All Forum Posts by: William Johnson

@Jeff S. I didn't change my profile but I have branched out into flipping and buy and hold as well, the wholesaling side of things there is absolutely no problem with I can wholesale my deals without any problem. I also can always buy my properties because I have associates with financing who are always ready to partner with me because they know that I have very strong appraisal skills. I am, however learning how to create my own relationships with HML because I consider it to be a core skill that I need to develop as an investor.

The reasons I recall being given up to this point in not being willing to finance me are the following:

1. The building looks scary because of all of the renovations and they don't feel comfortable about getting their money back because they were not sure about my evaluation (the person who I wholesaled it to made more than 100,000$ profit without doing one renovation)
2. On a six plex three different lenders said that it was not profitable and they wanted me to put skin in the game as well in order to feel comfortable (I had an offer accepted at 450k and it had a basement with a nine foot ceiling that had room for two more apartments).  I ended up wholesaling it for 15k and they are anticipating a very big profit.
3. On a property that I recently acquired the lender backed out at the last minute without really giving a reason, this turned out to be a good thing because I ended up setting up a Sub2 that allowed me to get it for monthly payments.

I should mention that I have not reached out to every lender from my area either, so far the ones who I have spoken with were not strong on evaluating properties.  My next step, subject to change depending on what I receive as responses on this thread is just to call every lender that I can find and asking everybody in my network as well.  Maybe I just have not fallen on the right one.

@Account Closed I am working with both, I am looking for a repeatable formula that has been shown to work.  Also I would like some possible methods to be able to verify whether they actually know how to evaluate a deal and decide quickly or whether they risk getting cold feet at the last minute.

I am on my 12th transaction and I am very good at evaluating deals.  I network like nobody's business but I still have supposed hard money lenders who tell me that they will finance 100% as long as the purchase price for the property is less than 70% of the evaluated price and then when push comes to shove they will back out at the last minute.  This in spite of the fact that they have witnessed me get deals that they have lost out on in the past.  What am I doing wrong and how can I make sure that somebody who verbally tells me that they are going to fund my deal doesn't turn around and screw me over at the last minute.  Up to this point I always close the deal but I must be doing something wrong to not be convincing these people to finance.  Do I need to be more cocky and less humble?

@Olivier LePage sorry to get back to you so late but, like the boy who cried wolf this deal turned out to be a dud.  Hard to imagine when I had the offer accepted at less than 100 and the tax evaluation was above 230 but I was still happy to have flushed this out with due diligence before rather than after...

I have a pretty decent investment that I would be willing to sell for 150, I will be closing on it in the next week or so.  It is worth between 265 and 300 renovated.

 If the house is a true deal you will not have a problem to get somebody to buy it.  The biggest thing is putting the right offer amount on it.  If you do that and the offer is accepted you shouldn't have to work the phones for more than a half a day to get somebody to fund it or buy your contract...it sounds too simple to be true but trust me it is that simple!  

A very simple way to start doing offers:

1. Find out the address of the property and find out measurements of property, building type, room count, bathroom count, etc... (google maps is good for this you can actually measure houses and properties)

2. Verify that there are at least 3 other comparables sold nearby (less than half a kilometer) that are identical looking and find out what their average selling price was (sold in the last year)

3. Make a rough estimate of renovation costs and add 15% on to that price.

4. Multiple the value from step 2 by .7 and subtract the amount determined in step 3

5. Offer that amount

i.e. 100k average sale value x 0.7 = 70k - 25k (reno estimate) = 45k purchase offer maximum.

 Honestly if you want to get started keep it simple and get your agent license...that offer to purchase is great you can use it no problem.

 Accepted promise to purchase 

I started with no money by wholesaling but I would recommend becoming an agent as an easier way to get started in real estate than through wholesaling. Wholesaling takes a lot of decision. Least to own can be good too but I am still plugging away at that strategy.