Finding buyers lesson (part 1)

[dkclark]

Hi Eric,
This is all great info!  Is there a "Part 2" to this "Finding Buyer's Lesson"?

[Auriane]

Eric,

How do you wholesale REO? Do you have to pay cash for the property yourself and then flip it or can you assign the deal? If you can assign it, what do you say to the bank or property manager? Because you need to be able to have potential buyers looking at the property.

I don't know if my questions make sens, I am a newbie.

Thanks,
Auriane

[ericmedem]

Eric,

How do you wholesale REO? Do you have to pay cash for the property yourself and then flip it or can you assign the deal? If you can assign it, what do you say to the bank or property manager? Because you need to be able to have potential buyers looking at the property.

I don't know if my questions make sens, I am a newbie.

Thanks,
Auriane

I would recommend starting 3-4 pocket llc's, these are llc's that you keep that are ready to put homes under contract with, then instead of assigning the contract (which most banks won't allow) you can sell the llc that the home is under.  The banks won't have a clue that you have shifted the contract to someone else because they are still dealing with the same entity, it is now just under different ownership.

I hope that helps

[JasonG916]

can you do that with a corporation?  I have a C-Corp that I haven't done anything with....

[ericmedem]

I am not sure on that one, I can't see that it would be a big issue because corporations can be sold just like any other business, If you are serious why not just set up a few inexpensive llc's ahead of time?

[Hedonos]

Thanks for the wonderful post.  I don't have any experience.  I really want to get into the real estate game and I heard that locating deals for investors is a good way to go.  Thanks

Gabriel Romero

[ericmedem]

There are 2 ways you can make good money bird dogging either:

1. Locate properties for other investors
2. Locate investors for other properties

both of these ways can be extremely profitable. 

[ericmedem]

Hi Eric,
This is all great info!  Is there a "Part 2" to this "Finding Buyer's Lesson"?

Here is a part of part 2 how's that.

This strategy you won't in any re course, but it blows away many of the traditional buyer locating strategies

Some of you may kick yourselves if you haven't been doing it.  This is one of my favorites, I thought of it myself, a has been kicking a$$ for me.

Put together a nice looking pamphlet or brochure that describes your services.  If your a bird dog don't be an idiot and put "I'm a bird dog"

Put something to the effect of "I'm a discount property specialists who specializes working in (your area).

If your a wholesaler you can use virtually the same thing.

The goal is to design a brochure or pamphlet that banks or hard money lenders will include in their closing packets.  If you don't know what a closing packet is, it's the packet of info that banks and lenders give out at the end of closings. 

The really great part about this is that even if the buyers don't find your brochure immediately, when they go to sell their home in the future, they will open up the closing packet to review information and there you will be waiting.  I have had them call me to get rid of their homes and I have had them call to find them a home.  As you all know retail buyers are where the real money is at in wholesaling, so you cannot beat getting a call from retail buyers.

If you get into the hard money lenders packets, investors will be given your contact info, and I have picked up several fantastic investors from my closing packet insert.

Try it, if it works, you can email me a beer. lol.

good luck

[Mr Investor]

So is Homevestors a good place to network?

[ericmedem]

Homevestors is not actually a place to network, they are people to network with.  Homevestors is a nationwide company that buys and sells houses, and I did pick up a couple of steals from them.

The last deal that I did with homevestors I ended up making like $18,000.  I think they made 6k when they wholesaled it to me.

[Icangetitdone]

Eric,

How do you wholesale REO? Do you have to pay cash for the property yourself and then flip it or can you assign the deal? If you can assign it, what do you say to the bank or property manager? Because you need to be able to have potential buyers looking at the property.

I don't know if my questions make sens, I am a newbie.

Thanks,
Auriane

What paperwork is needed in sell an LLC to an investor?


Thanks in Advance

[ericmedem]

First off you need to have your llc done BEFORE making an offer.

Once you have the home put under contract in an llc then you can sell the llc simply by using the state regulated forms to pull yourself out of the llc and put the investor into the llc.

Your paper work will vary from state to state as with anything it is only as complicated as you make it.

Good luck

[CharlottePlayer]

quote fro eric "You can also use the "Safe Land Contract" if she wants all of the tax benefits of homeownership.  Essentially you do a lease option of your choosing on the home, then ad your buyer onto the deed.  Right after you have the buyer sign the quit claim deed adding them on you have them sign another takiing them off.  You file the deed adding them on then save the deed taking them off.  If the buyer decided to stop paying you go and file the quit claim taking them off.  I have never had to use the second deed, because the fear of me having that has always kept the buyer paying, or they are just good buyers."

this is some horrible advice.  if a buyer can't qualify for a mortgage then no one should even think about putting them on the deed.  what happens in case the buyer doesn't pay a credit card and the cc company slaps a judgment on the property?  then the owner will have to pay off the lien before they can sell the property.  that happened once when i was buying a property from a lady that had an approved short sale, she placed her nephew on the deed and he didn't pay his bills and in order to close the cc company wanted $7k on a house that had an approval for $30k.  the deed didn't go through and she learned a valuable lesson.

[prevac]

Thanks Eric for your lesson.  I'm also at a beginning of a new venture in a much anticipated RE investing career but don't know where to start after getting laid off recently by a company that Warren Buffet publicly announce his investment on.  I guess, the only response to Buffet & other investors was to cut job as an obligation.

Also, thanks for the rest of the supporting posts that I can glean on as I start my Bird Dog/Wholesale business for now since I too am on unemployment.

God bless everyone!

John

[kevinl]

There are a couple free tools you can use to find buyers. I have been in real estate and have found many of my buyers online.... try Postlets.com. Create an ad with the tool, and it syndicates the ad across multiple venues aka Craigslist etc. Its pretty good. On the ad you can have a "call to action" to your phone, email address or website. Presto, buyers.