Here goes, I have been reading for a little while on REI and other forums and want some feedback on some ideas. I am not interested in buying just yet, but rather wholesaling or bird dogging. I own a Pawn shop in a small town in Virginia so I get to see people on a daily basis who are financially in trouble. Needless to say I get a lot of leads coming directly to me pertaining to real estate. It also happens that I have a Vinyl graphics business as well, so bandit signs or any signs for that matter can be made up cheaply and quickly. My business is on the busiest street in my town, so putting signs up right outside of my shop on the road is no problem. My idea is to develop relationships with some investors who are looking for good deals that I could find for flipping, renting etc. Through these relationships I would like to learn the ins and outs of investing in real estate. I would very much like to hook up with a mentor, someone I could work for finding properties while learning. I am fortunate that being self employed I can leave at a moments notice to check out a property etc or go to court house auctions for that matter! Oh yeah, I am also a licensed class b contractor in Va. I did additions, decks and mainly fencing while the houseing market was going nuts :shocked a few years back, so I can take care of almost every aspect of rehabbing a house. Thats all for now. I am excited to take off in a new direction and if any of you need leads in central Va, let me know. Sorry for the rambling, just want some feedback and pointers to help me head in the right direction with my resources :biggrin
By all means act on it. You’re in a good position to do so. Just think, motivated sellers walking in your front door. Get some good contracts and go to work now. Herbster
Hey Scox,
Looks like you’ve got the inside track. Now you’ve just got to capitalize on it.
Here’s a snippet from a past post of mine:
A couple of things separate the doers from the what iffers. (is that word?) 
You’ve got to figure out what a deal looks like.
This is where strategy and knowing the numbers are like.
Repairs, holding costs, your wholesale fee etc.
You’re welcome to my Free Property analyzer on my website.
Secondly, you’ve got to be able to be able to put these properties under contract. Without a contract or option, all you’ve got is a hot lead. And the difference between flipping a lead or a contract is the the thousands of $$. Believe me.
Next, you’ve got to get a good list of investors to flip to. I’ve got links to local REI Clubs if you need them.
Finally: Just do it!
Remember, since you’re just wholesaling you’ve already limited your losses or risk to whatever you put down for the option consideration and maybe earnest money.
Get an experienced mentor and you’re all set
Dennis :smile
You have a lot of the right pieces in place.
Do not bird dog, go directly to wholesaling.
When someone has a property they might need to sale, man, there are a lot of things you can do.
Deed for cash if they own it with equity. For instance, they have $60k in equity, you give them $3k to move and a deed. Then you can flip the subject to deal. Messy though.
Try to get contracts to buy and then flip to investors. Signs out front that say “We SELL Distressed Properties” will bring a few investors through your doors.
Going to REIA’s and getting your cards out will help as well.
I would make an 8.5 x 11 with all of your services on it. One stop shop.
JS is right.
Much more money in wholesaling.
For example a bird dog in houston may get $50 for a lead, while if you have it under contract you can score $5k or so depending on how good the deal is.
I would however caution you just like JS said regarding flipping sub 2 deals. The reason why they can be messy is that the bank is still looking to the original homeowner to pay up on the mortgage each month.
what happens when your buyer that you flipped it to stops paying?
What I recommend is flip ugly homes to start with. Where the person you assign the contract to can cash out your homeowner with a new loan, cash etc.
What makes the difference between a wholesaler and bird dog is this:
Wholesalers can anlyze a deal and put them under contract so they can estimate repairs, possible profit, and know contracts.
This is where your education needs to start at the moment.
Dennis
My question to you is… Why would anyone want to wholesale or Bird dog? There are at least 200 Hard Money lenders that I know of that will lend you money… There are ways to market to people that are 60-90 days late and there is just as much paperwork involved to wholesale as there is to just buy the property and flip it yourself. If you really think about it you are talking about houses not a Shopping mall or The Space Center… Just jump in and do it yourself. I personally have not used my own credit to buy a house in 9 years now. Make life better for yourself and make the money yourself!
SCox
Agree with John, would just add one thing. I would put a WE BUY HOUSES FAST sign by the counter where you do business.
Absoultely start using your situation to your advantage. Why haven’t you already started??
Anytime you can create a list that noone else can touch, you’ve got an awesome inside track.
that’s exactly what I do in my own business.
I mix getting lists and such that everyone and their brother can get with secret lists that we build ourselves based on factors that ‘lead up to foreclosures’. Little tell tale signs.
YOu should get a simple plan together and get busy.
These mailers won’t mail themselves, and this window of opportunity doesn’t stay open for long.
Take advantage of it and let us know how it works.
Dennis