All Forum Posts by: Walt Payne

@Account Closed  That is one of many points, but yes, that is the part that I object to the most. Especially when most "negotiating points" that are involved should be obvious to an experienced investor.

@Brandon Turner  

Have your contractor bid every single thing in the house that needs — or could need — fixing.

Paragraph heading from the blog. This is just one angle that I find sleazy. If it is bad, and obvious, you should know before putting in an offer. If the heater is old, you should know before putting in an offer. Roofing damage is often visible from the ground. Water damage is often visible. etc, etc.

"The key here is to not just rely on your inspector. Hire a contractor to get to the property and give in depth bids on all the items." 

The time to bring up problems, and negotiate, is not after tying up the property and putting the seller in a no-win position. That is not negotiation, that is coercion. The only things that you should be bringing up in negotiations upon getting an inspection report is the hidden problem and the ones that a specialist is required to inspect.

You should also know the cost of repairs prior to making the offer. Repairs are not something to be used as a blackmail tactic, they should be a discussion point in negotiations prior to a contract.

@Ryan Dossey  Yes, known defects need to be disclosed, at least in the states I've ever bought RE. And it would be hard to deny knowing something that was on an inspection report.

A recent blog post really, really struck me as bad advice. 

http://www.biggerpockets.com/renewsblog/2014/10/08...

This is not the way we want investors to be representing us, and definitely not the kind of advice that this site should be spreading!

@Joshua Dorkin 

Good wholesalers, who know what constitutes a deal, are a valuable asset. 

Unfortunately, good ones are in the minority, probably because too many people think they can do it with no money, no knowledge and no effort. 

@Bao Nguyen  Another consideration in favor of mid-range and higher properties. If you want to sell that C or D class property, who is your target buyer? Investors. Think about it, do you want to sell to investors when you cash out? In A, B and even C+ neighborhoods you can sell to homeowners at retail. A much classier group of people ;)

If I have 20k per month of rental income I would hope to keep more than 50%! If you are talking flip or wholesaling then that is a lot closer to realistic.

Think about it, if the median HOUSEHOLD income is $50k before taxes, why would $120k be a bad starting point for one wage earner? It may not be the ultimate goal, but for most it would be adequate to rely on as their income base so that they could then work full time on their business. Personally my goal is to get to that amount ($120k) per month, but not this year, or next.

@Kevin Tran  Financing, that is why. If they can rent it at break even and wait out appreciation for example, or find an unqualified buyer who has enough income it can work for them.

@Kenneth Z.  two suggestions. 

First one is more long term, but has multiple benefits. Take a public speaking class. That will help a lot. There are college classes, and even free classes offered by several organizations.

Second is short term and more difficult. Cold call. Don't waste good leads learning how. Call people you will never meet in person, and keep that aspect in mind as you start. If you sound like a fool, they will never meet you or even have to know who you are. Ask if they have a house for sale, or have a friend, relative or neighbor who might want or need to sell. Just talk, don't worry about the topic yet. Talk, and get comfortable with it. Also, go to a different town where nobody will know you and start talking to strangers about anything. And most important get used to rejection. It will happen. A lot. Both in this practice and in real business calls.

@Jay Hinrichs  I think if the wholesaler offers TRUE CONSIDERATION for a contract, or option, that they would win a legal battle, if it came to that. There is a lot of contract law on their side. It is the guys who pay $10 down and have no intention of buying if the deal falls through that will eventually get burned.

I will have no problem with having a license, when I live in the state I am investing in (Florida). But to be honest the licensing is not state run, anywhere that I know of. It is run by a clique of realtors who want to protect their piece of the pie. The regulation started with good intention, but has gone well beyond the original intent. Like most things that the government gets involved with. They over-regulate in some ways, and ignore other aspects that need to be regulated further.