All Forum Posts by: James Danchus
James Danchus has started 48 posts and replied 188 times.
Post: How Many Calls to Get A Deal
- Saint Peters, MO
- Posts 193
- Votes 37
BP,
I'm a aspiring wholesaler trying to game plan for a marketing campaign I am going to launch at the beginning of the year.
I asked this question in the wholesaling forum and shockingly I didn't get a response.
What is your "calls to deal" ratio?
BP,
So everyone should be tracking there metrics right? Everyone talks about their response rate, but I never hear anyone speak on their conversion rate.
How many calls does it take you to get a deal?
Post: HOW DO I KNOW IF THIS PROPERTY HAS A MORTGAGE?
- Saint Peters, MO
- Posts 193
- Votes 37
Do you have to do that individually for every property or can I just hand them a list?
Post: HOW DO I KNOW IF THIS PROPERTY HAS A MORTGAGE?
- Saint Peters, MO
- Posts 193
- Votes 37
BP,
So I'm scouring the landscape for cash buyers in the area and I figured the I'd call all the "for rent" signs in town, but how can I tell if the landlord bought the property with cash or not?
Answers, suggestions?
Originally posted by @Marcel Pean:
I was in touch with a real estate agent who put me on the MLS "tickler" system that alerts me to the type of properties I am looking for (i.e. distressed properties). Since these homes are already listed, would the seller still want to do a wholesale deal? Should I contact the seller directly? If most properties on the MLS are going for market value, why would a seller want to sell at a discount if only to have the process go by more quickly. Does anyone have much luck finding deals on MLS?
Sorry for all the questions but I want to be sure I am using my time effectively.
Many thanks in advance!
I'm making offers on MLS deals right now. Your best bet is to find something that has been on the market a long time. I go directly through the agent and tell them if they do the deal I'll let them represent me so they can get both sides of the commission. I haven't had any luck but I've heard some people KILL IT on the MLS. You have to put out A LOT of offers.
Worst thing that can happen? You're networking with an agent in your area. It's a no loose situation as long as your nice and professional with them.
Post: Wholesaling for Flippers vs Holders
- Saint Peters, MO
- Posts 193
- Votes 37
Originally posted by @Chris Eaker:
A buy and hold investor will be more interested in how much cash flow they can obtain from that property. Equity is gravy for buy and hold investors, we love to have it, but it is the monthly cash flow that we're after. So you will need to account for how much rent someone can reasonably expect to obtain from it and price it accordingly. Most buy and hold investors will want to have a minimum of $200 after all expenses if it's a SFH and $100/door if it's multi.
The thing is though, as a wholesaler I am only dealing with cash buyers, so the cash flow whatever is left after utilities and other expenses.
Post: Wholesaling for Flippers vs Holders
- Saint Peters, MO
- Posts 193
- Votes 37
BP,
So I ran across something that got me thinking yesterday while making offers. Maybe someone can give me some guidance.
Let's say that I have a property with an ARV of $100K that needs $25K worth of work. Let's also assume the buyer is flipping this and wants a profit of $20K and I want a $10K assignment fee. My maximum offer should look like this, right?
$100K (ARV)-$25K (rehab cost)-$20K (profit)-$10K (AF)= $45K (max offer)
Ok, my question is what changes about this equation (if anything) if I am not selling to a flipper? Specifically, what happens to the profit? How do I account for buy and hold when I am trying to figure out what my max offer should be?
Originally posted by @Matt Turbitt:
if she recently refinanced then an appraisal was done and the bank would have only given her 80% so you at least know that an appraisal came back saying it was worth 215 so is there room? Sure but I would say only if it is pretty turn key
Naw man, place looks trashed.
Yea, she said that the payments are $2000/mo so that's probably a no go.
Originally posted by @Jim Viens:
First off...NEVER go off the Zestimate. They are notoriously inaccurate. ALWAYS go off of actual sold comps from the last 6 months if available (can also be obtained from Zillow). She may be counting a finished basement as a 2nd level. If you check comps and they're still pretty close to having no equity you can look into a Sub-2 deal structure.
I'm just using Zillow as a quick reference. What is a "sub-2 deal structure"?