All Forum Posts by: Peter Mckernan

Yes, for sure, just as the others stated you'll have to get an attorney to get you out of this mess. Are you the only one on title or is the contractor on title too? Did you get the house recorded with the LLC in place?

If the llc is with the contractor and he signed that and also signed docs for closing, then there is no leverage. If you are the only one on title and the only person that can sell it, you have leverage to threaten to sell the place and that contractor gets nothing. I would confirm all that, and you can me a private message I have some attorney's in our area I can recommend for getting advice and to hire.

Is this something that was not disclosed? Even with assignment deals from wholesalers, if there are things that were not disclosed I have been able to get clients out of them. There are things that if not disclosed can still be pinned back on the wholesaler/seller even if you are buying the deal. Material facts are still something that are significant in properties purchases in any compacity.

These are big projects and be sure that you are doing it all within the city scope of what they want for the property. These properties can be a lot of work through getting permits, remodeling it and sometimes city wants new codes for the property too (I.e. fire sprinklers etc.). If this is a project for you and you are newer to flipping I would have a seasoned person/mentor help you through this that has done it in the city for example @Joshua Janus as he mentioned it did it. Someone that knows the ins and outs of doing a project like this in the city you want to do it.

There is so many times a seller will say it's worth this.. I know that it is not worth that, or that is not what I am willing to pay. Then the seller gets that exact amount for the property at times (it's a low percentage but it happens). The best course of action is talking to so many sellers through your marketing that you find the ones that are truly motivated at the price you are willing to buy their property at..

I agree 100% someone has to look inward.. The leadership part I believe is key, or mentorship is another way to look at it. Being an agent is different than a w2 where you get guidance from a manager, or higher up. As an agent, you are really going into business as you mentioned for yourself with an added layer of support though. The broker/owner, team lead, or seasoned agent could help another agent that is new in the business just like I did when I got into the business, I got a mentor to help me through gaining market share and how to do it. Leveraging other people in any one type of these ways could give someone significantly higher odds on winning. 

I need to dig up a podcast that I listened to about 2 months ago with Tom Ferry, and the person was giving all the states, You are pretty close to that number on 5 days or more.. 95% range, the industry is very off kilter these days with the low activity of 2023 and 2024 that most people licensed just retired, gave up, or thought they were going to do something and never could get a sale due to bad leadership. I'll find the podcast and post it on this thread when I find it.

That number is higher than 47% for agents not closing a deal last year. It's in the ballpark of 71%. Also a number that NAR has confirmed as well.

https://www.inman.com/2025/01/24/71-of-real-estate-agents-di...

I would just keep looking and follow up with the person. You'll end up finding out if there is no motivation to sell at a certain price, then it is not worth consistently asking for the same price that the person said no to. Just go talk to more sellers and find one that has the same type of property and condition as this one that is motivated to sell it to you for a number you want it for compared to comps. 

Think at least for the text standpoint it is challenging in this market now where I know personally 3 people that have been in lawsuits with one ringing in at $500,000 for cold text messages to people that did not want to be marketed to, so to @Jonathan Greene point on that for sure.

I think that cold calling is a true skill that really no one (or 1%) will end up doing, and I 100% agree that VAs do not do it right.. Even if you find a VA to do it for you, how do you coach them along the scripts and everything else if you truly do not know how to do it? Do the cold calling yourself and that is where the true magic is as you can see with @Peter Tverdov success at doing it and getting a ton of money out of those conversations. 

The last point that I would make is you need to get into 3-4 pillars of the business that you will have for the long haul of real estate. Some people do SOI, some people do mailers, some cold call, and some do events.. The list goes on. I would recommend trying all of it out of you are new and then zeroing in on 3-4 that you really like and start to get good at in your market.

I would run the numbers on that HELOC and and the rental numbers too. Also underwrite deals as if they were going to be a long term rental and then work up to an STR. You always want the best numbers to be the last deciding factor not the first. For example over the last four to five years a lot of people went out and bought STRs thinking it was going to be a great investment only to find out that the numbers did not work a year later and needed to try to use it as a LTR to make ends meet.