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All Forum Posts by: Lenzy Ruffin

Lenzy Ruffin has started 14 posts and replied 133 times.

Post: new member in NoVA looking to become better investor!

Lenzy RuffinPosted
  • Washington, DC
  • Posts 139
  • Votes 102

"I couldn't help but notice majority of the people looking into wholesaling come from a lower income pool of population..."

Not a good way to introduce yourself to BP, @Silas Lee. Not only is that an unflattering generalization that you couldn't possibly support with any facts (how many wholesalers' income do you personally have knowledge of?), but it's just not true. Lots of people earn plenty of money and spend plenty of money and therefore have little to invest. Others from the "lower income pool" spend wisely and have lots of money to invest. Either can choose to wholesale. Then there are the established, master wholesalers who do business in such volume that they have no desire to take on the responsibility of managing rehabs. Wholesaling is something that many people do because they choose to do it, not because they can't afford to do anything else. 

Wholesaling is a great way to learn the business. Everything in real estate begins with a deal. Wholesalers (the good ones) spend all day, every day finding and/or creating those deals. To be a successful wholesaler, you must be able to analyze deals, negotiate, be a great marketer, be a problem solver, be a great communicator (listener), and so much more. You have to be good at a lot of different things to be a good wholesaler. Plenty of people take on the challenge of wholesaling so that they can learn those skills and carry them forward to other investing methods and still continue to wholesale. Wanting to learn the business from the ground up has nothing to do with someone's income level. There are a lot of really high earners on Bigger Pockets, as well as in DC, MD, and Northern VA, so don't beat your chest too hard about your day job that "pays somewhat more than most people." You're sending the wrong tone. I'm telling you this because I'd like to see you have success on BP and that kind of condescension, particularly given that it's misguided, will turn off people whose advice you seek.

Wholesaling is hard, Silas. The only people who tell you it isn't are the ones selling courses/mentoring. There are plenty of links on BP that give the truth about the challenge that wholesaling is. If you choose to be a wholesaler, dealing with hundreds of sellers is not something you're going to have to worry about. Assuming you target a specific market (one, two, three zip codes or neighborhoods, for example), and define some buying criteria (property type, condition, square footage, etc), there will not be enough people for you to market to to generate a crazy call volume. You could market to two dozen zip codes to generate a large call volume, but that means you are not an expert in those zip codes, which is what you have to be as a wholesaler or as a rehabber. Or you could hang bandit signs all over the place. Those generate a high volume of calls, but they're not legal in many places AND the majority of those calls are a waste of time. 

Regardless of what marketing methods you choose, as a new wholesaler, you'll be dealing with too few calls, not too many. And you could always use a call service to take the calls and only send you the hot leads, meaning a motivated seller with equity. So call volume won't be an issue, one way or the other. 

Wholesaling is something that you really have to want to do because it. is. a. grind. And it does cost money. It's not a good way for most people to start in real estate because you can end up giving up on real estate because wholesaling didn't work out for you. And it's definitely not an after work and on weekends deal. No seller who calls you is calling only you. They're getting marketed to by a dozen other investors and if they call you and have to leave a message and they call me and I answer the phone, who gets that deal?

I'd say if you don't actually "want" to be a wholesaler, don't do it. Learn how to evaluate deals like a wholesaler (70% rule, etc) so you know what a true deal looks like and then build your team / process for rehabbing. You would then only be taking calls from your agent and any wholesalers you work with. Still gotta manage those rehabs, though. They will require your time and attention.

Post: Can I wholesale a house under foreclosure?

Lenzy RuffinPosted
  • Washington, DC
  • Posts 139
  • Votes 102

Yes, you can wholesale a house under foreclosure. The owner still owns it and can sell it until the foreclosure process completes and they are no longer the owner. The house needs to be at a wholesale price, though, which will likely involve a short sale. If the owner is motivated and in foreclosure, they probably don't have equity because if they did, they would just sell the house to avoid foreclosure. 

Just use the 70% rule. If you can wholesale it without doing a short sale, great. If not, find an investor or an agent in your area who is experienced in doing short sales and work out a win/win/win agreement for the homeowner, you, and the person with short sale experience.

https://www.biggerpockets.com/renewsblog/2014/02/14/70-rule-bible/

Post: Real Estate Agent in Maryland/ D.C.

Lenzy RuffinPosted
  • Washington, DC
  • Posts 139
  • Votes 102
Originally posted by @Thomas Franklin:

@Tia 

@Tia WillisConsider joining a local REIA, but be careful of REIAs. Many of these give sales pitches, gurus try to sell their products or mentoring programs, or someone tries to get you to invest in a REI Fund by a group of people pooling their money, for some REI and promising an unrealistic return. I am sure there are good REIAs out there. In a large city, people are cut throat and motivated, by greed. I would suggest your decision to join a REIA is similar to buying a new vehicle. You take a new vehicle for a test drive before making a decision. Why not attend several different REIA Meetings before you decide joining a particular REIA?

I hope all this information helps you, to become a successful Investor and provides you food for thought.

 Plus one on that! Learned that lesson the hard and expensive way.

Post: Mold remediation in Prince George's County, MD

Lenzy RuffinPosted
  • Washington, DC
  • Posts 139
  • Votes 102

Thank you, @Russell Brazil. I'd be building their fee into my offer. I just needed to know a good company to call to get a ballpark on what a small, medium, and large remediation would cost. I've seen REOs on MLS that were priced really, really low because of mold and I suspect the discount far exceeded what a mold remediation would actually cost because of mold having such a stigma. I think these guys can give me the info I need to make educated offers on mold houses.

Post: Mold remediation in Prince George's County, MD

Lenzy RuffinPosted
  • Washington, DC
  • Posts 139
  • Votes 102

Can anyone recommend a good company?

Post: New member from Maryland

Lenzy RuffinPosted
  • Washington, DC
  • Posts 139
  • Votes 102

Welcome to BP, Andrew.

Post: Any insight on why a desirable REO property would sit for months?

Lenzy RuffinPosted
  • Washington, DC
  • Posts 139
  • Votes 102

Sorry for not reading your post correctly, @Crystal Em. Are you familiar with the 70% rule? It may be the 65% rule in your market. It's possible that the repair costs on that house make it not a deal at the list price. There may be a major issue with the house that you can't see from the outside or in any of the images posted in the listing. 

If you haven't visited a local REIA yet, that would be a good way to find out what percentage of ARV people are buying at in your area. It's also a great place to ask about that particular property. There will be experienced investors at the REIA who have likely made offers on the property and can tell you why they're not interested in it at the list price.

https://www.biggerpockets.com/renewsblog/2014/02/1...

Post: Any insight on why a desirable REO property would sit for months?

Lenzy RuffinPosted
  • Washington, DC
  • Posts 139
  • Votes 102

Google "zombie foreclosure" and you'll find what you're looking for. If it's only been months, the house you're looking at may not even be a zombie, just one they haven't gotten around to marketing for sale yet. Houses have sat / do sit in foreclosure for years. There's nothing you can do to buy it until it either shows up on MLS or an auction site.

Post: wholesaling

Lenzy RuffinPosted
  • Washington, DC
  • Posts 139
  • Votes 102

@Phillip Gonzales

I'm not in AZ, but I'd suggest putting in your profile that you want to work with wholesalers. I'm sure there are wholesalers in your area that use the "people near me" functionality of BP (I certainly do) and if they look at your profile, they won't know that you're willing to work with wholesalers. By its very nature, wholesaling means buying cheap and lots of agents aren't interested in those commissions. BP gives you a generous canvas on your profile page. Take a look at how others are really leveraging their profile page and put yours to work for you. Good luck, man.

Post: Burning Desire to Work With & Build A Team from Maryland

Lenzy RuffinPosted
  • Washington, DC
  • Posts 139
  • Votes 102

Welcome to BP, @Rita Williams.

Here's some links to help you get started with rentals. I know what you want to do because you put it in your profile. Great job on that and keep on leveraging your profile to help you achieve your objectives. 

https://www.biggerpockets.com/renewsblog/2010/7/10...

https://www.biggerpockets.com/renewsblog/2014/04/1...
https://www.biggerpockets.com/renewsblog/2010/06/3...
https://www.biggerpockets.com/renewsblog/2013/01/1...

And make sure you check out the podcasts, if you haven't already. It took me a long time to discover them after I joined BP and got overwhelmed with all the content on the website. The podcasts are a goldmine of practical information.