All Forum Posts by: Shiela R.

@Brian O'Neill, you are trying to wholesale using a Realtor? Not a great strategy. Agents are licensed to earn a commission on a sale. Not unlike a finders fee that a wholesaler charges. You need to do your own marketing and try to find something off market. Look at your local REIA and find an attorney to prepare investor friendly contracts for you. @Wayne Brooks is correct - licensed agents have to use a real estate commission approved contract.  In my state (Colorado) the commission approved contract is not assignable.

@Robert Burns, hi there.  I agree with what has been said by @Jim Pellerin. Def check your math! if ARV is $275,000, then 70% is $192,5000. Take that number then subtract rehab/repairs and your assignment fee to make sure you don't tie the property up at too high of price.

Also, to echo what @Jerryll Noorden said - you are building a business and reputation.  Don't worry so much about who is making what and look for a solution that is a win, win, win.  You, the seller, the end buyer all WIN.

Good luck! :)

@Matthew Irvine, great work! FYI, HUD requires managing brokers to be registered with them (and by default, all of their associate agents) in order to submit offers on the HUD website. Without being registered, agents can not work with HUD. Sounds like you found a veteran HUD agent;)

@Brian DeMaestri, IDK.  Why would it matter?  :) Are you looking to connect with wholesalers? Or do you want to wholesale? 

@Christian Requejo, lots of decent info here.  To answer your questions...

1) a deal sponsor for syndicates is someone with extensive experience and connections in real estate who puts together a portfolio of properties to invest in a fund purchasing said properties. Their job is not passive. However, they ask for investors cash (like crowd funding) so they can leverage it into buying bigger and more properties (think a diversified portfolio of 10+ multi-fam, industrial, mobile home parks, etc.). Then they organize all the administrative stuff so the investors get their ROI monthly and an annual K-1 (for taxes) or as agreed upon in the fund, passively. The investors are hands off or passive bc the sponsor has done (and continues to do) all the heavy lifting. He/she communicates regularly with the property managers, attorneys, tenants, et al and of course, found the deals.

2) Yes, wholesaling is totally doable and how I started.  Wholesaling, done properly, is an excellent way to use OPM/buy with no money down. There is a lot of misinformation about what is and isn't wholesaling. AND lots of myths about how to structure with integrity, but I assure you, wholesaling is a real way to get started in REI without using your own cash or credit.

3) You are correct, most deals are not going to be found on realtor.com or the MLS. Nor are most realtors educated about how to sell distressed properties. In fact, we agents are hit over the head with how we can be sued left and right in our continuing ed if we contact distressed sellers directly (and many other ways, depending on your local commission and laws). And, yes, you want to "buy right". Successful investors do not pay retail.

4) Many have already explained what BRRRR is. I'd caution anyone using this strategy to still buy at a discount. Otherwise if values and rents fall, your whole portfolio is stacked like dominos. If one falls, they all do.

I hope this is helpful!  Feel free to DM me, there are so many ways to invest in RE.  As many have said, no wrong or right path :)

Hi Kyle. You and your wife's employment and compensation is very similar to my husband and myself. However, he was the one with the 6 figure income + benefits (until recently) and I am more about the REI hustle. A lot depends on the market. I agree with @Account Closed - you make your money when you buy; you just collect it when you sell;) With that, I'd stay local'ish (up to 30 min drive each way) to a project. As far as population growth, I don't know that there are any rules that are absolute. It really is about knowing your market. IE. Will a remodeled 1bed, 1bath condo near a university sell? Or do you want to stick to a SFH with 3 beds, 2bath, 2 car?

If you find a deal, you can always flip the contract for some immediate income if you are low on cash.

Hi @Brian DeMaestri.  Seems we are at a top here in Denver metro.  Bandit signs are best received in a down market. But, yes, I've seen a few whole sale deals.  Few and far between but I don't think wholesaling will ever die;) I think the future is bright for wholesaling.

@Juwan Parker that sounds like you are definitely ripe for learning. I love your drive! In REI you need to have cash/credit or knowledge and action. You sound similar to me when I started, although I did not desire to earn nor do I have a law degree;) I like most of these ideas. I'd start with wholesaling as you can make money as soon as you find a deal and flip the contract. For that, you don't need cash or credit but you must become an expert on your market and learn how to talk with sellers. When you put the property under contract and then assign (or flip) the contract to an end buyer with cash/credit, you make an assignment or "finders fee" bc you found the deal.

Since content creation (with a blog and/or vlog) sounds interesting to you, this is a great idea to document your journey in REI as you learn. However, if that becomes too much to learn, don't let it hinder you moving forward with learning. Keep a private journal and you can choose to share it or not. Plus it's fun and helpful to look at how you spend your time and how your thinking changes over time, IMHO.

@Brittany Edwards chu, in CO we get them from the county clerk and recorder. FYI, as @Steven Goldman states, these lists might be called something slightly different depending on your location;)

@JP Christopher sorry you are dealing with this! Curious, why on earth do you have a lease longer than 12 months?