All Forum Posts by: Nick Basye

You need to find some local real estate investor meetings and ask the cash buyer investors that are active in your area. I can tell you broadly that a lot of cash buyers avoid roof and foundation issues due to the cost and that they favor properties that require basic cosmetic repairs. It all comes down to the numbers though so that is what to learn well.

Yeah like the others say.. the local real estate investor meetings are a lot more helpful. You definitely do not need to spend money on a course. Go to a local meeting and get some guidance or better yet establish a relationship with a mentor. If you're unclear on something you can ask here, but how to begin is going to a meeting, start talking with cash buyers, understand their criteria and what exactly they look for.. could be specific or could be broad depending on that market. Get friendly with investor-friendly agents at these meetings. They can help you with comps and you'll need that information to gather ARV on properties which is where your number crunching starts. Llearn to crunch the numbers on a flip for the cash buyers if that is their exit strategy... fixed costs, variable costs. I can't emphasize local investor meetings over seminars enough.

@Wendy Schultz Have you checked out some local real estate investor meetings? Most can help you with guidance and documents on what they regularly use. Also find cash buyers at these meetings and get a thorough understanding of their criteria, what they look for exactly in the numbers, learn how to arrive at those numbers and if you discover a property that falls within their criteria then you can have confidence that you can structure a deal there.

@Dee Bullock Definitely, networking is key in this business, be willing to help without expectation. Build reputation. Agents may be able to help you get on some systems from which you can gather comps yourself, ask them about things like listingbook.com

@Dee Bullock

In a wholesale deal with the cash buyer intending on flipping it, your numbers would be the ARV, After Repair Value, which is determined by similar properties within a certain radius, 'comps'/comparable homes. Make friends with some real estate agents, agents that are familiar with the investing side and they hopefully will be glad to help you on comps. Everything is based off the ARV so start with that. Other numbers include holding costs. When your cash buyer is rehabbing a house it can last 3 to 6 months, there are costs to consider for the duration of the rehab, things like property taxes, utilities, insurance. There are also closing costs to take into account. These are your fixed costs. Your variable costs are associated with the repairs and that depends on the project. Avoid deals where it requires a new roof or foundation, they are most costly. Something ideal for your buyer would be cosmetic, so floors, walls, paint basic items. You sort out the math on all of that, take your cut(don't be greedy) and if it is attractive enough, you will have saved your cash buyer time and that is the value they expect from you.

@Dee Bullock

Find buyers first and get an understanding of their criteria, that way when you run the numbers you'll know if falls within the criteria. You CAN get a deal first but you had better know your market and be able to run numbers but also identify what is an attractive deal to a buyer in your area.

Emphasis on knowing your numbers.. a cash buyer(the one you assign the contract to and is actually going to buy it) will expect you to have run the numbers and save the cash buyer the time, that is the value you bring to them as a wholesaler. Already knowing some cash buyers and their criteria is helpful, that way you're not so aimless.

Absolutely get involved with local real estate investor groups. Build professional relationships, they will likely share documents that they use and information about title companies and other relevant services. You will get the best information at these meetings.

Just make sure you try to secure these connected cameras, there is a search engine Shodan that makes finding 'Internet of Things' type devices easy to discover.

Work it backwards.. meet cash buyers at local investor meetings, get an understanding of exactly what they are looking for, their criteria.. search for those specifics. That way whatever you come across is already within that criteria.