Bird Dogging Real Estate vs Wholesaling, How to Determine ARV and more (Q&A)

Bird Dogging Real Estate vs Wholesaling, How to Determine ARV and more (Q&A)


Hey everybody we’re gonna change it up a
little bit today people have been emailing me some questions about real
estate deals they’re working on and just some general real estate investing
questions so we’re going to actually read them off to you today printed them
out for my email and give you some answers via YouTube my name’s April
Crosley welcome to my channel I’m a real estate investor in Berks County
Pennsylvania I flip houses here buying home rental properties and do some
private money lending and we’re gonna answer some of your email questions this
afternoon so let’s get to it thanks for tuning in so I got email question from
Mary who said first let’s cover the most important part the amount first I’ve
been watching your YouTube videos and I absolutely love your strategies thanks
Mary we love your strategies too and thanks
for sending us a question so make sure you subscribe guys so they’ve got good
strategies okay Mary email she’s looking to buy for unit which is and I don’t
know if she’s house hacking it or not because Mary I can’t tell from your
email but it sounds like you have a four-plex that’s at a really good price
in your area and you want to buy it and you gave me the gross income and $75,000
for four-plex that’s good girl jump one bad jump on
that and you might finance it for the bank or you might buy it with private
money but you’re not sure and you wanted to know if you should get an inspection
and an appraisal done first or should you put the private money deal together
a while what I would do is I would lay out the income and the expenses on the
property and what do you think it’s worth watch some of our videos the ones
on seller financing and the ones on how we buy properties was none of our own
money so you can back in to make sure that your purchase price works and the
property still cash flows and I would put all those numbers together and then
email them out to your private lender if you have a private lender already you
can do that while simultaneously getting inspected and having an appraisal done
or you can do the inspection and the appraisal first just know that if you
don’t follow through that money is out of pocket for your inspection and your
appraisal which in the grand scheme of things isn’t that much and I think your
concern in your email is how do you come up with the value of the property
because you said there’s not a lot of combs it’s a four unit you can’t find a
lot of comps you really need to connect with an agent in your area it’s on the
MLS you’ve said that already so whoever your agent is should be giving you cops
even though comps are hard to find they still should be able to pull for you net
properties in your area when an appraiser looks at this they’re actually
going to look at the value two ways they’re gonna run comps
which your agent can do and they’re also going to run an income and expense
evaluation which we’ve done a lot of videos on our youtube channel that run
those numbers so they’re gonna take your income minus your expenses and they’re
gonna figure out what your net operating income is and they’re gonna take that
divided by the cap rate of your area to figure out the value so an appraisers on
a four-plex is likely gonna give you the value based on comps and the value based
on what I called the income and expense or cash flow method so get comps from
your agent run your income and expenses and make sure that your property cash
flows and then look at what those two values come up they come out at based on
cap rate and your agent should be able to tell you about what the cap rate is
in your area so then you’ll have an idea of value okay
I hope that helps you you’re gonna one want to run your numbers two ways thank
you Mary for that question next question email says this is a couple questions
within a question so says I’m a fan of yours in Folly on
social media you guys can follow us on Instagram at April cross lady or
Facebook lazy girl real estate investing and wondering if you can give some
answers on some real estate questions these are some kind of like starter real
estate investing questions so her first question is do you need a PIN number to
access the property liens and judgments with the recorder of Deeds office so a
pin recorder of deeds offenses often
obviously the office that records the deed so anytime I property’s bought or
sold they’re recording that deed liens are money that’s owed on the property or
judgments against the property so if you have a $50,000 mortgage that’s a lien on
the property at $50,000 so she’s asking if she needs a PIN number to access that
information on the recorder of deeds website and I love giving
straightforward answers you guys know I’m no b.s can’t give you a
straightforward answer on that every recorder of deeds website is different
so you want to go down to the actual courthouse in your area and talk to
someone at the recorder of Deeds office and ask them my recorder of deeds
website we don’t need a pin number everything’s just kind of like out there
for everyone to see and we can log in and see it in your area you might need a
PIN number so double-check with them she also asks is real estate investing
considered a business and do we need to report our earnings to the IRS
unfortunately yes it is a business you gotta pay taxes you
got to report your earnings to the IRS and you need a really good accountant
that understands real estate investing or it can get a little messy so it’s
definitely a business when you get into this a lot of people usually don’t know
that but it is your starting us all business it’s a huge undertaking so
you do have to report your earnings for the IRS she’s asking how can we vet
buyers I’m assuming buyers for like wholesale deals like if you’re
wholesaling is it okay to ask them for earnest money
up front so I don’t do a ton of wholesaling I work with rural sellers
when I have a deal that I don’t want to buy myself I’ll usually send it to one
of my wholesalers she’s amazing and you might meet her someday or one of my
youtube videos but I don’t like as a buyer when people ask me for money up
front I wouldn’t give anyone money up front I wouldn’t mind if they gave me a
letter from their private money lenders showing that they have funds to back
their offer or if they give me a copy of a bank account statement obviously with
their numbered bank account number blacked out but still showing their name
to show that they actually had money to buy the deal because that is a big
concern people that say they can buy the deal but then they don’t actually have
the money to buy the deal so I wouldn’t ask them for money up front I just know
for me as a buyer when wholesaler that asked me for money up front it’s a huge
turnoff I don’t like to work with them okay and she asked can we use anyone’s
purchase and sale agreement contract the legal document you can like in our
course at lazy girl or guy calm I give my students a contract for purchase they
can use with sellers but I always tell them to have it checked by a real estate
attorney so along with your accountant you’re gonna need a good real estate
attorney because every state is different so you really want to have
that contract checked by your attorney to make sure it’s good for your state
okay and you asked who do you hire to do that and it’s an attorney you definitely
need a good attorney so girl go get yourself a good real estate account and
go get yourself a good real estate attorney okay
our last question I got the email was what’s the difference between a birddog
fee at a wholesale fee like why do some people get paper
fees and some people get paid a little selfies so birddog fees are when you
just send someone an address and you get paid for that let me rephrase that you
don’t get paid for just sending an address because people would be sending
me addresses all day long and expect me to get paid
that would be release me I’d be sending people addresses just to get paid but
bird-dogging is when you’re driving around just looking for houses that kind
of look a let go a little let go and you’re sending a real-estate investor
the address hey I drove past one two three main street today and it was all
overgrown here’s the address for you let me know how you make out when someone
sends me an address I start marketing right away to that property so I’m
sending letters postcards on door knocking on cold calling trying to get
ahold of that seller if I buy the property
I send you a bird dog feet bird dog please usually five hundred dollars or a
thousand dollars just for sending me an address
all you have to do and I have to close on that address so I have to buy that
property to send you the feed that’s a bird dog fee a wholesale fee is usually
a little more and a wholesale fee is basically the more work you do the more
money you get paid so a bird dog fee is just when you send me the address a
wholesale fee is when you drive past that house that’s overgrown with shrubs
and you go out and you do the marketing and you contact the seller and you get
the property under contract and then you bring me the contract and say hey jerk
ass this crappy house have this property under contract here’s the contract do
you want to buy it from me for a wholesale fee so basically you do all
the work for me and I’m paying you a bigger fee and I know the next question
is going to be how much is the wholesale fee that’s really up to the wholesaler I
don’t care what the person’s wholesale fee is as long as the deal works for me
so you put that deal under contract and you’re under contract for a hundred
thousand and you’re selling it to me for a hundred and ten thousand and I look at
the house and the contract and I I’d love to pay 110,000 for this house
and you as the wholesaler make $10,000 I don’t care as long as the deal work for
me and the deal works for you you could make 20 grand on it you could make five
grand on it you just have to make sure the deal works for the investor and the
deal works for you as the wholesaler so birddog is when you just send an
address and I do all the work wholesale fee is when you take that
address and you do all the work and get it under contract and then sell me the
contract so basically hole selfies are more you
can make more money but you’re doing a lot more work and you have expense
because you’re the one doing the marketing but it is a good way to make
more than what a bird dog fee would be so that’s the difference that’s how are
emailing questions for today you guys can email more of your questions to
April at lazy girl REI comm you can follow us at WWE girl
REI comm follow us on Facebook lazy girl real estate investing or follow us on
YouTube April crosley thanks for joining us today

9 thoughts on “Bird Dogging Real Estate vs Wholesaling, How to Determine ARV and more (Q&A)

  1. Great info! Happy New Year, April!

  2. Got more questions? Leave em in the comments or follow the link in the description below!

  3. Can you mention who your re attorney is and CPA

  4. this is one of the best breakdown of numbers..thank u

  5. Nice first video of the year. Thanks, April.

  6. Good music choice I was digging it.

  7. Comps: Yeah make your realtor work and get your comparable previous sales!!! They get 3% from the deal!!!!

  8. Thanks for answering my questions 😘

  9. Thankyou Ms. Crossley. That was the best explanation plain and to the point about Wholesaling and Birddogging. Do you buy in West Virginia?

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