All Forum Posts by: Tucker Cummings

I’ve personally found that if you go on Facebook and just search either the state or city your looking to invest in, plus the words “wholesale real estate,” you’ll find a couple of groups that you join and start asking for deals.

So “Kissimee wholesalers” or “Florida real Estate” might be examples. Then go in the group and announce that you’re looking for a deal. Wholesalers are pretty desperate to move deals they have, or get buyers on their lists, so you’ll have no problem getting some conversations going.

@Ravi Ramphal there’s plenty to go around. As someone who just got started about 14 months ago, I can say there is absolutely no shortage of deals. I see deals all the time I wish I could do but just can’t because I don’t have the funding yet.

All really great advice here. I'd agree with another post saying that you should narrow down the list some to fit your criteria better. Then from there do your skip tracing to get the names behind the LLC. After that, either you can call them yourself or you can hire out someone to do cold calling for you. Don't forget emails and direct mail too. And keep in mind it often takes 14 touches before a prospect responds to you. Good luck!

@Breanna Collins

Sounds like you found out exactly what you needed from this post! Good luck on your first investment!

Go get it done. Several reasons:

1) Inflation is about to hit (if you haven’t already seen it hitting) and one of the best investments you can make during times of inflation is debt. You/Your tenant will be paying down the debt with cheaper dollars in he coming years.

2) When the market corrects, you’ll have experience, teams and cash/equity built to do more RE projects.

3) Also when the market corrects, you’ll have experience investing in a tough and competitive market, so when it becomes a buyers market and it’s easier to get deals you’ll exponentially increase your wealth.

4) Ever heard of dollar cost averaging? Just because the market is high doesn’t mean you shouldn’t invest. Some investments might have a small amount of equity when you buy them, others are going to have a lot of equity. It will average out over the long term and you’ll get both smoking hot deals and just your average deal.

To reiterate what a lot of others are saying though, make sure your numbers work. Meaning you cash flow enough that you don’t lose it all when you have to turnover a unit.

@Anthony Gayden & @Logan M.

I agree with this response and think you nailed it. I'm only in SFH right now but am aiming to scale into apartments soon. The way I explain it to people is ask yourself if you'd rather do 50 transactions for 50 roofs and 50 HVACs and 50 tenants? Or would you rather do 1 transaction for 1 roof & 1 HVAC and 50 tenants?

The hardest part, in my opinion, is working through the transaction. Minimize the number of those and your scaling quickly... well... scales

 I use delayed financing and it's awesome. Love it, recommend it, think everyone should do it. There are 2 ways you can pull this off.

1) Cash Purchase the property to get under contract at lower value, then finance out what you just purchased it for. You should be able to get those funds back quickly, and you can use the same funds that you purchased the property with to repair the property. Then you do your typical 6 months seasoning cash out refinance after the value add. Since you mentioned 3 out of 4 units rented, it sounds like this is what you're going to end up doing. 

2) Get a quote from your contractor during the due diligence process, submit that to your closing attorney and have them put it on the HUD statement / closing disclosure. The repair funds will be held in escrow after closing and they will be disbursed to your contractor as needed as repairs are completed. The reason you want to do this is that it allows you to pull all your money out (purchase + repairs) immediately after the rehab is done. Total timeline is usually 8-12 weeks vs. 6 months on the first method.

All that being said, I don't know a lender in your area, but a key question should be that you should ask them "do you refinance on the purchase price or the total of the HUD statement?" then follow up and clarify "if I put my repairs on the HUD statement prior to closing, would you refinance on the sum of the repairs and purchase price?" It's the same question, just worded differently and might help qualify / disqualify the lender.

Hope that tidbit helps a little bit. Good luck!

@Maurice Smith awesome, thank you so much that will definitely help.

I had a similar situation recently. One of my best friends works for Credit Karma and they were bought by Intuit. His shares vested and he suddenly had an extra 100k to play with. It get's better. His wife works for Tesla and had over $1M in TSLA sotick. They wanted to diversify so she sold her stock and now thye have about 300k they want to play with. They're interested in Real Estate, but don't know the education side. But they know that I invest in RE so they approached me about it.

I showed them what I've been doing with the BRRRR strategy and then proposed that they could be me Private Money Lender and give them the education before they jump in themselves. They loved the idea and are now funding one of my deals. In return, I'm keeping them updated and educating them on every step along the way.

Perhaps you offer to your friend that if he's looking to invest while also protecting his capital, he could fund your deals and use the asset as collateral. Helps you build your wealth, helps him learn about RE and still get a decent return. It's a win-win all around.

I picked up my first rental in Dec. 2019, and now have 3 properties. I say that show that it has not taken long AT ALL for both my wife and I to get daily cold calls, texts, mailers, etc. from wholesalers wanting to buy our properties. This does not make me excited to see what's going to happen as we acquire more and scale.

What kind of things can I do to prevent me from getting blown up 24/7? My wife gets more calls from people looking for Albert than I do. And btw, plot twist: her name is not Albert. 

P.S. Let me also say that I have nothing against wholesalers and this not supposed to be a thread to get into "do we like or not like wholesalers." I just want to know how I can reduce the amount of messages, calls and mailers I'm receiving.