All Forum Posts by: Stephen Morales

I've got a several buyers in my Buyer's List that need 5 deals minimum per month. They don't do any advertising and all of their deals are brought to them by wholesalers. They attend local meet ups and put themselves out there as power buyers. 

They all have great systems in place and have no need to do their own lead gen. I will also say their spreads are a little thinner than your typical fix and flipper because they do much more volume than most. 

Otherwise, if you're going to source your own deals with cost and time in mind - I would say hiring cold callers and pulling a list of targeted sellers is the best way to go. Their are some great products out there and some will even let you build your list for free without a subscription. 

Well #1 I think is going to be your professional network. I would attend local meet-ups and REIA events to network with wholesalers, investor friendly realtors and other connections that can help you find great deals.

If you want to do your own acquisitions there are many different strategies like SEO, Mailers, Outbound calls, PPC, PPL etc. 

You can utilize a property list building site and pulling a list of targeted sellers. We see a lot of our users seeing success with pulling high equity deals in addition to your typical distress indicators. I would check us out! It's free to sign up and we don't do subscriptions. If anything it's a nice free tool to look up properties you need quick information on for deal analysis. 

Most of the time, you can expect wholesalers to advertise ARV on the high end of the estimated value range.

Personally, I plug everything into a spread sheet with the repairs needed and the itemized cost of repairs. I also include the holding cost over 4 months, the closing cost at acquisition and the closing cost for the end buyer at dispo/resale. I then reverse engineer the offer based on the comps ran for ARV and working the numbers to where the end Buyer can expect at least a 15% return or very close to hit. The higher the better. 

If you need further explanation or what to see how I run my numbers feel free to reach out!

 Welcome to BPs! Where are your contract located? 

Have you tried pulling a list of cash buyers for your markets? 

@Hudson Brannon

Wholesalers make cash or same as cash offers. 

With that being said, the traditional PSA a wholesaler uses will have no financing contingency or appraisal requirement. 

If you are to be assigned a contract from a wholesaler, you are expected pay cash and have no financing contingency. If you do not have 100% liquid cash to purchase the property most end buyers use a hard money loan or private money loan to fund the deal for them. Traditional financing is a no-go. 

 Hey Rick, 

Since you are the Buyer you can have the choice to use your title company. I would have anything to do with that transaction to go through your title company of choice. Are you looking to find deals in your local market where you can physically go see the property? 

Most of the time we do non-refundable EMD after you walk the property. You should never put up EMD without seeing the property or having someone you trust see the property first.

 Congrats Mark, that is definitely a BIG WIN! What's your youtube channel? 

Hey @John Wolfson

Welcome to BPs, what markets are you going to be targeting?

Let me know if you need anything, I'd be happy to share some resources to help you and your team get started. 

@Dan H.
Sounds like an awesome time and worth the experience! Thank you for sharing that Dan! I appreciate it. 

@John B.

I would say most most struggling investors are struggling for a reason. One might be they are not good at sourcing deals themselves and would prefer to rely on wholesalers or realtors to find them a deal. They may also be struggling because they don't have the time or don't want to do the work at all. Cold calling 8 hours a day is not for the faint of heart. 

You also have the other side of that coin where you're a very successful investor and want to stick to what you do best. One example is a good friend of mine who buys 5+ houses a month, fixes them up and rents them out. He also buys land and does his own vertical developments. He does not have any time to allocate to lead generation or want to learn the skill of lead gen as his skills and effort is best spent doing what he's good at - rehabbing and developing.