All Forum Posts by: Paolo Ruggieri

he only works locally in metro Atlanta

no guru . the students do not pay fees. 

Students find deals, coach teaches them how to find them

Coach places the deal student put under contract with cash buyers

Coach and student split the wholesale fee

Student ends up doing most of the work ... But learns a ton and gets started in RE making some $$

Coach put little time per student, which allows him to have many students simultaneously which creates a huge deal flow

All

I am very close to getting to do real estate full time... I have a rental portfolio that should provide me a decent living (30+ properties)... But would like to diversify in something else if I go full time. One of the wholesalers I purchased properties has an amazing system... If I go full time I thought I might copy it... I would like to know if you have experience with this system. This guy networks with newbies  that want to break in real estate ... Apperently there are a lot of them... He finds out what marketing budget they have, how much time they have, and what type of marketing they feel comfortable doing... Then he trains them on a specific method to find deals (driving for dollars, mailers etcetc) that marches they budget, time and personality. When they put a property under contract, he finds a cash buyer for it (or if it is an incredible deal he buys it himself). He makes a killing... Just with best deals they find that he keeps for him (5% of them)... Paying student few thousands...But he also makes a killing with everything he wholesales (95%).... Splitting a wholesale fee for work someone else did. 

 He does spend average 15 hours a week recruiting and training them... But has an army working for him... The volume he makes is incredible.

I do have several cash buyers that saw what I did and want to get in real estate... And think I could reach out to more people for more cash buyers... 

 I just need to get more deals... And I think his method seems an incredible scalable one... What do you think? Any experience recruiting newbies? 

Lastly... I noticed these newbies go on their own after they understand how it works... But obviously keep a great relationship with him , bringing him more business and referrals... 

Please share experiences

all,

By chance I met a Reo realtor... it has been great... Since he knows that I close and decide fast on a property (I purchased 3 from him so far), if he thinks bank gives him a listing at a price that works for me, he calls me up... If I sign a full price cash offer within 72 hours, he presents it to the bank and bank accepted so far... He makes double commissions and does not have to go through the hassle of listing/getting calls etc... Numbers worked in this manner... Out of approx 60 listings he gets, he presented me 15, I purchased 3... I got the benefit to beat the mls competition... Do you have similar relationships? Is this an exception? Should I spend time and effort To try meeting reo agent that got more than10 bank listing in the past year? Please share your experiences .... If it were so good Reo agents would receive networking calls every day?

my experience has been that you need to keep asking around every time you need financing... Every bank has different programs at different times. WF refused to do a secured loan saying I own too many residential properties ... Two weeks later I received a letter from wellsfargo saying they have a promotion of unsecured lines of credit, I applied and they gave me a 40k unsecured line at prime +1% ... Out of all logic to approve me unsecured, but deny me secured... I did 3 wonderful loans with bb&t (4% rate, 80% ltv)... When I came for the 4th one they told me they shut down the program... Do not seek relationships... Just make 20 calls every time you need credit and pick the best one... 

I would not leverage on my first deal if I start with $2mm... Paying cash gives you an advantage of paying lower prices... As you make money when you buy, I would try to get a highly discounted property that requires cash purchase (bank would not loan on it because is vacant/needs work). I would engage a property manager instead of a partner... I do agree there could be sharks out there luring at $2mm... Get a property manager that would do rehabs , tenant marketing and advertising ... And shadow property manager on everything in order to learn.

I am assuming in all these advices Taft $2mm are a big part of your assets.

I would STRONGLY raccomend to start small... Try investing ~500k and do all the steps with a property manager... After 3 months start looking to purchase more... Utilizing the experience of the first 3 months. I started this way myself and do not regret it .

Lastly, look at 20 deals at least before buying your first one... It is very easy to over pay at the beginning of your investment career

Feel free to pm for advice

Pittsburg is the neighborhood ... Duplex is 200 feet from beltine construction... Only 450 square feet on each side... 3 rooms in 450 sq feet are tiny... If I add hallway I fear they are way too little (I think)

I planned to put tile that looks like wood on all floors,  tile shower, granite (small) countertops... Solid material that should withstand abuse

One unit is occupied by a old lady well respected in the neighborhood who has lived there 40 years... I rehab side A while she lives in side B, and then flip side between her and rehab .She is home 24/7 doing a great job at keeping house safe

House conditions are horrible except for brick walls and cement slab... I thought in the end it would be cheaper to make one rehab instead of minimal now and another one later when area comes up.

Being a duplex with a load bearing wall in the middle that divides the 2 units(expensive to change), I thought long term instead of selling it to a retail buyer when area comes up, I will make it 2 units to rent on vrbo / rbnb ... 

Even if most of Pittsburg is still dreadful, the piece by university avenue is starting to look good... In this street EVERYONE is rehabbing right now.. 

I welcome additional thoughts and advice

kitchen needs to be completely redone anyhow... so extra cost for the kitchen is to move the plumbing. building is actually a duplex on a slope... so in the back there is a deck... if I make entrance to the side, I need to build a deck, but most importantly I need to cut an opening... one challenge is that ALL walls a cement/cylinder blocks.... making all works harder... I believe that cutting an opening on the side to make a door could compromise the structure of the house... as external walls are definitely load bearing.

Currently city has drawings with bedroom in the middle

House has been built like this... I can't imagine anyone wanting to live in this manner... Property is less than 2 miles from downtown Atlanta... Now a poor area gentrifying ... Short term is a low income ... Within couple of years is a hippy house (street is a mix of low income and very first hippies)