Park is a full-time investor who found a fire damaged house on MyHouseDeals that led to a great wholesale opportunity. He’s been working with a real estate investing partner called New Western for funding and ongoing investing support.
He stresses that being a successful investor takes a lot of upfront time and commitment, so it really helps to have great resources at your disposal. He advises new investors to be prepared to always do your due diligence when assessing a deal.
Read on to find out:
- How he uncovered a profitable wholesale deal
- How New Western has helped his investing business
- The importance of commitment and due diligence
The below graphic shows a summary of the deal he found on MyHouseDeals.
Listen to the audio of the full interview here:
What made you interested in investing?
I just kind of fell into it. I went to school for finance with a minor specification in real estate. I knew I was interested in real estate, and I just kind of fell into the investing aspect of it.
Would you consider yourself a part time or a full time real estate investor at this time?
So how has the change in your career affected your lifestyle?
I definitely have a lot more freedom. It is full time, but the flexibility in my schedule is something that really appeals to me.
How have you been able to develop your marketing and business skills in regards to real estate investing?
One advantage I’ve had is working with New Western. They provided a lot of the knowledge that I didn’t have access to. It would’ve probably taken me a lot longer to learn if I had done it on my own.
So in regards to marketing and whatnot, they handled a lot of that for us. I’ve definitely learned about all the different avenues that it takes to be successful as far as marketing is concerned when you’re in the real estate investing industry.
Tell me about the biggest mistake you’ve made in your real estate investing business.
Well, I wouldn’t call it a mistake, but I underestimated the time and effort it takes to actually be successful in real estate investing. I guess I was under the impression that I could do this on the side or dabble my feet in and make a ton of money. But here in the Houston market it’s a little bit different than that. I guess that was an oversight when I first started, but now I definitely see the commitment it takes to be successful.
When buying from a wholesaler or a motivated seller, how do you convince them that you’re a serious buyer?
Part of the benefit of working with New Western is that we do actually close on the property. We don’t reassign them out. We close on it. And then if we’re wholesaling them off, we just double close on them and sell them after we’ve closed.
We do actually have the funds available to close on the properties. So our proof of funds is obviously a pretty straight forward and helps put that question at ease.
What do you say to wholesalers when trying to acquire properties and get a discounted rate?
Most wholesalers kind of know where the market is at. A lot of the wholesalers I do business with are pretty close to where we need to buy properties price-wise.
Also most people in the industry also recognize there’s some negotiation going on. It doesn’t really come down to me convincing them. Instead it’s just me stating that this is where we would need to be. I can explain the calculation if they need a break down.
“Hey, this is what I’m thinking with the numbers, why are you guys coming up so low?” And then I just give them a basic breakdown. “This is what we see the value being after repairs.” And of course we have a profit margin that we need to include in the price and we subtract that to get our offer price.
Can you take me through your deal you found on MyHouseDeals.com?
I source deals on MyHouseDeals because it’s pretty industry specific and there are a lot of wholesalers who post on there for good prices. So I actually came across a guy that was posting a home with fire damage. I contacted him about it and I told him I worked with New Western.
That’s kind of again another benefit of working with them. They do have name recognition, brand recognition. I told them the company I was with and I think I offered $5k below what he was asking on MyHouseDeals and we signed the contract that night.
Why did you choose a house with fire damage?
We’d buy properties in any condition to be honest with you. Flood, fire or whatever. It really just comes down to the numbers.
Whenever I’m looking at it, the condition of the property doesn’t really matter because I can assess more or less a rehab value and if there’s enough value after repairs, it doesn’t really matter what condition it’s in.
Were there any hurdles that you had to overcome at closing?
No, actually it was a very, very smooth transaction. The title was clear and there weren’t any other issues.
What are your plans for the house?
We sold it. We wholesaled it off. We closed on it with them and then we immediately sold it.
If you were able to have a conversation with your younger self before you did your first deal, what would you say?
Don’t underestimate the time and effort it takes.
What advice do you have for new investors?
Just to do your due diligence. There’s a lot of bad deals out there and if you don’t in your due diligence you could end up losing money.
Park offered his suggestions to find a company that can back you or that is knowledgeable and definitely work with that company to get your deals done. Do not underestimate the time and effort it takes to be an investor. Put in the commitment, do your due diligence, make sure you’re within your budget and everything will work out.