All Forum Posts by: Cory Baker

Newbies to Real Estate Investing Education and Newbies to REI Success are not the same. There's a sophomore (which is an educated idiot) level if may. I understand many concepts and for a few years tried to hold on to my RE License. I only had that license as a course (one of so many now) instructed me as to the type of professionals I needed to meet and talk with. When a realtor told me I could go to class for just a few hundred dollars...I thought I had a great use for a credit card I'd been issued! Whoo-hoo. That was 2006 and 6 mos later I spent another $150 or so and was a licensed agent Feb 2007. I thought sure I was going to be a great investor!

2007 and 2008 showed many many big Real Estate Firms go belly-up!

I liked the education and the challenge but could not get things going and even had my broker call and tell me he was leaving and heading to another comapany... The most positive man you could be around... LEAVING.

So, after trying to comprehend the lingo, and creative techniques, AND having a license... I thought sure... but was wrong That I would be a big success within a year. Heck, I got my first ER (Contract for Exclusive Right to Sell and represent) like with in 1-3 days of getting my license! Go me!

And I had an acquaintance who was a friend of a friend who needed help with something many in 2007 would not deal with...something called Foreclosure and Auction Date Set for 3 weeks. It was convoluted. It took 9 weeks. I got it done! Go Me!

Well, just had too many other financial burdens I couldn't keep up with and life was tough.

I became a licensed Security Guard right after getting my RE License. Go Me...

Anyway, after several years of barely hanging on to my inactive license and continuing the education requirements it just seemed ludicrous to hold on to it and I let it lapse.

I wasn't even thinking much about investing. Just a couple years ago I heard of some new concepts one was Wholesaling and the other was Birddogging. It seems many have started their RE Experience with these "entry level" positions. 

I had to get some things answered before I could dive in.  Are either or both legal and are people doing these things doing something that could jeopardize one's license. 

Some do this very ethically, and legally. Others do not seem to care and then there are those who pounce on you if you do not have a license as if you have gone afoul of the law and common decency. 

Ugh. There are enough nay-sayers. As a wholesaler I'd love to have lead finders (Birddogs) and if I can only pay them $10 per (non MLS) lead and can do that 10x heck next time I could pay them what $20 per lead or maybe $30. It'd be my marketing and research.

As for wholesalers, as long as they are not playing the "bait and switch" game and are not claiming to represent anyone but themselves in the contract; I see where that can be helpful. I view the bait and switch tactic as "misrepresentation" and anyone doing this or teaching "students" to do this should have their license reviewed if they have one or asked to cease such "tactics" even if they do not. "Oh, I had that one but it just sold...I come across properties like this all the time. Can I get your name and number for the next one?" That's Bull and makes wholesalers look slimey.

Okay, So some one goes on here and posts some good points about Birddogging, Assigning, and Wholesaling and the curmudgeons drop trou and urinate on the dreams of the aspiring wouldbe wannabe investor. 

That's why I had to focus away from here as I read thread after thread of this kind of dream and enthusiasm dowsing rhetoric.

Good advice is to find out what investors in your area are doing and who they seek legal counsel from and from there after SURROUNDING themselves with like-minded investors and having the legal questions answered...move forward with the best contract you can find, and start hunting.

And another thing. I do not like when I go to seminars and they tell me we're programmed...(that part is okay)... but they then go to "What do you want?!?" And expect you to say "Freedom!" While I seem to be the only one there saying "Success! I want to get my first 1-5 deals DONE!" I've had freedom to choose my job. That does not always pay well and yet at other times it pays very well. I'm growing tired of "Freedom!" I want "Success! I want to get my first 1-5 deals DONE!"

I've already warn out 2 friends that were going to be part of my "mastermind" [Think and Grow Rich] And then the get an LLC and we'll get you the funding schtick is the new fad cramming in my email. Ugh. NO, I want to get my first 1-5 deals done... I want SUCCESS! THAT IS WHAT BURNS WITHIN ME... THAT IS PART OF MY "WHY"!

Am I alone here?

I strongly suggest looking at a Youtube video I just found "Finding Buyers using Zillow" It had very key elements in what to do and how to use Zillow in a way I never have quite exactly done. Sorry, Redfin...you are going out in the weeds with your new way and then having a realtor not understand ARV...ugh.

Anyway, I hope that helps. Steph Davis gives a very clear lesson with many nuggets. IMO

-Cory

Redfin stopped doing that filtering and Home Value Tool. I noticed that several months back and hoped that was only a temporary glitch or mistake. It was great and gave me very good analysis. I wish Redfin would bring it back...

Thanks for looking. Some have responded. My Option expired and I need to find out how to cancel this or remove this post. 

I recently was asked for a little help and a few suggestions from a new investor. The response I sent was similar to the following. (Hopefully, I've corrected the spelling errors, oops.) 

I realized as this year draws to a close that the letter was aimed at not only the newbie, but toward myself. 

 I need to preface this with, I should have found at least one or 2 more part time or another full time job(s), I tried and failed at that and gave up on it so I could have more time at my main job and my real estate endeavors 

                                   'THAT SURELY, WERE GOING TO PAY OFF' (ugh)

So, here's my letter to ...[Cory.] 

Enjoy-

Hey, [Cory]. I've been doing this for a while. But, if you've ever seen Rudy or Pursuit of Happiness my movie still has another hour to go. [Watch those movies]

I've [had] virtually no financial success.

I'm no guru or mentor, but I think I am becoming a decent tutor.

What I'd suggest is:

1) Get a new free e-mail account like gmail, or yahoo- it can be something simple like CoryTheInvestor@ or corybuysre@

2) Get a free, spare, or inexpensive extra phone number. I got mine years ago through Google Voice. I can access it through another phone, or by an internet connection. It's my virtual cell phone. These numbers are getting harder to find but do some research.

3) Make several flyers or business cards at least 10 to 30. You can make them yourself, have a friend help with free software, or can get a professional. "[Cory] buys houses! Ask me how" or most anything that is true and fits your style "[Cory] wants to buy some houses! Call today!"

Oh, part of the 'how' is knowing the Traditional way: 

 Example putting $7000 down and leveraging that with your income and a loan from the bank to help purchase a $200,000 home....[esentially using other people's money...and some of your own]

And knowing Non traditional ways;

 like owner financing, wholesaling, private and hard money loans... [Again, using other people's money (OPM) but not necessarily using a bank or much of your own money in the deal]

3b)"I am networking with investors and use OPM-other people's money"- Learn this!

4) Find your local real estate investor association and start going to the meetings. Register ahead and pay $20 or whatever, or [if] you can afford to- get a membership. 

 This will prepare you emotionally, educationally and [help] you network with other investors, lenders, Title agents, Data analysts, wholesalers, rehabbers, birddogs etc.

5) Network- introduce yourself and exchange cards/ flyers with others. Find out what they do, and what they're looking for and take notes on this.

*Don't be surprised to find many there eager to help you, and encourage you.

6) Keep studying: I am only just beginning to understand what a tremendous resource BiggerPockets truly is-

**Learn a little. Ask a little. Do a little. Network.Then live a little. Repeat. Then check your results. Then refine and repeat that entire process!

Kind of like "Look before you leap... BUT then LEAP!"**

7) E-mail those you exchanged cards with and thank them. Try to be clear on the type of properties, location, condition, ARV etc they prefer.

8) Look up flex options on the internet and get comfortable with using them. These can be used with the actual seller, another investor, even another Wholesaler! Also, understand Option, Option Consideration, Purchase and Sale Agreement, Assignment-

"and or assigns".

This flex option allows you to fund the deal or find someone else that will, and you can do this for little or no money down within so many days.[I suggest $10 or $50] You may wish to record it. [If you find a buyer, great! If not, your option just expires and you may have-and this is valuable- received good contacts for the next deal(s) you come across]

  It also allows the seller to take a higher bid if you do not find the funding or end buyer during your 10 days or however long your time period is. Unfortunately, I only did this twice this year. I should have done this twenty times.

9) Meet with [and go to Public Auctions], Title companies, Investors, and Real Estate agents, RE Attorneys- you're seeking only those friendly towards investors! [Maybe find local mentors-Learn the processes at play.]

10) Even from the oldest, outdated, or new improved but not-so-good courses have something good in them. 

 If you go to a seminar, leave your money at home. Learn what you can and see if it applies in your area. If so, look them up online. 

 But, beware there are even very good mentors that get the Guru-osis and will constantly try to upsell you when all you really want is to get your first Danged Deal! 

 So, more courses and books and seminars are in your future just be cautious of the uberhype! $100-300 should be fine for any course. Not, $30,000! [Not to start, anyway.]

I recently came across a local education group that lets you and a partner join for $1000. That actually seemed reasonable although just out of reach to many would be students.

[I think there's an education to income expense ratio. Something like 10% after your first $100 and/or 100 hours of studying. After that, every $100 dollars should get you $1000 or something is going wrong-BPers should correct me on this but I think that's a good ratio 1:10]

11) Put up flyers and or bandit signs on the weekend in neighborhoods your investors want to be in. Here's a magic number 100! I was trying with 10 then 20 then 30 then didn't get much traction. I later heard that "100" is the magic number, ugh.

12) Advertise on places like Craigslist and BiggerPockets. Most all "must sells" on Craigslist in my area are wholesalers (or some guy named Brad) and some of them are agents. Get their info, cull those who constantly say they "just sold that one", (unless they can verify that) and those who tell you you can market without a contract... Just at least be aware of those as they can mess everything up. 

 But, try contacting landlords also. (I didn't do much of that) Your best bet is to see the person and contracts involved especially starting out. [But Start]

13) Get out of your head that this will happen overnight. You can become very prosperous in a few years, but those promising you it is easy are generally trying to sell you something.

Well, I hope these thoughts will help you. It will take time, education and effort and yes, a little luck.

Now, put out those ads, "[Cory] is in business and he buys houses. Call ....! "

Happy Investing!

PS:You may want to get a real estate license along the way, or at least get that education. 

Chris Piper said more in a few paragraphs than many gurus teach in 4 weeks! Awesome!

Okay, Wholesaler that has a Realtor Partner gave me an option that expires on the 5th of December. I put $50 up for Option Consideration. Property could use some upgrades, but otherwise is rent ready.

est ARV= $300-310k

HOA = $105/mo.

Go through me if you want this. Please keep it low as an end buyer is needed stat.

Nice community ammenities, Pool, Golf Course.

$3000 EMD is required by seller.

Supra, lock box.

So, what did you end up doing? 

There is a great deal of good advice in this thread. If you can go to school and find ways to apply what you learn great. Some, degrees require you to take certain classes that at the time may seem very far from your ultimate goal. However, that pottery class in your Arts or Humanities or whatever might be something you find you enjoy and may be the thing you find yourself talking about while being relatable to a particular client/seller/buyer. If 2 sisters come to you with great personalities, and a decent few years as nurses, and happen to always wear skirts that come just above the knee and are twins named Ella and Patricia...who knows but you might think of the knee cap and their names and surprise them when you say Pat and Ella (while in your head you're saying patella, pat-ella).

I wish I had taken business and finance courses as many times that lack of education has cost me dearly. You have a great Entrepreneurial Spirit and clear head, educating it and keeping your goals in mind should carry you far.

I'm often skeptical when I hear of how a 16 year old, 14 year old, I've even heard of an 11 year old who "bought and sold real estate..." If you know anything about contract law, you know that part of that story has been omitted.

As for getting your real estate license, do you have 3-6 months income in reserves. I bring this up as I didn't have that and heard it AFTER, I obtained my license in...2007! I had a ER immediately and originally only pursued a license as it was suggested in a REI course I was in. My first commission paycheck was a ways off and it was in an area that at the time stymied many good agents. Back then I would respond to the "statistic" that the "average" agent in 2007 and 2008 made $34,000 annually. I had to correct that because my knee-jerk response was, "...actually the "average" real estate agent makes zero!" Many of the best of the best were struggling and closed shops left and right during these years. Foreclosures, were something in 2007 that no agent wanted to deal with in my office and yet that's what was thrust upon me.

Also, there's this thing called LIFE... It can be changed in a instant. That's something your parents probably no deeply especially as they are nurses. Try not to discount all they have to say regarding planning and education. They surely, helped raise you and you are an outstanding individual, from what we can see.

I didn't see anyone mention the job/commission agent. If you do take off for one year, though I would advise against that...as you need to keep your mind and ambitions a peak performances as good and bad times come- but that's your choice if you live on your own, I suppose.

But, you might join a REIA, you might continue to read, study, and look into birddogging or wholesaling, check your local ordinances on what is and isn't allowed. AND you might look into working for a Newbuilders- where the company pays you hourly to be there 10-7 or so and you get a certain commission on upgrades.

You may also want to look into other forms of income beit from real estate, notes, stocks, internet marketing, storage unit auctions, or what have you.

Be open. And if something puts you into a position of where you decide you'd rather be able to save a life or limb than save a roof, well, go with it. You don't have to do solely, "either/or" but with your drive you may lift and teach many in whatever field you venture into, and we'd be glad to see what you've accomplished.

Take Good Care, Thanks for Inspiring and Sharing

Okay, my knowledge is broad with a few holes.

I've been trying to knock down my first wholesale deal for about a year, even teamed up with a major company seeking out deals, knocking on doors, NOD's, and on my own, using Craigslist, Bandit Signs, business cards, calling, texting, e-mailing, and even tried to get a partner or two to assist.

                                                Study, study, do, assess, lick wounds

                                                Study, study, do, assess, lick wounds

Study, study, do, assess, attend REIA's

                                                Study, do, do, study, strategize, network

                                               Fail, Fail, Fail, maybe one more course, Fail 

                                               Study, Study, do, assess, hang in BiggerPockets

                                               Work, Study, Study, Do...

 Thought I was close. Enhnhnt!!! (Buzzer sound!)
And the would be partners...have all walked away. I'm sure no gurus can relate. They've made more money from me than I have as an investor. (Double Ugh)

I need a quick and dirty (inexpensive, legal) way to sign docs. online.

I recently met with a Fix and Flip investor who is new to the wholesaling concept. I talked to him about a flex option where I ,for an agreed upon sum, get an Option to Purchase with an expiration of 10 days and if he gets a higher bid during that time, we cancel the option. If he gets it done in 4 days I get half my Option Consideration refunded.

Well, he sent out an e-mail recently for a property that needs very little work and is in a good neighborhood.

I ran the scenario by him similar to above and he had a buyer fall out. So, he said we could do this. I sent the moneygram via PayPal to his e-mail. The flex option contract I downloaded from reitips, and edited it to suit the situation. The stall came when I tried to sign and fax and the fax machine/scanner wouldn't do either. 

There has to be a better acceptable way to do an e-signature. Earlier, this year when I tried this, and had to get it recorded, clerk at the Maricopa County Recorder's office in Mesa, AZ told me I needed "live signatures". That was a little odd to me as in 2007 and 2008 when I was an "active" real estate agent, we were able to use facsimiles into the contracts. Anyway, back in January, I only had "live signatures" on the Receipt of Option Consideration. I was told I could record that and use my Option Contract as supporting documentation.   

There HAS TO BE A BETTER WAY! 

Anyway, I sent the money, this time and sent the Option Form and the Receipt to the wholesaler.  I accomplished this by going to the nearby Alpha Graphics Copy and Fax Store and they scanned my paperwork and sent it to the e-mail.

We've had sporadic communication throughout the day and I'm eager to virtually Co-Wholesale my option contract. I sent my signed copy some six hours ago. At, 7 and then 10 PM I sent messages.

I'm promised that I will receive the signed contract and receipt by tomorrow.

Time is of the essence.

I've worked on and waited about a year...maybe I need to trust, and be patient.

Maybe, this time, this struggle, this challenge is part of a great story unfolding.

(Meanwhile, I spend time at a friend's, and live in a warehouse.) 

Cory Baker

Wholesaler

Lead Research