In this series we are learning How to Go From $0 to $10,000 a Month as a Real Estate Investor.
In the last post I gave you some incredible FREE TOOLS to help you evaluate deals including spreadsheets, word documents, valuation websites and more. Today I want to share with you:
5 Must Have Members of Your Real Estate Investment Team
Finding great people to work with will make your life much easier and make you a whole lot more money! You don’t have to have all the pieces of the puzzle together before you start but you do want to get some key relationship started. When you have a smokin deal you’ll know exactly what to do with it.
Here’s a list of team members you’ll need, I will elaborate on each one and show you how to find them and what to say.
2. Title Company
4. Hard Money Lender
When picking a realtor be sure they’re accessible, you’ll need a quick response on getting comparable and listing info. Remember they’ll get paid when you flip properties, so don’t be bashful when asking for help. Tell the prospective realtor you’re an investor with a team of buyers that are looking for good deals. Your job is to find properties, do the initial analysis and sell them to your investors. Be sure let the realtor know that you plan on doing several deals a month and they’re critical to your success.
I would suggest contacting a large title company like Fidelity National Title; they have offices all over the country and provide a great service, we’ve used them on many occasions. Once you have decided on a title company you’ll need to interview escrow officers and determine which one will cater to investors. When calling the title company ask for an experienced escrow agent that does investor deals. When speaking with the escrow agent specifically ask the them if they’ve ever done a double escrow, if the answer is yes you’re golden. If not, ask if they can recommend an escrow agent that can do these types of transactions.
Finding investors to flip properties to is crucial to your success, pretty much every city has fix and flip investors that are always looking for good deals. There’re several places you can find investors that you can wholesale properties to.
1. Newspaper: Open your local news paper and look for classified ads that say “We Buy Houses All Cash” This use to be a great location to find investors but not may investors use classified ads today, but it’s worth a check.
2. Google: Type in Google Search “Sell House Fast” then add your state, you will see “paid ads” and “organic” website. I like to check out the sites that are paid; they’re spending roughly $1.00 to $2.00 per click so they must be doing some business. Check out the picture below:
Call several paid ads and ask them what their criteria for purchasing properties are. Find out what type of properties they like and prefer to buy. Tell them you’re an investor looking to do a “double escrow” Find out exactly what loan to value that they’ll buy the houses at, they won’t want to tell you this but keep asking and they’ll finally give it up. If they say 65% LTV (Loan to value) you know you can tie up houses at 50%-55% and flip them for a quick profit. Also find out when is the fastest they can close a transaction. Write this down because you will want to talk to 7–10 of these buyers and you can compare results. Be sure you try other keyword searches to get some different results.
3. Investment Clubs: Search on Google again for local real estate investment clubs in your area, or you can check out this list HERE. Find a club near you and make an effort to attend and network with other investors, find out who the other wholesalers are and try to get on their mailing lists for the sole purpose of learning what deals are being done at what price.
4. Meet Up: Go to Meetup.com and search for real estate investment groups in your local area, start attending the meetings and make friends with the investors. Ask a lot of questions, you will learn amazing things about the market you’re in and what’s going on.
You’re probably thinking why I’m not suggesting flipping the properties retail; well first off flipping retail is a different game. The retail buyer will most likely be using conventional financing or FHA and there are seasoning issues associated with this type of flip. I will do a post on a later date explaining exactly How to Flip to a Retail Buyer.
Hard Money Lender
Here is a list of hard money lenders that Real Estate Radio USA provided, contact one of the lenders that is located in your area and asks them if they’ll provide funds for a double escrow, if so find out the terms. Reasonable terms will be 2 points and 12%-18% with a 6 month balloon. If you strike out on several calls, ask someone at the Meetup groups or Investment Clubs for a referral, this might be your best bet. Also an investor friend named Jack out of NC told me of a company called Invisionary Financial Solutions that does funding especially for double escrow, I’ve never used them but their website and blog looks interesting.
In the real estate investment clubs and Meetup groups you’ll find appraisers that can help you determine value. Ask them for a meeting so you can establish rapport, what you want is for them to give you a value range on your prospective properties. Ask them how they value a property from an appraisers perspective. Most appraisers will be willing to share how they do what they do. You might want to agree to pay them a small fee per property they value. Once you understand how the appraiser makes their decision you can do quick comps yourself.
Remember you don’t have to have all of these individuals and companies lined up prior to starting; they’ll naturally fall in place when finding and acquiring a deal. Just make a decision to start and the people will fall in place.
In the next part of the series we’re going to learn how to Establish a Game Plan. Knowing what you want and how to get it will give you confidence to scale your business and create momentum which will enviably get you to your goal. SUCCESS!
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If you have any questions please feel free to leave a comment below and Mike or I would be happy to help.
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