All Forum Posts by: Robbie Reutzel

@Cynthia K. Anderson, I totally understand your perspective.  I am not a part of Fortune Builders but I do know many people who started there and they swear it gave their business a jump that they would not have otherwise.  I don't know whether that's the case but I think that if you need to spend $5, $5000, $50000 or whatever to feel like you have "skin in the game," then who am I to tell them they are wrong?  

It all depends on how much you value knowledge, coaching, accountability etc. I have found coaches and mentors to be indispensable in that regard especially when it's a true mentorship and you are able to follow them around, see how they estimate rehab costs, ARV, offer price etc.

Basically I have paid for coaching (not $50K but enough) and I think whatever is going to get you to take action is what you should do.  I should also add that I know a lot of hustlers who gave up after a few months to years because they hit roadblocks that a mentor probably could have helped them to overcome. 

It comes down to the right coach for the right person.  I did a TON of research before committing to any of my coaches/mentors and I think I will continue to pay for them for the remainder of my career.  They have brought me success and it's paid back 00X what I paid for them.

Sure.  Natural barriers to expansion meaning bodies of water etc. that make building impossible or very difficult.  There's only so much dry, buildable land :)

@Wesley Wells there are many factors you should take into account when researching a new market for buy and hold. A few of them are employment rate, employer diversification, city planning (i.e. revitalization zones), natural barriers to expansion. You should also talk to commercial brokers and mortgage brokers to find out what the going cap rate is in the area you want to invest. 

There have been many books written on the subject.  A few that I like are "The Complete Guide to Buying and Selling Apartment Buildings" by Steve Berges, "Multi-Family Millions" by Dave Lindahl, and "What Every Real Estate Investor Needs to Know About Cash Flow" by Frank Gallinelli. 

I would read all three.  You can probably find and buy all of them for around $50 and they will give you all the knowledge you need to get started. Including how to pick a market and then find deals. 

Keep reading BP as well and join the conversation. 

@Mark LeCounte

I would say it's very normal to be nervous about your first deal so don't feel bad.  Make sure you have educated yourself on the steps it will take to lock the deal up under contract.  Make sure you have your team ready to roll and try to line some buyers up in the meantime.  I think it's absolutely crucial to have the prospective buyers lined up and most people just don't do this.  

Keep in mind that most newbie wholesalers have problems with 2 major things and they're connected 1) they agree to too high a purchase price; and 2) they are not able to accurately estimate rehab costs.  You should really try to get a handle on those two because if you can do those things accurately you'll build credibility and buyers will trust you.

Keep in mind that the average direct mail campaign gets a 2-3% response rate and you'll probably lock up 1-2% of those in contract.  So if you send out 1000 mailers you would expect to get 20-30 phone calls and probably won't get a deal, especially when you first start. You need to realize this and be able to get by for at least 6-12 months without depending on wholesaling for your income.  It's a numbers game to a large extent but you also need to learn to speak with sellers and you do that by speaking with sellers!

One other word of advice, get licensed if you can, in my opinion it saves you the headache of dealing with whether or not you are brokering without a license.  It can also give you another revenue stream if you're able to convert a dead wholesale deal into a listing.

Hope this helps.  Start marketing and start talking to people!  

@Shirrell Taylor

Go to a REIA in your area and talk to other investors about who they use. I have found that in most areas there are only a few "go-to" attorneys that specialize in real estate investing. You should see this as the beginning of a relationship because a good attorney can be your best friend as far as deal-structuring, documents, escrow etc. are concerned.

Good luck!

Hi @Abou C.

I am not exactly sure what you mean.  Are you looking for a list of wholesale properties for sale?  Are you looking to buy a list of distressed property owners?

If you are looking for a list of wholesale properties for sale you will need to network with wholesalers in the areas you want to buy.  You will also need access to funds, usually cash, and be able to quickly.

You can also search the marketplace on BP etc.

Hope this helps.

Thanks,

Rob

@Mason Snyder

So many things to ask. Rent rolls from the duplex, expenses (real ones not pro forms), capex (have there been major repairs lately? What systems will need to be fixed soon?), cash on cash return, can rents be raised, is there a value-add opportunity on either property?  These are all things I would be looking at (and more).

Hi @Keith Newell,

In the interest of full disclosure, I am not generally anti-guru, just anti-BAD guru.  I don't have any experience with Renatus but I have been solicited by several members.  They get a referral fee for bringing in more "students."  All I can say is do some Google searches on Renatus.  There have also been several threads on BP about the organization.  Again, I don't have experience with them but when they started talking about $14K education programs and partnering with them I ran the other way.  I felt I made the right decision when I was solicited by 4 different students in the months after that.  Very similar behavior to a Pyramid Scheme.  

Send me a PM if you are or know of one who can help find office space in Lynn.

Thanks,

Rob

@Account Closed there are so many CRMs out there.  Podio is good and free and you can make it as simple or as in-depth as you want it.  I highly recommend it as I use it in my business.

Good luck!