All Forum Posts by: Stephen Barton

I had the oddest phone call a couple of weeks ago. I was working away when I had a call that would essentially change the my whole mindset. Up to this point I have completed somewhere around 40-50 deals. Most of those are wholesale deals which does not include the buying and selling of each deal. A few are retail deals being an agent (which made me more money than the average wholes ale deal) where I also represent other investors simply looking for deals. 

So, I am doing what I always do working on getting another deal when I got a call that really changed how I look at finding deals. A call came in from someone who owned a property in Manhattan Illinois. Manhattan is an easy 3 hours drive from where I am in Indianapolis Indiana. My target market is Indianapolis and the surrounding area. The "surrounding area" has now changed to "where I can drive in a day's time" ha! 

This seller inherited a 4 year old house and they needed to move to another part of the country. I ran the numbers and made my offer. Ignoring all my instincts to pass on the deal and refer them to someone in their own area I pressed on. Knowing that it would not be easy. To my surprise, they accepted my offer. Once I arrived to complete my walkthrough of the property (which I always do before I put something under contract) I noticed that the house even though it was only four years old was actually really dirty. Not that bad, but definetely dirty and in need of lots of paint and a little carpet. 

I do not think it is good to brag about numbers -even to other investors. To me, money is nothing to brag about. We planned on the absolute worst when making our offer which helped us when we sold. Our mentallity was if they accept our offer then it would be worth it for us to do the deal, and if they did not accept our offer well then we should not be trying to do a deal in this area anyways- nothing gained, nothing lost. I should go back and remind anyone reading this that while I do my own deals from time to time- I have a friend/mentor who I partner with especially on bigger deals that I brought in on this one. With the backing of someone who had way more experience than me I moved forward with the confidence that when something crazy happens I have "backup". This is HUGE for any investor- especially any new investor. 

For my business partner we had to look at doing a deal in this area sort of the way we look at most of our deals. The numbers have to make perfect sense for us to spend the time doing the deal- let alone spending the money. So, if you are only making say $1,000 then all of the time you spend on a really thin deal you lose out where you could have spent time on another deal that actually made you more money. Everyone knows this is the "opportunity cost" for investors and if you are in this business then you know it is a BIG deal. 

To conclude, never pass on a deal that is out of your area! You have no idea what you might be missing by taking a little extra time to make that deal happen. Do your research on the people you work with and research the area you plan on investing. Finding the right people, attorney, inspector, and survey company was actually not that tough. The attorney found the title company for us and really everything was done remotely. In fact, our end buyer who we ended up wholesaling this deal to did everything remotely! 

You have no idea what you are missing by just staying in the "I will only invest in MY area" frame of mind. This deal has literally changed our business in so many ways. Find out what breaking out of your current mindset can do for you and your goals! Be ultra-conservative about the numbers and you should be ok as long as you find "boots on the ground" to validate your numbers and property condition. Thanks to Biggerpockets I found my buyer in less than 3 days! From beginning to end the deal took two weeks and has been the best deal of my career so far. Thanks again Biggerpockets and God for giving me the courage to get out there and make things happen!

So, I just got a deal under contract that is one of those "once in a lifetime" type of deals and I had one of my prospective buyers reach out to me and tell me that he is getting this deal shopped back to him for way more than we are asking. Absolutely just drives me crazy. If someone does not have permission to shop a deal- then do not do it! 

I have done two "bird dog" deals in my career so far and I have to say that it was WAY more work to do this than it is now to find my own deals. I mean really, it is just silly for any wholesaler to think they have to get started this way. I will tell you from the perspective of being broke just over two years ago that the way you really get started is:

Go find a deal on your own- not someone else's deal, but your own actual deal. Next, find someone whom you really look up to and tell them about your deal and ask them if they would be willing to work with you to help find a buyer. A real mentor (or someone who wants to make money at least) will be delighted to work with you and they will split that deal with you 50/50. 

That is how I got started and now I can do my own deals. One thing I know that I cannot do is try to pawn another wholesaler's deals off as my own thinking that I will make some money. You should know that the good wholesalers put their deals out there at the prices that appeal to ACTUAL CASH BUYERS that people spend so much time looking for. 

Wanna find some cash buyers? GET A GOOD DEAL! Ha! The real cash buyers will find you and you will not know what to do with yourself. Treat them right and treat them fairly. Do not play buyers against one another. Sure, price offered means something- but not everything. In the real world, someone who can actually close on the deal FAST, FAST, and FAST will be the best buyer you can every choose. Someone who will not haggle with you when you have a couple of criteria that you are asking for in a buyer like- I make buyers pay for closing costs and I do not prorate taxes. Typically, good wholesalers will do a double close or they will close on the A-B or acquisition of the property then when they sell the B-C they have closing costs on both sides. We always try to get our buyers to pay this since we are paying closing costs on the front end to buy the deal from the original seller- this can get expensive.

If you really want to wholesale to get started then find someone who you look up to in your area. Ask them if you can buy them a cup of coffee. I just had someone ask me if I would be willing to help them and I thought to myself, "Self, why don't more people want help learning how to do this?" It takes getting out of our comfort zone- Nothing Ventured, Nothing Gained!

I think that is a great idea @Michael South. You will really learn a ton about this business and more importantly you will gain confidence. When I first got started that is what really launched me into feeling confident enough to talk with sellers. 

Plus, having my license has given me so many opportunities to work with other investors and grow my network. You will have so many doors open up for you doing this. It will be a lot of work- but in the end it will be worth it. Plus, depending on what type of investing you start doing, you will always have your license to fall back on. Great strategy!

Honestly, it takes a while to get things up and running. Sure you can just throw things together but I highly recommend to have a good system in place @Benjamin Blackburn. Such as a CRM or a way to keep track of your leads. I started off with a spreadsheet but I highly recommend using Zoho or Podio which is free to get it started. 

Benjamin do NOT go "all out" on your first campaign. Yeah, I know what it is like to really have a strong desire to rock out and mail out a million pieces of mail. In reality, you will never be able to field more than about 500 letters a week. I do not care if you are Superman or something. You really need to focus on the quality of your calls when you take them and how you talk to prospective sellers. Do not just rush through them like they are another number. Most, if not all of my deals come from taking the time to ask: "How is your day going" or just relate to them somehow. The people in this business who are getting the deals are the ones who really establish some rapport with sellers. 

I would suggest just starting off with about 100 to 200 tops (a week) if you have never ran a direct mail campaign before. The biggest thing about taking leads is also in the follow up. I get a lot of deals because I can quickly look at the numbers and make my offer on the spot- site unseen. You may not have this ability just yet but you will. The important thing is- TO FOLLOW UP! You will get more deals because you follow up with sellers and you will show them that you are organized and fully capable of handling their situation or property. Just be very detailed in your notes and for your sake do not try to use a spreadsheet. Stuff gets lost and you cannot really keep track of leads this way unless you convert it to a Database in which case you might as well just use a CRM or customer relationship manager.

Hi there @Herman Tebben. Welcome to the same website that I built my "Dream Team" from. Everyone you need to make your business work can be found on biggerpockets. Well, almost everyone. You may need to fill in some gaps, but for me most of my core people who work with my business came from biggerpockets. Good luck and chase that dream!

@Brett WilletteDo not listen to anyone except yourself! You know yourself better than even your own parents. You have a dream, desire- then do it! Do not let anyone, I mean anyone tell you that you cannot do something. I had so many doubters even to this day. My own family still does not even acknowledge what I do and the business my wife and I created. You are your own best friend or your own worse enemy. I think it is amazing what we are capable of once we have a dream and the will power to fulfill that dream. 

I am physically disabled, was broke, and had only a year of formal education. By no means, am I making millions but I am doing what I love and I have found some purpose in my life. You can too! Just push forward be smart get a good job, and make it your mission in life to pursue your dream. You have no idea what you can be capable of until you go out and make things happen!:-)

-Stephen Barton

About two years ago I had the tremendous honor of finding this great website that we Investors all call "home". We stay busy each and every single day working toward that next deal and hoping that we will get a little further down that road towards achieving our goals. I have several goals myself and I want to share just one of those in this post- GIVING BACK!

When I found this website through my desperation of wanting to get into this business I found a colleague who ended up being my mentor- Brett Snodgrass. I had so many questions then and still do today. Our business partnership (I am proud to say) has grown into a wonderful path where we share information with one another, and not to mention making money together. When I approached my mentor/managing broker Brett Snodgrass I asked him if he would be willing to help me- not "hold my hand" but just guide me in this business. He agreed, but sort of made me make a promise- give back! 

I have been approached a few times in the recent months where a couple of fellow Biggerpockets members have reached out to me looking for direction. I am always glad to help someone who has never done a deal find their path. You know, in this business, we can get all wrapped up in where our bank account numbers stand, or how many properties we own- but what are we really contributing to the world around us?

I had someone reach out to me this week who bought into a "mentorship" program for $5,000. I felt so bad for him, as I had almost bought into the same exact program except I could not afford 5k at that time (thank God). Now, I get to help someone who is doing well in life achieve more by getting into real estate. He has a normal day job and makes good money but he desires the freedom that real estate can provide for him. To know that taking a few minutes out of my day to help someone get started (the way my mentor did for me and continues to do today) could actually change their life in a way that will forever make a difference is amazing. I pose this question to all who are investing: What are you doing to help others realize their dream?

I have to say on of the best feelings you can have does not come from money- it comes from knowing you made a positive impact in someone's life that will forever change them. The feeling of making a difference is something the world could use a lot more of. What do you think?

Where to begin @Paul Redondo. I mean first off what is the ARV? What is the roof, furnace, and water heater like? What condition is the inside in? What repairs are needed. I go through all of the big tickets items first and run the comps. Find the ARV and then come up with my number while I am on the phone with the seller. You need to be "Johnny on the Spot" with this stuff.

Once I get my offer amount. I go on about what I can do for them. I can pay cash, I can close on the day of your choosing. I will actually pay your closing costs. Stuff like that. I tell them that in my state (Indiana) I can have them do everything via email and they do not even have to be at the closing. When they ask me for a number I tell them: "Could you help me out and sell me your house for $80,000 (or whatever your offer amount is) so I can actually buy your house today? I say this great line from Michael Quarrles when I am in a tough negotiation and I act like I need a favor. Which really is not an act- I actually need them to help me out so I can buy their house! Ha!

Hi there Jon and welcome to Biggerpockets! You are in the right place to meet like minded people. Feel free to reach out to anyone on this site. Most of us love to help each other out and do business together. My entire network here in Indianapolis is because of Biggerpockets. 

I am sure you are aware that you can also go up to the "Network" tab and enter in your zipcode to find other people that have what you are looking for. I hope you @Jon Krachenfels get as much or more out of being a member here as I do. Get ready to launch yourself to new heights!

Welcome to Biggerpockets! I bet if you just enter that question into the search bar at the top right of your screen you will find a huge debate over this issue @Tony Velez. Personally, I felt that having my license has opened more doors than I could have ever imagined. As a newbie myself just over a year ago I felt getting my license really gave me the confidence to be able to talk to sellers and other investors. 

You should do what is best for you, but the biggest thing you should worry about is who will be your managing broker. In my state (Indiana) you have to work under a managing broker for 2 years. My managing broker just happens to be an investor first and foremost. He also allows me to do my own deals. Many managing brokers will not allow this to happen. 

Some people feel that having a license will get in the way of their investing. Being a licensed agent means that you have more duty and more responsibilities to anyone you are dealing with. For instance, whenever I make an offer as a wholesaler I always tell a potential seller that doing a listing will get them the most money possible. Of course, most people know this to be true, but it is my duty as an agent to make sure they understand that they will not get as much money. It is called having a fiduciary responsibility to everyone we are working with. We (as agents-investors or not) must act in the best interest of our clients. That's it! If you can handle that, then fall forward!:-)