Jason Smith's Journal- Tag Team Properties, LLC San Diego

Awesome job...Sounds like things are def heading in the right direction...And that is only cause you were willing to do something to make it happen...And not just sit around and watch tv all the time, or do something that really isnt productive at all...It is hard for some people to take that first step, then that second and so on...So congrats on that...Just gotta stick with it and not let anything get you down, and keep moving forward...So nice job, and look forward to reading more post/deals from ya...

Wow Jason,

Who have place your plan in action, don't stop.

Toady I'm waiting to hear back from my Realtor.He took the weekend to look through all of the Properties (about 20) that I gave him.He was starting to question this strategy because he tried this with another guy and it didn't work.But after I have been showing him alot of great post from here, I think he's aboard now.
We are focusing on properties that have been on the market and need rehab so we can get that low ball offer excepted.
I emailed my title co.That since he see's alot of wholesaler's,maybe he can set up a meeting with me and my Reator and share any strategies that are working for my area(San Diego).
I found a REI club in my area that is meeting this thrus.They are just having a 2009 get together with fun and games(what ever that means) and it say's bring the whole family.All that I know is that I need to go to meet local investors.It's $5.00 to get in.My wife and kids aren't going,so I just need to be brave and go alone and start talking.

I am smiling from ear to ear reading this thread.
Be brave and go to your new REI club and let us know what the fun and games are all about!
I put a posting on craig's list today begging for a local REI club.
I found 2 online, I emailed them - no response !
What ?
Like you, I am all over this site looking for info and inspiration to add to what I have learned and read in the materials - I know that a REI club is a key component -

"be brave and go alone and start talking"

we are all rooting for you.
DO IT! DO IT! DO IT!
and then, let us know how it went.
Looking forward to your success story.

I just got the email from my Realtor about the properties that he was going to put offers on. And got bad news.He put a couple in and dont think it will work,do to the respone he's got.
I'm getting desprite to acheive my first deal because all the time I have been spending on this.(Going on 3 months.)

Now I'm wondering Do I need to focus on fsbo's and abandon props.or get a Realtor willing to put in the time or just put the offers in myself.

Here's what my Realtor wrote:
Hi Jason: Sorry for the delay I have been really busy. I reviewed some of the paperwork you gave me and appreciate you taking the time to forward it to me. Though I knew in advance that homes are not selling for 30-50%below market value in San Diego I made a few calls to some of the listings and proposed to several agents what you were intending to offer. Each agent told me it was not worth my while to make such a low offer. The lenders will not even respond to offers that are that low. You might be able to pick up a property 10-15% below market value but not the margin you are looking for to be able to reassign the homes. I feel it is a better strategy to buy fixers, improve the property and rent it out until the market improves. Buying real estate and assigning it to prospective buyers is a challenge I do not think I am up for. It will take too much of my time and will be an extreme challenge to buy properties for such low prices. I hope you understand!

What areas of SD are you looking in?

How long did your realtor take to get back to you? He sounds like he might be too busy to work with you anyway.

Why would FSBOs work any better? They aren't selling in SD. Pretty much only bank owneds are moving in SD. The sellers who have to sell.. mostly cant so they are gtting foreclosed on. The sellers who DONT have to sell.. arent.

Check out the RE section in the Sunday paper. It's a GHOSTTOWN. What used to be 8-10 pages is now like 1 1/2. There is NOTHING there.

Most important question.. what is your exit strategy here??

Hey wmark1963,
1.) I was just starting in an area thats close to me which is Lakeside,Santee,Ramona,Alpine,El Cajon.
2.)We meet wed.last week and he got back to me today.so 5 days.and he didn't sound like he was very busy.I think he doesn't like the thought of putting in 20 offers and hoping for one.all the props.I gave him have been on the market along time.one junker (reo) around the block from me was on the market for a year and the bank dropped the price from $199,000 to $99,000.So my focus is REO's that need alot of rehab and if the bank doesn't except an assignment us a back to back closing.
3.)I agree with you on fsbo's.They wont budge on the price out here.
4.)exit strategy?
I'm just trying to get started with a couple of assignments, so I could use that money to Invest futher.My Wife's income takes care of our family and bills.So great opportunity for me.

1) If you are looking for REOs I dont believe they are clustered there. Big areas are Chula Vista/National City, Escondido, Oceanside. More REOs = bigger discounts.

2) If he isnt motivated in this market then find another realtor. If you are going to work with a realtor, it is very important that you are compatible. Otherwise, you will get frustrated.

4) What are you looking to do with the property? Let's say your realtor found you the perfect property at the perfect price. How would you finance it (how would you pay for it)? Then what would you do with it after you bought it? You make you money when you buy but you get PAID later.

I want to assign a couple at first because I want a little cousion of money.Since Studying on here learning about assigning,I havn't even thought about how I would get financed.Right now we're just making our bills,so I need some cash flow first. Being a homeowner myself in my 2nd home,I know the feeling of making a profit.
Bought our first home in 2001 and in 1 year prices rose 100k.So I know more than ever this is the time to get in.
I would like to lease option and rent it out.That looks like the best option for me to start.There's a house by me for sale and the tenants want to stay.Looks like they have been there awhile and take care of the place.It's remodeled some.

Maybe can assign REOs. I know Anita has done it. A lot of banks will auto-reject offers that have assignments in them but I'm not gonna say it's impossible.

Double close works for sure.

For LO, FSBOs DO work.

OK,I think it's time for another strategy.I'm getting my list back from my Realtor today since he backed out after putting in a couple of offers.I want to go ahead and finish putting those offers in myself and then get a new search from the mls on hard hit area's of foreclosures.They're about 20 minutes from me.
I emailed a realtor that Dawn (a student on dgsite)told me about.It's her sister n law.Hopefully I will get some response back from her.untill then I will keep chipping away at this.

Jason,
I am liking that you have a plan B (another strategy)
When you get your list back, you should go to the homeowners directly with your offers.
Good Luck.

I was thinking about this week and agreed with my wife, to go put in those offers myself.But after I read the post on here about bringing the agent to you, using craiglist. I thought I'd give that a try.I got 2 responses right away saying.
1.)I'm definately not afraid to submit low offers. Please look at my companies website to see a picture of me and a little bit about myself. I look forward to working with you.

2.)Hi,I just got my real estate license and I can’t wait to start using it.My focus is to learn to invest in real estate, so would like to work With investors who already know the ropes.
Hungry Agent,

So I wrote back to Realtor #1

Hi " "
A little about me.
I'm a 35 year old stay at home dad of a 6yr old daughter and 4yr old twin boy's and My wife is a special education teacher.I'm new to wholesaling with 3 months under my belt.I have realized what a great job for me to do since I have a lot of time to make this work.I have everything lined up from Investors/Buyers and a title co. that will do assignment deals and/or a double closings.I had a Realtor that wanted to put in offers for me,but decided that this wasn't for him after a couple of offers.
I have the best Investors support group that will answer any questions I have.My focus is hard hit areas of foreclosures that have been on the market awhile and need some rehab.I know nice properties are selling at FMV or above,so I need to stick to a game plan to get a discount of 30%-50% to assign them to my Buyers.
In my Investors group that ranges across the United States,all agree that it takes about 15 to 20 offers to get one or two deals.I have a lot of different strategies,this is just one of them.I'm very motivated, as I felt like I've been to college and back in the past 3 months studying.
So if you want to work with me and we will succeed,think about it and let me know.My only concern is I'm in Lakeside,But I plan on wholesaling where ever possible.I'm familiar with all of San Diego very well.My title co. is Fidelity title in mission valley.My support group is at www.deangraziosi.com it has been the most educational website as all the users can talk to eachother and support one another.It's like having coaches and mentors.

Thanks,
Jason Smith

Sounds like you are on your way!!

Can't wait to hear more!

Jason,

Stay Focused and keep working that plan of yours. Looking for ward to the success story.

Wayne

Hey Jason,

I'm located in San Diego as well. I'm fairly new so I know I will be facing some of the same obstacles you are. I'd like to thank you for the great post about finding a realtor, I got one hit already. Thanks and keep going strong.

Vic

I was suppose to submit my offers and had to take a step back again.The emotions of learning and wondering if this is for me is crazy.I would not be here still, if I didn't have DGFAM.

I really feel I still need more time to get more buyers.I took a look at more REI websites like the one on here(Which I didn't feel at home, like I do here)and keep finding that a lot of wholesalers are having problems because they can't get rid of the property fast enough.Meaning lack of buyers.I've been on an emotional roller coaster.
For 1.)I have several ads out for 3 months and I only have like 2 buyers respond.I have posted them on craiglist,backpage,us.liveads.com and many more places like REI club forums.So this worries me.

2.)The buyers I found through websites only about 5 responded and very picky on what they want.One wants only 60%-65% below FMV.So it makes me wonder that maybe they can be picky with so many properties out there.

3.)I also emailed about 10 REI clubs that (I'm in need of more buyers do to my increase of properties I have) and got 0 response.
Right know I can't even afford to join the nearest REI club,Do to lack of income since I had to be a stay at home dad with twin boy's.I have been in contact with 2 members (Ron & Vic)from this site that live where I do.They are going to the REI club meeting,so I'm curious if they come up with any buyers from there.
I have so much more to talk about, but its midnight again.I'm hoping my hard work will pay off.

Jason.Don't get discouraged and keep moving foward.
I have had some deals fall apart on me too. But i just went out and found more. I only have 2 buyers so far after sending out tons of e-mails. but i am going to a REI meeting next week armed with nothing. I may get laughed out of the building but i am going anyway lol. I don't have an LLC because i don't have the extra cash to start it.But i know I will in 3 wks or so.( income tax check).

Don't stop your process. Stay Focused! You got this far no need to turn back. You got into this business becuase you wanted something greater than what you have now. Keep that reason and mind. Obstacles will always be there. That's why it's your job to jump over them and know that everything will work out.

Here's a quote I read the other day: "Faith is taking the first step even when you don't see the whole staircase" ~ MLK Jr

I know that I have to succeed in REI.We bought our first house in 2001 and made 100k in a year,and moved into a bigger house.So I know the rewards of REI.I just wanted to make this happen a little faster.I have read a lot of users threads on here and some are even using coaching and they still haven't got a deal and they have been trying for a lot longer than me.I'm not saying I'm giving up, because no matter how long it takes,This is my future..

Hey Jason,

This is Kris, as I read your posts I want to first encourage you not to give up. "Rome wasn't built in a day" and though you may not be seeing any upfront progress, I assure you that you are building the necessary foundation to a fruitful REI career. You just need to keep your head up and look at the big picture. Keep your eyes and mind focused on your goals, and keeping those little steps forward.

here is a suggestion for finding more buyers:

-you should be diligently finding your buyers list first. There are multiple ways of attracting buyers. As far as your ads, you need to aggressively market yourself NONSTOP. the marketing part of your business is the engine that keeps you moving forward. When the engine stops, you will coast for a little but then you will come to a stop sooner or later. So you need to continue coming up with new and better ideas of getting urself out there and making a name for urself. For example, Just because you put one ad in once doesnt mean it will stay on top. Just look at Craig's List. Everytime someone posts an ad, it gets put on top of yours pushing it further done. Come up with 10-15 ads that you can post every 2 days and spend no more than an hour in the morning posting them. Look for other free online classified ads, anywhere to 8-10 of them, and do the same thing. That way your name gets out.

- the people you work with is very critical. If you find that the people you are counting on aren't being reliable, FIRE THEM lol. This is your career and you need upbeat, positive, goal oriented, ambitious, and aggressive people on your side (aka THE GO GETTERS). If your realtor is pretending to be too busy or is too afraid of taking risks, get rid of him/her. Especially in a realtor. You don't need that frustration. Your realtor needs to be aggressive, money-motivated, and not afraid of making low offers. Yes, you can make offers yourself, and in fact you should, because you are going to need to get good at submitting offers on your own to reduce commissions paid out to other realtors when the times come for it. I applaud your idea of attracting your realtor through craig's list and in fact while posting your ad, put in the ad what you are looking for in a realtor as well as say what you are doing. That way you "qualify" them and not waste your time.

-which brings me to another point - "Qualifing leads and potential clients/business people" - time is money, so dont waste time on people you know aren't going to bring about profit. Take for example your realtor. Instead of finding a solution and/or submitting offers anyways, he lets other people dictate the outcome of the situation. So, I recommend qualifing everyone you work with. Your "low" offers are exactly that, a qualification process. Remember you are a wholesaler and therefore can't afford to be buying properties at retail prices. The low offers are intended to weed out the non-serious people. If they are truly desparate, in trouble, in distress, etc. they will accept your offer cus they know they NEED to get out of their property fast before their credit is destroyed or if they need to avoid bankrupty/foreclosure. This is a way to qualify the people who NEED to sell vs the people who are just seeing what they can get for their homes. Most people have inflated view of the value of their homes, as well as their present situation in life, in which most cases is never reality. So you need to know that, AND the people you work with need to know that(like your realtor). So, with your "NEW" realtor, try out Dean's suggestion in his conference call awhile back again, where you ask your realtor to find an area that is within 25 miles of where you live, find the price range that is still selling like hot cakes, find 25-35 properties, and then make offers that is 30-50% below FMV. He says, if they are truly in distress, you should be able to get at least 1-2 responses back.

- as far as real estate clubs, try www.meetup.com. From there see if there are other clubs where you can go that are free. Or try calling the clubs up first and ask if you can come the first day for free to see if you like it that way you get at least one day of free exposure to make contacts. Another idea you might have is talk to those people you said were in the area and going to the meetings and ask if you could use their buyers list to sell properties too, maybe giving them like a $25 gift card kick back for every deal that closes with the buyers from their list or something. Another idea you could use is building a retail buyers list. You can make more money with retail buyers even though it maybe a one time sale. There are many options here. REI Clubs are great ways as you know to make contacts so exploit them some how. Don't let a fee stop you from being successful in REI. If you start an S-Corp or LLC, you can deduct those fees as business expenses and you'll be able to get them back at the end of the year. In a S-Corp, it can be viewed as educational classes, and therefore it qualifies as 100% tax deductable. Make business cards, and post them everywhere. Talk to everyone you know!

- lastly, if you need momentum for some cash flow consider bird dogging for already established wholesale investors and ask anywhere from $500-$1000 for each property you refer them too that closes, instead of assigning contracts. (yes they are different - in assigning contracts, you actually lock up the property and then assign your "rights" to purchase the property to someone else for larger amounts of money, where as in bird dogging, all you are doing is finding properties, do a little anaylsis, and then refer it to your wholesaler for a small fee).

Well anyways, I wrote a lot so forgive me lol. I hope that my suggestions and thoughts sparked some creativity in your head and gave you some inspiration and new ideas to attack. I wish you the best!

take care,
Kris

I forgot to say, in meetup.com, when you register to join a club, they give you access to profiles and much like this site you can send people private messages or get contact info. From their you can send them more emails about what you are doing. Remember this marketing strategy, most sales are made on the 6-12 contact, not the first 1-5. So keep at contacting these people. Send emails once a month and follow up with phone calls every two weeks after that. People feel like they know who you are after the 4th time hearing or seeing your name. So be persistant, and keep aggressively marketing urself!

Hey Kris,
Thanks very much for the extra boost you just gave me.I will do everything you just told me to do.I learn more and more everyday and love it.

I'm meeting with another Realtor this week.She's done some Investing herself,so hopefully she'll want to come aboard.

no problem my friend =) Good luck!

jason and kris,

i have to tell u both thank u. jason don't stop sharing the journey with us.
reading your posts about your learning curve has been a much need boost for me.and i really needed that. and kris the energy within ur savvy suggestions was stirring...yeh

here's to living the dream... at whatever stage we're at...it's all good

cynthia

Great post. I love reading your posts. They are detail filled and on the money in terms of facts. Keep em coming.

I just got through posting ads on 10 free sites.(I Need Cash Buyers)
Looking to get more buyers by staying on top of my ads every couple of days.

thank you =0), I try my best. You guys are the real inspiration though, watching and reading all your posts give me new ideas and ammunition for the real world. Keep up the great work!

Your resident ninja,

Kris

Hey Jason. Could you share the free add sights with us. Maybe there are some that we can use.