All Forum Posts by: Douglas Larson

@Jon Holdman

@Dave Grosse

@Jerry Kisasonak

@Tim G.

Thanks for the support . . . and the other comments.
I didn't intend to be misleading in any way, especially to our newer, hopeful investors on BP. I also wouldn't pretend that all my deals have been (or will be) that easy, but this particular forum asks for "success stories" and not "real estate sucks" stories. A few weeks ago I put this in a blog post just so you know I'm not afraid of candor. Also, in Podcast #41 Brandon and Josh asked about some of my failures and lessons learned. Failure is a great teacher but success stories are an inspiration, and a lot more fun to share.

Bottom line is that I have learned a lot about wholesaling from BP and I decided to put it into practice. I didn't start with a buyer's list or send out any cards or letters, but I was able to do a deal that I wouldn't have considered just a year ago.

Sent 12/19/13 at 03:42PM

@Jon Holdman

Great point Jon. I tried to keep accurate track of the hours on this specific deal, but if you count all of the hours and dollars I've spent over the years on real estate education, evaluating deals, making real estate contacts and even surfing Bigger Pockets, the numbers wouldn't look so sexy.

Someone asked Tim Ferris (4-hour workweek) once how he was able to do all his personal reading, blogging and networking in just 4 hours a week. His reply was that he did those things for fun and didn't count them as part of his actual 4-hour workweek.

I also love the quote, "It takes 20 years to become an overnight success."

I think that theme applies here.

@Carlos Ayuso

I actually make a few bids online each week at an auction site (Auction.com). I do research from my computer and make very low, conservative bids without even seeing most properties. I have purchased a dozen or so homes this way, often without seeing them until I have them under contract. This is the first one I ever bid on that I intended to wholesale.

@Tim G.

Weren't you working on a big rehab you are living in in SoCal? How is that going?

When I learned about "wholesaling" a few years ago my first thought was, "Why would anyone give up a great deal for a few thousand bucks?"

Really great deals can be hard to find when you rehab-to-rent or fix&flip, so I just couldn't see the intelligence in handing over a great spread to someone else for a little quick cash. There are tax implications and ongoing marketing costs, as well as just leaving lots of money on the table! However, after listening to BP podcasts all year and reading some great success stories, I have had a paradigm shift. Some great recent podcasts on wholesaling include SHOW 37 and SHOW 42, but there have been many others. When BP interviewees described the process, it just sounded so clean and tidy, compared to some of the big, messy rehab projects I've done.

So, just over 2 weeks ago, I made a very low-ball bid ($40k plus fees) to a bank on a small house in an area where I would never look for a rehab project for myself. It's not a "war zone" by any means but it's more than an hour from my house and it's an older, working-class neighborhood. (ARV $95K) The bank took 5 days to respond but they accepted my offer. I immediately put on the and also on a few local websites. I made up 2 dozen flyers and handed them out at a local REIA networking lunch. By the next day I had an earnest money check from a local investor (and BP member). Within a week I had 4 cash back-up offers and about 8 people to add to a future buyer's list.

My Net was $7,700 and my total time spent was about 30 hours, including two trips to the property and two trips to Kinko's. Most of the time was spent in my home-office with phone calls and emails. That's about $256 per hour and No swinging a hammer... No sawdust... No babysitting subcontractors. I think I could get used to this. I just hope I can repeat it. Now, I just have to find some tax strategies that help reduce active income tax liabilities.

@Brandon Turner

Let me know what you think of this one ... I aired out some of my own dirty laundry ...

The Midas Touch . . . or maybe not.

@Michael Heisterkamp

I love the tri-plex as a first deal. It gives you experience as a landlord and immediate cashflow after renovations. Great job!

@SCOTT WALKER

I love land, but I deal specifically with improved lots in established subdivisions and I have tried to stay away from your kind of land (see my interview - ). That said, there are some very creative investors on BP that have me re-thinking my strategy. I also do a few rehabs each year and they can get messy and stressful.

Several weeks ago @Seth Williams had a with Brandon and Josh on how to acquire (and what to do with) inexpensive, raw land. He sells his lots all over the country with seller financing and makes a nice income stream. Give the show a listen and see if it applies to you!

Have Fun, and Make Your Own Luck!

Thanks BP!

I had some very good interest in this property and accepted earnest money from a local BP member today.

@Tara Brodersen

Only you can decide what's best for you but I hate having rentals far from home. I have found that management companies never seem to care about my bottom line like I do. The initial savings in purchase price can be eaten up quickly by poor management. If you do invest more than an hour away, pick your management company FIRST!!! Get references and ask them what kind of properties they want to manage. If you are likely to give them many units that they WANT to manage, they are more likely to take care of you and your properties.

This guide from BP is the best at answering questions on all things rental.

Happy Hunting . . . and Make Your Own Luck!

@Anthony Hornbeck

You asked me to keep you posted on my search for similar deals...

Dealing with my county office (Zoning/Planning division) has been difficult. I have visited twice and spoken to several people. They say they have no way to search the database for the criteria I'm looking for - specifically for expired SFR permits that are over 1 year old. They were reluctant to say they have no way of tracking expired permits and only find them when a builder or owner places a request for an inspection during the permit process and finds that a permit is expired. They do not "purge" their permit files on any timetable.

To find these needle in the haystack deals in my county I will have to search through thousands of 2 to 5-year-old records and cross reference them with a visual confirmation of completion....as in, drive to every address. Forget that!

I am hoping that the record-keepers in some of the smaller towns with have better checks and balances to help me weed through the data. I will post again.