Redstar is making his first offer this morning!

Bird Dogs, Wholesaling
1

Hi,

I actually found Redstar a property to make a wholesale offer on this morning! Maybe if he actually makes a deal he will stop asking questions so I went and did the research and found him a first property to wholesale! Hopefully he can manage to do this without to much dramatics!

It’s listed so he can have the agent write it up, I just hope he has a buyer on his list looking for cheap rehabs and a hard money lender lined up?

It’s a 2 / 2 with a FMV at $105k and about $20k to $25k in rehab required to clean it up! I told him to offer $44k and mark it up $4.5k, even if he has to use transactional funding to convey over title he’ll clear $3.3k or so on his first deal!

Let’s just hope he can do this since I did all the homework for him!

               GR
2

Will he can he do it. As Redstar approaches the deal, he begins to shake, his mouth gets dry, he’s tonged tied but he presses forward.
He looks over the deal, but he hesitates, he has to get on the forum and post more questions and what if scenarios.
Gold River and Rando are anxiously watching and hoping Redstar can do it.
But Red star cant focus, he can’t sleep at nights, he fights thru the doubts and fears, a few more posts on REI club, then he sharpens his sabre, puts on his war paint, and goes in for the kill. He does it, the entire planet cheers, the Universe is a better place all because Redstar dove in and took action, Now Gold River and Rando are sad because they have no else to torture them and make their lives a living hell.
Rando and Gold River must now do more deals to try and forget the fledgling Redstar and his endless questions.
And life goes on.
But then of course it never stops, Redstar comes back with tons more questions about Title companies and Escrow and Title insurance and double closings, of course these are easily answered in the book Rando sent him, it don’t matter, soon Rando and Goldriver come back from vacation to help this Redstar. Soon the skies darken with torrents of rain, lightning and thunder, then the sun comes out with blue skies, flowers growing and birds singing and there is Red star at his computer posting more questions on the REI site, Goldriver and Rando have long since gone insane. Oh the inhumanity.

3

I still haven’t heard back from the agent.

4

That’s awesome… did he get the property?

5

Someone took it while I was busy running comps… Because apparently the realtors comps weren’t accurate…

That’s why I need to be better, and faster, at running comps.

6

Again Redstar hesitates and the world passes him by, even though realtors comps are always accurate and previous sales don’t lie,
still he hesitates. The Goldriver and Rando have tried to help to no avail, they have done everything except hold him by the hand and whisper step by step minute by minute instructions. Other beginning investors have passed him up just by taking action and learning as they go, but not Redstar, he lacks initiative, lacks gonads, lacks the drive and his main focus is asking more redundant questions.
But we still have hope that this resstar will grow a set of testies and make the jump from asking questions and overthinking and hesitating to taking action. The universe awaits.

7

I just got out of the hospital with a spinal cord injury, buy anyway back to this little real estate game…

I went to look at the house as soon as I could… By the time I got my proof of funds, it went under contract… As I expect all the good deals would…

Realtors comps are always accurate? That’s the exact opposite of what Gold River said.

I tried running my own and the houses I found were so variable that I could not pick a number. It is necessary to pick a number to plug into the formula so I know how much I can offer.

I asked for comps from my realtor on another house today, but haven’t heard back yet.

Estimating repair cost should be comparatively easy.

Once I know how to run comps, I can do this all day long.

8

Hi,

I made it to Idaho, I am looking at building a log cabin! There are 5 log cabins within 1 mile of my desired location which all sold in the last 3 to 12 months, they are 3 and 4 bedroom cabins with 2 to 3 baths and an outhouse with a beautiful half moon cut into the door.

The first cabin sold was 1200 square foot 3 bedroom 2 bath it sold for $120,000 dollars! How much did it sell for per square foot? $120,000 / 1200 sq. ft. = $100 per sq. ft.

The second cabin is 1000 sq. ft. a 3 bedroom 2 bath it sold for $111,000 dollars! How much did it sell for per square foot? $111,000 / 1000 sq. ft. = $111 per sq. ft.

The third cabin is 1400 sq. ft. a 4 bedroom 2.5 bath it sold for $130,000 dollars! How much did it sell for per square foot? $130,000 / 1400 sq. ft. = $92.85 per sq. ft.

The fourth cabin is 1600 sq. ft. a 4 bedroom 3 bath it sold for $195,000 dollars! How much did it sell for per square foot? $195,000 / 1600 sq. ft. = $121.87 per sq. ft.

The fifth cabin is 1100 sq. ft. a 3 bedroom 2 bath it sold for $119,000 dollars! How much did it sell for per square foot? $119,000 / 1100 sq. ft. = $108.18

Now if Gold River is building a 1500 square foot 4 bedroom 2.5 bath cabin, how much is it worth?

Gold River asks Red Star for advice, red star says take away the lowest and highest comp and add the sq. ft. value of the other 3 together and divide by 3 which is - $100 + $108 + $111 = $319 / 3 = $106.33 so Gold Rivers new cabin is $106 x 1500 sq. ft. = $159,000

Gold River thanks Red Star for being so smart, and guiding him to understand square footage values!

Now Gold River is off to fly fish for Rainbow Trout! Rando and Gold River are getting together later to make moonshine!

                 GR
9

Oh crap, on the timing.

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Hi,

Well I pulled a smart old rainbow trout up out of the river and it said "Bite your tongue Redstar" gold river said make sure the realtor comps are accurate and are pulled from a circumference around the subject property, not a zip code on one side of your property.

I am the big bad Rainbow Trout and provided a realtor pulls proper data it is always accurate, but it needs to catch a circumference of 1 mile and be not older than 12 months old maximum and preferable 1/4 mile and 3 months old! THE COMPS ARE ALWAYS CORRECT!!!

Now lets sit down, fry up some trout and take a couple of snorts of moonshine!

                  GR
11

Okay I’ll do that. Thanks.

Statistics and numbers are easy.

I reminded my realtor to use that radius.

I seriously think that was my last real question getting in the way.

12

I tried to run comps today and I did come up with a few more questions that got in the way… not sure if you will answer them or not, but I’ll ask them…

According to this website…

https://www.biggerpockets.com/renewsblog/2013/09/08/determine-value-property-adjusting-values-comps/

I should only include houses that are within 20% of square footage, should only include homes that are within one bedroom and bathroom count, and only homes that were built within 10 years…

Should I completely skip houses that weren’t in pristine condition when sold? Does it do my any good to know the square footage cost of a house that was boarded up when it was sold? Should I include these houses and adjust somehow?

Also, should I be using gross area or living area? An example is a house I was looking at at 1023 37th St. Orlando, FL…

Gross area was 1040, living area was 816 according to the realtor and 624 according to the property appraiser and Zillow…

I emailed the realtor asking why the square footage was different in her comp than it was in the property appraiser…

I’m getting close.

And once I get this, I don’t have to only make offers on houses that need repairs. I can offer on houses that are in pristine condition as long as I can get them for 70% minus $5,000 of their FMV. A book I read told me that I should be making 100s of offers every week if I want to be a “wholesale millionaire,” which I do and plan to be.

13

It seems Rando has lost all touch with reality and is trying to flip tree stands and caves in Idaho, his buyers are many but the currency there is wolverine and bear skins. But Rando loves bear skins, his entire cave is decorated with them. Once he has enuf he will upgrade to a bigger cave, one that has a scenic view and fire pit and closer to fresh water. You wudnt recognize Rando these days, the beard and long frizzy hair and he smells worse than a wombat in heat, but he seems happy and content, especially now that he doesn’t have to answer any more of Redstar’s unending questions. And the world is a better place.

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That’s nice. But all the questions I’m asking are not answered in your book even if you claim they are.

And if I had $5,000 to do a mass mailer, would I start a wholesaling campaign?

No! I would mail every apartment complex and hotel owner like Javipa (who I don’t know personally enough to call Jay) suggested. That is my true ambition. (Hotels, to be more accurate = pay or get out and I don’t have time to worry about whether I should give you a second chance because you’re offering me charity money and are a single mom with two kids)…

15

I was going to explain to you how spending 5 Grand on a mailing campaign to absentee owners cud make you 10 times the amount you spend, Let’s say you send 400 post cards a week for 5 months, you phone wud be ringing and you wud be finding many distressed sellers willing to sell their houses cheap because the houses are fixers, they cant afford to fix them, the renters trashed them, Aunt Myrtle died and left them the house, or many other reasons they will sell cheap. But I wud be wasting my time, You wud start rambling on about mailing to apartments and hotels and your mind wanders out to left field. Reminds me of that old Chinese proverb… Dog who chase 2 squirrels catches none.
You must focus grasshopper. Time for me to go back to the cave and my bear skins, trying to educate Redstar is futile.

16

This thread is hilarious! I can’t say I’m any less spastic or better organized than Redstar, and thus am even more entertained. :slight_smile: Trying to make some connections for finding/trading deals in Western North Carolina- is there a separate section of the website where soliciting this sort of thing is legit? It seems like there are a gazillion wholesale deals in central and Eastern NC, but only about three in the whole of WNC these days…

Thanks!

17

Redstar, were are the questions, I need my daily dose of punishment.
There is money to be made wholesaling, if you take action.
I’m picking up a check today for 10 Grand, got a deal closing today for 5 Grand, getting a house on contract today at noon, just got a deal accepted and have 4 deals in escrow.
Some exciting times. But you gotta take action.
Rando

18

OK, Rando is getting me started finally in this real estate thing. If a 64 year can do, so can I. I’m only 48. God am I getting old. But with Rando’s help, I’ll get through this.

I’m desperate.
How desperate?
Some people might call me a dead beat dad.
I’m a burnt out nurse.
I’ve been fired 3 times in the last year for being to ‘scary’ and ‘rude’. 11 years in a nursing home, and it takes a piece of your soul every day. And being male doesn’t help.
Unemployment denied me. So no income. My driver’s license and nursing license are being suspended at the end of the month. SO, no car, and no job. Got 3 grand to my name. Can’t pay my child support. Woe is me. I could whine all day and drink all night, but I’m so fed up with this. It’s ‘get busy living, or get busy dying.’

So I’m setting up my templates for ads on Craigs List and any other freebee ads in this small town. May have to reach out to other area. Got a bird dog program that will help me find junker properties around the state. Scrounge up some money for some bandit signs, who knows.

Most people flake out doing this, but I can’t.

mapmakerny

19

Hey mapmaker, you do sound desperate. I gotta give you a heads up though. It’s not just about taking action and knowing how it’s done,
a large part of it is having the right attitude, being friendly, with a smile and knowing how to listen and being empathetic.
Many of my best deals was because I took the time to listen to the homeowners. Learning how to be a good friend and help other investors has helped me get many profitable deals.
If you have been fired 3 times for being angry scary and rude you are going to need a new attitude to do Real estate, we all need each others help to succeed, we need our buyers, they need us, same with sellers.
If a seller calls and your angry, rude and don’t have a good friendly positive & helpful attitude, who are you gonna blame when he calls me?
And I do know where your coming from, I once had the worst attitude around, I still catch myself thinking negative sometimes and I stop it fast and turn it around, it takes practice.
I got a smile for everybody now. It’s a much better way to live, and it is much more profitable. I smile at strangers in Walmart, they smile back, That’s not making me any money, but it is interesting as hell how 1 guy can influence others with a pleasant attitude and smile.
But, I get depressed and angry still, but the duration is so much shorter now. I didn’t learn all this on my own. Get yourself some books on salesmanship, motivation, positive attitude etc.
Let’s make some money and have some fun.

Rando

20

What is Goldstar’s book you are referring to, and is it wholesaling or flipping, or both and more? Thank you.

Getting frustrated trying to find a potential flip with workable numbers