All Forum Posts by: Sean Moen

Thanks @Geoffrey F. for the input man - really appreciate it.

Honestly, I'm not too concerned with hiding the fee as much as I'm concerned with structure flexibility.

Maybe I'm getting in my own way by not wanting to maximize the middle (my cut) but I plan on being in this county for some time and don't want to get a reputation that would hurt me in the long run with these individual land owners.

Hey Gang,

Searched for an exisiting thread that touched on this buy couldn't find one on the first couple pages of results.  

The quick and dirty question:

What is your opinion on getting an assignment contract signed by a seller without a defined selling price (nor will it list an assignment fee)?

The Background (aka long question):

I have 3 raw land owners that don't fit into my buying criteria to use my own capital.  However, when mentioning an assignment contract instead - risking time instead of money - they said sure.  I know I need to have these properties under contract to (morally for me) talk to the potential buyers I have identified.  However, I'd really like the flexibility to try and maximize both the cash the seller could receive, earn myself a decent fee and expediate the selling process by marketing at an under-retail price.  I feel these can all be accomplished.

The assignment fee could be stated in the assignment contract - stating I will take $$$ for selling the property - but I have no idea what that number could/should/want it to be.  Depending on the property - I'd love to take $1000-$5000 as a fee - but I want the flexibility to define my fee based on what I can get the property sold at.  Example, Retail is $15k, I sell for $10K, I'd like a $2k fee.  If that sell price moves to $12K, I'd like $2500.

Am I asking for a pipe dream here?  Has anyone structured wholesale deals like this?  Guidance, opinions, and "slaps to the face" are all welcomed.  Need some help so I can present a contract to these guys so I can start selling there land.  Thanks -Sean

Logan,

Here's what I ended up doing - maybe it'll help get your juices flowing.  I had a list of 300 that I mailed to.  I archived that list (already in Excel) and highlight the ones that give me a call.

Once I receive there call/email saying they want to start a conversation; I start the CRM process in Podio.  I put the land information in first; followed-up by the answers to my initial questionnaire and the contact information.  I have another module setup for "Touches" or follow-up when I call them.

I won't touch the original excel sheet unless:

1) I get another original call

2) I decided to remail the list - in which I will save a 2nd file and delete the names that I already talked to.

I should mention Podio is free (yes there is a premium aspect but most can get away just fine with it).  Took me a bit to develop what I wanted - as I was trying to do it while my first campaign was in transit - but I'm really finding my groove and the software makes it very easy to use and adjust.  Hope that helped a bit!

@jay hinrichs

Mind if I message you directly?  I have a few follow ups and dont want to hijack Ruben's thread.

It's a comfort level @Ruben Parra  .  Being born & bred in Nor Cal, it's comfortable to be within 2-4 hours of whatever I'm looking at.  I've looked down the path of out of state and I just can't do it yet.  For me, it's that "fear" that is always talked about on the BP Podcast.  So, instead of being inactive; I'm looking for the right opportunities in my back yard.

@Jay Hinrichs @Brian Burke @Orion Walker @Martin Scherer 

Given what you guys have said about the Coastal counties (Lake, Mendocino, Humboldt), do you think there is something to be said about raw land there?  I'm not necessarily talking 10's or 100's of acres for development but a general migration and desire to build home to "get away from the bustle" of the bay.

@Kyle J. 

 While I didn't attend, I was looking over the list the last few weeks.  I imagined there would be a pretty big attendence and didn't make any plans to attend.  Question for you though - how much time did you invest in researching?  Have ou bought at tax sales before with good results?  Do you plan on hitting any of the other county auctions?  I think some of the surrounding ones are being helding this or next week as well.

You got my vote - Hell Yeah!  @Ben Leybovich @Brandon Turner  (No idea why these mentions don't work....

....Walkthrough guide - or Video FAQ - on how to get the "@" mentions to work on BP.  What you're doing wrong and how to do it right.  #askBP

Hi @Anja Brey 

I've had great experience with Sacramento Delta Property Management company.  They have been around for a very long time and were always responsive.  http://sacdelt.com/

Good Luck!

BiggerPockets - the world's biggest "Ah Ha" moment

@Elijah Artman 

A deal is a deal is a deal.  As Bob said; do your homework, be conservative and you'll do good in nearly any market.  Appreciation (or decline) doesn't matter if you purchased conservatively for cash flow because your financing is locked up.  Will rent rates change?  Sure, but they always will and you - sound like - will be house hacking which brings up all other kinds of benefits.

Rates are good now, just find a good solid deal with positive cash flow per door and do your homework conservatively.