offer less using an agent because they have to be paid.

Wow, There's no need to be so aggressive. I'll write a reply to this and then I'm done with it. Unless, it turns into something more constructive. By that I mean, it does something to help someone complete an actual transaction.

First I am not affiliated with any one selling educational material. Nor do I represent any. Just want to be clear on that subject. However, I did mention Robert Kiyosaki's book, If that is prohibited I'm apologize for that. I do believe it helps many people understand the mindset of an investor. And, I did mention that everyone should "first" take advantage of the free info ie BP.

Bill. I don't think any approach is the best. And, I'm not disrespecting your education. I think all education is good, sometimes even the stuff that's not so good. Learning should never stop. And, You didn't learn all that from the licensing requirements classes which was my comparison analogy. Your time in the business, EXPERIENCE and education has gotten you to the point that you are today. You seem well versed in putting deals together and I Respect that acumen. Hell, I might want to do a deal with you. BP is a great tool for everyone. I didn't have that when I started, I wish I had.

Here's an analogy. I took my CPA to a commercial seminar (BTW it was free) nothing was sold at all. He had been a slum landlord as he called it and gotten out, leaving a bad taste in his mouth and quit after that. after the seminar he was inspired to get back in and bought raw land southeast of Phx. took an educated guess and made a whole lot of money. Yes he understood investing and business. I'm not saying anyone who goes to a seminar is going to make lots of money but there plenty of good educators out there and shams as well.

One more analogy;

You know it's a true statement that I could teach someone about all the tools in the world but they are useless unless used in the proper way.

You mentioned a whole lot. So I'm trying, be patient.

Surveying. lease options, installments, and so on.Yes. All of that is taught, by what you may call a Guru. BTW the best ones I know, don't go by that name.

Do I know quite a bit about everyone of those things you mentioned, yes I do. Is that a good thing? Absolutely, it helps me look at everything thing that comes across my desk more creatively and makes the possibility if a deal much more likely. Making every deal work is the only impossible. Were dealing with humans here.

But when I need surveying, finance, accounting, Engineers, Attorneys or whatever. I hire those professionals. Why? Because as a creative investor my job as I see it, is to get transactions accomplished. I guess you've read my post. Do you have any (constructive) arguments with the few strategies I've mentioned on this site. I'm willing to bet you've used them. they are very basic. I did not leaned them in a college, traditional schooling but that does change the fact that they work.

I've tried to answer your objections politely and hope I've succeeded.

I welcome a good debate but not an antagonistic one. So unless we have that as as the only priory, I'm done with this conversation.

Thank you for posting

Ps. How much did you spend on your education? The one thing I was trying to say is quit bashing what you obviously only know superficially. That's what I'm defending.

I think a safe bet is this formula. the 70% rule.

After repaired value = 100,000

70% of ARV = 70,000

Estimated repairs = 15,000

Best possible offering = 55,000

Everything else can be worked out under this scenario.

I believe the deal is very tight as well. A good rule to RE investing and is my rule. I buy at or below this valuation. 70% if ARV after repaired value minus repairs. that means if a house will sell for $100,000 after repairs and updating and needs $18,000 in repairs my best offering price $52,000. That's what I was taught and it has worked well for me. I know that many would say that those don't come along too often but I would say they are mistaken or misinformed. As one of my teachers said if you are actively marketing to the right people. The deal of a lifetime comes along about a week. You want people who need to sell not want to sell. That is the sad part of SFR investing. We cannot help the situation they got themselves into but we can help them out of those circumstances.

Thank you both for posting here. First, yes I was fairly successful in another industry already and I have had an entrepreneurial mindset since I was very young. Good business savvy is a good place to start. To at the very least get a mindset. The book Rich Dad Poor dad is a very good place to start that mindset. I highly recommend that book for those wanting a better understanding of that mindset. As far as going to Real Estate school to get License, I can tell you from my experience since that time I learned more in that weekend than with the RE licensing school. And, that's a fact.

Basic RE licensing schools do not teach the business of RE investing. What they teach is somewhat a mystery to me besides listing. comping and three ways to sell. Conventional, VA and cash. Not to be condescending but almost always the agent is the least informed in the transactions, at least with residential. I have literally sat and listened to agents talk their way out of a pay check even when the seller was satisfied with the offer. When I got started in this business in 2004 average agents could not even describe a short sale accurately. Much less the realities and difficulties involved in the entire process.

As far as college courses, Business 101 is a good start. But I don't think I would have learned this business through the courses offered at that time. It's been my experience that colleges fill you with good info, structure of business and management, but not necessarily strategies.

Keep in mind that I read text better than most I know read the funny pages. I am a serial reader, constantly learning. I am self taught in most everything I do , from business to mountain climbing. But that does not mean I have not stood on the shoulders of those that came before me.

Buyers are by definition in my opinion fickle. A good buyer is one that performs the transaction in a timely manner. If they want my property under contract my terms are short and specific. And, they put down non-refundable earnest money that exceed my costs for holding that term. That's the nature of a Wholesale deal.

As far as acquiring buyers, the more people you send the deal to the more likely you will find a buyer quickly. besides it costs nothing more than a few minutes of your time to do this via email. so the credibility of these buyers is important but that will work itself out. You will weed out the wannabees very very quick.

So in the end any and all methods you can come up with are fine. nothing wrong CL. And, having a buyers list brings much more comfort and confidence to the situation.

So, Get up, get started, and take action.

Just to be up front. I personally have spent 40 to $50,000 on training and about ten percent was of no use, That being said, my first seminar cost me just under $500 and within two weeks I had my first deal. I used hard money at 18% and made $24,000. Don't get me wrong it was a difficult rehab with many issues. Including a supposed experienced investor I took on as a partner who caught it on fire twice. Enough said.

First there is so much information for free or almost nothing that you should take advantage of first. I could reccomend some that are in my veiw very legitimate. I won't because I don't believe BP wants that on this site.

I will say this, I have made way more than I ever spent in this business on training.

I don't care for the bashing of so called Guru's on this site but I understand. On that subject though, I will say that I have heard many people bash some of the most credable people that have helped me tremedously. Not necessarily on this site mind you.

There are reputable teachers in this business.

An agent is legally obligated to have their clients best interest in mind. If an agent does not I make a call to the broker and almost always get an immediate response.

The simple answer is, it takes what it takes. Bandit signs are very effective to get the phone ringing, so consider each course of action. The key is to take action.