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All Forum Posts by: Taylor Jennings

Taylor Jennings has started 71 posts and replied 340 times.

@Karen Margrave Great points and questions! I agree that LoopNet has been established for a long time and I would have to have a great value to offer users to differentiate myself with them. I believe I can provide that value.

I didn't however stumble upon the site and think of creating a competing company.

I'm newer to REI and wholesaling and actually came up with the concept for the website prior to knowing whether anything out there existed.

I've seen many wholesalers locally sending horrible presentations for properties they have UC via email, there is duplication of WS deals sent to the same investors, there's almost always info missing, there's generally a lack of pics/vids, and many new WS have no idea what a good deal is in our market. (Like this guy, though I've got a better idea now than when I started!)

My startup idea is developed around what I have seen is missing in at least the Indianapolis market and have spoken with other REI here locally to validate it.

I'm a tech guy. I believe in simplicity through UX design and improving upon life's inefficiencies. Nothing in this world has been perfected. I feel there is an opportunity in the local WS to REI marketplace.

As for launching the site I was thinking about using Bandit Signs? ha

There are many ways to market to REIs. It's not like the general public where you post an ad on TV and hope it hits a particular demographic. REIs are already organized within REIA groups, forums, blogs, and social networks. I could go into detail about a marketing plan, but it should be enough to know I have one.

I have experience and education in the tech startup world. Nothing that will impress you, but I'm confident I can get things rolling =)

(I hate when I write this long of a post haha SORRY!

@George C. You sly fox ha

Ok so here is the question that throws a wrench into all this... What do you all feel is a reasonable amount to pay a wholesaler who finds a buyer for one of your deals (% of Assignment Fee or $ Amount)?

Because I'm sure that it's more than $70.

This is all brainstorming so your participation is very helpful for the success of the startup and finding its niche... Thanks.

@Tim Herriage I'm sure I'm misunderstanding you when you say you average about a 7% higher net when you close?

The 5% is the total charged to the buyer based on the purchase price yes?

That is an interesting way to set things up... I like that.

@Wayne Brooks That is a good reference. Thank you. They have the right idea, but like @Tim Herriage says all of them are membership based and I feel you can see that in the number of listed deals.

Their concepts are similar in the sense that they are helping wholesalers sell deals, but I feel there are a handful of areas that can be improved upon.

In addition, each one of the websites I've been to claims to be #1 so I assume there is room at the top? ha

Tim, what do you pay on Auction.com for the properties you sell? I know there isn't any upfront fee.

@Wayne Brooks I'm not licensed yet, but I will get my broker's license.

From what I understand on one end I would be facilitating the sale of 'paper' and not real estate for the houses under contract. I've spoken with one RE attorney in passing about this, but have a more detailed answer on it through my official consultation within the next week or two.

I would however be facilitating the sale of property wholesalers own so you're right, the broker's license would be necessary.

@Wayne Brooks I'd love to know some of the sites that are intended for WS deals if you have a couple in mind. (not including craigslist) I'm still in my validation stage of the startup so that information would be greatly appreciated.

The site would be intended for wholesalers to list properties they own or have under contract.

Their deals would be analyzed through investor data (rental rates, avg purchase price/bd, location...), investor formulas (CAP, CoC, Rehab Return...), and peer reviews so REI and WS know what is and isn't a good deal.

For new WS it would help them learn the market through the data that we provide and require them to get all the necessary information needed for investors to feel comfortable purchasing online (obviously you would still need to go to closing).

Yes, there would be an app for WS/Bird dogs at a later phase of development.

@Mark Ferguson In Indiana it's not illegal to 'sell the paper' for the right to purchase the property. I've got my business plan 75% completed so I'm about to present it to a local RE attorney so I can validate what is legal and what's not.

The purpose of the site:

1) Wholesalers have instant access to a large number of buyers. (New WS no longer have to take time building their buyers list + investors have access to New WS deals they wouldn't have found unless they were on the WS buyers list)

2) Reduce the time it takes investors to find and review wholesale properties by organizing the deals online. (Instead of being sent email blasts, text messages, phone calls, private messages, and sometimes duplication of the same deal from a different WS)

3) WS get top dollar for their properties through an Auction feature.

'The thought' is we would charge a percentage per transaction completed. Buy It Now and the Auction feature would be available to investors. Not sure what that transaction percentage would be yet (need to do some validation on that).

The site would be free otherwise with tools and guidance for WS to get all the information investors need to feel comfortable buying. The Auction feature may have a fee, but it would be an increase in the percentage of the transaction.

Other fees may apply, but it's definitely a freemium membership plan.

I could go much further into this, but it should give you a good idea of what the site will be like.

@Andrew S. So you use it for multi-family properties only or do you also use it for single family?

What makes the properties more difficult to find on the MLS? (Features LoopNet has?)

@Mark Ferguson Do you think it would be useful to have something similar to LoopNet for Wholesale Properties?

@Mark Ferguson Thanks for your reply.

Their founding vision was to connect real estate brokers with investors. Like you said, they are really focused on commercial properties, but I saw they do have some residential postings there.

Do you see any value in LoopNet that the MLS doesn't have to offer?

What are some of the pros and cons of the site?

I discovered LoopNet recently which allows you to search and filter investment property listings, but it looks tailored to REA and Brokers.

I did however see a search that enables you to filter properties under sales contract which made me think wholesalers?

I'm in the process of creating a website in direct competition with this site, but with a focus on the wholesaler, rehabber, and investor industry.

Looking for feedback on LoopNet from BiggerPockets users...

They have REO, Distressed Properties, Sales Comps, etc on the site.