All Forum Posts by: Ryan Dossey

Thanks Brian. Always! I've got another 4 wholetale deals getting listed this month. One of them will probably exceed the profit on this one! I loved this house but just couldn't justify keeping it as a rental with the rent to cost ratio being so out of whack.  

Phil Kirkpatrick Insurance does all of my local Indianapolis stuff. I believe he's a broker with Travelers. I tried to post his # but got an error that it was prohibited. If you can't find him online drop me a PM. 

As someone who has personally bought, sold, or worked with everyone above I can't say enough good things. If you don't want to get your hands dirty and invest in marketing this is how deals are found. 

Always run your own comps. Make offers that make sense for you. Be prepared to notice that some won't work for you... That's fine. Just make offers where you need to be. 

Remember that they're people with families they need to feed just like you. 

I HIGHLY recommend verifying any rent payments/rolls with deposit statements. 

We wholetaled this house in October for a profit of exactly $41,583!

The property came off of a direct mail campaign to a seniors with equity list purchased from List Source. We targeted SFR properties with 35-100% equity in A-class areas of Indianapolis.

The seller called into the answering service back in July and these were their notes: 

"Owner-occupied

4bd 2.5ba

finished basement

roof was put on in 2011

no updates have been done to kitchen and baths

fireplace

sunroom

2 car attached garage

she is wanting to relocate

wanting to sell asap

thinking around 270k as asking price

appt booked June 14th @ 5pm"

They booked an appointment for my acquisition manager to run the appointment based on his availability in our CRM. Here are the pictures from his initial appointment. 

https://photos.google.com/share/AF1QipOz6y-IR7WewidBfFc19jJBToffpgHwvO_8gxqjkFnzebnymdwWLf1_wjgDu87ZGA?key=S1lkU21LbUltTUFkUTREMW40a0pBTkhGcEZjZThn

When you run an appointment take TONS of pictures.

Our Initial Notes: 

"Man that house is FINE. Really doesn't need a whole lot. For someone to flip this thing you would want new appliances (3k), carpet in the bedrooms (4k), HVAC (6k), paint (8), misc (4k) = $25k.

We can call ARV around the 285-290 mark for a pretty solid deal.

ARV = 290k
75% = 218k
rehab = 25k

Could probably wholetale at like 240-250? - without touching a thing."

We initially told the seller that we weren't a good fit for her and that she should just list on the MLS. She had some health issues and didn't want to have to deal with any cleanup/repairs. After some back and forth we agreed to $205,000 as-is/cash.

Funding the deal: We paid one of our private lenders 9% interest to fund the purchase and a small rehab budget of $10,000 for an all-in cost of $215,000. 

Repairs: There are deals where you can spend 10k or 30k and your profit margin doesn't really increase just the sales price. This was one of those... We replaced a furnace, did a deep clean, and had professional photos done. 

Time: This deal took five months from the initial call to us getting paid. The biggest issue was that the seller wanted around 2 months to get her stuff out. We were under contract waiting to close for a little over 2 months. 

Selling: We sold to a cash buyer off the MLS and were paid in right at 30 days from the time we listed. The buyer was an investor (surprisingly) who owned another SFR in the same neighborhood. I really don't see how he's cashflowing so it must be an appreciation play for him. We took a cash offer of $265,000 and ended up netting right at $41,583 when it was all said and done.

I guess that stuff doesn't have to look HGTV sexy to make massive profits. When I started out on BP (SEVERAL years back) I made less than 22k a year pre-tax. Super grateful for this community. 

FREAKING GOLD. 

All of the I can't wait for it to crash crowd... Are seriously missing out. Not to mention... I don't think will have the confidence to strike when they need to. 

There is definitely a right and wrong way to do it. 

Thr comical thing is that... Unless real estate investing changed... We are still trying to buy deals and be all in at 75% or better right? 

A lot of these guys that publicly call it out are the same ones begging for deals (or complaining that there aren't any). 

If you're a wholesaler, close on the property and list it. You'll make more money. 

Also, never tell someone your house is worth X. We simply tell sellers where we would need to be for it to work for us. 

Im also going to point out that "motivated" sellers are very rare. The vast majority of properties I've purchased off market have come from folks who simply wanted the easy button solution. 

Bank Holiday type of stuff. Sure. 

Christmas, Easter, 4th of July... Nah.  

As real estate investors going direct to seller we are constantly looking at our data for ways to improve. 

This month we ran a data analysis project on the past 60 off-market deals we've done. Our goal was to identify for our team how many touches are needed to convert a new lead to a closed deal. 

Definitions: 

Deal: A property purchases at 75% - repairs -10k. The exit was either wholetale of new rental for the portfolio. 

Touch: For the sake of this research we labeled a text, follow up call, appointment, and offer one-touch each. 

*Note: If a follow up call was made a voicemail left this only counted as one touch. We also counted the initial call in as a touch.* 

The data: 

Our average deal required 10 touches. 

Upon auditing our data for August we noticed that our team had 61 leads that were touched 9 times or less. (On 90 other leads they had exceeded 10 touches.) 

I share this data so that new investors going direct to seller can start to understand what to expect in workload. I find that folks almost always underestimate the amount of effort it's going to take. 

I'd pose the question to you I posed to my staff... 

How bad do you want it? Are you going to average 10 touches or more? Are you content with losing deals to competitors because you dropped the ball? 

The fortune is in the follow-up!

@Alan Grobmeier He literally never mentioned wholesaling. Why are you assuming the worst of someone trying to get started? For all you know he's a buy and hold investor going direct to seller for the first time. 

In fact, if you look at his profile... His interests are commercial, flipping, and rentals. He also already owns a rental. Instead of discouraging other investors you could offer something constructive like...

"Hey @Micah Carter I'm a buy and hold guy too (because his profile says he is) and I get yellow letters all the time. I would probably NOT go that route! Best of luck!" 

@Micah Carter I own 143 units and over 90% of them I've bought off-market myself. Feel free to shoot me a PM with any questions. :) 

You're in the right place asking good questions.