?'s To Ask Other Investors Or "We Buy Houses"people
I am starting to look for investors that I can assign contracts to. I have read to look in the paper at the "we buy houses" ads. What do I ask these investors? I know I need to ask them how much profit they need to make in order to purchase a contract but what else?
I really want to get started investing and I looked at one HML guidelines and right now, I can't even qualify for that because I don't have enough in the bank. So I want to get started by assigning contracts. I have read about wholesaling and do the numbers.. I just would like some input into what questions I should ask other investors.
Thanks 
Hi Casey:
It is not as easy as you think. There are a lot of variables here. Do you know how to run comps? Do you know how to estimate fix-up? Do you know how to do a cost analysis of the profit margin?
You must also realize there are 5 things to consider when you are going to buy and sell a house:
-Purchase price
-Acquisition cost
-Rehab cost
-Carrying cost
-Selling Cost
My suggestion to you is that you educate yourself a little better. You can start by going on this site to the "shop" section and purchase Ron Legrands Cash Flow System for a couple hundred bucks.
After you educate yourself, run a test ad in your local paper:
- 3 bedroom, 2 bath fixer upper, needs
work.
Your phone will blow up. Prescreen all the callers and find out who the players
are. Take them to lunch, find out what they are looking for and what areas. Find out what they are willing to spend,
60%, 70%, or 80% of market value?
Then go on your quest to tie up some properties and wholesale them to your investors off your buyers list you just created.
Best Riches,
Jeffrey
P.S.- You might want to consider also opening up escrow as an "assignment" after you get your contract signed.
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Thank you for all your insight!
I am having trouble learning how to estimate repair costs and just what repairs each individual investor will make. If one investor just wants to put enough into it to rent it, or one investor wants to resale it at FMV, then the repair estimates will be a little different.
I understand aquistion costs, holding fees, things like that. I have taken a Russ Whitney beginner course and read 2 of his books and I am working on Kiyosaki's books. I am also joining my local REI association tonight, I am really looking forward to that.
The thing is, I believe there is a deal waiting for me in my own back yard. I am wanting to jump on it before it is gone. It has already been on the market for about 2-3 months. I just don't know if the sellers will go low enough to leave enough profit room for assigning. Currently, they are asking FMV "as is" and it needs work. However, the owner died and the family that is selling it, does not live here and I am assuming have not seen the property recently. I know the home is owned free and clear per the tax records list only one owner since 1955. I am affraid to put an offer just to see if they will sell it low enough, incase they accept it and I am stuck with it for now. I understand about having a clause in your offer saying something like 'this offer is good, subject to inspection' or 'sugject to repairs being less than 20k', or something like that.
I guess I need to run a dummy ad for a fixer upper and see what kind of response I get and start my list. Will they be mad if I tell them I don't have any inventory right now that fits their criteria, but can I call them when I do? What is the best way to weed out the true players when they call? What are some key questions?
(I know this is long-winded, excuse please.)
Thanks for all of your help. These boards are fantastic!
Casey:
Buy Ron Legrands course on this site.
Go to "Shop" under consignment. Listen to the wholesale retail program. This will give you a good foundation.
If you wanted to be a dentist, you would go to school! Same goes for being a
real-estate investor.
To answer your question, tell them the property has been sold. Ask them what type of volume do they do, if they pay cash or go hard money, what areas they are interested in, are they interested to purchase to rent or flip? Try to hook up with the ones that have experience and
financing in place. Ask then what they are looking to make profit wise. Get out there and network. Make it happen!
Best Riches,
Jeff Adam
_________________
"The only place success comes before work
is in the dictionary."
[ Edited by JeffreyAdam on Date 02/09/2004 ][ Edited by JeffreyAdam on Date 02/09/2004 ]
Just to clarify, a Hard Money Loan isn't based on your credit or money in the bank. It's based on the LTV on the property you are looking at. HML's usually won't go higher than 65-70%. So you don't "qualify" for a HML. The LTV on the property does.
Ryan J. Schnabel
Thanks for the clarification. I now know that, that is true of HML's most of the time; however, the first HML I contacted needed to see 3% of the loan amount in your bank account and we don't have that. So just make sure you read all of the qualifications from HML's before signing up for them.
I now have found one with higher rates, but NO qualify.
Hi all...
I have purchased Scott Rister's course on wholesaling. It seems that he likes to ramble on quite a bit. I really don't care for the organization of the course and the setup. I guess I am more of Step 1, Step 2. .. type guy, and this course doesn't do that. I am thinking of getting the Legrand Wholesaling Module to see how it compares and if the organization is there to help newbies like myself get started. Just wanted to put my 2 cents in and see if anyone out there agrees with me or can give insight on the Legrand course?
Thanks again!!
Chris G
The most important thing you said in that post was "run a dummy ad" I do that all the time. Just to see what kind of response I'll get in a certain area. Then I tell them I'll put them on "THE LIST". Well keep learning that is the only way to get the information.
Lori
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