All Forum Posts by: Miller McSwain

If you are looking for a step by step guide, read "The Wholesaling Blueprint" by Luke Weber. It was published recently (March 2020), so it isn't recommended often but has very relevant information. 

The author discusses, in-depth, each part of wholesaling. Definitely give it a read!

I haven't outsourced cold calling; however, I know that to scale my business, I will need to eventually.

How do you all pay your cold callers? I imagine that hourly is most common but is it worth incentivizing them with bonuses? Perhaps for each deal that gets closed, the cold caller gets a flat bonus?

Please let me know your thoughts on this idea or if you have any other payment ideas.

I became interested in real estate as I finished high school as well, so I think you are making a great decision!

I'd recommend spending some time educating yourself. Pickup some BP books on different real estate strategies and pick the one that you are most interested in. 

At the same time, start networking with other investors! They are always willing to help out young people looking to get started! Once you build some relationships, offer to help them with a specific part of their business. I wouldn't recommend asking "can I help with your business". If you do that, then the investor has to find something for you to do. Instead, ask them about parts of their business and areas they are experiencing troubles, then offer to help with that specific thing. Helping them with their business will allow you to get hands on experience, and allow you to develop a relationship with someone that can answer questions for you. Additionally, they may be willing to partner with you on some deals!

What exactly does your text say? Perhaps the wording isn't optimized. 

Also, where did you get your data from and can you determine if the text was delivered? The issue could be that some of your phone number data is bad and isn't being delivered. 

I wouldn't worry too much about a buyers list. If you find a truly great deal, then the buyers will come. There are likely dozens of investors in your market that are looking to pour some cash into a great deal.

That being said, you should still start building relationships with investors while you market for great deals, but I wouldn't let the lack of robust relationships keep you from getting started. 

To start building some of these relationships, I think local Facebook groups are a great idea! Also, set up keyword alerts for your city on BiggerPockets. With these enabled, you will get a notification everytime someone posts about your city. Connect with these people and talk with them consistently. 

Good luck!

@Connor Fortenbacker

"The Book on Rental Property Investing" is a great one to get you started with rentals!

I would recommend getting your finances in order before starting to invest. To help with this, I recommend reading Scott Trench's "Set for Life". Once you start implementing some of his tips and tricks, I would check out Chad Carson's "Retire Early with Real Estate". It isn't talked about very often, but it is one of my favorite BP books. Chad takes a deep dive into a bunch of different RE strategies and tells you how each can affect your life and ultimately retirement. It sounds like you are interested in rentals, but I would still read this book to learn about the other types of RE as well.

Good luck with your real estate journey!

@Ashley Ramirez Residential property After-Repair-Value's are determined by "Comparable Sales". Basically, this means that the ARV is determined by what similar houses in the area are selling for.

If you have a good relationship with a real estate agent, you can ask them to run a "Comparative Market Analysis" for you. 

Otherwise, you can get a pretty good idea of the ARV yourself. Hop on Zillow/Trulia/Redfin and search for properties that meet the following criteria:
- Sold in last 3 months or less
- Within a 0.5-mile radius
- Similar build year and style
- Within 10% sqft difference
- Same beds and baths
- Similar condition

Find 3 sales that fit these criteria and average the three to determine an estimated ARV. These criteria are just an idea. You may find that for your area you have to look in a 1-mile radius or look for properties sold in the last 5 months. Regardless, this should help you get started!

@James G. Hmmmm. Is there a better way to set this up then?

I imagine it is fairly common for a house flipper to decide to keep some deals as rentals. How is this typically done? I wouldn't think they would manage the rental in the same entity as their flipping business right?

Thanks for your response!

Are there any costs associated with assigning a property from an S-Corp that I own to an LLC that I own?

Ultimately, I want to build a rental portfolio that creates long-term wealth, but I think I am going to start by flipping and wholesaling. Once my business is great and finding deals and rehabbing, I will start keeping some of the best deals as rentals.

My question is, what is the best way to move properties from one entity to? I've heard that S-Corps are best for businesses like wholesaling/flipping and LLCs are best for rental businesses. So can I have an S-Corp responsible for:
1. Finding deals (direct marketing mostly)
2. Getting properties under contract
3. Wholesaling or flipping those deals
Then can I have an LLC (or multiple) that the best rental deals get transferred to after the S-Corp gets the contract?

There are many ways to find buyers, but I'll give you some ideas below:

• Ask your agent for cash sales on the MLS. These are buyers you want to get in contact with.
• Check county appraiser/assessor website for absentee property owners near the property you have under contract. There is a lot of potential here for finding a buyer. Especially if you find someone who owns multiple properties in your neighborhood!
• Buy a 100% absentee equity list from somewhere like listsource. These individuals likely own at least one rental property free-and-clear. So there is a good chance they may be looking for another. 
• Visit auctions and ask frequent bidders if they buy from wholesalers.

These are just some ideas, and I look forward to hearing ideas from others!