Got Questions? Carol Stinson's Wholesaling Q&A.

Carol,
how do you handle the agent that sends you the listings?

Find a 3bd 2 bath house 1170sq There asking 214,900 but they went down to 205,000
How much should we offer we are trying to make at lease 10,000 on this deal any tips.
the comps are
$155,000
$181,790
$195,000
$250,000
$225,000

We haven't went to look at the property to determine the repair value. It the ad it states Amazing Opportunity! Asking Price Includes $15,000 Budget for Seller Performed Renovations and Repairs. Walk through the house and imagine it renovated to your taste, without ever having to get dirty. Bring your ideas! Be Creative! View the property and specify your request for repairs. Have a home that reflects your taste, without the work! Call agent regarding renovation plans.
What does that mean?

Thanks
Carol

Hi Carol. I hope you and the family enjoyed your much deserved vacation. But you've been missed. Next to Dean, you are my "other hero". Since I know you work out of the same market as I do (Philadelphia), I have searched out anything on this site with your name on it! I am also a subscriber to your website. Well done, I might add. Now I am just recovering from a hip replacement and when my doc gives the okay I want to hit the ground running and make a big splash.

Question #1: How do I determine which neighborhoods I should devote time to in search of a deal?

Question #2: Besides CL are there any other methods you recommend/used to build your buyers list? You have great content on your site, I just wanna hear it from you. I really do admire your determination and although you probably don't remember, I want to thank you for the words of encouragement when I was on the verge of giving up! Bless you and your family and continued success!! (Sorry this was soo long!)

Ogal

you need a llc only if you are buying real estate right?
But if you are assigning or lease optioning you don't need one.
Thanks

yeah, you don't really need it for lease options, but it can come in helpful if you have bad credit and want to build it up to buy properties, it takes about 6 months to build up credit, but it keeps your personal social security number out of it. If you search the site for llc there are a cuople of threads that talk about it. I chose the scorp because it has better tax breaks and you can put llc(S) under it. Plus when you grow to where you need assistants or something like that, you're all set up already.

I am not sure I understand your question. If you mean how do you pay the agent I give them a $1500 finders fee if I close on any of the properties.

You do not need an LLC to buy properties. But it is always a good idea to purchase in the name of an LLC to lower your liability risk. I recommend creating a separate LLC for each property you buy. Ex.. 123 smith St LLC.

No you do not need an LLC if you are assigning or leas optioning since you are not taking Title to the property.

thanks for taking the time to answer our questions.
god bless you and you family

Thanks Ogal I missed you guys too

To determine a good investment area you need to study the area. KNOW YOUR MARKET! Ex. Is there new development, jobs, are the housing prices dead or on the increase. Also ask your buyers where they are buying, what areas. You will begin to see a pattern and be able to focus in on the prime market area.

You build your buyers list with great deals. If you don't have one create one AKA. Ghost ad. Like I said previously it is like fishing. you don't go fishing without bait. You need bait to catch the buyers. Create a great property deal and then post it, post it, post it!! Here is a great add that I found on craigslist tonight http://southjersey.craigslist.org/reo/1863257685.html I can tell it is a wholesaler by the way it is written. This is probably a ghost ad since it sounds to good to be true and there is no price. This is a great example of how to write one.

Hope this helps!

Tell them that you are currently working on some AWESOME deals and you would like to keep them on your list to call when it's available. Ask them for their phone number and then call them and begin building a relationship. Ask them what they are looking for, area etc... keep their email address on file and send them info when you get a property. This is a great way to build your buyers list fast!

I prefer to use mine since they know how I like to close and many Title Companies will not do assignments. But if the buyer insist then by all means entertain him

Theresa I pay my property locators at closing. I simply add them onto the assignment contract. If there is no assignment contract ( I get paid outside of closing on some deals) I will pay them out of my profit. I then give then a 1099.

JJD I am glad you found that site as AWESOME as I do! Good luck!

Hey Carol,

I was just wondering how does the Mechanics of your Assignments from home work?

I know that you explain it already but I still have some gaps that i don't understant yet...

can you give a step by step detail on how you do it so successfully?

Thank you and God Bless

My ? is regarding team building.

I want to first just thank you so much for all that you are doing for the DG fam I just found this forum last night and it was a light at the end of my very dark tunnel. Not sure if you remember me we talked via PM approx 1 yr or more ago our start story is also a mirror reflection. Mine has not changed until now.........

So my question is how much of a team do you need to get started with wholesaling and/or assigning? I am also very interested in lease/option (Greg Murphy's style). I do have some parts of my team but I want to make sure I have working in the right direction.

Thanks

I had the same idea regarding the hand written letter, at one time during our journey someone sent us one and I read it unlike the others.

Can you give some examples of one or two.....I am working on this today.

Thanks

I wonder I have not taken the time to read this thread before. First, I am impressed about your past and how you have traveled to the now.

I am currently in the same situation you are. I have tried real estate before. I was stupidly discouraged. I had an assignment that fell through and I was discouraged. One thing that strike from the thread is that of the Day Funding.
I was opinion that the day funding companies will be asking me for an upfront money (which I don't have), my credit report (which is shocking). If all I have to do to apply, that will be great. I will approach the one you mentioned in your thread. And, if you have other suggestions. Please let me know.

I am also encouraged by your video and the fact that are from (not to be parochial here) Philadelphia area. I am writing from and living in Philadelphia Area. I am more energized and encouraged. I am going to dust off my confidence and the past knowledge and restart.

Thanks,
Matthew

Hey Carol,

For a basic assignment, if we're not paying finders' fees yet, what do we need to do as regards taxes on our wholesale fee? Do we tell our CPA about the profit? What do we need to provide him at tax time? Thanks!

Vincent

Hi Carol, I would like to thank you for all the iformation that you have shared on DG and your web site as well as being a member on your teamwork network. i am a investor in the mid an upper Westchester NY area and find it rough to find the deals that most investor would jump on even when most of my deals i target are in 400's-300's range and from that price i use a 75% - 65% MAO to get my final asking price. Or should i try to targetting property in other state to wholesale deals.

Carol: This new website is really great. Your original website "www.realwholesaling.com" has so much great info on it for everyone at the DG family. This new site to answer so many questions from so many people will turn you into a tutor/mentor instead of a real estate investor as you won't have any time for that anymore. LOL! You'll need to charge consulting fees instead of assignment fees to make your income. Anyway, back to questions: Contract contingencies- which ones do you use? 2).What do you use for home office equipment? Do you use your home or cell phone in your ads and for contact or do you use your home phone? 3). Do you have a regular fax machine or a 4 in 1? Do you have dedicated fax and company phone lines? 4) You seem so adept at using computers to do cut/pastes,broadcasting info to clients, etc. etc. Do you have an IT background? Where did you learn the computer so well to set up websites etc? 5) What are the emails that you use to send out to buyers/sellers I believe discussed at the 2010 Edge event? 6)You mentioned that you don't use the terminology "I buy houses" for signs and I guess anything else as it is "worn out". Do you put out flyers or bandit signs at all anywhere and if so what do you put on those? 7) Where do you get "greeting card envelopes" without having to buy the cards too? Notice on your "team" that you have an attorney for a negotiator. Do you feel that is a necessary expense item? Also you have an "assistant" to help out with phone calls,paperwork etc. You are getting like the big R.E. Brokers hiring an assistant to do the "grunt" work to allow you more time to do deals. Do you find that to be a necessary expense item too? Amazing how in two years you have gone from doing everything yourself to utilizing assistants and negotiators for your team. I hope that all of us getting started can be there within two years too. Nice to be able to afford to take a vacation too. LOL! Hope you had a good one. Looking forward to continued nurturing via both of your web sites and everyone's questions and your answers to so many things that just seem to "pop up". Thanks for your help. Please keep it going for all our sakes. Sorry there are so many questions but that is how we all learn. Ritt

Carol: Where do you get the best return for advertising your properties and also running "ghost ads" to generate a buyers list? Craigslist,yahoo,ebay,newspaper ads,postlets, bandit signs,flyers etc. What works the best and what doesn't work? Does your cell phone work the best or does a company phone in the house with an answering machine work best for calls? Always another question that "pops up". LOL Thanks Ritt

Do you know of any lenders that will accept deals that are being assigned from me to a buyer? If so, please send me their information. Thanks in advance.

How do you find your buyers? Where do you advertise. What makes them call you? Can we have an example of our wording? Do they go to a recorded message? How do you know they are for real? Other wise, You have some great places available, someone calls and says they are interested in buying, now what? Do they need to show you proof that they have the funds? Do you have the property locked up and you tell them where it is so they can look at it? Or what?

Thanks,

I love the fact that you do this from home. I am trying to figure out the steps to make life easier. What if the place ends up being a disaster?

I just read a bunch more Q & A's that I didn't realize was there. I also realized I was all business. I think other then the recorded message bit my questions were already answered. Thank You soooooooooooo much for taking the time.

Sincerely,

Charisse Rudolph
The Secret Daydream book Writer

Hi Carol,

I have a property in my sights that is not on the MLS yet. The property has less than $200k owed and is worth about $350K maybe a little more. At first glance there seems to be less then $10k of repairs. Sounds great so far so now for the catch. I called the owners today and they were just sitting down with a real estate agent as the phone was picked up. We have run the numbers and know that $220K is a realisic number even though the agent is looking at $335K. The owner wants a quick sale. What do you see as the next move?

Louise,

I know you were directing the question toward Carol, but I was curious...do you mean that $220K is a realistic fair market value or a fair offer? The agent is looking to list it at $335K?

Thanks!

Vincent

No... the fair market value is 325-425K the agent is meant to be listing it at 325-350K. The seller told me 260K is the cash price. We did our numbers and i was going to offer 230K because i know they need a quick sale due to foreclosure. The property was inherited so they just want to be clear of it.

The BEST advertising method for me by far is the news paper. I have built my buyers list by leaps and bounds using my local paper. The second best method is craigslist. I do not use bandit signs anymore since my township now fines for bandit sign placement. My area was getting overwhelmed by " I buy houses" bandit signs posted by sooooo many wholesalers that the township is now fining for placement.

I do not use an automated service or message system. I like being personal so all of the calls go to my office phone. If I cannot answer they get a greeting with my name stating I will call them back.

Hope this answers your questions.

Harry When you are faced with an area that is hard to find good deals I suggest checking into probate properties. Often times this is an area where you can find great deals that no one else is looking for. Probate properties often have low mortgage balances and the heirs want to get rid of it asap to cash in on the inheritance so their is better chance of negotiating for a low enough price for you to wholesale. This is where the best cherry picking is hidden when you are dealing with a high end market. I suggest you check into Dean's probate finder program. I am not sure of the URL but if you search in his programs you will find it. I have it and it works great!

You will have to file a 1099 at the end of the year or quarterly as I do. Just keep a copy of all of your assignment checks to supply your CPA at tax time.