NAKI RE Solutions - Journey to the top!

Great start!

I think it is an awesome idea to start with wholesaling. That is what I did. I learned the market, rehab/remodel costs and saw projects taken from junk to beautiful by my experienced investor/buyers. I did not risk a penny while I learned everything it takes to be a successful fix/flip or fix/hold investor.
By the way, and this is where so many new wholesalers fail, YOU HAVE TO KNOW EVERYTHING THE FIX/FLIP OR BUY/HOLD INVESTORS KNOW TO BE A GOOD WHOLESALER!!
How are you going to know what a good deal is and what to offer if you don't know ARVs and accurate rehab/remodel costs in your marketplace?

Like I stated above I started out wholesaling, made some money, did several fix/flips, took several properties subject 2 and L/Oed them on the back end.
Right now I am pretty much wholesaling and that is it! No risk, great money, no contractors, no sleepless nights, in and out with no money out of pocket. My ROIs are infinite because I have zero dollars invested!

However, to each their own, there are so many ways to make money in the great business of REI!!

Good Luck,
Michael

I agree 100%! That is why I decided to take the No Money Flip class. I am trying to think like an investor so that I can speak the language and be a valuable resource. The only area I am really struggling is figuring out how to estimate rehab costs. Is it advisable to find a general contractor to do an estimate even if you know you won't buying the property? I hate to waste someone's time. I thought about getting the bid and submitting it with my offer to buyers so they can see exactly what needs to be done and possibly use the contractor I have found. Not sure that is a good idea, though. I am definitely open to suggestions. Thanks so much for your thoughtful response!

Natosha

What I did was look at REOs while I was learning. There are usually a few of these around and most need a lot of rehab and they are all vacant. So I would call the listing agent and set up a time for viewing. I would meet the agent there and just look at the property and talk about the property and my interest in fix/flipping. I never mentioned the word wholesale at this time! I would ask if the agent had any other investor type houses. I would let the agent know that I did not want to look at houses that I would be competing with owner/occupants on. Just distressed properties only. Then I would make offers. Note: I had just created a relationship with an agent that lists distressed properties!!

When I got one under contract I would make up my scope of work, did research at home depot on materials. then I had 3 contractors come in at different times and bid on my scope of work. That way I was getting a apples to apples comparison.

While they were in doing their bid I would ask every question I could like what is your cost for interior paint per sq ft? How about carpet? How about roofing, siding, tile work and so forth. I made notes and more notes from the information I gathered. Then I put together my rehab estimate and my ARV. If the numbers did not work I would terminate the contract and move on with the tremendous amount of knowledge I had gained. OR if the numbers were good I would immediately put the deal out to my buyers list.

Soon, I could walk a house and in 20 minutes have a accurate enough estimate to know what to offer and what my wholesale price would be.

As far as contractors, they do bids all the time and don't get the job. I would always refer the good ones to my investor buyers. I would tell them up front that I did not know if the deal would work until I saw their bid.

Same with the agents, I made offers at first not really knowing everything I needed to know, but I had the inspection period as my exit if needed. I learned by actually trying to put together real deals, not theory! Also, I had the common sense concerning what to say to agents and contractors. I never provided TMI but never lied!

Michael

Thank you again! This site has really been invaluable. I have enjoyed reading all of your posts and responses to other members, as well. I just created my website, hired an intern and attended my first REI event! I am working on building up a buyers list and then I want to start finding properties. I'm really excited to get started and make my first deal. I will definitely be utilizing this information to move forward. Thank you!

I had reached out to multiple Realtors from the Meet-up groups I have attended and none seemed to be interested in working with investors (which, I find ironic since they are attending REI meet-up groups). So, yesterday I was getting ready to leave the gym and ran into a lady I haven't seen in months. I remembered she had mentioned she was a Realtor and told her about what I had been doing. She immediately tells me that she has about 10 years of experience working with investors and has been wanting to start investing herself. She asked if I would be interested in partnering up on some deals and that she has a power team in place...just hasn't had the time to do anything. Ummmmm, yes please!!! When you put what you want and need out into the universe and create positive energy towards those wants/needs the universe will respond.

I agree again with you:), wholesaling is the way to go to start out. Now that I have done a few deals I feel confident that I can flip or buy n hold but I still will wait till end of yr or nxt yr for that maybe. I want to have 50k in the bank like Dean/Matt say bfore I buy n hold bc what if something goes wrong with the rental, you have to repair it no matter what, what if it is a furnace which is 10k!

Great job taking action & I am in So Cal I w/join your group, i am in san diego. where are you? perhaps we can work together. pm me if you like.

Absolutely! I want to make sure I can find deals for others so I'm comfortable looking for myself down the road. My husband bought his first 4-unit a few years ago and, of course, 1 month in he had to replace all the piping due to roots from city trees growing in them...among other things. $20k later he was a little upset, but couldn't have done it had he not been smart enough to ensure there was money in the bank to cover expenses. You just never know. My goal is to start buying mid-next year....fingers crossed!!!!!

I am in Costa Mesa, CA (Orange County). Would definitely love to have locals to meet up with and either partner or just discuss strategies. I will try to plan something in the middle soon so we can get the ball rolling. Looking forward to meeting you!

Natosha