Vendor/Resource Information and Frequently Asked Questions

After selling over 500 discount homes in the past 5 years, the founder of DiscountPropertyWarehouse.net has learned a hard but valuable lesson: good contractors, vendors, and property management is HARD to find.  Many people who work within this industry are not interested in anyone’s success other than their own – closed door deals, accepting bribes from employees to squeeze out partners, deception, and submitting false due diligence to buyers to facilitate a sale are common practices.  No matter what someone in the wholesale industry promises you, i.e. ‘White Glove Service’ or a ‘Turn Key’ program, what really is an indicator of true success is if the clients who work with them are able to, over a period of time and multiple transactions, still verify that they have had an excellent investment experience.  Most investors do want to work within the framework of a ‘turn – key’ system, true: but a turn – key system that sets an investor up for failure because there is no established infrastructure(or the ‘turn – key’ crew turns out to be a bunch of subcontractors who are transient and/or property management companies who have no established experience) puts an investor in unexpected jeopardy and enhances their risk of ruin.  And this risk is especially augmented for investors who live out of state.

Since we are not interested in maximizing an investor’s risk of ruin but rather minimizing it, we have set up an infrastructure which allows all the resources necessary for an investment to be successful to be accessible to our clients if they desire.  We do not do anything ‘in house’, so to speak – we use vendors who we trust and who have, over time, proven their ability to provide competent and integrity based services in our own investment portfolio FIRST.  Only then do we recommend these vendors to our clients.  And, we do not give a ‘list’ of people so an investor has ‘choices’: we use specific people who we have grown to trust, over time.  You don’t have to spend time ‘choosing the right people’, because we provide them for you.  You work with them directly and pay them directly.  Our vendors and contractors understand that most clients want monies held in escrow pending satisfactory work completion.  Rarely do our contractors need a ‘draw’, because they are financially sustainable and have established businesses.  We aren’t interested in using the vendors that ‘really need some money.’

You are not, however, obligated to use the vendors that we recommend as a courtesy.  You may use your own contractors as well.

Here is a list of Frequently Asked Questions that often come to us from investors who are considering using us to purchase investment real estate.

1)      What types of resources do you have available for investors who don’t want to manage their own properties?

We offer a comprehensive array of services, including but not limited to: licensed general contractors, property management, title and closing/escrow/ attorney services, insurance(vacant and dwelling), pest control, appraisers, home inspectors, and short term(bridge) and long term financing.

2)      Are these services all done in house by DiscountPropertyWarehouse.net?

No.  We do not subcontract any services.  All we do is offer property.  All of our vendors are licensed individuals in their respective fields.  You will work directly with them.

3)      What type of financing do you offer?

We offer both short and long term financing to qualified applicants.  However, our recommendation is to purchase the properties we offer with cash.  Financing, while allowing you to preserve capital, carries an associated cost with it that can drive up your cost basis and lower your return.  Whenever possible, pay cash.  If you need financing however, let us know and we can arrange for you to talk with one of our direct lenders.

4)      Do you have any client references that I can independently verify and talk to about their experiences with you?

Yes.  We will give any prospective investors references of multiple nationwide clients who have worked with us for a minimum of two(2) transactions.  In fact, we encourage all clients to disregard all information on our website and to verify it independently of anything we tell you.

5)      I don’t want to use DPW.net to purchase investment property, because I have bought property through another wholesaler in Memphis and the contractors and vendors they have promised me turned out to be atrocious and I have lost money.  I have heard that your vendors and contractors are extremely reliable.  Can I get a list of names and phone numbers so I can use your contractors and vendors and stop the financial losses I am incurring?

We get asked this question quite often, which in and of itself is disturbing,  and the answer is no.  Our vendors have specific instructions to only work with our clients.  Part of the reason our vendors give quality, comprehensive service is that we don’t overload them with property or service requests.  If we bail out everyone who bought a Memphis property from a wholesaler who has no integrity, we would not be able to provide the level of service that we do.

6)      I have been reading your articles and blogs and really enjoy them.  Who writes them?

While we have guest writers at times, most of our articles and blogs are written by full time investor, radio personality, and DiscountPropertyWarehouse.net founder Robert Feol.  Robert’s writings have been well received nationwide, and he has been published as an author and invited to speak at various investment groups across the country, including Baltimore REIA, Memphis Investment Group, Jackson MS RIG, and the West Tennessee Hispanic Business Alliance.

Robert also hosts an extremely popular weekly radio show in Memphis on News Radio 600 WREC which focuses on real estate investing.  His show can be heard here.

7)      I want to purchase Memphis investment property but am nervous.  Do you offer any kind of guarantee?

Real estate investing carries inherent risks.  We believe that, as full time investors, risk can be mitigated by using an integrity based team which focuses on us acting as consultants and as not used car salesman.  If you are focus on  your investments and are vigilant about them, assuming you have acted responsibly(i.e. communicated with your vendors, used appropriate financing, and do not have financial issues that detract from your ability to manage your investment without spending your profits) then we find it is very unlikely that you will fail. Ultimately, the best indicator of investment success is YOU.

8)      Do you recommend retail exit strategies with Memphis investment homes?  If I can buy a home for 50k and it appraises for 100k, can I just sell the home asap using a licensed Realtor® and pocket 50k?

No. We do not recommend retail exit or ‘flipping’ strategies in Memphis, for a variety of reasons.   Our recommendation is long term hold for cash flow, appreciation, equity pay down, and tax benefits.

9)      We bought some property from a Memphis wholesaler and used the property management company they recommended.  We began having a really bad expereince with the management company, and when we wanted to change management companies we were threatened with legal action to stop us from changing management companies!!! When we went to the wholesaler who recommended the management company to ask for their help, the wholesaler just gave us the number of an attorney we could call and said ‘good luck.’  Is this how you operate?

No.  Our contractors and vendors don’t try to hold you hostage to preserve their income streams.  You are not obligated to use any vendors we offer, and if you choose to use them, you don’t have to worry about lawsuits to prevent you from withdrawing your business.  The professionals that we work with understand that if a client doesn’t want to do business with them, then those decisions are final and not to be questioned.