All Forum Posts by: Derek Dombeck

Hi Antione,

I am an investor from about 3 hours north of you. Welcome to BP and feel free to check me out here as well as LinkedIn. I also run the Central WI REIA, so I have a lot of connections in WI.

Happy Investing

Derek Dombeck

Hi Todd,

Everytime you do a Google search, the top of the page will have paid ads ( by that vendor ) that you can click on. When you go to that vendors site, they pay Google per click. So you can buy those positions on the search page from Google. The cost per click will depend on the keywords that you are using and how much competition is using the same keywords.

For Example.  Sell Your House Fast  could be your keyword phrase that you want to use. If you wanted a Google Adwords campaign to run world wide, those keywords will cost you a fortune everytime someone clicks on your link if you want to be at the best position of that keyword search. That is why you set up a localized campaign that only targets your city or areas that you want to do business in. Also, when setting up your campaign, you can set daily spending limits. As soon as the limit is reached for that day, your link comes down. It will be back up the next day. Currently, I'm averaging about $2.75 per click. When they click, they are sent to my landing page where they will see a video and have a spot to fill in contact information. Feel free to check it out www.ibuyhousesWI.com

For all the information on setting up, Google..........Google Adwords

Happy Investing

Derek Dombeck

Hi John,

I personally like to have my cake and eat it too.

I would Lease Option the house to a tenant buyer. By doing this, you should be able to get full market value for the option price. I always make the lease option tenant responsible for all maintenance of the property as if they own it. That lessens your landlording duties to a certain amount. You will get a non-refundable down payment for the option which puts cash in your pocket now.  And, most likely you could get more in rent as well. If they follow through and exercise thier option, great. If they fail, do it again.

Happy Investing

Derek Dombeck

Hi Harvard,

I am not an attorney, however I have spent thousands of dollars in the last 12 years learning about and structuring my asset protection. In order to answer your questions, you may have to ask yourself some more questions. Sometimes, what makes sense to protect you from liability doesn't make sense to save you tax dollars. So what is more important to you? 

The fact that you are buying property in your personal name right now, jeopardizes ALL of your personal assets if you get sued. Whether a law suit has merit or not, you would have to depend your position. And until that suit was settled, ALL of your assets essentially could be frozen. So, I would definitely purchase, title, and sell in the name of an LLC. The bank will still require a personal guarantee even if the loan is written to the LLC.

If you start a joint LLC with this partner, the bank will look at both of your financial statements and require both of you to sign personal guarantees. It doesn't sound like your partner would really qualify for financing at this time, so that should be considered.

My personal opinion, after many partnerships, is to own them yourself. Hire his company to run the rehabs and split the proceeds as agreed. If you end up in a dispute, you don't own any assets together and it will be easier to go your separate ways.

In regards to your informal partnership, MAKE IT FORMAL!!!!!!! Get some contracts in writing, Trust me, I have done informal partnerships that went great for a long time. And then, something unexpected happens and the finger pointing begins.

Also, make sure you have the proper vacant property insurance on these projects along with your GC's insurance.

Hope this helps.

Happy Investing

Derek Dombeck

Hi Michael,

I have been playing this game for about 12 years now. I have been through some changing markets and survived. The short answer is, if you can produce leads and get deals under contract as the retail market gets stronger ( transitions from buyers market to sellers market ) you can sell your wholesale deals faster and for more money. The key is having good motivated leads coming in. To get these leads, you need to dominate your local area with your marketing. This doesn't have to cost a lot of money, but honestly it is proportional to the amount you can spend on marketing. For example, in my area, very few people run a Google Adwords campaign. So I can dominate that marketing for less $ per click. I can set my spending limits and monitor my traffic. If someone else starts competing, I may have to raise what I am willing to pay per click. Same thing with direct mail. I may send out 1000 letters a month now with a 3% response rate. As the market changes, I may have to send out more letters to achieve the same amount of response. Everything in wholesaling is a numbers game. And every different market has different numbers.

Happy Investing
Derek Dombeck

Hi Bret, 

Your question does not necessarily make sense the way it is written. You need  to verify which party you are. Are you selling the subject property for 100K and carrying a note for 50K @ 12%? Or, are you buying a house for 100K, giving the seller half in cash, and having them carry a 50K note @ 12%?

Happy Investing

Derek Dombeck

Hi Precious,

Prior to having a signed purchase contract with the seller, you can use Zillow, Trulia, or Eppraisal.com to get a general idea of value. Having a reliable real estate agent that will pull comps for you is better. If the property is listed or has been listed in the past, an agent should be able to pull the sales history of the property as well.

After you have a signed purchase agreement, you will want to get a title search report asap to verify what liens and encumbrances are on the property along with a home inspection and an appraisal if you desire.

Happy Investing

Derek Dombeck

Hi Jasmine

I have been using the HUD app for over a year now and find it very useful. In my area there is usually about 50 houses available for Investor bidding on average. Because I don't bid on them until they have been on the market for awhile, I can check the app in a few minutes each day to monitor the inventory. It takes alot more time on my laptop to do the same thing.

Happy Investing

Derek Dombeck

Hi Robert,

I would sign an agreement with the seller, prior to closing, addressing who is responsible for these repairs. As long as both parties agree, the closing agent can hold a portion of the sellers proceeds in escrow to pay for the repairs after closing.

Happy Investing

Derek Dombeck

@ John T

That is classic. I may need to use that!

Thanks for the laugh!

Derek Dombeck