All Forum Posts by: Nick Cifonie

I'd suggest you take a pass...

Would you let a doctor operate on you if he's "read about" modern medicine, but not seen a patient in 20+ years?

Would you pay someone who's not made any money in 20 years to teach you the business he "used to run"?

Even when he "did" invest, he says himself he only bought 8-10 properties. He also admits he didn't profit on most I believe. (I could be wrong here) That's far from a pro.

In my opinion, unless you're "in" the business you shouldn't be teaching the business. I'm with Bill on this one...

I won't comment on the method he uses to market his products. : X

Nick

I have had many "apprentices" work with me this way... I bring them in, they do the legwork, I teach, and I pay them 25% of any deals we close that they "handled".

I take advantage of them and they take advantage of me... but both in a positive way. :)

My current partner was a newbie I took on this way, and he's done so well... like I said, he's now my partner, lol.

Nick

If you want the info, but it's not online and you don't want to fetch it yourself, it's not hard to find a college student (especially pre-law or something in the legal field) to go there once a week and pull the records...

Nick

If you're asking about a referral, or "bird dog" fee, most investors usually pay $500-$1000 for a lead that ends up closing. That's if you don't contract to buy on your own, but just pass along the info.

"Wholesaling" usually entails you actually entering into a P&A contract then assigning or "flipping" it, and most investors go for $4000-$10,000. Of course in smaller deals in can be less, and some is more... sometimes much more.

The amount of markup fluctuates much more than bird dog fees. However, even those can be a LOT more on high-end properties or commercial deals...

Nick

Don't be afraid to move into the Chicago market. As long as you do the proper due diligence, it's not much different than anywhere else... and there's a LOT of deals here right now!

Nick

I would start by finding the local REIA and become a member. By attending the meetings you'll find the people who are "doing" things. Don't be afraid to introduce yourself...

Start asking a bit about investor friendly attorneys and Realtors, a closing agency, etc..

Specifically "what" you do from that point is determined by your education, resources, and business model.

If you were an established investor in another area, I'd suggest doing whatever you're already good at... but if you're a new investor "in general", I'd agree, start with either wholesaling or bird-dog.

This business is easiest when you're mixing and mingling, so "get out there", meet some people, and most importantly, take action!

Nick

Hi Danny...

I'll answer your direct questions 1st...

Q 1- "Once you have the investors, and you start finding property... where do you get the contract from? RE Lawyer?"

Send me an email or private message here with your email address and I'll send you a simple contract that would work.

Typically when you're wholesaling you use a simple contract rather than the local Realtor one, although you can. (there's a lot of "stuff" in those that's not needed)

You can use a RE lawyer if you like as well.

Q 2- "Is this committing fraud by dual closing without a broker? "

No, having a broker or not has nothing to do with it. "Fraud" can be a lot of things, and I can't write out everything we'd cover if we were on the phone, but the easiest and best suggestion I can give is be upfront with everyone and use common sense.

I'd suggest either working with someone who's had some experience, or consult an attorney who's handled flips in your area already, and have him step you through your 1st deal. (find one at a local REIA if you can)

Another thought is grabbing a program on flipping/wholesaling, although you can get almost everything you need from here or the web if you're patient and willing to seek it out.

Q 3- "Could I bird dog this deal and hook someone else up? Where could I go to do this?"

Sure you could bird dog it... I'd start by "Googling" in the area the deal is in to find investors. Try "sell my XYZ house fast", replacing XYZ with the city/state. You'll get a list of investors, start calling.

Another thought is to get a contract (or use a simple option) and market it yourself of Craig's List, etc..

When you're at the auction, realize the guys bidding are the REAL cash buyers in your area. Introduce yourself as a local investor/wholesaler and ask if you can call them at a later date to find out what they're looking for... I wouldn't go into it at the auction, they won't have that mindset.

Then a day or two later call and remind them how you met, and find out what areas they buy in, price ranges, etc.. They'll be great to put on your buyers list.

Nick

Hi Phil... I'd suggest going to the local REIA and mingling a bit. Find out who's "really" doing deals, then get to know them and see if you can bring them deals as a bird dog or a partner.

Don't be afraid to tell them you're new, most investors are happy to cut a new investor in, especially if they provide the deal. You may not make a 50% split, but you're looking to make contacts and get your feet wet, which the above should help you do.

Nick

If you were looking at residential investing, I'd say look into flipping lease-option deals or wholesaling, you can do either with little to no cash...

However, if you're looking at commercial I would suggest working hard to find a deal. I get the impression that you know what you're doing and can tell a "deal" from a dud... so find one that you KNOW the numbers work on, then approach commercial investors and bird-dog it, or get a contract and assign the deal to one.

If you truly find a deal and the numbers work, it won't be too hard to pass it along. :)

Nick

Unless you plan to tear down and rebuild, I would just use the comps for the property itself.

The extra land won't be worth too much more unless it's being re-constructed on.

The only exception (in my opinion, if I were doing the deal) I would consider is if it's in an area where land is insanely high or it could be changed to commercial.

If it's not in a premier area, comp it on the house and the land is just a bonus. Of course, you could get it appraised, but I don't feel you'll find it's worth much more than the other lots in the area. (again, unless it's in a prime location)

Nick