Why not Retail?? with so many wholesalers...

Great idea Rina! Very creative. I think it will be appealing to people who don't have Money to put down on a home right now or are still a little scared of commiting to owning a home right now.

Great Idea Rina, I was just on Craigs List the other day and didn't see any posts like that. Did you post it under Services, Real estate? Or did you post it under, Housing Wanted? Or both, I am a newbie DG student and just want to follow your Lead. Thanks for thinking outside the box, and sharing.

Lily from L.A.

Great Post! Everyone now a days is a wholesaler. Remember, to stay open-minded and creative. Retailing will not only increase your buyers list, but it will also increase your profit potential as well. So, don't just focuse on wholesaling to investors but seek out those who still are looking to purchase a property.

Thanks Rina for the reminder.

Wayne

Actually I put it under the "apts/housing for rent" section to get response from those looking for housing and/or lease options. I think I'll change it a little and also put it in the "real estate for sale" section (you're really allowed to only post in one category) and have a different response e-mail, so I can keep track of where I'm getting the responses from.

If it is slow in those areas, maybe I'll put it in the services section too. However, I am not technically not providing a service, nor do I have a license to. I just buy, sell, and rent properties. Wouldn't want to cross any lines there.
Any thoughts on THAT subject, anyone?

Rina

I went to open houses for an REO auction that is comming to Phoenix. I don't intend to buy anything at this auction, but I wanted to see the houses. In four hours on Saturday I got a listing and two people who want me to represent them at the auction. The potential to meet clients at these open houses is great. I will be out there again this Saturday. I will not miss out on this great oportunity to find both buyers and sellers.

Al

Al, that is a great networking tip. I'm curious what kind of deal were the people wanting you to represent them at the auction offer for your service? I'd like to try that locally.

Bill

The auction company is REDC. They(the bank) will pay a commission(1%, I believe)to Agents that represent bidders at the Auction. The people at the open houses who have not been to an Auction before want someone with experiance to represent them. It costs the buyer nothing.

Al

Rina, I like your Craig's List posting, any responses yet?

When it comes to posting on that site under the services/real estate section, you do have to click a box to show if you are licensed or not. I think that if you click the correct box you are representing yourself accurately.
Most of us are not licensed but buying, selling and renting property is a service, to my mind at least!
Anyone else have a different perspective here?

Angela, just one so far. (and it happens to be someone that had answered one of my "for rent" ads last month, too)

I'll post it every few days, I think, and see what happens. Maybe try wording a little different. Any suggestions?

And, you're right. It is a service. But I don't want anyone messing up my ad by labeling it "crap" or "illegal".

Rina

Cool. Let us know how you make out. It sounds like what a friend of ours does at the car auctions.

Rina

Angela, make that 2. I've e-mailed back for more of their info, but they both sound pretty serious. This could be nice.

Rina

1/16/09 11:17am 4 responses

Excellent!
I am curious, what have you found people are looking for?
Lease/option. Wanting to take you up on your offer to purchase property until they are ready?

I have a list of people looking for lease options.

Al

Hi, Angela. Good question. I guess I'm getting my answers little by little.
Well, what I've found so far is people wanting to lease with option to buy (lease/option), people just starting to rebuild their credit from a number of circumstances. Are they high-risk for me? I guess I'll find out when I start researching/working with them. With the people I've spoken to so far, they can afford payments of $595 - $1000 month, plus utilities. This is what they are paying for rent right now or what they feel they can comfortably afford. Of course, I'll have to keep in mind that this will have to include taxes and insurance.

What's interesting is when I ask them for more specifics of what they are looking for, it is starting to take me outside my target area (which is great!). One couple is looking to stay in a certain school district in MN. I have not yet bought anything in MN because I am in WI. BUT I have been meaning to start, since it is just across the bridge. So this is the push I needed to start looking into those properties. I had my realtor pull the props in my requested area. She just sent me the first 100 listings, with 150 more coming (WOW! Should have some choices THERE). Guess I've got my work cut out for me (that's ok. It's one of my favorite parts of the game).

I put an offer in on one house today, so now I have 3 offers pending (1 REO, 1 short sale, 1 assignment).
We're looking at one tomorrow about an hour away that made my heart jump when I saw it. Only because it includes 26 acres of land in a hot tourist area where land is at a premium. Can't wait to see it!

SO... I'll give an update later if anyone cares to hear.

Rina

P.S. Al, keep us posted on what you come up with, too, ok?

SO... I'll give an update later if anyone cares to hear.

Rina

We care, you know we do!
Success, even for someone else, provides great motivation.

I haven,t finished the book yet but I have started looking at properties in the are of town I live in. It is an old part of the city . Income levels run from none to medium . Though I feel later I would like to try higher properties for now I am going to concentrate on lower priced properties and do exactly what Rina is talking about. Right now alot of folks can,t manage to buy a new home in this area. But are very interested in lease/ to buy ie contract for deed. I haven,t approached my first prospect yet but when I do it will be with pre approved loan and cheap. G-d bless and thanks for the insperation Rina

The results of visiting REO Auction open houses has been great. I got a new listing, and the seller wants me to reprsent them on a purchase. I am working with two buyers that I met at the open houses. I have two/maybe three buyers that want me to represent them at the auction. If they don't buy anything at auction, I can probably help them find a house on MLS or buy from me. I also gave my card to many other people who may contact me later. I spent three, five hour days visiting open houses (I enjoy doing that any way). I can't wait until the next big REO Auction comes to town.

Al

If you have plenty of active investors working your area you have a better chance of wholesaling than those that don't. Personally, I think for most there is just as good, maybe even better angle in retail.

The reason why some people stray away from it is the misconceptions that come along with it, such as you have to be a realtor and things like that.

If you are doing assignment based strategies you're not intruding into the realtor arena, so no worries if it is retail or not. If you're bird dogging for a retail client, some states supposedly have crafted laws to give realtors a monopoly on finding homes for people. Not sure how they enforce that, or if said laws really exist (still haven't seen the actual text/statutes).

Retail has bigger margins and a larger pool to draw from.

Depending on how you are retailing.. it may take longer to get paid ie most of the times you arent just looking for an investor to cut you a check in exchange for your contract.

It's amazing how parallel our thoughts our Rina (except you are working harder than I right now)..I was thinking the same thing.

Another angle I am going to take which is similar is to try to "make" real estate investors out of those who have recently experienced getting a retail deal. I have started to build a list of all those who have bought a REO or foreclosure, separating the ones who are residing in their bargains versus the ones who are already clearly investors. I am betting that many of the people who have found bargains to live in pondered another purchase after getting a deal. I believe the deal would not have to be as good for these new investors to bite and they could still fare well. I know I have still made out on my early homes that I purchased (higher than 60-65%% of FMV).

In fact, I am 99% sure I am even going to get my license (taking the 120 hours of classes required here in April of ALL months!! so I hope I can still do the seminar..anyone heard any specific details yet?) as I just don't think I can lose on it and I think it would be a good move given my personality. I still need to take Al up on his offer to call him and pick his brain a little further..my Florida thing has taken me away from my REI business for profit and has me focused on everything I can do to get the place set up and enjoy it as much as possible. (BTW, My boyfriend keeps forgetting to bring the chord over so I can download all the pics off his camera but I have a few of the outside I copied from the listing if you want see).

Keep us posted on how this angle is working for you.

Thanks!! K

I like your idea of "making" real estate investors. You are a DOer.

I am still getting responses from my ad. Trying to make sure I keep in touch with all. Some have checked back a few times. Looking for props with my realtor. She is SO on board.

I got the paperwork in the mail today on all the places this retiring investor I met the other day has for sale. He is willing to seller-finance ALL of them, 10% down. I'm talking over a million dollars worth of properties, GREAT cash flow. I have to think and pray about this. I'm calling him tomorrow to get together. I need to see all of them, of course. Or maybe I don't?

This guy's story sound like other great investors that we've heard of. Started out with NOTHING. No money, no credit. Decided there was NOTHING that was going to stop him. His fiance at the time didn't want him to do it. He told her "I am. Either you can come along for the ride or not." She didn't. But guess who showed up after he made it happen? Too late...
You should hear all the creative ways he worked to make his dream come true. Reminded me of Dean and CBR.

Anyway, it was really inspiring to talk to him and I think I made a good impression. NOW, to get to his "magic buttons". He is wise and a savvy investor, but I know it is just a matter of him DECIDING that he wants to work with me. This will be an experience one way or another!

Rina

P.S. K (do you like Kate or "K"?), I would love to see pictures. And I look forward to visiting.

I have no doubt you made a good impression..I can tell you are smart, sincere and savvy and I am sure he came away with that as well. I'm sure your prayers will lead you one way..they usually do for me when I am diligent. Best of luck and please let us know if you move forward. (too bad for the girl!)

I keep remembering in one of my MANY careers (direct sales/service), I made "jewelry ladies" out of several women by suggesting they should try it and reiterating that they were capable. All but one (of 7) was successful and had no regrets so I believe I could probably do the same with real estate with the right approach.

I will try to post what I have in the other thread, and if I can't figure it out, I will PM you.

I answer to just about anything--ha but Kate is fine. Thanks for asking

This is an amazing update! I have not been here too much for a few days and I am just catching up with all the messages and threads.
Did you find this investor as a local renter you called and asked if he was interested in selling or did he respond to one of your ads?
Curious about something else too, does your husband know of all the possible deals and amazing ideas that you have going on or do you just let him know once things are a done deal?
You have such exciting things going on right now. Is he as inspired by you as we are?
Angela

Your question makes me think of my realtor. She feels like hitting me when she asks "Now did you tell Jon about this one?" and I shake my head.
He knows it's all worked out well "So far", but he just cannot get past the "What if something happens?" part. And the "Don't we have enough?" part. So I do not want to add to his stress with all the everyday REI. Yes, I just fill him in on the "accepted" offers.
Now, that MAY sound like I'm not doing this the way a partner/wife should, but in all honesty after being married 23 years you know each other well, and sometimes you know what the other person "really" means when it's their fear talking. SO, I know deep down he's glad, but he has a deep-rooted, generational "caution" that would stifle my dream for us. I won't let fear control our future. So for his (and my) sake, I keep it low-key.

Any guys listening, if you have any advice in this area I would love to hear it. Please PM me. I would love for things to be different.
btw, he speaks of my REI with pride when he talks about it to other people. I think he's just afraid to "officially" let me know.

About the investor. Actually I've been watching the Craigslist ads like a hawk. I noticed a SFR posted, seller-financed with the terms drawn out. I took that as a clue he may have other properties. So when I went to look at it, I just asked. He said, well I do have a few others. So I asked about them. Then, as we got deeper into the conversation, he's got a whole list of stuff he'd really like to turn over. Of course, originally he thought I was an individual looking for a house to buy. Now he knows I'm a serious investor with potential (NOT money, mind you, but potential) to seriously look at all his options. The more I think about this opportunity, the more I'm starting to get really excited. I'm calling him today to line up looking at the 24-unit 2 hours away. After adding up all the props he sent me info on, it's more like 2 million worth, all rentals. I'm thinking if he really wants to get out all at once, I might be able to get an even better deal than what he's already offering. How nice would a couple hundred thousand dollars positive cash flow per year be? It's almost mind-boggling to me. But is it above me? Heck, no. I will remember that "I am blessed and highly favored" and pursue it as though it's mine.

And thank you, everyone, for all the encouragement and positive words. I REALLY mean it when I say I don't know where I'd be without my DG family. I feel like we are all each other's LOUDEST cheerleaders!! (even in the silence of a computer screen. isn't that weird? lol)

Love ya,

Rina

If your hubby is talking up your REI to other people, he really is more on board than maybe even he realises!

Hi
Under my post wholesaleing and assigning in this forum "Marketing to Buyer and Sellers" I attached Chap 28 of the WY statue which was passed in 1971 if you want to see the actual text. I did send a letter to the Attorney General and the Real Estate Commission asking for an opinion but have yet to recieve a response from either.

I have yet to get any local title companies to work with me on this they are adament that a realestate agent must be involved since I do not directly own the property I tried explaining that since I made the offer I have the right to sell the contract because of the and or assigns clause but they refuse so I use an agent which cuts into my profit but it all about paying it forward right!!!!!LOL

Sorry I am babbling on, just thought if you wanted to see text of statue regarding this you could review my attachment.
Thanks
Donna

Hey Rina

My last comment was for DG Admin as they commented they had not actually seen any text about state laws requireing someone to be an agent to sell. I just wanted them to know I posted Chap 28 of WY state statue that they could review.
Sorry to interupt your post
Donna

Hey, no problem.
I'll have to go look at that. Could you put a link in here wth your post, too?

Yeah, it's nice because my agent is totally on board and knows what I'm doing, and is doing her best to get all this accepted around here. She even suggested that I sit down with the title company and explain it all to them to help them to be more comfortable with it. I gave her a BARM this week to read, because she wants to be clearer on it, too, to be able to explain to the other realtors. Of course, since I've already bought several properties outright, they know that every offer I make could be for myself OR for someone else, so not just playing games. It helps when they know you're serious. And remember, they get their cut either way, so no issue there.

Thanks again for the info.

Rina

P.S. I did also have a local RE Attorney say that there should be absolutely NO problem with assigning a contract.

AngelaK wrote:

If your hubby is talking up your REI to other people, he really is more on board than maybe even he realises!

very true...

Rina

P.S. STILL getting responses and I haven't even repeated the ad yet.
Should I show a sample response?

Yes, I would love to see a response to your ad.