Is this right?

[JerseyGirl]

Hello & Good Morning everyone!

I'm new to this board as well as to bird dogging so I have a question.

A few days ago I contacted some investors through e-mail about doing some work for them, they sent me their criteria on what to look for

They pretty much gave me an area of 30 miles to farm, looking for vacant, distressed houses which is cool, he explained that they were also new so in essence it'll be like we're all learning together which I like  

I pretty much have the general idea but I'm a little foggy on a thing or 2

Does it go something like this:

* Contact investors, tell them you'd like to do some work for them
* Investors send/explain critieria
* You farm particular area
* You find vacant house/distressed house
* Find out who the previous owner was or is

Ok this is where I get kinda fuzzy, after that do I go to City Hall, Dept of Records?

Once I locate the owner, do I give my buyers a call? Or are they supposed to call?  
Or do I just bring the buyers the information & let them take it from there?

I've been reading so much lately that its all starting to mesh  

I'd like to of course build a huge list of buyers but I'm sure that not everyone will be as open & as new as the investors that I found this week so I'm wondering what else should I learn to do?

I've been hearing so much about comps, market values, title companies, contracts, etc etc   :o

Isn't that starting to veer off into Flipping territory? :

Anyway, I'd like to have more investors to work for but I have read alot about how they have had their time wasted by newbies who werent bringing them real deals, I don't want that to happen to me so what else do I need to bring to the table so that we all can profit? :

[tedjr]

Howdy Jerseygirl:

I would just stay with the one investor for now until you have done a few deals. Maybe you can work with him start to finish as he too learns the business.

You are right it is boring hearing about the $128,000  house with the loan balance of $108,000. There would be no way to pay cash for this house and even resell it for a profit using a hard money lender. It is just that the numbers will not work.

Your buyers will be looking for deals that will for example sell for $100,000 that they can buy for $70,000 if in perfect condition or for the amount  of repairs discounted from the $70,000 if repairs are needed and there usually are.

To help your master find good deals find the vacant house and contact the owner either thru county tax records, neighbors, post office, probate office, or any other way possible and see what is going on with the property. There may be a problem with heirs for instance and it could be in court for years. Find an owner that needs to sell, perhaps the building is being demolished or fines etc are being levied because of the dangerous conditions. ind out what they owe including the taxes, mortgages, judgements etc. One you know what the cost to purchase will be you may want to contact your hunter to see if he would be interested at that price plus a few bucks for you.

You would be even smarter to get an idea of the repairs needed and the costs and also comps in the area. Even just one house fixed up in the area of similar size may be good enough to get an idea of what this house will sell for.

The more work needed the longer it will take and the more overhead and profit the investor will need. Some like the long hard work jobs and some like the clean and pait deals that can be turned for a quick profit but perhaps a little less of a profit margin. Also investors that use their own cash may be able to pay more that a hard money borrower. Also an investor who wants to keep it as rental property may buy and fix and keep it and may even pay a little more yet as he is not worried as much about resale but just renting it and may not do as many repairs either.

Hope I did answer a few of your concerns and did not ramble too much or bore you with stuff you already know, Good night for now

[JerseyGirl]

Hello Tedjr

WOW  :o

As each day goes by I talk to more people & I try to learn more.
I also contacted another investor who seems to be more experienced & I've been running this by my "mentor" of sorts

There's just SO much going on behind the scenes, I hope that I didnt give you the impression that all of this made lots of sense to me because it doesn't....yet  

I don't know anything about what a house sells for, how to figure repairs or even how to find that out.  Thats why I was wondering if my questions were starting to venture over into Wholesaling   ???

You're not boring me, I'm just slightly lost is all  :-[

That could be partially my fault   I tend to want to know everything so that I won't make a mistake but there is a such thing as overload  :o

Am I making this too complicated?  

I mean I'm supposed to find the house, present the info to the hunter, hopefully he'll buy & I'll get paid...however, again, I don't want to waste anyones time because I feel like I either don't know enough or I know way more than I need to for right now  

UUGGHHHH  >

[tedjr]

Howdy Jerseygirl:

Just start learning by doing. Find a house and the owner and get the costs to buy. Maybe together after you show the investor you will learn to estimate the repairs needed and estimate the resale value. It aint rocket science. If you see hamburger at $6.99 a pound how much are you going to buy. If you see it at $.49 what do you do. I look to see the date and check to see if it is molded or brown. If I know the going price is $1.99 per pound I know i have a bargain and will buy alll they have and freeze it for later. You can get good enough after a few deals to know that $100 per ft may be the retail price and a house at $50 may be a bargain if it is not too rotten.

To estimate costs to repair is no big thing either. If it needs a roof get a roofer to give you a bid. You can get carpet prices by the foot all over town. Get painters and ac guys to come and look. Add about 10 to 15 % for misc and add it all up and there you have an estimate. Again before long you can just sit down and do it in your head and get a ball park number in minutes. Put allowances for things like light fixtures, appliances and other stuff like hardware. If you have ten lights maybe $150. I get them at yard sales for a $1 each for bedrooms, halls, and even dining room lights for $5 to $10.

At the begginning with your mentor you can make mistakes and show him deals that may not work. It is the same learning experience to find a bad deal as it is to find a good deal. The key is to find a motivated seller who needs to sell and can and is willing to discount the equity for a fast sale. Some owe too much and have no equity and all you can do with these is sub2 investing and do lease purchase deals and wait for  appreciation with a near zero down or even make a few bucks off the down payment from the tenant buyer.

Again I hope this helps

[JerseyGirl]

I believe that that will help me in the future  

[JerseyGirl]

Ok I have to admit it Tedjr, I have no idea what you're talking about  :-[

I read your post a few times & I still feel like HUH?

I think I was lost at the "Find the owner & get the costs to buy" part  

I didnt think bird dogs did that, maybe thats why I'm confused  

[tedjr]

Howdy Jerselgirl:

There is no clear guidlines as to what a birddog does or does not do.  If my dirddog keeps bringing me back skunks instead of ducks I would probably shoot it dead. Take your investor a bunch of losers in a row and he may not answer your call. I am willing to pay for if I do less work. If you can tell the guy this is what is owed and this is waht it should cost to fix and this is waht the profit should be, he will give you some dog food and pat you on the head and rub your belly and you will kick your hind leg all day long with glee. I just love the birddog analagee.

Whatever you do do it good and you will learn to work well with your investors and grow into a good repore.

I do not know what else to say to help you learn what to do. Do what you are confortable with and learn the other with the investors as you go. If all you want to do is find deals and never care about fixing and selling or even wholesaling you can do that too and make a good living at it.

Good luck

[JerseyGirl]

Howdy Jerselgirl:

There is no clear guidlines as to what a birddog does or does not do.  If my dirddog keeps bringing me back skunks instead of ducks I would probably shoot it dead. Take your investor a bunch of losers in a row and he may not answer your call. I am willing to pay for if I do less work. If you can tell the guy this is what is owed and this is waht it should cost to fix and this is waht the profit should be, he will give you some dog food and pat you on the head and rub your belly and you will kick your hind leg all day long with glee. I just love the birddog analagee.

Whatever you do do it good and you will learn to work well with your investors and grow into a good repore.

I do not know what else to say to help you learn what to do. Do what you are confortable with and learn the other with the investors as you go. If all you want to do is find deals and never care about fixing and selling or even wholesaling you can do that too and make a good living at it.

Good luck

Ahhhhh ok now that makes sense  : :

I'm big on analogies too, maybe thats why I didn't get it at first  

We all learn how we learn   I believe I found someone in the area thats willing to work with me so I'm very excited!   :

I'll keep you all posted!

Tesha  8)

[rebirddogz]

Greetings JerseyGirl

It sounds as if you've been getting some good advice so far. I am a full time investor in New Jersey.  Birddogging is definitely the BEST way to get involved in this wonderful world of Creative Real Estate Investing.  I have great relationships with my birddogs and have seen some graduate to becoming fulltime investors in there own right and some even partner with me on deals.

I am no guru.... but I have been full time for a couple of years have done many deals .... i have walked the road before you and, though you may not be able to see around the next bend,  I can assure you that I have travelled it and can tell you what I have seen. (wow ... how poetic)

Good luck... it sounds like you are well on your way!

Regards
Bulldog

[JerseyGirl]

Greetings JerseyGirl

It sounds as if you've been getting some good advice so far. I am a full time investor in New Jersey.  Birddogging is definitely the BEST way to get involved in this wonderful world of Creative Real Estate Investing.  I have great relationships with my birddogs and have seen some graduate to becoming fulltime investors in there own right and some even partner with me on deals.

I am no guru.... but I have been full time for a couple of years have done many deals .... i have walked the road before you and, though you may not be able to see around the next bend,  I can assure you that I have travelled it and can tell you what I have seen. (wow ... how poetic)

Good luck... it sounds like you are well on your way!

Regards
Bulldog

Hey RE

Yes I am on my way, I feel like I've learned so much within these last 12 days than I have in 12 months!  Nothing like crazy relatives to motivate you    

JG  8)

[JerseyGirl]

Ok everyone, I'm tired of simmering in frustration here, I need clarification.....again  :o

Ok so I've been looking online at the tax information in my area since one of my investors said that he would love some leads from my own town, so I say COOL  

When I look at the tax log, I have no clue what I'm looking at

It all looks like gibberish

No pictures, no descriptions, nothing!  

My plan was to look over the information, figure out which property could make us some nice change, write it down AND THEN go out there to get a closer look

I just don't like to drive around without some sort of mental plan of action

And whats worse is that I have 1 or 2 investors "checking in" on me & I'm highly embarrassed that something so simple is frustrating me  :'(

A part of me is aware that I am pushing myself to understand this & maybe I should relax but I'm afraid to relax, if I relax I wont get it, I wont be taken seriously & I'm just mad..I feel like I'm asking the same questions over & over but just in different ways  :-[

 :-[

Does anyone understand what I mean, aside from the usual characters that I speak to I mean  

[rebirddogz]

Hi JerseyGirl,
Let me go through your questions one by one

>>Ok everyone, I'm tired of simmering in frustration here, I need clarification.....again  
ok

>>Ok so I've been looking online at the tax information in my area since one of my investors said that >>he would love some leads from my own town, so I say COOL

Why are you looking at Tax records for leads? (understand that I don't mean to suggest that you "should" or "shouldn't" be looking at Tax Records for leads, but I want to know why YOU think you should be.)
What kind of leads do you think you will find in the tax records?    

>>When I look at the tax log, I have no clue what I'm looking at
OK... first let's decide whether you SHOULD be looking at tax records at all for leads... if so, then we'll address this.

>>It all looks like gibberish
same answer as above.

>>No pictures, no descriptions, nothing!  
Same answer as above

>>My plan was to look over the information, figure out which property could make us some nice >>change, write it down AND THEN go out there to get a closer look
HOW where you going to figure out from the tax records which property will make "some nice change"? (Again I am only asking these questions to find out exactly where your head is at)

>>I just don't like to drive around without some sort of mental plan of action
GOOD!!!!!  I don't EVER just drive around. In fact I usually don't even go SEE a property unless I have a contract on it.  Focus on the right things.
 
>>And whats worse is that I have 1 or 2 investors "checking in" on me & I'm highly embarrassed that >>something so simple is frustrating me  
I understand your frustration...in this business, in the beginning, it is very easy to get brain overload! We've all been there.

>A part of me is aware that I am pushing myself to understand this & maybe I should relax but I'm >afraid to relax, if I relax I wont get it, I wont be taken seriously & I'm just mad..I feel like I'm asking >the same questions over & over but just in different ways  
It sounds to me as if you are smart enough to know that asking questions is EXACTLY the right thing to be doing.. IMHO it sems that you are just lacking direction.  When I train my BirdDogZ I work with them on a SPECIFIC plan that takes them from Point A to Point B... A person that has a background in telemarketing and sales may not have a problem in talking to sellers.... they may just need to be trained in what information to gather for me so that I can evaluate whether or not it's a deal. Some that I work with are afraid to talk with sellers....so we start there and train them how to get over that fear and move forward...and as my partner has said... "In order to make a deal happen you MUST talk to "at least" one seller!
   
Does anyone understand what I mean, aside from the usual characters that I speak to I mean
YES I do know what you mean... Question:  What did you study before making the decision to jump into CREI?  Did you buy a course? Read a book, read websites? If so which ones?  let's learn this first and
then move forward.

I may be different than a couple of people here on this....  but I am not sure that working with a newbie investor is the best thing for you either.  I am an excellent tennis player.... that's becuase evertime I play the game I make SURE that I am playing with someone that is much better than I ... that is how I learn and get better.  To me REI is the same,  my mentor(s) (and yes I have them even though I am considered a very "experienced" investor push me all the time to learn and hone my craft...  I think you should be doing the same.

Are you a member of a local Real Estate Investing Club?  You might want to consider that....

There are a bunch of really talented people on this board that can (and I am sure) will help you get through this...

Good luck
bulldog

[JerseyGirl]

Hi JerseyGirl,
Let me go through your questions one by one

>>Ok everyone, I'm tired of simmering in frustration here, I need clarification.....again  
ok

>>Ok so I've been looking online at the tax information in my area since one of my investors said that >>he would love some leads from my own town, so I say COOL

Why are you looking at Tax records for leads? (understand that I don't mean to suggest that you "should" or "shouldn't" be looking at Tax Records for leads, but I want to know why YOU think you should be.)
What kind of leads do you think you will find in the tax records?    

I figured (based on what I've been reading &/or told) that this is where I can find valuable information that'll let me know whether a lead is worth pursuing.


>>When I look at the tax log, I have no clue what I'm looking at
OK... first let's decide whether you SHOULD be looking at tax records at all for leads... if so, then we'll address this.

>>It all looks like gibberish
same answer as above.

>>No pictures, no descriptions, nothing!  
Same answer as above

>>My plan was to look over the information, figure out which property could make us some nice >>change, write it down AND THEN go out there to get a closer look
HOW where you going to figure out from the tax records which property will make "some nice change"? (Again I am only asking these questions to find out exactly where your head is at)

Well thats why I was asking because I wasnt sure how I was going to figure it out based on the tax records so I figure I must not completely understand something or I'm doing something wrong              

>>I just don't like to drive around without some sort of mental plan of action
GOOD!!!!!  I don't EVER just drive around. In fact I usually don't even go SEE a property unless I have a contract on it.  Focus on the right things.
 
>>And whats worse is that I have 1 or 2 investors "checking in" on me & I'm highly embarrassed that >>something so simple is frustrating me  
I understand your frustration...in this business, in the beginning, it is very easy to get brain overload! We've all been there.

>A part of me is aware that I am pushing myself to understand this & maybe I should relax but I'm >afraid to relax, if I relax I wont get it, I wont be taken seriously & I'm just mad..I feel like I'm asking >the same questions over & over but just in different ways  
It sounds to me as if you are smart enough to know that asking questions is EXACTLY the right thing to be doing.. IMHO it sems that you are just lacking direction.  When I train my BirdDogZ I work with them on a SPECIFIC plan that takes them from Point A to Point B... A person that has a background in telemarketing and sales may not have a problem in talking to sellers.... they may just need to be trained in what information to gather for me so that I can evaluate whether or not it's a deal. Some that I work with are afraid to talk with sellers....so we start there and train them how to get over that fear and move forward...and as my partner has said... "In order to make a deal happen you MUST talk to "at least" one seller!
   
Does anyone understand what I mean, aside from the usual characters that I speak to I mean
YES I do know what you mean... Question:  What did you study before making the decision to jump into CREI?  Did you buy a course? Read a book, read websites? If so which ones?  let's learn this first and
then move forward.

What did I study before getting into CREI?
I'm not sure what you mean, but I've always been interested in real estate but haven't pursued it because it seemed overwhelming.
I've bought courses & books & ebooks, printed out articles from people like (off the top of my head) Stephen Cook, John Locke, Ron Griffen, Barry Grimes, Robert Kiyosaki. I've visted Creonline, REIbirddogs, Thedealmakerscafe, thecreativeinvestor,reiplace...so yeah I have been reading, ALOT  


I may be different than a couple of people here on this....  but I am not sure that working with a newbie investor is the best thing for you either.  I am an excellent tennis player.... that's becuase evertime I play the game I make SURE that I am playing with someone that is much better than I ... that is how I learn and get better.  To me REI is the same,  my mentor(s) (and yes I have them even though I am considered a very "experienced" investor push me all the time to learn and hone my craft...  I think you should be doing the same.

That makes sense  
I don't know that they're all newbies, but I know that I'm very much a "do it myself" type person which explains why I'm pushing so hard so I don't always ask for help  :-[

They know that I'm new but I haven't asked them specifically for help  
I guess my pride gets in the way which as you can see is leading to major frustration  :

Are you a member of a local Real Estate Investing Club?  You might want to consider that....

There's a meeting next week, I believe but I'll look further into that

There are a bunch of really talented people on this board that can (and I am sure) will help you get through this...

Good luck
bulldog

 

[joehagan222]

Hey Girl;

Even with pros there are times when we are at our witts end! Thinking will sometimes get you into trouble!!! ( Having confused you enough,) Try this. Each state has different marketing strategies. The person who said start with a mentor was absolutely correct. Learn to walk,then start running. I have read so many books my head hurts!
Books are great,but experence is by far the best teacher in this business!!! Using the tax records is one way to get leads,and walking that bird dog is another. These are some things to look at.
Empty houses,houses with real signs, get on the list for forclosures in your area,check with Hud.gov. in your area
The county Court house in your area for tax & Forclosure sales etc. Alwas leave yourself with an out. Any contract should read (with partners approval)1. Your lender may back out,and you don`t need to be holding the bag! Good Luck, and keep trying.  Joe Hagan 222

[JerseyGirl]

Hey Girl;

Even with pros there are times when we are at our witts end! Thinking will sometimes get you into trouble!!! ( Having confused you enough,) Try this. Each state has different marketing strategies. The person who said start with a mentor was absolutely correct. Learn to walk,then start running. I have read so many books my head hurts!

I know the feeling  :o

Books are great,but experence is by far the best teacher in this business!!! Using the tax records is one way to get leads,and walking that bird dog is another. These are some things to look at.
Empty houses,houses with real signs, get on the list for forclosures in your area,check with Hud.gov. in your area

Ok, I get that  

The county Court house in your area for tax & Forclosure sales etc. Alwas leave yourself with an out. Any contract should read (with partners approval)1. Your lender may back out,and you don`t need to be holding the bag! Good Luck, and keep trying.  Joe Hagan 222


When you're getting into needing a lender & an out, that's more than being a bird dog right?  

I dont think I mentioned this but tomorrow afternoon, I'm supposed to go "farming" with one of my investors so I'm hoping to come back with a better understanding of things

Does anyone have any ideas on what I should bring? This is more like a Pre-farm, just to show me the ropes so to speak, should I take notes?

Ok I'm being too serious again