One of the most common questions that I am asked on a daily basis from new real estate investors is whether or not it would be beneficial for them to get their real estate license.
I spent many years as a real estate investor wholesaling, rehabbing, fixing, flipping and renting properties without having a real estate license.
Ultimately I decided that it was more beneficial to get my real estate license than to not have a license. In my opinion having a real estate license does not hinder your ability to operate as a real estate investor and also gives you the added benefit of additional streams of income.
If you are thinking about whether or not it would be worthwhile for you to get your real estate license then here are some points for you to consider:
• Why do you want to get your real estate license?
• Are you required by law to have a real estate license?
• How will having a license benefit or hinder your ability to operate as a real estate investor?
Every few years the State Attorney General’s Office goes on a witch hunt looking for individuals that are soliciting real estate without a license. So if the idea of a third degree felony bothers you (it should) then get your real estate license.
In summary, if you are marketing your own deals then you don’t need a real estate license but if you are marketing other people’s deals then you do. If you do not have a real estate license then you cannot find buyers for other real estate investors. You also cannot help other real estate investors sell their properties for a fee. So clearly there is an advantage to having your real estate license. You will make a lot more money as a real estate investor with a license.
The final question that you should ask yourself is how having a license will hinder or benefit you as a real estate investor. If you only wholesale your own deals, manage your own properties or fix and flip your own properties then you do not need to have a real estate license.
However, the more active you get as a real estate investor the more opportunities there will be for you to benefit from having a license. You will be able to list properties, manage properties for others for a fee, wholesale other investor’s deals, find sellers for other investors, and find buyers for other investors.
You will also, save money on purchases and sales by earning a commission. And by far the biggest reason of all to get your real estate license is to have access to the MLS. In short there are a lot of benefits to having your real estate license.
What are the negatives to having your license? I don’t really see any. You will have to disclose that you have a license when you buy or sell a property and you will also be bound to act ethically (which you should already be doing).
Having a license will give you more opportunities to make money as a real estate investor. If you are considering being a full time real estate investor then having a license will benefit you in the long run. This applies regardless of whether you want to wholesale, fix and flip or be a landlord.
Thursday, November 27, 2014
Working With Investor Friendly Real Estate Agents
In order to be successful in real estate investing, you will need to work with others – specifically people who know this business or can help you build yours. People who can help direct you to buyers for your properties or provide financial assistance or even teach you proven investing buying and selling strategies.
As a real estate investor, you should learn to leverage your time by carefully selecting qualified people to work with on your real estate deals or to help you maintain your investments. A key person that should be on your “Power Team” is a real estate agent or realtor.
Finding The Right Real Estate AgentA good working relationship with an investor friendly real estate agent is one of the most important assets an investor can have. For one, when a property you are interested in purchasing is listed with a Realtor, you may want to have your own agent working with you to represent your best interests in the deal.
Secondly, investor friendly real estate agents and Realtors can help you evaluate deals by pulling up sold properties comparable to the one you are thinking of buying. They will hand you a CMA (comparative market analysis report) that will give you a good idea of the market value for that neighborhood or type of house.
Thirdly, Realtors have access to the Multiple Listing Service (MLS), a valuable source for finding potential real estate deals and listing your own future deals for sale. Another great benefit of them having MLS access, is that it can give you a real time snapshot of what current prices and rents are being sought after in the market place by other consumers and real estate investors.
The properties on the MLS will usually include pictures and a good deal of information about the property, including the address of the property, the number of bedrooms and baths, the square footage, and other amenities/features. The MLS may also include any special terms the seller may consider.
There are two remarks sections of an MLS listing. One remark section that the public can see on the MLS listing and another that can only be viewed by real estate agents. The remark section of the listing will contain clues about the condition of the property and the motivation of the seller that will be important for your real estate offer. Working with an investing friendly real estate has so many benefits.
Choosing a RealtorWhen choosing an investor friendly real estate agent or a Realtor that works with investors, ideally you would want an agent who is creative, hard working, aggressive and an agent who knows how and where to find deals.
Most real estate agents have limited experience with investors. They have never done a creative investing real estate transaction. This can be a challenge for an investor and it can take some time to find the right real estate agent, but the time you spend looking for investor friendly realtors will be well worth it.
One thing to note, most real estate agents are not receptive to “unusual” offers. They may not believe in the “nothing down” offers or creative approaches. If you plan to make a creative offer on a real estate deal and you are working with a real estate agent who doesn’t think “outside the box”- insist on being the one to present the offer because you want the owner to hear the benefits of your offer (as well as build trust). Believing in those benefits will be key to making a convincing presentation.
Let the Realtor know you are looking for distressed properties that need repair. Do not let the real estate agent pre-qualify you. Let them know that you use private funding, are already preapproved by your own bank/lender and can close quickly.
Finding Investor Friendly Real Estate Agents It’s recommended that you find a real estate agent who works in your target area when you are just getting started in real estate investing. That’s simple, while driving through your target investing area, look for realtor signs, and pick the three real estate companies or agents with the most signs. As you do this, you may notice an agent dominating the area. Real estate agents usually “farm” an area just like investors, meaning that they focus on a particular area and work it to get listings. They do this by actively contacting the owners through phone calls, mailing promotional material, and knocking on doors of nearby listings to build a rapport.
At this point just give them a call. Here is an example of a good introduction of a real estate investor to a Realtor:
“Hello my name is _____________. I’ve noticed all of your listings in the __________area. I am in a position to do some investing in real estate. I am looking to buy properties in your area and I want to see if we can develop a relationship.
Would it be easier for you if I gave you my basic criteria likes properties that are income properties or cosmetically distressed fixer-uppers, nothing major like structural or plumbing, single family, 2 -4 multi-units, 20 – 30% below market value and you arrange to send me out a daily or weekly email with listings that match?”
There are many real estate agents who advertise online as “investor friendly realtors” and they at times specialize in income properties like duplexes and understand how to work with properties that are in need of cosmetic repairs. Lastly, ask for referrals from other investors in your REIA or local real estate clubs for real estate agent with experience working with investors.
Leave me a comment below and have a GREAT INVESTING DAY!
As a real estate investor, you should learn to leverage your time by carefully selecting qualified people to work with on your real estate deals or to help you maintain your investments. A key person that should be on your “Power Team” is a real estate agent or realtor.
Finding The Right Real Estate AgentA good working relationship with an investor friendly real estate agent is one of the most important assets an investor can have. For one, when a property you are interested in purchasing is listed with a Realtor, you may want to have your own agent working with you to represent your best interests in the deal.
Secondly, investor friendly real estate agents and Realtors can help you evaluate deals by pulling up sold properties comparable to the one you are thinking of buying. They will hand you a CMA (comparative market analysis report) that will give you a good idea of the market value for that neighborhood or type of house.
Thirdly, Realtors have access to the Multiple Listing Service (MLS), a valuable source for finding potential real estate deals and listing your own future deals for sale. Another great benefit of them having MLS access, is that it can give you a real time snapshot of what current prices and rents are being sought after in the market place by other consumers and real estate investors.
The properties on the MLS will usually include pictures and a good deal of information about the property, including the address of the property, the number of bedrooms and baths, the square footage, and other amenities/features. The MLS may also include any special terms the seller may consider.
There are two remarks sections of an MLS listing. One remark section that the public can see on the MLS listing and another that can only be viewed by real estate agents. The remark section of the listing will contain clues about the condition of the property and the motivation of the seller that will be important for your real estate offer. Working with an investing friendly real estate has so many benefits.
Choosing a RealtorWhen choosing an investor friendly real estate agent or a Realtor that works with investors, ideally you would want an agent who is creative, hard working, aggressive and an agent who knows how and where to find deals.
Most real estate agents have limited experience with investors. They have never done a creative investing real estate transaction. This can be a challenge for an investor and it can take some time to find the right real estate agent, but the time you spend looking for investor friendly realtors will be well worth it.
One thing to note, most real estate agents are not receptive to “unusual” offers. They may not believe in the “nothing down” offers or creative approaches. If you plan to make a creative offer on a real estate deal and you are working with a real estate agent who doesn’t think “outside the box”- insist on being the one to present the offer because you want the owner to hear the benefits of your offer (as well as build trust). Believing in those benefits will be key to making a convincing presentation.
Let the Realtor know you are looking for distressed properties that need repair. Do not let the real estate agent pre-qualify you. Let them know that you use private funding, are already preapproved by your own bank/lender and can close quickly.
Finding Investor Friendly Real Estate Agents It’s recommended that you find a real estate agent who works in your target area when you are just getting started in real estate investing. That’s simple, while driving through your target investing area, look for realtor signs, and pick the three real estate companies or agents with the most signs. As you do this, you may notice an agent dominating the area. Real estate agents usually “farm” an area just like investors, meaning that they focus on a particular area and work it to get listings. They do this by actively contacting the owners through phone calls, mailing promotional material, and knocking on doors of nearby listings to build a rapport.
At this point just give them a call. Here is an example of a good introduction of a real estate investor to a Realtor:
“Hello my name is _____________. I’ve noticed all of your listings in the __________area. I am in a position to do some investing in real estate. I am looking to buy properties in your area and I want to see if we can develop a relationship.
Would it be easier for you if I gave you my basic criteria likes properties that are income properties or cosmetically distressed fixer-uppers, nothing major like structural or plumbing, single family, 2 -4 multi-units, 20 – 30% below market value and you arrange to send me out a daily or weekly email with listings that match?”
There are many real estate agents who advertise online as “investor friendly realtors” and they at times specialize in income properties like duplexes and understand how to work with properties that are in need of cosmetic repairs. Lastly, ask for referrals from other investors in your REIA or local real estate clubs for real estate agent with experience working with investors.
Leave me a comment below and have a GREAT INVESTING DAY!
How To Use Real Estate Agents To Flip Houses
For many people new to house flipping, finding properties to flip is a bit of a challenge. So with that in mind, how can you start locating potential houses to flip?
I spend a lot of time speaking with people about how to be successful in the real estate business – however if you fail to find suitable properties to begin with, you will have a difficult time jump-starting your house flipping career.
Real estate agents can play a major role in helping you to locate prime houses to flip – generally because they are actively searching for new properties each day. Along with wholesalers, real estate agents have been one of the best sources of some of my most successful flips.
Here we will discuss how to best utilize real estate agents to take your house flip business to a whole other level.
Using Real Estate Agents: To Do’s and Not To Do’sWhen using a real estate agents in your house flips, be sure to incorporate the following tips and tactics:
The bottom line with real estate agents is that if you surround yourself with some really good ones, they will become vital members of your house flipping team. Get out there and meet as many as you can. Granted not all of them will be great…some will be just plain horrible. But the real estate business is like any other kinds of business that has its share of good and bad.
The good thing is that the more real estate agents you meet, your chances increase of eventually finding a core group that will be professional and knowledgeable. These are the ones who will become a huge asset for you as you grow your house flipping business.
I spend a lot of time speaking with people about how to be successful in the real estate business – however if you fail to find suitable properties to begin with, you will have a difficult time jump-starting your house flipping career.
Real estate agents can play a major role in helping you to locate prime houses to flip – generally because they are actively searching for new properties each day. Along with wholesalers, real estate agents have been one of the best sources of some of my most successful flips.
Here we will discuss how to best utilize real estate agents to take your house flip business to a whole other level.
Using Real Estate Agents: To Do’s and Not To Do’sWhen using a real estate agents in your house flips, be sure to incorporate the following tips and tactics:
The bottom line with real estate agents is that if you surround yourself with some really good ones, they will become vital members of your house flipping team. Get out there and meet as many as you can. Granted not all of them will be great…some will be just plain horrible. But the real estate business is like any other kinds of business that has its share of good and bad.
The good thing is that the more real estate agents you meet, your chances increase of eventually finding a core group that will be professional and knowledgeable. These are the ones who will become a huge asset for you as you grow your house flipping business.
iPad And iPhone Apps For Real Estate Investors And Agents
There are many great real estate apps out there and this is simply the list of apps that I currently have installed on my iPad and iPhone which I find to beuseful for real estate investors and agents. If you have a great real estate app for the iPad or iPhone that you would like to recommend then please do so in the comments section at the bottom of this article.
Real Estate Apps For Searching For PropertiesThe best and most used apps in the real estate space are those that are designed to help users search for properties. The big 3 real estate search sites arewww.realtor.com www.zillow.com and www.trulia.com. I recommend all 3 of these sites for searching for properties on your computer but as far as their apps go they each have unique features.
The key benefit to using these apps is the location services built into your iPhone or iPad which lets your iPad or iPhone know where you are currently located. This enables you to see what is for sale around you when you are out in the field looking at houses. However in order for this to work you must have your location services enabled under “Settings” > ”General ”> Privacy”.
Realtor
As a real estate investor or real estate agent you are looking for a good deal on a house meaning a house that is priced to sell for you or your client. I find that searching using an online site like www.realtor.com is a great tool to look for potential properties to buy or invest in. When I go out to look at the house, I use the realtor.com app when I am in front of the house which allows me to see everything available for sale in the area around the subject property.
You can refine your search to show sold properties, properties for sale, properties for rent and you can also search by number of bedrooms and bathrooms. You can also sort by price, distance, open houses and how new an MLS listing is. I use this app the most frequently out of all the property search apps when I am out in the field. Here is a link to the Realtor.com app for the iPhone:http://www.realtor.com/mobile/iphone
Zillow
Zillow is currently the most visited real estate site on the planet recently overtaking the # 2 site Realtor.com in traffic (according to Zillow). Zillow is very user friendly web site for real estate investors and can be found at www.zillow.com. What I like most about it is that it uses different colors to show houses for sale, houses that sold and houses that owners want to sell. It also shows houses for rent which can be useful for investors that want to be landlords and know how much cash flow they will get on a property.
One key difference between Zillow and the other sites mentioned above is thatZillow is not the MLS. Many real estate agents do not even know this and are not aware that Zillow shows all properties not just the ones that are listed on the MLS. Zillow does not have any relationship with the MLS and simply gives information on every property (available for sale and not for sale).
Zillow even allows users to indicate a price that they would be willing to sell their property for with a feature called “Make Me Move”. Many investors use Zillow as a tool to calculate what a home is worth and Zillow gives what is known as a “Zestimate”. This is a useful tool but keep in mind that users can edit home facts and that the “Zestimate” is just a ballpark estimate and the actual value of the property can sometimes vary substantially to the Zestimate.
Another useful feature on Zillow is the “Rent Zestimate” which shows you what your subject property might rent for. Other useful features with the Zillow app are the ability to add notes and photos to any property that you are interested in and save them. You can find the Zillow app for the iPhone at this link:http://www.zillow.com/iphone/
Trulia
Trulia real estate is another great real estate web site which can be found atwww.trulia.com. We use the Trulia site and Trulia app very frequently in our office. One useful feature that I use often is the “draw” feature which allows you to set the perimeters for your search. This is especially useful if you are limiting your search for houses to an area that is very specific and do not want to search for houses past a certain street, bridge, main road etc.
Another great feature with the Trulia app is the “layers” feature which can be used to show heatmaps for crime, average listing price, average sales price, median sales price and average price per square foot. Another useful tool is the “boundaries” feature which shows the boundaries to neighborhoods and zip codes. You can download the Trulia app for your iPhone at this link:http://www.trulia.com/mobile/iphone/
Real Estate Apps For Keeping Track Of Documents And ContactsThere are a lot of useful real estate productivity apps but I am going to tell you specifically about 4 that we use in our office every day.
Dropbox
Dropbox for me personally is hands down probably the most useful app out there for real estate agents and real estate investors. You can visit their web site atwww.dropbox.com and you can download it for free. What do you do with all of your scanned purchase and sale contracts that are in pdf format? You can save them to Dropbox and then when you need to access them you can retrieve them from your computer, your iPad or your iPhone.
Dropbox works seamlessly on your computer and shows up as a directory just like your “my documents” folder. Every time you put a document in that folder it automatically “syncs” and saves that document online virtually in the “cloud”. This is very useful for a number of reasons. If your computer crashes you will not lose your document.
You can have Dropbox installed on multiple computer devices and you can allow other users access to your Dropbox folders. You can even choose which folders to keep private and which folders you would like to share. Our staff uses Dropbox in our office for all documents and all members of our staff have access to our shared folders.
Once you download the Dropbox App then you will be able to access your documents from anywhere on your iPhone or iPad or any computer anywhere. We use this tool every single day multiple times a day. This is an awesome app and I highly recommend it. To download the app for your iPhone visit this link:https://www.dropbox.com/iphoneapp
Docusign
Docusign is another useful web site and app combination that we use every day. You can visit their website at www.Docusign.com. This app is not free and costs $15 per month but if you are completing a lot of purchase and sale contracts or signing a lot of documents then you will instantly see the benefit of using Docusign. If you are a real estate agent or a real estate investor who is making many offers on properties then having Docusign can be a real time saver. And saving time means making money.
Instead of having to print out and then sign and then scan and save to pdf you are able to simply log in to your Docusign account and sign the document electronically. No paper, no ink, no paper jams etc. Docusign will save you a lot of paper and ink and is very environmentally friendly.
If I am on the road looking at properties and a real estate agent lets me know that one of my offers has been accepted and that I need to sign the purchase and sales contract immediately then I use Docusign. Using my Ipad I retrieve the email with the purchase contract and then using Docusign I sign the document and send it back to the realtor.
Docusign saves a copy of the signed document in my account and also sends me an email with the signed pdf. Compare the above to having to go back to the office, print a contract, sign it, scan it and email it. Time is money and Docusign will save you time and money.
Zoho CRM
Zoho CRM is a great tool for keeping track of all of your contacts. You can visit their website at www.zoho.com/crm. If you want to sync your contact using their app you can get the free version of Zoho CRM and for only $3 per month you can connect and sync your iPhone and iPad with your Zoho account using the app.
If you are ever out of the office and need to call someone and don’t remember their number you will really like using Zoho CRM. One really nice feature is that when you access Zoho CRM from your iPhone or Ipad you can add the contact information to your contacts with the click of a button. If you are out and about looking at properties and you want to have one place to keep all your contact information then Zoho CRM is hard to beat. You can download their iPhone app athttp://www.zoho.com/crm/mobile/
Jot Not Scanner Pro
If you are on the go and you need to sign a document that was not emailed to you but you are holding in your hands (like a listing agreement, signed contract or lease) then a very useful tool to use in a pinch is Jot Not Scanner Pro. This app turns your iPhone or iPad camera into a scanner and can take a picture and convert it automatically into a pdf document.
We recently used this with a client who needed to submit a copy of their driver’s license to the title company. Instead of heading back to the office to make a copy we simply took a picture with Jot Not and saved it as a pdf. Then we emailed that document to our Ttitle Company. Here is a link to Jot Not Scanner Pro in the iTunes Store https://itunes.apple.com/us/app/jotnot-scanner-pro-scan-multipage/id307868751?mt=8
Real Estate Apps For Searching For PropertiesThe best and most used apps in the real estate space are those that are designed to help users search for properties. The big 3 real estate search sites arewww.realtor.com www.zillow.com and www.trulia.com. I recommend all 3 of these sites for searching for properties on your computer but as far as their apps go they each have unique features.
The key benefit to using these apps is the location services built into your iPhone or iPad which lets your iPad or iPhone know where you are currently located. This enables you to see what is for sale around you when you are out in the field looking at houses. However in order for this to work you must have your location services enabled under “Settings” > ”General ”> Privacy”.
Realtor
As a real estate investor or real estate agent you are looking for a good deal on a house meaning a house that is priced to sell for you or your client. I find that searching using an online site like www.realtor.com is a great tool to look for potential properties to buy or invest in. When I go out to look at the house, I use the realtor.com app when I am in front of the house which allows me to see everything available for sale in the area around the subject property.
You can refine your search to show sold properties, properties for sale, properties for rent and you can also search by number of bedrooms and bathrooms. You can also sort by price, distance, open houses and how new an MLS listing is. I use this app the most frequently out of all the property search apps when I am out in the field. Here is a link to the Realtor.com app for the iPhone:http://www.realtor.com/mobile/iphone
Zillow
Zillow is currently the most visited real estate site on the planet recently overtaking the # 2 site Realtor.com in traffic (according to Zillow). Zillow is very user friendly web site for real estate investors and can be found at www.zillow.com. What I like most about it is that it uses different colors to show houses for sale, houses that sold and houses that owners want to sell. It also shows houses for rent which can be useful for investors that want to be landlords and know how much cash flow they will get on a property.
One key difference between Zillow and the other sites mentioned above is thatZillow is not the MLS. Many real estate agents do not even know this and are not aware that Zillow shows all properties not just the ones that are listed on the MLS. Zillow does not have any relationship with the MLS and simply gives information on every property (available for sale and not for sale).
Zillow even allows users to indicate a price that they would be willing to sell their property for with a feature called “Make Me Move”. Many investors use Zillow as a tool to calculate what a home is worth and Zillow gives what is known as a “Zestimate”. This is a useful tool but keep in mind that users can edit home facts and that the “Zestimate” is just a ballpark estimate and the actual value of the property can sometimes vary substantially to the Zestimate.
Another useful feature on Zillow is the “Rent Zestimate” which shows you what your subject property might rent for. Other useful features with the Zillow app are the ability to add notes and photos to any property that you are interested in and save them. You can find the Zillow app for the iPhone at this link:http://www.zillow.com/iphone/
Trulia
Trulia real estate is another great real estate web site which can be found atwww.trulia.com. We use the Trulia site and Trulia app very frequently in our office. One useful feature that I use often is the “draw” feature which allows you to set the perimeters for your search. This is especially useful if you are limiting your search for houses to an area that is very specific and do not want to search for houses past a certain street, bridge, main road etc.
Another great feature with the Trulia app is the “layers” feature which can be used to show heatmaps for crime, average listing price, average sales price, median sales price and average price per square foot. Another useful tool is the “boundaries” feature which shows the boundaries to neighborhoods and zip codes. You can download the Trulia app for your iPhone at this link:http://www.trulia.com/mobile/iphone/
Real Estate Apps For Keeping Track Of Documents And ContactsThere are a lot of useful real estate productivity apps but I am going to tell you specifically about 4 that we use in our office every day.
Dropbox
Dropbox for me personally is hands down probably the most useful app out there for real estate agents and real estate investors. You can visit their web site atwww.dropbox.com and you can download it for free. What do you do with all of your scanned purchase and sale contracts that are in pdf format? You can save them to Dropbox and then when you need to access them you can retrieve them from your computer, your iPad or your iPhone.
Dropbox works seamlessly on your computer and shows up as a directory just like your “my documents” folder. Every time you put a document in that folder it automatically “syncs” and saves that document online virtually in the “cloud”. This is very useful for a number of reasons. If your computer crashes you will not lose your document.
You can have Dropbox installed on multiple computer devices and you can allow other users access to your Dropbox folders. You can even choose which folders to keep private and which folders you would like to share. Our staff uses Dropbox in our office for all documents and all members of our staff have access to our shared folders.
Once you download the Dropbox App then you will be able to access your documents from anywhere on your iPhone or iPad or any computer anywhere. We use this tool every single day multiple times a day. This is an awesome app and I highly recommend it. To download the app for your iPhone visit this link:https://www.dropbox.com/iphoneapp
Docusign
Docusign is another useful web site and app combination that we use every day. You can visit their website at www.Docusign.com. This app is not free and costs $15 per month but if you are completing a lot of purchase and sale contracts or signing a lot of documents then you will instantly see the benefit of using Docusign. If you are a real estate agent or a real estate investor who is making many offers on properties then having Docusign can be a real time saver. And saving time means making money.
Instead of having to print out and then sign and then scan and save to pdf you are able to simply log in to your Docusign account and sign the document electronically. No paper, no ink, no paper jams etc. Docusign will save you a lot of paper and ink and is very environmentally friendly.
If I am on the road looking at properties and a real estate agent lets me know that one of my offers has been accepted and that I need to sign the purchase and sales contract immediately then I use Docusign. Using my Ipad I retrieve the email with the purchase contract and then using Docusign I sign the document and send it back to the realtor.
Docusign saves a copy of the signed document in my account and also sends me an email with the signed pdf. Compare the above to having to go back to the office, print a contract, sign it, scan it and email it. Time is money and Docusign will save you time and money.
Zoho CRM
Zoho CRM is a great tool for keeping track of all of your contacts. You can visit their website at www.zoho.com/crm. If you want to sync your contact using their app you can get the free version of Zoho CRM and for only $3 per month you can connect and sync your iPhone and iPad with your Zoho account using the app.
If you are ever out of the office and need to call someone and don’t remember their number you will really like using Zoho CRM. One really nice feature is that when you access Zoho CRM from your iPhone or Ipad you can add the contact information to your contacts with the click of a button. If you are out and about looking at properties and you want to have one place to keep all your contact information then Zoho CRM is hard to beat. You can download their iPhone app athttp://www.zoho.com/crm/mobile/
Jot Not Scanner Pro
If you are on the go and you need to sign a document that was not emailed to you but you are holding in your hands (like a listing agreement, signed contract or lease) then a very useful tool to use in a pinch is Jot Not Scanner Pro. This app turns your iPhone or iPad camera into a scanner and can take a picture and convert it automatically into a pdf document.
We recently used this with a client who needed to submit a copy of their driver’s license to the title company. Instead of heading back to the office to make a copy we simply took a picture with Jot Not and saved it as a pdf. Then we emailed that document to our Ttitle Company. Here is a link to Jot Not Scanner Pro in the iTunes Store https://itunes.apple.com/us/app/jotnot-scanner-pro-scan-multipage/id307868751?mt=8
How He Almost Lost This Wholesale Deal
A fellow I know got a great property under contract, found a buyer for his wholesale deal and was looking to make a quick $10,000 on the deal. However, he made a few mistakes along the way which almost cost him the deal and I want to show you how to avoid them.
First off, he did get a $2,000 deposit from the buyer. That’s a good amount of money and if I were you, I would never go below $2,000. If a buyer/rehabber can’t afford that amount of money, then you don’t want to do business with them.
However, a mistake that the fellow made was that he didn’t get a proof of funds letter or “check the credentials” of the buyer. In short, he just took the guys word that he’d be able to come up with the rest of the money and to be able to close in less than 30 days.
Well, as the closing date approached…
The buyer called the wholesaler and said he needed more time and wasn’t going to have the money ready in time. Since this wholesaler was new, he didn’t want to lose the deal and he called up the seller to see if they would extend closing, which they thankfully agreed to.
Finally, after another delay the seller did end up getting the money, coming to closing and this wholesaler got paid. However, it caused him a lot of stress which could easily have been avoided.
Like I mentioned earlier, see a proof of funds letter to make sure that the buyer will actually be able to close the deal. Also, if this person attends your local REIA meetings ask around and find out what their reputation is. If it turns out they’re flakey and unreliable then obviously don’t wholesale the deal to them.
Also, it’s very important to remain in control as a wholesaler.
Don’t let a buyer/rehabber jerk you around. If they don’t close on the date they’re supposed to don’t give them another chance, unless they’re willing to put down the rest of your wholesale fee. For instance, if the buyer needs to come up with $150,000 for closing and the rest of the wholesale fee they owe you is $8,000 (because they already paid a $2,000 deposit) then tell them the only way you’ll extend closing is if they pay you the $8,000 you’re owed.
And if they say no, then walk away. Don’t bluff, actually do it, and more often than not the buyer won’t want to lose the deal and you’ll get the money. However, if the buyer doesn’t want to play ball then you should always have a backup buyer to go to. In your buyers list (you need to build a buyers list ASAP if you don’t have one already) you should quickly be able to contact someone else who will be interested in the deal.
So from now on, evaluate your buyers a little more thoroughly and always have a backup plan in case the first person falls through.
First off, he did get a $2,000 deposit from the buyer. That’s a good amount of money and if I were you, I would never go below $2,000. If a buyer/rehabber can’t afford that amount of money, then you don’t want to do business with them.
However, a mistake that the fellow made was that he didn’t get a proof of funds letter or “check the credentials” of the buyer. In short, he just took the guys word that he’d be able to come up with the rest of the money and to be able to close in less than 30 days.
Well, as the closing date approached…
The buyer called the wholesaler and said he needed more time and wasn’t going to have the money ready in time. Since this wholesaler was new, he didn’t want to lose the deal and he called up the seller to see if they would extend closing, which they thankfully agreed to.
Finally, after another delay the seller did end up getting the money, coming to closing and this wholesaler got paid. However, it caused him a lot of stress which could easily have been avoided.
Like I mentioned earlier, see a proof of funds letter to make sure that the buyer will actually be able to close the deal. Also, if this person attends your local REIA meetings ask around and find out what their reputation is. If it turns out they’re flakey and unreliable then obviously don’t wholesale the deal to them.
Also, it’s very important to remain in control as a wholesaler.
Don’t let a buyer/rehabber jerk you around. If they don’t close on the date they’re supposed to don’t give them another chance, unless they’re willing to put down the rest of your wholesale fee. For instance, if the buyer needs to come up with $150,000 for closing and the rest of the wholesale fee they owe you is $8,000 (because they already paid a $2,000 deposit) then tell them the only way you’ll extend closing is if they pay you the $8,000 you’re owed.
And if they say no, then walk away. Don’t bluff, actually do it, and more often than not the buyer won’t want to lose the deal and you’ll get the money. However, if the buyer doesn’t want to play ball then you should always have a backup buyer to go to. In your buyers list (you need to build a buyers list ASAP if you don’t have one already) you should quickly be able to contact someone else who will be interested in the deal.
So from now on, evaluate your buyers a little more thoroughly and always have a backup plan in case the first person falls through.
Best Ways To Use Realtors To Work For You
Realtors have been a great source for finding deals, and over the past few years, the one I have used the most. They provide a valuable service for you as a real estate investor, and if you become someone they can trust and profit by, they will do much of the work of finding good deals for you.
They can also help you stop chasing deals and by turning things around, make the deals start chasing you. This is when things become really easy. Once you prove yourself as a closer – someone who buys properties and closes on time – once you prove that you mean business, Realtors will call you with everything they get their hands on. Giving you options, deals will come across your desk all the time with plenty to pick through.
Let Realtors Work For You
I have my buyer’s agent set up and run several database searches for me so that we can extract properties from the Multiple Listing Service. I will go over these so that you can have your brokers do the same. Most, if not all, broker software services allow the agent to set up these searches for you, so that you get an automatic email whenever a new listing meets your criteria.
Here are some searches I would suggest:
Tax Value Properties Realtor Search
First, I would have them set up my favorite search, the tax value spread search. This is a search that lets you put in a tax value range and a list price range. You can then search for properties that are significantly less than tax value. But before I go any further, let me emphasize this.
You cannot use tax values as an accurate guide for the value of properties. You must use recent sales comps. Not homes on the market. Not pending homes. Not homes that sold a year ago. Sold and closed homes that sold in the last six months are your true comps and will give you a true value.
The reason I recommend the tax value search is because it is the most productive search I am using right now. It allows you to slice through a large amount of data in a short period of time and look for outliers that could be your next investments.
I like to run the following parameters in my markets. You will have to vary yours to meet what is working in your market. I usually run a tax value of $100k or higher and a listing price of $80k or lower. I then drop the price on both values down by $10k until you get to $50k.
I don’t buy many properties if the tax value is less than $60k. I am sure there is someone out there making good money on those homes, but it’s not me. I make my money on homes that I can purchase between $50k and $100k, 95% of the time.
Days On Markert (DOM) Properties Realtor Search
Next, I would have my Realtor set up a days-on-the market search, known as DOM. Depending on how slowly your market changes, you could have him do 180 days or more, or 360 days or more. What you are looking for is a manageable list that you can analyze and make offers on.
I do not hesitate to make 50% and 60% of asking price offers on these properties. They have been on the market for so long; most people have long forgotten about them. They will be pleased to have the activity, even if they don’t like your price.
Keyword Properties Realtor Search
Another search you can have your Realtor run is a “keyword” search. In some databases, there is a category for the following key words: Foreclosures, Short Sales, Pre-Foreclosures, Bank Sales, Corporate Owned, and also some of the larger banks by name.
If your markets are anything like mine, you will probably want to add more parameters than just those key words. If you run a search just for foreclosures, you will probably end up with a list that is too large to work effectively.
They can also help you stop chasing deals and by turning things around, make the deals start chasing you. This is when things become really easy. Once you prove yourself as a closer – someone who buys properties and closes on time – once you prove that you mean business, Realtors will call you with everything they get their hands on. Giving you options, deals will come across your desk all the time with plenty to pick through.
Let Realtors Work For You
I have my buyer’s agent set up and run several database searches for me so that we can extract properties from the Multiple Listing Service. I will go over these so that you can have your brokers do the same. Most, if not all, broker software services allow the agent to set up these searches for you, so that you get an automatic email whenever a new listing meets your criteria.
Here are some searches I would suggest:
Tax Value Properties Realtor Search
First, I would have them set up my favorite search, the tax value spread search. This is a search that lets you put in a tax value range and a list price range. You can then search for properties that are significantly less than tax value. But before I go any further, let me emphasize this.
You cannot use tax values as an accurate guide for the value of properties. You must use recent sales comps. Not homes on the market. Not pending homes. Not homes that sold a year ago. Sold and closed homes that sold in the last six months are your true comps and will give you a true value.
The reason I recommend the tax value search is because it is the most productive search I am using right now. It allows you to slice through a large amount of data in a short period of time and look for outliers that could be your next investments.
I like to run the following parameters in my markets. You will have to vary yours to meet what is working in your market. I usually run a tax value of $100k or higher and a listing price of $80k or lower. I then drop the price on both values down by $10k until you get to $50k.
I don’t buy many properties if the tax value is less than $60k. I am sure there is someone out there making good money on those homes, but it’s not me. I make my money on homes that I can purchase between $50k and $100k, 95% of the time.
Days On Markert (DOM) Properties Realtor Search
Next, I would have my Realtor set up a days-on-the market search, known as DOM. Depending on how slowly your market changes, you could have him do 180 days or more, or 360 days or more. What you are looking for is a manageable list that you can analyze and make offers on.
I do not hesitate to make 50% and 60% of asking price offers on these properties. They have been on the market for so long; most people have long forgotten about them. They will be pleased to have the activity, even if they don’t like your price.
Keyword Properties Realtor Search
Another search you can have your Realtor run is a “keyword” search. In some databases, there is a category for the following key words: Foreclosures, Short Sales, Pre-Foreclosures, Bank Sales, Corporate Owned, and also some of the larger banks by name.
If your markets are anything like mine, you will probably want to add more parameters than just those key words. If you run a search just for foreclosures, you will probably end up with a list that is too large to work effectively.
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