All Forum Posts by: Winston Spence

@Account Closed

I agree that bandit signs are illegal but to say that they make a bad reputation for real estate investors is adding in your own personal thoughts and let me tell you why. How many time have bandit signs absolutely saved desperate sellers that had no way out but to call a bandit sign and then they got out from under the house. Most investors forget that part. They just think since it makes the street look bad, they should be down, that's an opinion. How can it make your company look bad if the only thing on the sign is the message and the number? Again personal opinion. There are times where I think a lot of "well made off" investors forget how they got started and try to push their opinions of what real estate investing should be on everyone else...

@Joshua Dorkin and @Jon Holdman

I agree, points well taken.

@Irish B.

When I look for buyers, the find thing I look for is what kind of investor are they, such as rehabber, buy and hold, etc... I mainly wholesale to buy and hold investors because they don't have as strict numbers as rehabbers. For most buy and hold investors, as long as the numbers make sense and the property is in a good location they will buy. Rehabbers on the other hand look at comps, trying to get properties 60-70 percent ARV, not to mention their rehab costs. Another thing I look for is how much properties has the investor purchased. If the investor already owns some properties, then it makes it easier since the experience is there.

@Irish B.

I understand where your coming from. I think most people have a personal problem with bandit signs. Like I posted earlier, there is a huge double standard when it comes to bandit signs. When politicians are trying to get elected, then it's alright with everyone, but when it's a simple bandit sign people start to speak up. I also respectably disagree with your view on getting deals first. There's a huge lie in the wholesaling world that if I find a great deal, then buyers will come. In my experience, there are times where buyers just are not interested and your stuck with the property. And I lost my earnest some times because of it. It's better to find real buyers, see what they what, then find the deals alot easier.

@Chris Feltus

I am going to have to respectably disagree with you on your view about bandit signs. I think you are putting your personal thoughts on it rather than business thoughts. The reason you say no is because there are a lot of signs hanged up already. Thing is some people will still call those numbers on the signs whether crowded or not. I think there is a double standard with bandit signs such as when election time rolls around no one complains about bandit signs being illegal, but when some investor trying to make a living posts a few signs, everyone goes mad.

As a new pretty much new investor myself doing a few wholesale deals, finding REAL cash buyers is a lot harder than you might think. Your a realtor and have access to the MLS, the new investor most times doesn't even know what that is. An some realtors don't like others using their MLS login info.

As long as @Eric B. screens the buyers (or sellers) the right way, then he'll have cash buyers for days. Also make sure you get buyers before you get a deal or it's possible you'll be stuck with the property if buyers don't want it.

@Eric B. Disclaimer- I am in no way telling you to post bandit signs.

@Melvin Muckeray

If the property is a HUD foreclosure, the only way to negotiate is to put offers in online with a realtor.

@Bill Mitchell

Great tip! Basically forget the 70% rule and take what profit you can as long as the numbers make sense.

@Brad Chandler

I agree an office does bring a high level of credibility. How much employees do you have? And what do you have them do? How are you running your business?

@Matt Lavinder and @Brad Chandler

I am a new investor still growing my business. After reading the posts left by other investors, I'm going to start off with a office in my home and hopefully branch out to something bigger. Since both of you have been in my shoes, how much capital would you suggest I need to purchase and then operate an office? What systems should I put in place to keep the business moving?

Thanks for all the repsonses!

@Matt Lavinder

Interesting, how do you run your business and what do you have your employees do? Are you planning to expand your business? And if so how?

I did some estimates and found out that my electricity bill will be around $110 per month and the water will be around $80 per month. Since I'm only going to be living with my dog, these numbers are really conservative. Let me know if this deal works. Thanks

@Dawn Anastasi

Thanks for your response.

I can check tomorrow on the water and electricity. Also, the water and electricity are separately metered. When this deal works out, I'll take your advice and have the tenant put the bills in their name.

As far as I know, the rent is pretty accurate. I checked rentometer.com and double checked with what's renting on Craigslist. For the FHA, you don't have to live on the first floor, I just want to make it easy to get to my car! lol