All Forum Posts by: Ryan Dossey

What I was suggesting wasn't setting aside 20% for expenses. What I was suggesting was that if it's rented for 2k could you still cash flow if you had to drop your rent to 1600 to rent it out?

We typically set aside 50% for all the expenses - debt service when just running quick and dirty #'s. 

You're going to need to get a POA. No other way to do it. I don't see why they wouldn't get one though? Should be fairly easy and I guarantee the home she is in familiar with the process.

I would just make sure that you correctly explain how empty homes lose value FAST. All it takes is one break in, mold, etc for that thing to deteriorate quickly. 

@Michael Singh if the # of bandit signs I saw when we were there is any indication.... I would say yes! 

The thing with a market like Long Island is it's going to be competitive and you're going to need to creative to succeed. Things like moving tear downs, moving vacant land, on top of regular houses. 

@William Crean welcome to the site. Depending on the deal you may need to go with a Hard Money Lender or a Private Lender willing to fund 100%. This definitely is do able if you have some equity. But most guys will want you to have some skin in the game. Is this a flip? What do the #'s on the actual property look like aside from the total cash needed? 

What you're looking for sounds like a portfolio lender. I would be SUPER skeptical that a 20k house needs no repairs. We buy and sell dozens of properties in that price range a year but they ALL need work. Even the ones that look nice have issues. 

Big thing you have to decide is if you can handle the drama, late payments, are familiar with evictions, etc. 

That being said we bought two homes in Saint Louis when we were just starting years ago. We snagged both homes for like 40k. They've been GREAT. I no longer own them but the original tenants we placed are still there and the current owner hasn't had any issues! 

It totally depends on your local market. What I typically recommend is buying with equity regardless of timing. Don't count on appreciation. Then also run your #'s with a 20% reduction in monthly rent. Does it still cash flow? If so I'd pursue the property. 

@Hung Nguyen Welcome to the site. 

What I would suggest is a bit of a different approach. I'd find a local investor (preferably a flipper or landlord) and offer to help them source off market inventory in exchange for a finder's fee or a portion of profits. 

This way you're not lying to sellers, tying up properties you can't move, worrying about getting keys, worrying about contracts, worrying about sellers/buyers questioning your fee, etc. 

If you truly can source QUALITY off market deals you should have ZERO problem finding a local guy/gal to work with. 

I would vet them though. Ask them for proof of funds as well as a few properties they've bought so you can verify that you're dealing with a buyer and not a wholesaler who's going to waste your time. 

@Account Closed welcome to the site! What sort of interest are you paying on that 160k? You may be better off focusing on destroying that debt as the first plan of action. 

I'd highly suggest that you check out the podcasts. 

Congrats on cutting 30k in debt and building up some reserves! 

Howdy @Martez Barbee and welcome to the site. 

My recommendation would be to pick up a copy or listen to "How to win friends and influence people." 

Ask open ended questions. To be successful in wholesaling Real Estate you're going to need to be their problem solver. I don't recommend going through a script of 35 questions with them. I recommend asking them things like "What can you tell me about your plans with the property? What should I know about your situation? What about the condition? How quickly do you need to move? If we were able to close in _________ would that help solve X, Y, & Z? 

^ This works really well with a seller who is "distressed". 

**Disclosure: I'm an investor who founded an answering service as well. Our staff takes thousands of calls a month for investors all over the country.** 

If you've got a seller who is more of "tire kicker" I'd suggest explaining how your process works. "We're going to look at comps, subtract out the cost of any repairs or updates, and try to come to a mutually beneficial agreement. It's got to be a good deal for you and it has to make sense for us." 

We get more affluent folks who want to trade equity for ease of transaction ALL the time. 

The problem with what you're doing is... You're not bringing any value. They've already got the listing. They'd rather let it sit for an actual cash buyer to come along than have you tie it up and not close. 

Where you EARN your money in wholesaling is actually finding the deals. You'd be much better off finding a large investor to source inventory for as opposed to what you're trying to do.