"Texas Hold'em and Chocolate Rolls"
If there’s one thing I realized very quickly, it’s that without a winning team, and without surrounding yourself with a bunch of cannon winners we won’t get anywhere neither now nor two hundred more flips, no matter how much you say you learned along the way.
There are a million such clichés in the real estate world and they are all probably true. To find the “right” market for me the road to Dallas Texas was long and tedious. Months of web analytics, reports, articles, financial analysis and what not. I was told you were crazy? You lived in Vegas! You know every corner there! Your stepmother lives there! She mediates !!! What do you have to look for in a new market? But the analyst in me is annoyed and told me that the market there is just not right for me or for my investors. So yes, I left the comfort zone and approached it in the most analytical way possible, and so I arrived in my ultimate investment capital, Dallas Texas. Where all the big real estate investors want to be today.
And I do not rule out any other market, on the contrary wherever the demand is greater than the supply there will be guaranteed business opportunities. The question is who the players are and how deep are the pockets there and with what team are you entering the field.
This story is actually from a recent improvement project we purchased or a Flip in spoken Latin, where our nuclear team was incomplete. One of the contractors we work with in the same area fired two strong foremen and could not join this project, the other contractors we worked with were busy or in the middle of projects. So we said come on this is an opportunity to try a new contractor and not necessarily a problem. After previously trying two Israeli contractors who could not meet the pre-defined project budget, a promising contractor named Chris emerged (through a recommendation) from the north and claimed, “There is no house I can not renovate with this budget! Send me an address and we'll talk later.
General background, we are a hard money under contract on a house two weeks before closing, there is a vow, and the deal is an open market without an option period and we have already deposited $ 5000 in light of an informed assessment of the actual property value after renovation and an estimated cost of renovation. But there is a wholesaler in the picture, another wholesaler on the part of the seller (they did an assessment between them), a landlord, a broker, a title, and an angry seller from all the people who work, since she is currently selling a house for $ 100,000 below the market price. The wholesaler working in front of me got a call from me that I was going to send contractors to make more accurate assessments and gave me the code for the lockbox.
Chris (the new contractor) calls me, I have lunch, he has an early morning, he tells me that the project is realistic, there is work here but there is meat here and he is not afraid of the budget. So far it sounds promising, he adds he will return later, he is currently leaving the property and will return later with his primer to check if the walls I sought to demolish are retaining walls. Towards 3am at my place (I work at night in front of Dallas) Chris calls and starts yelling at me on the phone and asks who gave me the lockbox and he adds and says he went into the house and heard someone was there, so he pulled out his gun (yes Chris turns out to have a gun, it's Not strange in Texas) and shouted that if there was anyone in the house, he would fly because he was currently in the property legally and that he was not afraid to shoot.
Ahla .. while he is barking, I hear someone shouting at him from home because it is her house, and he replies that she is disturbing him and starts a quarrel there while I am on the line hearing everything, Chris holding me on the line all this time is barking at her, she On it and then I get a sms from the wholesaler who asks me if I have a contractor on the property, I answer him that yes and he texts me that he quarreled there with the seller, and that it is very worthwhile for me to kick this contractor away because he is doing a scene there.
I will also note that Chris' wife Bauto is waiting all this time with a 3 week old baby, the seller has meanwhile ordered a police mobile, the wholesaler is threatening me with text messages that the deal explodes if the contractor does not fly away now, meanwhile a mobile, the seller's brother and other family members claim she was A safe in the bedroom and now it is gone !!, and now the contractor is under investigation on the spot, on the line I hear a policeman and chaos around him… and then… ..
I get up from the table, go to the kitchen, make coffee, take chocolate beads from the closet, sit down at the computer, send one email and one sms in ten minutes, it's all over and come to its place in peace.
One email was to the crazy contractor with all the papers of the contract, the assignment, our LLC registration and the house code to show the cop the name of who sent it to the jet and we have permission to be there, and one sms to the wholesaler who says if he does not throw the seller out of my contractor's face I'm blowing up the deal. Within ten minutes the contractor was released, the seller disappeared and the wholesaler apologized. Of course we will not employ this contractor, of course, but hey.
No on Texas Hold'em and chocolate-rolls.
In the next episode: (teaser)
"On one bluff and a money printer"
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