Posted by michaela-CA on November 19, 2008 at 15:27:23:
Claude,
don’t ask me for values. 270K sounds like a lot, but depends on where in NW ATL. Some of Vine City is NW and I wouldn’t pay 100k for one, even with all the bells and whistles. Doesn’t mean that the time won’t be there in the future. But I’m too far to give you fair assessments. I’m buying for 10 or 15K
Michaela
How do you handle leads that … - Posted by Claude Austin
Posted by Claude Austin on November 14, 2008 at 11:58:57:
Hey Guys,
Iâ??m a budding wholesaler here in Atlanta and Iâ??m starting to get homeowners who take the time to fill out the fast cash property info. form on my website… How do you handle leads that you cannot work with ?? Leads where the numbers doesnâ??t seem to work ?? What do you tell the homeowner ??
One option Iâ??m considering for these potential short sale leads is passing them along to an experienced high volume Investor and get involved and learn more … like a Joint Venture type situation…
I havenâ??t located a person like that yet in Atlanta, however, I have discovered someone
( Coach Pat Martin ) thatâ??s working with Investors in Joint ventures…
Has anyone had any experience or heard anything about him ??
Hope I didnâ??t ask to many questions â?¦ Thanks for any thoughts you my have …
To your success
Claude (ATL)
What you would learn is… - Posted by Jack
Posted by Jack on November 15, 2008 at 08:52:12:
If you passed the leads onto an experienced investor (you seem to think that ‘high volume’ is synonymous with ‘experienced’, and it is actually somewhat the opposite), you would only learn that experienced investors don’t waste their time on deadends (or wantabe competitors in their own market).
How to optimize the benefits of working leads… - Posted by Rick, the Probate Guy
Posted by Rick, the Probate Guy on November 14, 2008 at 14:51:18:
Probably your best plan is to learn to separate the “wheat from the chaff” as far as leads go and have some sense of which ones have merit and which ones do not.
When you get “no deal” leads, whether by you or your associates, don’t waste another moment trying to kid anyone about it. Do NOT work on marginal deals; it’s unfair to the client and a poor use of time for you. Also, you’ll get a bad rep as a time waster among your associates if you throw them bones with no meat, and that won’t feed them or you!
As for what makes a deal, that’s where your skill will come in, escpecially as you grow and become more adept at becoming an opportunity detective. You should have good intake forms (lead sheets) too so that you can show your associates where the merit is with the least possible effort. If you fail to do that, your leads will get neglected and you’ll fail all around.
The concept is called “Dealflow” and it’s important that you continue to develop the relationships with the other people that work the deals that don’t fit your criteria. You DO have specific criteria, don’t you?
When working your Dealflow, you’ll have various reciprocal arrangements, where legal, to refer business back and forth, perhaps either making a piece (maybe even only a small piece) of the deal. Sometimes all you may gain is goodwill, but no cash. THat might be more valuable that a paycheck, depending on the relationship. Don’t worry too much about JV’s yet. Once you’ve developed a sense of the value that you truly do, in fact, add (or bring to the table) you’ll know what that’s worth.
IN the meantime, leverage your ability to attract deals with merit along with the ability to build solid relationships with associates that will perform for both you and your clients. That’s really valuable.
Re: What you would learn is… - Posted by Claude
Posted by Claude on November 15, 2008 at 09:36:51:
Hey Jack,
Do you mean an experienced investor that does high volume or wants to step his business up, would be intimidated and wouldn’t want to work with someone really good ??
A person who would locate the types of deals theyâ??re looking for, that would do all the heavy lifting (due diligence), leaving him or her more time to close more deals and put more money in their bank account ??
Claude (ATL)
Re:How to optimize the benefits of working leads - Posted by Claude
Posted by Claude on November 15, 2008 at 07:11:47:
Hey Rick,
Wow !! thanks for the solid advice… Itâ??s so ironic that you would respond to my post. Last month I started a little mailing campaign to probate leads… Part of my research before getting that started was searching thru most of your conversations here and studying much of your content… I learned a lot … Thanks again …
In gathering information from a potential client, I thought that most homeowners wouldnâ??t take the time to fill out a very detailed form. My form just asks for the basics: Their Contact info., property address, when do they need to sell, asking price, How long have they owned the property, Mortgage | Loan balance, any other Mortgages or liens, and what condition the property is in… ATLHomeOffers.com
With that data I can check the county records to see who is listed as the owner, when they purchased the property, estimate FMV from recent sold comps, etc.
Would you consider that sufficient in separating the “wheat from the chaff”… ??
Thanks again,
Claude (ATL)
Re: What you would learn is… - Posted by michaela-CA
Posted by michaela-CA on November 16, 2008 at 14:18:24:
Claude,
do not even think about offering marginal deals to possible buyers. GAREIA has/had the highest number of members (+3000) from any REIA in the U.S. That means, that every guru to exists always comes to Atlanta on a regular basis, because there are so many wannabes and they always sell many courses.
That also means, that there are/were so many wholesalers that made tons of money with the ‘greater fools’ theory. 99 of any 100 offered deals were no deals. So, many rehabbers did not even look at any deals offered by wholesalers, because they go inundated by these b.s. deals.
So, if you offer ‘no deals’ then people don’t even want to waste any further time with whatever you have to offer, even if they might be legitimate.
When I lived in Atlanta I refused to give out my email address to wholesalers, because I didn’t want to waste my time. I found my own deals and was happy about it.
Michaela
Re: What you would learn is… - Posted by Jack
Posted by Jack on November 16, 2008 at 14:00:07:
An experienced investor doesn’t generally need anyone to locate deals for him/her. An experienced investor values his/her time too much to spend it looking at ‘deals’ brought to him by no money newbies that turn out to be dogs 9+ out of 10 times (yea, I know, your different, just like everyone else). An experienced investor recognizes that Real estate investment, at least the kind that some newbie would be capable of, is a zero sum game, and that a middle man between himself and the seller (usually the Bank in this market) is just fat.
Re: What you would learn is… - Posted by Claude
Posted by Claude on November 17, 2008 at 04:21:49:
Michaela,
I appreciate your thoughts… You really do have to adjust your approach or strategy based on your particular market… I relocated here to Atlanta about 2 years ago from NYC …
I bird-dogged for two high volume investors years ago back in Queens & Brooklyn…
Iâ??ve spent the time here in Atlanta so far studying values in the areas where investors are active. ( East Atlanta, Edgewood, Reynoldstown, parts of the Westend etc. )
I do understand that marginal deals will not foster the type of relationships I want to build with Rehab & Landlord Investors…
While studying sold comps in most areas this past year, Iâ??ve noticed that some of the better deals are REOâ??s … I know thereâ??s a lot of competition for those type deals, however, seeing what the current conditions are, Iâ??m seriously considering adding that component for finding bargain deals. What are your and anyone elseâ??s thoughts on that approach in this ATL market ??
Thanks again,
Claude (ATL)
Re: What you would learn is… - Posted by michaela-CA
Posted by michaela-CA on November 17, 2008 at 06:38:26:
Claude,
Since I left Atlanta 2.5 years ago I really can’t give you specifics in regards to neighborhoods. I am surprised though about the neighborhoods you mentioned, as those were active with investors 3-4 years ago. I would have thought that some other neighborhoods would have been ‘discovered’ by now.
I still invest in Atlanta, but have my own criteria and they would not fit for anybody wholesaling.
Good luck
Michaela
Re: What you would learn is… - Posted by Claude
Posted by Claude on November 17, 2008 at 08:30:12:
Michaela,
Yeah , those neighborhoods are a bit saturated, nevertheless, thereâ??re still a lot of activity going on in certain parts… Now, the Westend and quite a few other areas are now starting to reflect the fact that the infrastructure and landscape will be changing with the huge Beltline project ( http://beltline.org/ ) thatâ??ll be going on for the next 10 + years …
Thanks again,
Claude (ATL)
Re: What you would learn is… - Posted by michaela-CA
Posted by michaela-CA on November 17, 2008 at 08:55:31:
Psssst
Don’t tell everyone ;-). That’s where my thoughts are
Michaela
Re: What you would learn is… - Posted by Claude
Posted by Claude on November 19, 2008 at 12:42:53:
How about a Triplex right off the Beltline in NW Atlanta ? All Brick built in 2004
2 4BR 1bath on the 2nd floor and 3BR & 2bath on the 1st floorâ?¦ A great Section 8 candidate …
Priced under 270,000 ???