All Forum Posts by: R. Kerry Brooks

Stephen Chatto I agree with the other posters, a motivated seller does not always mean a good deal. Stick to the numbers they are what they are. If they work buy if they don't NEXT. Don't spend a lot of time trying to make the numbers fit what you need. Find the deals that fit the numbers.

Cathy Moore just seems like a lot of risk to cash flow 300.00 or so a month. By the way don't want to sound critical, just giving my opinion I have made a lot of mistakes in my learning process. Hope to help others not make as many.

Why do you see it as bargain? Is it just a buy and hold for you? Will you be financing (appears financing from your answer)?

I would think that most investors on the site would agree a good deal is no more than 70% all in (I prefer 65%) which would put a property valued at 250k some were around 162,500 then minus any rehab cost, holding cost , closing cost and any other contingencies.

Hope you take this as just my take. Ultimately you are the one buying and it has to make since to you.

Thanks James Brown and Erik Helms.

James it not so complicated, just know your market and know your buyers. Learn how they figure deals and what is a good deal for them. We all have different methods, knowing which one will help you identify the best deals for each and help you in making sure you get maximum return for yourself without over pricing your fee.

Cathy Moore my first question is if it does not rent can you afford payment? No matter if test marketing makes you think it will, it might not. If it sits for 3mths what would that do to you financially?

Second observation is after running quick numbers, it seems like a low ROI. On buy and hold houses this is more my concern than LTV or ARV. Both of which seem on the high end just using the basic numbers you gave.

Third why would you ever want to offer more than they are asking, for me that is crazy! Don't get emotional, it is a box on dirt. Make your best offer win or lose then move to the next.

Just my two cents worth, others may see differently. I would pass or offer lower than the 200k they have it listed for.

Bill G. Montgomery actually, mostly low end distressed vacant properties then rehab, rent and sell to end buyers. They take all I have as long as it meets their criteria.

Mark Updegraff Bill is right if you have to worry move on, I have been shafted so it happens, but don't let one person taint your view of the business. Joshua mentioned a form in one of his post, might look into that. My bird-dogs know I will pay, no need to cheat them and it is bad for business, I need them.

Curt Davis I think you are right and wrong.

Right on they should tell you who they are and what they do. I look at properties for end buyers ( my term for people who are just investing money in real estate verse someone like you or I who do this as a business). All of the wholesalers I deal with know this, no need to mislead. Then if you show me the property you know in advance if I am or I am not the one buying, if you don't want to show me your loss not mine (we but 10-15 a month). I can defiantly see why people dislike them. A lot are new and have no idea what they are doing.

I think you are wrong on their need. I find them invaluable. I can not look at enough properties or call enough people . Most are new and I train or have regular jobs and just looking for a way to make extra money. I teach them what areas I am interested in, then they look for FSBO and get me the basic info and if it is a possible deal, I call owner. I also teach them to tell the owner who they are, and to never misrepresent that. I only want FSBO from them as I already have MLS and most wholesalers in the area covered as part of my regular operations.

Bill G. thanks I am pretty passionate about the subject of bird-dogging and wholesaling. I have so much interaction with both, and it seems to be an entry point for so many new people to the industry. Most are not crooks, just uninformed or misinformed as to the role they play.
LOL noted on some other threads this is a hot topic, some love'em some hate'me. guess it all is a matter of what you do and how. As for never needing them, we buy 10-15 properties a month so I could not live without them. I can not pound the pavement enough and they serve as a good way to get basic info on properties.

K. Marie Poe You are correct, on the greed part, not really greed just for me I will not do a deal if the other party is taking too much out. Just me, no right or wrong.

My idea for the post is slanted towards people who are new, I see to many offering deals that are not good. Joshua wrote about one were the guy wanted 50k making LTV like 98%(crazy). Then about one he did were he charged only 5k (as a bird-dog)for a deal the other party was making 450k. Why, because he does straight up deals.

For new people in the business greed(wither you call it that or not) can kill any chance of success. Make your money on every deal make as much as you can, just make sure it is reasonable. I still pass deals to other investors, for a fee (usually 500-1000). I will wholesale for what ever amount I can, depending on the deal structure. If you control the property and have skin in the game then you should make that.

I think overall we agree, just coming at it at different angles. When I am selling to a person who invest in real estate (what I would call an end buyer) I make the most money. If selling to someone in the real estate investing business (you seem like one, its a business to you not just a place to invest money) then I always make sure I structure the deal so they make their money as well. That way I build a solid relationship with you. Just think people new in the business should understand the basics.

K. Marie Poe though I see your point on how you feel about labels, the two functions listed in my post are defiantly different. My reason for writing this post was so many new people read the latest guru or book (I'm not down on either because some have great info) and unintentional damage there creditably.

I do care when a person who is just connecting people (i.e what I call bird-dogging) trys and make to much money. It hurts the deal, it is to me, bad business. People who will do that are not interested in the business as a whole and are only interested in money. They have no problem taking a new investor and ruining them. That gives all of us a bad name.

Identifying the difference on what stake you have in a property matters to me because if you are just locating, then I can negotiate. If you are representing that you control it (i.e what I call a wholesaler) then I need to deal with you. I do not want to waist my time negotiating with you if you really can't even make the deal.

Glad to see you have repeat buyers, that is a good sign that you are a professional and do things on the up and up. The problem is not everybody does. You also prove the point at the end when you say you give first choice to those buyers that you know because they understand this business. This is the same point I am making in the other direction, bring good deals, don't be greedy and I or other investors will buy. When I know I have someone solid as a locator or a wholesaler I move quickly to evaluate their deals. Thus we all make money.

Jason Lam Thanks, it is always little scary posting among your peers. Not everyone agrees, but I really think that sharing is what we should do. Most of us had someone help us.

I'll never really thought blogs but that is a good idea