All Forum Posts by: Kobus De Villiers

Remember also that the same property has different value to different buyers. If you want to wholesale to consumer or landlord, then formula would be different than wholesaling to other investor/rehabber.

Since I'm new and starting out I try to go visit more properties so talking price is not high on my list. Once I'm established and know better the formula that will work for me, then it is better to weed out those that does not represent a deal. These days it might be a good idea to start with the buyer. Get a buyer and then go search for that property. Then when you get a seller on the line the conversation could be much different if it is exactly what your buyer is looking for.

The 65% ARV - repairs is a useful formula, but just take into account why you're using it and know when it might not apply.

Most of the services offered by a PRO account seemed to be associated with marketing yourself and some tracking information. This don't really seemed very valuable to me. Maybe I'm missing something and PRO members can step in and explain the benefit it provided that they would not be able to get without the cost.

To me the benefit of a paid service would be in the potential to do deals locally and have discount for service providers. Something tangible would be 10% discount on services advertised by BP. Any service like list provider or tenant screening etc that have contracted with BP.

The other benefit would be to get access to local events and/or deals. I have not seen many events local to IL and most properties are over a year old, but if it was used more frequently then that could be a benefit that I'll be willing to pay for.

I think as other people has stated a verification that includes driver license is probably a safe choice. The address might be slightly different since I use my business address here rather than personal address, but it is in the same city.

As a new member I would probably have been scared off by having to enter my drivers license when registering for the first time. Now that I know the community here better I'll feel comfortable with it. As long as this verification remains an option it should be fine.

My last name does have a space in some gov databases and others cannot contain a space and cause some confusion. IRS spelling is different from drivers license so it is something that should be considered.

I started around the same time and for me the start of any business is in building relationships and networking. That is especially true in RE and success in wholesaling is all about the network. Networking takes time to establish but you'll receive the benefits in the future. Tell everybody that you know what you're doing and before long you will have deals coming your way.

Nice job.

Good luck with the sale and post those numbers!

Lease options are very specific to the market. Typically lease options work in lower priced markets where the rental market is comparable to owning. It sounds as if you're in a higher priced market where lease options might not make that much sense.

Look at what other investors are doing to make money in your market and copy them. That is probably the best place to start. Then adapt those strategies to fit your business.

You could look at what Danny Johnson is doing in the "Starting Out" forums. He is quite detialed in giving a view of his week and going into the analysis that he is doing. It is more focused on rehabbing but I find it valuable as well.

My focus is currently on wholesaling while working fulltime so I don't have the time during the day to do everything that I would like. Typically I set some goals that I try to achieve each week and track my progress that way.

Weekly goals are
1. 50 direct mailings - absentee, probate, vacant houses, etc
2. Bandit signs - drive route once a week and replace any that was removed (50 signs)
3. Phone leads on daily basis and sort into trash/referral/keep warm/immediate action
4. Court house visit - once a week to do research (leads for direct mailing/phone)
5. Follow up with contacts/agents/service providers to keep my name on their list

Hope this helps.

Danny,

Hopefully a quick question. How do you identify the REO agents to work with? Do you find the names through listings on RealtyTrack or Foreclosures.com or just word of mouth in the local area?

I've been trying to get in contact with more REO agents but only have one actively working with me at the moment.

Thanks,

Agree with what Financexaminer is saying.

As a new wholesaler myself there is so much to learn. Select 2 to 3 marketing campaigns and keep it running for at least 6 months trying to improve them over time. The first step in having a deal is having a lead, focus on that and you'll be going the right direction.

Next step is to know how to spot a deal. Comps, ARV, and repair estimates would be key to know so that you have a good handle on the price and potential profit.

Don't research and learn about strategies that you don't need today. Focus on the first step, research and implement that one item, refine over time and move to the next. This will help you to remain focused and ignoring all the noise trying to distract you. The first few months is all about focus and staying on task.

I think the follow up is dependent on the type of buyer or seller and the communication. It is probably something to split test in your market and see what works better.

I follow up somewhere between 2 weeks and one month for most of my direct mailing. To have some communication with a cold prospect once a month seems sufficient and in some cases I extend it to 45 days for out of state prospects. A warm lead would be closer to the 2 week target.