All Forum Posts by: Account Closed

Sure call me anytime.

Charles

Mark - what do you consider a deal ( $10-20,000 cash flip while in contract, 100 unit apartment house, a control and roll at public auction, tax sale wholesaling, foreclosures at the court house steps, joint ventures with other investors, friends, relatives?

Where are you looking for "deals"?

Why do you think you need a wholesaler? Wouldn't it be more profitable to cut out the middleman?

Some ideas to find that elusive "deal", that home run, that giant profit, the easy money:

• Sit in your local rent court or housing court; listen to the cases, feel the frustration of landlords trying to get rent from a non-paying tenant. Talk to the unhappy landlord in the hall, outside the court room after the judge gives his final verdict.
• Look at 50 houses in your targeted neighborhood; don't make offers but keep detailed notes of each house, the cost per S.F., condition, comments made by seller or agent. Keep a journal. By the time you perform and complete the 50 house program, you will be very aware of values. Go back to those houses in a few weeks or a month to negotiate a wholesale bargain.
• Get a fist full of "expired listings", go knocking on their doors to see if they are still interested in selling - they should be motivated by this time since it has not sold during the listing period. Always offer less (since there are no commissions now). Always ask for seller financing and contract candy (anything the seller CAN-ADD); the car in the garage, all the furniture in the house, a home warranty, cash back at settlement, a delayed settlement with right of possession, deferment in monthly payments until you clean-up or perform cosmetic repairs is competed.  
• Attend 20 public auctions, but don't bid; observe the activity and watch the bidders. Meet them and add them to your buyers list. Before you go to the auction, go to the house (outside), take some pictures and study the comps in the area. Now play a game called Guess the Hammer Price. Write down what you think the property will sell for. This is a great learning experience, it'll help you when you are really ready to bid at public auction to know and understand values.
• Find a really motivated real estate agent. Don't select a hack (an agent too old, too set in their ways, not motivated or willing to work with us cheap investors). Your best agent is going to be someone who just got their real estate license and is willing to do as you request. Pay them for any little service they provide, give the a $100.00 gas credit card, lunch, your treat.

This is what you want your new agent to do for you:

• Give expired listings
• Make offers on expired listings (no need for you to look at the property until they accept your offer or until the negotiate a counter offer. The purpose of this is to open up communication with the seller. Make sure you have all the creative clauses in your offer. You should use a "skinny contract" to accomplish the best deals.
• Have your agent search the Active MLS listings looking for listings that are in your price range and type of property you desire, but......., that have been on the market for over 100 days, look for key words like; must sell, seller motivated, owner will help with financing, won't last long, forget the price - make an offer, needs TLC or work. Your offer should be 20% below the listed price as well as asking for all the contract candy mentioned above. Your agent should be trained to do all this for you.
• Give the agent a written fiduciary buyers broker agreement; this agreement will spell out what you expect of your agent, how he is getting paid and you must make it clear that he will (his agency) be paid on all unlisted property, FSBO's and expired listings.
• Advertise on Talk Radio, brand you message and repeat as often as you can afford it. I have done cooperative partnerships with investors using my commercials - glad to let you listen to them, they are 30 and 60 seconds.  It takes awhile to pull leads, but has been working well in my community for the past 10 years.

More ways to find the deals you are looking for.

• Run ads in all of your local newspapers; Dailey's, Weekly, Penny Saver, The bargainer etc.
  • Wanted - Real Estate - Houses, Commercial and Non-Conforming. No fees, as is, all cash. A family business - call Mark 555-555-5555. ( Expand your market, let the world where you reside know that you will consider commercial real estate, businesses with real estate, lots, subdivisions and mortgage notes) If you get anything too big I am sure friends here on Bigger  Pockets as well as me will help you solve those problems.
• Farming - Walk and Talk - drive neighborhoods, look for ugly, vacant and unloved real estate. Find the owner and tell them how wonderful you are and that you can make their problems go away, why? Because you are buyer and your goal is to make a reasonable profit.

If I keep on typing I'll have to call this a book.

• Make full disclosures to sellers, agents, lenders - don't be greedy
• Be friendly
• Have fun - this is your business - enjoy it and profit
• Make reasonable offers
• Treat your agent will respect and pay for services. Remember real estate agents work for free until they sell something. They'll love you because you are paying them NOW for their services.

HAPPY DEAL HUNTING 

Charles

If you have, say $75,000 in equity in your home or another property. Have your title company create a mortgage of $50,000; terms could be interest only, or PITI, give yourself some good terms, 4%, interest only, balloon in 60 months. You could have one mortgage and 2 notes (or more).

• You now have a record mortgage and notes
• This is a negotiable piece of paper
• Use your note or notes as a down payment for other real estate
• Sell you note for cash.
• Offer to a seller: "in consideration for the down payment, seller agrees to accept a $75,000 mortgage note with payments of $X and having a balloon payment in 5 years secured by the property at 123 Main Street having an appraisal of $125,000.
• Make sure you build in a First Right of Refusal in the even seller decides to sell the note, he will have to offer it to you at the discount amount.
• Build in an early payment discount
• This is a create way to leverage real estate, especially properties you can't sell immediate.

Charles

if you still don't understand, give me a call.  Good luck.

All good areas, I own a number of houses and commercial buildings in those zip code.

Stay in touch with our BP members, they're good folks.

Charles

As an auctioneer, we have open houses at times, the agents that show up never come to the auction.

I agree with Anson..

• Falling through the floor
• Something falling on your head
• Stepping on a nail
• Getting your cloths dirty

There are times when the owner of a fire damage houses will just give it to you since they have collected on their insurance - There is a possibility that the owner will joint venture with you to rebuild the house and split profits with you.

I'll answer your questions.

I am in my 70's, been investing for 48 years. Started with nothing (no money, no smarts, no credit and a wife that said "Get a job!"

Own a nice portfolio of commercial and residential properties, an auction company and a few other corporations.

So things have changed for me, and let me say this, thanks to my wife's help.

Charles

Private lending is a good way to make money on your money, but I think there might be a way to UP your return.

• As a private lender you get paid interest on the money you put out there. But you have to lend lots of money to get a really great return.
• You might want to consider this method -
• Fund transactions for a reasonable interest return plus an equity position.
• This means that you make a little punk change interest on the cash you put on the street, but receive an equity bonus which is lots more profitable.
• Try this ad ---

INVESTORS: Have cash if you have real estate. Offering low interest loans for an equity position. Can fund immediately. Call with details of your transaction; Rocky 555-555-555 Good luck

https://www.biggerpockets.com/users/AnthonyA Nice comments, very sincere. But, what if this person is impatient and wants to get into the game now and start making money immediately in this business?

Some ideas:

• Become a part time auctioneer associate with an auction company
• Meet with investors, offer to bring them good deals in return for a percentage of the equity or a referral fee
• Get a real estate license now, get into that culture to learn the business
• Talk to home improvement companies (only the owners), offer to bring them leads (home improvement leads for windows, kitchens, bathrooms siding etc.) in return for cash
• There is a great book that's been on the market for a long time; 500 Ways to Make Money Without a Job, look it up.
• Put together a friendly joint venture (family, friends associates) to raise money for investments. Works best if you have a property under contract first, show your potential partners how much they will make and how long it will take.
• Look at 50 houses in one area, become an expert in that neighborhood  of values
• Do something to earn an extra $100.00 per day (read the book)

Good luck

Why make your investing career so hard with hard money?

• Hard money is hard
• It is expensive
• It is usually never paid off in time
• The interest will cut you deep if you don't pay it on time

There are better ways to finance at property

1. Don't buy, CONTROL the property
2. Use delaying tactics like banking days, subject to inspection and study periods
3. Always get RIGHT OF IMMEDIATE possession
4. Flip the property while you have it under contract and you have possession
5. Make sure your have a very special clause in your offer that states if you don't assign the property before settlement, you don't have to perform, you can walk
6. Learn Control systems and you'll make money without HARD MONEY - you don't need it!
7. The highest leverage in the world is selling something (houses) you don't own - it don't get no (sic) better than this!
8. Have fun, stay alert to your market, do something real estate every day and you'll make so much money with so little effort you will be amazed....... it is much better than working for a living.