All Forum Posts by: Kim Handelman

Sweat Equity is a term used when someone puts their time and effort into a project instead of their money. For example, say you have no money so you go out find a property, secure the deal (i.e. get it under contract or write a letter of intent) and then perform the due diligence. Then you find an investor to put up the money. You can then tell them that you've done the work up front and you will run the property as a buy and hold but you want a percentage of the deal for your "sweat equity". Hope this helps.

I found Dave Lindahl's book "Emerging Real Estate Markets" a good start but did find that he definitely leaves stuff out so you get interested in buying into his guru system. I took a lot of tips from him though like watching for large building projects happening i.e malls or highways that will bring in more people. Also big businesses moving into new areas that will bring in or hire many new employees. Finding out what's going on in local governments also helps. Is the Mayor of a city hot on growth? Is he offering incentives for businesses to come to town or giving incentives for neighborhoods to clean up their act? Or look for universities expanding or opening satellite campuses. I did this research in my area and found a town that has great potential. Now that I've found an area to focus on I am getting to know people in the area like building inspectors and town clerks. Read the local newspapers and websites to keep up on what neighborhoods are going to be affected and focus there before they become hot. Hope this helps.

I've had problems with cats peeing on tile. In my experience, it gets through cracks in the grout and settles in the subfloor and then you're screwed. You can buy a gallon jug (or 5) of Nature's Miracle and poor it on the infected area and let it sit over night. Also, a black light will help you see what has cat urine on it (the proteins in the urine glow) then you'll know what areas to focus on. Hope this helps.

Thanks so much @Joshua Dorkin for posting this link to J Scott's blog on analyzing a property. I am NOT a numbers person and this is the first easily digestible explanation of what I should be doing on every property I consider. I was so impressed I made a cheat sheet with the formulas that hangs on the wall so I can reference it while I work. 

Thanks so much for the posts. All good input. It's frustrating to know that it may take a while but also good to know I'm not alone and that I'm realistically not doing anything drastically wrong. I may try yellow letters next time out. As my 8 year old said last night, "You gotta have GRIT mommy, push through and don't give up!"

Hi All,

I recently sent out my first DM campaign. 374 pieces to absentee and out of state owners with 60-100% equity. It hit homes on 11/17. I have had NO responses. I know the whole idea of having to hit people with multiple touches before they call but everyone else I have talked to has received at least 5 or 10 calls on numbers like this. I know my message is good because it is in line with many others out there. Just wondering what I'm doing wrong. I'm sending to the CT shoreline and the towns are fairly affluent but houses here are sitting on the market for 120 days or more so I really expected a better return. Also, I received 9 postcards back. Out of 374 is that an average undeliverable adddress or should I be worried that the lists are not up to date (I used ListSource)? Thanks so much, -kim-

@Wayne Brooks I didnt' think being a landlord had anything to do with an RM either until I found the property and talked to a Mortgage broker that specializes in RMs. She said a lot of things are changing and that HUD is making the regulations much more stringent. The only way a senior is allowed to get an RM on a duplex is if they live in one apartment and can prove that they have at least 2 years landlord experience in the form of tax records. She said she may be able to get around it if my mom can prove that she doesn't need the rental income but she does so I'm stuck. There's also a new stipulation that says if you are getting an RM on a new property the previous owner must have owned the property for at least one year. More regulations to come March of 2015

Thanks all for your help. I think I'll stay away from HUD houses until I get a few deals under my belt and feel a little more at home in the wholesaling arena. At least now I know to put my efforts into other deals that have leeway on price.

Hey Folks,

My mom has no retirement. Despite years of telling her to save she just hasn't. She is 72 and with health problems is now in a place where working every day is just too much. She has $200,000 equity in her OC California home and would like to move to more affordible Shoreline CT to be close to me and the grand kids. Buying a place outright doesn't work because she can't afford to live on SS. I have tried to get her into a duplex where she will have rental income to supplement SS but she can't afford a mortgage. I then tried a reverse mortgage but HUD won't allow one unless she can show proof of being a landlord for the past 2 years. STUCK. Anyone ever done anything creative with reverse mortgages or have any ideas on how this could work?

Hey All, I just bought Brandon's new book with all the bells and whistles. When I went to the bonus content page where all the video interviews are lined up I clicked on "Download the MP3 hoping to download it to iTunes so I can watch it when I'm out on my iPad or iPhone But it just goes to a blank screen and begins to play it like an audio file (no picture). If it makes a difference, I'm on a Mac. Anyone know how I can actually download it so I can watch it later from wherever? -kim-