Posted by Chris (TX) on July 17, 2002 at 16:16:47:
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Pros PLS Help: My “plan.” Am I ready? - Posted by Ellie
Posted by Ellie on July 17, 2002 at 15:00:01:
Okay. I think I’m ready. I could be wrong. I’ve done a lot of reading. This is my “Checklist” of things to do, basically in order. PLEASE, PLEASE, PLEASE tell me what I’m doing wrong, what I’m doing right, and what else I should be doing! I actually already started on some of it, so I hope I’m not completely off my mark!!!
(FYI I plan to begin with quick flips)
TO FIND BUYERS:
Call ?We Buy Houses? ads
Call investment clubs
Put up flyers
Call RE brokers/agents that might also invest
Contact title co.?s (for future use and for possible leads to investors)
Place classified ad (when I can afford it)
TO FIND HOUSES:
Call RE sales ads in classifieds
Get notice-of-default lists (how in NYC?)
Fax RE offices with letter of intent and call to follow up
County Clerk for pre-foreclosures
Visit probate office
Drive areas looking for vacant/distressed properties
Ask city offices for records of code violations
Place classified ad (when I can afford it)
OTHER THINGS TO DO:
Get business cards
Set up my voicemail
Find on-call notary public
Have general documents ready:
>Offer
>Purchase Contract
>Selling Contract
>WHAT ELSE???
Look into setting up LLC
So, am I ready? (>insert really apprehensive girl with fingers crossed here
Re: Pros PLS Help: My - Posted by Al Miller
Posted by Al Miller on July 17, 2002 at 18:07:00:
My God! Forget all that nonsense and find a great
deal. Pick an area and know it well and when it
appears jump on it. This is not Brain Surgery!
It`s buy low and sell high.
calling ‘i.b.h.’ ads? - Posted by michaela
Posted by michaela on July 17, 2002 at 17:08:28:
i’m not sure how many buyers you’ll get from calling ‘i buy houses’ ads. once someone has a buying machine in place, why would they want to buy from a wholesaler?i always have wholesalers calling me because they’ve seen my signs on the car, wanting to put me on their list and i don’t want to. granted, there might be the occasional deal there, but, frankly, it’s very seldom, that somwone leaves enough profit for another wholesaler and then an investor. in fact, the flyers i see at our rei assoc. are so unreal (repairs under estimated, comps overblown), that i don’t waste my time to loke at anybody else’s wholesales. it takes me as much time to work on a deal, where someone may leave me 2-3k, as it takes me to work on something, that i can flip for a quick 15-20k. i’d rather find my own deals. so, what i’m saying, ellie, you may rather concentrate on finding your buyers somewhere else and not with people, that are looking to flip themselves and have ‘i buy houses’ ads. but maybe other people think differently.
michaela
How well? - Posted by Chris (TX)
Posted by Chris (TX) on July 17, 2002 at 15:16:28:
How well do you feel you know your market?
If you plan to do wholesale flips (or retail even, for that matter) you have to know what a house is really worth when you look at it. Then use subtraction from there to find the number you should pay for the property (or get it under contract for). If the houses need repairs, you will also have to have knowledge of repair costs (which goes into the “subtraction” column, before arriving at your offer).
Lots of things to know and do in flipping, etc., but the most important is knowing your market.
Chris
Re: Pros PLS Help: My - Posted by Ellie
Posted by Ellie on July 18, 2002 at 10:43:32:
I wish I was that confident. I look 17 and sound 12 (I’m 25), and so far almost everyone I’ve spoken to/dealt with reacts to me accordingly. My “eloquent vocabulary” and what knowledge I have seems to be overshadowed by this. So I decided I better establish my contacts/relationships before I attempt a deal, so I will have a stronghold of people who already take me seriously! Maybe it’s not the best plan, but it is the one I feel most comfortable with. Gosh, I wish I had that gung-ho, just-jump-in-there thing in me!!!
Thank you so much though. It is definitely motivating to have someone say “just do it”!!!
-Ellie
Re: calling ‘i.b.h.’ ads? - Posted by Ellie
Posted by Ellie on July 18, 2002 at 11:00:00:
Thanks Michaela. Love that name, btw.
Actually, that’s been my most lucrative source for anything so far. The people I’ve spoken to seem very enthusiastic about having a new scout, and many of them have also offered to loan hard money and help ME find the smaller deals that they don’t really bother with! It’s been interesting. It’s also been great experience talking with live people. I’ve even had offers for partnerships! I guess it might be because there’s so much competition in NYC, investors are open to any new means of income…?
Thank you!
I’m asking Dave – who replied to your reply to me, – this as well:
Do you think the rest of my “plan” holds water? I’m less worried about my strategy and more worried that I’m not covering all the bases, especially in the legal and paperwork departments…
Thank you!
-Ellie
Re: calling ‘i.b.h.’ ads? - Posted by Dave T
Posted by Dave T on July 18, 2002 at 08:27:50:
But, if Ellie comes across a property but just can’t work the deal herself, maybe she can get an assignment fee from one of those IBH advertisers.
Re: How well? - Posted by Ellie
Posted by Ellie on July 17, 2002 at 15:20:37:
My knowledge of local FMV’s as well as repair appraisals is excellent.
Knowledge of the step-by-steps of what to do with that knowledge is where I’m shaky!!!
Thank you for the input.
-Ellie
Re: Pros PLS Help: My - Posted by Al
Posted by Al on July 18, 2002 at 12:10:37:
You sound like the ideal investor if youre not real timid. When youre uncovering great deals you should
come across with humility and let the other party be
the smart one. It`s being Dumb like a Fox.
I trained a friend who found a great deal but by the
time he got through showing how knowledgable he was
the seller changed his mind.
Just be yourself and go for it.
Exactly my plan! - Posted by Ellie (NYC)
Posted by Ellie (NYC) on July 18, 2002 at 10:53:50:
That is basically my plan Dave…I tell these people – as though I have some experience – that I make my living buying, fixing, and reselling SFH’s. I then tell them that every now and then I come across a rehab project that is too big for little old me, or a great flip with an initial investment too large for my relatively modest budget, and that I wondered if they would be interested if I found such a deal. I have a list of q’s I ask (my “Investor Profile”) that I keep on file so I’ll know if they’ll be interested if I do in fact find something – like how much of a discount/profit margin they seek, what kind of properties and what areas they invest in, etc. I’ve had great responses so far. They all just think I sound way too young to be an investor!
So do you think the rest of my “plan” holds water? I’m less worried about my strategy and more worried that I’m not covering all the bases, especially in the legal and paperwork departments…
THANK YOU, THANK YOU, THANK YOU!!!
-Ellie
Okay so… - Posted by Chris (TX)
Posted by Chris (TX) on July 17, 2002 at 15:38:14:
Do you have a good purchase contract? Do you understand escape clauses and have at least one in place? (However, these are not necessary if you know your market and buy right…but, I’d keep at least one in there just in case.)
Do you have a title company in place? When I was flipping, I used the same TC alot of investors in the area used, and even their TC agent… I wrote one check to the title company, handed it to her and told her to hold it. I wrote up multiple offers to buy (contracts) on that single check. I did not have to have a deposit for each property/offer. Worked very well. Hopefully, you can do the same to save yourself sweating alot of checks out there. Some investors wait until an offer is accepted then “make the deposit” with the TC. You can do it either way.
Next step… find out what investors are looking for to rehab (if you plan to do wholesale flips). Find out their price range and what they’ll pay, ie: what percentage of ARV they’ll pay. Make a list of investors you think you can work with according to their criteria and viola… you have your buyers list!
Hard part is finding sellers. That takes pounding the pavement and lots of phone calls.
Chris
Re: Pros PLS Help: My - Posted by Ellie
Posted by Ellie on July 18, 2002 at 12:15:55:
That’s the most encouraging and supportive advice I think I’ve gotten so far. I hope I’m as good as you think I can be!
Re: Okay so… - Posted by Ellie
Posted by Ellie on July 17, 2002 at 15:51:37:
Thanks for the reply Chris. Can I assume your questions were rhetorical? I will definitely keep all this in mind. Thanks.