All Forum Posts by: Brad Chandler

If you make much more than a 10% net margin as a brokerage you are doing very well. You also have added liability. You can make higher profit margins by operating a successful team.

If you are competing with hedge funds you are either looking at listed properties or auction properties. Its hard to find deals within these two areas even if hedge funds didn't exist. You will start to see hedge funds get out of the buying market in the coming months. If you don't want to compete with them market for motivated sellers.

Holly:

The first thing I would do is to speak with your boss so you don't lose your job. If a property went to auction and it didn't sell then it usually means they don't have equity. If they don't have equity you can't wholesale them. Maryland also has some strict foreclosure laws that you must follow - not sure if you are exempt but I would doubt it. Do you have the ability to get in contact with these folks via phone - I think you said you did? If your boss agrees - and I somehow doubt he/she will - I would call 15-20 of them and see what their mortgage balance is and if they have equity. I am local and always looking for ways to find more deals - if you need help let me know.

Thanks!

Brad

@Shequann Burrwell what do you do on craigslist?

It took me 8 months to find my first deal. That was July 2003. I have since bought over 1,300 homes. Don't give up!

@Account Closed - what do you mean: "There are plenty of deals in phoenix but they are at FMV price."?

The flipping business is not dead and will never be dead in any US city. You may not be able to find deals on MLS but they are out there. People will always have a need to sell a home to an investor, no matter what location or state of the economy.

In my opinion being clear is always better. Drive the area and tell them exactly where you want them placed.

@Ceasar Blackman - I have gotten quotes from postcardmania and they were considerably hire than other providers. Check out directmail.com for better rates.

@Dacia Bell I would urge you to further investigate starting a brokerage. You only split commissions up to a certain amount and then you generally keep 100%. In my opinion it isn't worth the added liability. It is very hard to make money as a broker. Your margins will be better with a team. I started a team at Keller Williams in 2008 and by 2010 we had the #1 team - we did almost 800 transactions around $120m. My partner had his brokerage license and we still stayed with Keller Williams. Just my thoughts...