All Forum Posts by: Mateusz Prawdzik

Hey John , nice to see that you are finally looking to take a leap into REI. Wholesaling is a great way to start as it is where most started in order to learn and grasp REI a little better. Talking to people and being good at selling is the #1 thing as a wholesaler, you have to be a good people person in order to get that property under contract for the right price.

What I recommend doing is starting and learning yourself, take some risk and take a leap. That is how to must successful people do it. The best way to learn is to teach yourself and learn from mistakes that you make. That is how I did and many others. With that being said, there are some successful people that did it by shadowing and learning from someone, but the best results come from learning yourself. 

I started as a wholesaler and now flipping and developing, I try to help everyone I can in the community, I don't offer mentor ships or anything like that, but if you have any questions, I will gladly answer it the best I could so that way you understand what is going on. If you read some of the posts that I have written before about how I got to where I am from where I was, you will see that it was with no real help other than some guidance. All you need to do is take the risk. Reach out to me if you have any questions. 

@Reginald Luly Great to see that your making your first purchase, I have never done anything in Middlesex County, but I was close to picking something up in Edison not too long ago. Please keep us updated as to how the transaction goes and if you have any other questions, ask away. I don't really do much business in Middlesex county, but I do lots and lots of business in Union, Morris, Bergen, and parts of Essex county so I am more knowledgeable one those areas for sure.

@Dave Sandford Nowadays you can do everything right online... You don't even need to get out of the house to do it, other than to make the account at the bank for the LLC. It costs about 126$ to make the LLC and then register it with the IRS. You always want to make an LLC for every property that you purchase, this is what I do and IMO because it makes everything x10 easier . In addition to this . make sure that you have your own LLC that you can use a the parent LLC so that way you can build reputability with banks with that LLC. "ABCD LLC doing business as Main st 123 LLC" This would the be proper way to do it IMO, as most banks don't want you to open and close multiple accounts because it doesn't create a good track record. So the best way to do it is to make a father LLC and then "sister" property LLCS.

@Mike Watson Exactly, the best thing is to look for land... because development will yield you x10 more than a regular property would. I have done a  couple of wholesales and don't really focus on it, but when I do it , it's deals that I want to do but can't really manage at the same time (like now I have 9) and I don't want to wholesale but have no choice but to.. so I charge a premium. And even with my high charge on top... the deal is still really really good.

@Mike Watson Sounds like the one time I made 50k on a wholesale deal in 24 hours because I was up at 10:55 pm at night looking at the MLS and put the property under contract at 7:50am the next day.... This property that I am talking about was listed as a Single LOt "30x100" and as a 30x100 you can't do anything with it....

I found out that this property was actually a double lot 60x100... and that makes it a KILLLLLLERRRRR deal. Put it under contract for 175... called a single person .... got an offer 210k.. I told him 225k Min.. and then closed the property in 3 weeks. All because I was on the MLS at 10:55pm at night and had the balls to call the realtor at 11pm...

Like you said, real estate is great, just gotta hustle and know what it feels like.

@Yulanda McAllister

You will definitely need some type of JV agreements or if you are financing the whole deal, some type of notes. All this is deal-by-deal based, you have to tell your attorney what kind of terms you agreed on with the other party and your attorney shall right something up for the specific terms.

@David Lichtenstadter I don't do buy and holds, I am sorry if my previous post made it sound like I do. I stick to additions and rehabs to sell, cap rates don't make much sense to me right now for the deals that I get presented and I am known more as a rehabber so I get better deals on the flipping side than on the holding side. With that being said, I will definitely pick something up if the deal makes sense, I am actually currently looking for a 2-3 family with a Garage for myself to live in and rehab and house hack. I need a place to move to shortly and right now there are not many deals for me to go with, so it's a waiting game right now. If anyone know's anything please let me know. 

@Marc Weisi Would this be your first deal that you would be picking up? 

I am asking who is passive and active because there is other ways of making money passively if there are no deals around for the buy and hold investors. It's just about being in passively in the flipping business. 

@Ali Boone That is true for sure, you have to know the right people that are willing to competitive with their lending. Money is out there, just gotta take the time and go find it. That is how I found a couple of my investors and lenders, it's all about connecting and word of mouth. 

@David Lichtenstadter No I am not, Bergen county is something I just recently started to into as I got a little more well known and deals started to come up. I mainly do lots of my business in Union, Morris Counties. I know the areas a little bit better than Bergen but currently managing 6 properties, I am all over the place and looking to pick up 2 more before 2017 ends. Deal flow is there, sometimes the capital is not, but either way, if the deal makes sense, the money comes flying in. 

@William Amiteye I have dealt with private lenders as well as HMLs. The difference is Private lenders are usually more personal and picky whereas, HMLs are not really negotiable or personal and stick to their guidelines and that's it. Doing a BRRR strategy is best suited for HMLS or PMLs because it allows you to entice the seller with the quick close and cash close and then renovate like a regular flip but at the end just refinance and rent out. So the everything is the same, just the exit is different.

I usually deal with about 9% Interest maybe some times less or more depending on the deal and about 1.5% -2% points. Like I mentioned, if you ever consider partnering you let me know. 

Or you can always do what @Tchaka Owen said and just pull lines of credit that are collateral-based against the properties that you own at a 4-6% interest rate.  Whatever route you, if the deal makes sense, the deal makes sense and the risk becomes nonexistent