All Forum Posts by: Peter Mckernan

The wholesalers in my experience that are good, or let's say the ones that have good deals are the ones that are smaller outfits. They do not have a lot of overhead that they need to keep up with on a monthly bases. The wholesalers that are one or two man shops are the ones that do not add a large fee on the deal to make the numbers not work. 

I would look for this or with bigger wholesalers if you get rep that calls you on really good deals because the bigger ones still get good deals, that is when you build that relationship deeper with that specific person at that shop. 

What would really be good is going to local meetups, getting people that are flipping in your market to sit down with you for lunch or go to their office when they have time. Sit down, and see if you can bird dog for them, ask if you find a deal can you partner with them to get the deal done, and the last thing that would be a great move is working for that person while you are working and getting paid you are learning the ropes. 

I have heard anyone fund the EMD and then getting that EMD back when the hard money lender comes in with their funds to close the deal. Typically the HML will fund it and they want that skin in the deal to proceed, and I know some agree to 100% financing when you have a lot of experience. Those lenders are the ones that you'll have to talk to about it and if you have been working with them for a long time they might allow that to happen. You do need to have that in the contract so there are instructions that escrow/title can follow and the HML has it in writing too. A form of this happens a lot with VA buyers when buying and putting money down as an EMD and then at COE they get the money back because they are getting closing costs covered with not paying downpayment. Escrow/title will do what the contract says and what the parties agree to, and you really just need it signed off by the hard money lender you are working with on it.

Cold calling skills are great very few want to do it and that leaves it up to you to handle it and crush it for the people that do not want to do it. I would suggest reaching out to local people within your area, wholesalers, fix and flippers, and other investors that run small teams and see what you could do for them (cold call). This can be a low hourly and get bonuses when you close deals with them, or any other way on structure. You should be going to networking events in your local market to get in front of other investors that need someone like you in their business. 

Typically there is a wear and tear of the house if they are marks done when a tenant was there for 5 or 6 years hard to charge the old tenant back, but if it was only a year it is easy to charge them out of the security deposit. 

Since that time has passed I would paint the place for the tenant and just hit the tenants for issues when they move out and do a walkthrough in the future move outs.

If you are doing permits on a rehab, the inspector will see other things that are not to city code and call them out. This means you would have to basically start over again on the garage conversion to get to a place that the contractor can rebuild the garage. If any square footage is not permitted the appraiser will not count it and you will be hopeful for a higher dollar amount when you do not get it.

I would agree there is overlap in property management and flipping properties for lessons on getting things handled along with managing what needs to be managed. The better you are/your team is on managing things through tenant requests and other small projects the more effective you get at doing the projects/handling tenants/flips. 

First and foremost thank you for posting this.. takes a lot to post on an open forum about a loss especially when you have very new to the industry. Thank you for doing that and keep it up! 

1. Take this as a learning lesson! The market the last three years has been a tough one, not only in our industry (sales, flipping, wholesaling etc.) but all. I was just networking with some other people in completely different businesses and careers and they sold me basically the last three years has been very tough.
2. Stick to the game, you have learned a ton in this short time, and keep going! This gives you more info to do a big deal and make a ton more money on it! 
3. Not sure if you have one, but bring in a partner/mentor to the deal make them a equity partner and do a bigger deal with them knowing they have more experience and could make sure it is a solid deal to close and win.
4. Pick on market, do not jump around from FL to TX to other places. Or even jumping around from city to city is tough too since Dallas is different than Austin and so on. Stick to a place you know. For example, I buy rentals in a city I grew up in till I was in my early 20s. That helps me know the area really well when a deal comes up I know about it and know the area really well! 
5. When vetting the deals, make sure you know the numbers and review the numbers with other local professionals; contractors you are going to use, get them to actually see the deal and realtors/investors to really vet the deal making sure they are seeing what you are seeing. 

Lastly, keep going! You got this! 

I would use a PM software, and have a vendor list on standby for anything that might go bad with emergency calls or issues that come up with repairs/maintenance.

Yes, and you are really at the mercy of HUD and the timelines. I am doing a hud deal right now in SoCal and same thing, taking days to get the docs back from HUD signing and it takes time to get them back. Just the red tape of the government and taking the time to go through the channels.