1/17/2007
I am pleased to announce that I have REO #2 sold!! My rehabber friend went to take a look at it and wanted it. It's set to close a week from tomorrow. I was initially hoping to make 5k on this one, but it will be 3k instead, which is fine by me. This is another instance where I could probably find a buyer for a few grand more, but I'm going with this offer because I know it's a done deal. This is the 3rd deal he has bought from me, and I know I don't have to worry about any bs with him. I had my friend John (I put the offer in through him) call the listing agent and tell her (not ask) that we needed to add my partner on to the contract. No problemo. I was all stressed out about it as usual, but it was no big deal. They don't care as long as it gets sold. I got some coaching from my friend Chad in Atlanta, who was the one who told me about this whole quit claim thing a few months ago. Thanks, Chad! Doing it this way is saving me quite a bit of money in closing costs. It's also pretty darn easy to do.
Here is what the numbers look like on this one...... ARV $115k-$120k, Repairs 20k (I was way off on my repair estimate, btw), list price $54,900, contract price $55,000. Assignment fee 3k, which will be paid outside of closing in exchange for a quit claim deed to my buyer.
One of my goals for the month was to buy a new computer (laptop), which I will be doing once this deal closes. I can't wait!! Check it out- it's PINK!! I've had a picture of it tacked up on my wall right behind my desk for about a month now. Motivation.
Me wantee.
Thursday, January 17, 2008
Sold!
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10 comments:
Hey that looks like my computer! Mines not pink, tho.
Glad you got it done, Steph!
Let me reveal something, hopefully you won't get mad, but I kind of agreed with RonStarr but never wanted to say anything. I knew after he said it that your next one would be for more money, or at least you would try for more. So glad to see that you did. Maybe if the next one comes quickly you will stick to your price. I hope so.
Way to go!
Hi Jason,
Apparently you are not the only one who thinks that way- I just got an email from another reader who expressed the same concerns. Here is my reply:
***********************************
As far as the spreads go, I am just being really cautious right
now. Also, both times, I underestimated repairs, and over estimated what my
buyers would be willing to pay for them. On both of these deals, I offered
to close in 10 days, so I didn't have time to screw around. Both buyers
gave me their highest and best offer right up front, and on both occassions,
I was happy to get what they offered. I am still struggling to stay on top
of my bills, so some of the decisions I am making right now are backed by
fear of losing the deal, and not being able to pay bills for the month. Also,
the money is not the only thing on the line with these REO deals- I am out
to build a reputation with the REO realtors as someone who gets shit done.
I'm more concerned with getting these deals closed and showing these guys that
I am serious. It is going to pay off big time in the long run. So, for now, I'll take
the 2k and 3k paydays all day long.
Once I get on top of things (after this deal closes, I will actually have some
extra money in the bank for the first time in over a year), I will be able to be
a little more bold, and take more chances. For now, I'm taking what I can get
and running with it. Trust me, I will be hitting those 10k+ paydays before the
year is out. ;o).
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I hope that explains things a little bit.
Thanks for the support and feedback. ;o)
P.S.
For those who don't know what we are talking about, here is a link to the discussion on Flippinghomes.com:
http://reiplace.com/newsgroup/read.php?1,147259,147259#msg-147259
(You have to cut and paste, sorry I don't know how to add a link in the comments section).
Congratulations on your latest deal!
You are rockin and rollin now!!
You know your market and your buyer better than any of us. I just wanted to express my viewpoint.
You've got it under control.
Go Steph Go!!! I'm with ya on playing it a little safe until you don't have to anymore. I'm in the same boat.
Hi Steph,
Just curious. How are you getting around the no assigenment clause that I've seen with most REO? and is the lender requiring a proof of funds type of letter from you?
Enjoy your blog and have great success.
Boazbama,
I am adding my buyer to the contract, so we are both closing on it together (with their money). Then, right after closing, I am giving them a quit claim deed (to get me off title), in exchange for my assignment fee. Make sense?
Most REOs will require proof of funds (bank account balance, line of credit, etc), or a pre-approval letter from your lender.
Thanks for reading!
Steph
I'm proud of you Steph. Once again, you're making me look like I'm standing still. :)
Hopefully you have better luck with your Dell laptop than I did. Mine required frequent trips to the fridge in order to keep from over-heating.
Well geez Clifford,what were you looking at that heated up your computer like that? :)
That's great, Steph! Congrats! I am still waiting to see if the sale of our three houses is going to go through. Keeping my fingers crossed big time! I am a big believer of one bird in the hand being better than two in the bush--so, I'm convinced you did the right thing selling for a little less.
And, from someone who used to fix Dell laptops multiple times a day, Clifford had the typical problem Dell laptops have--a dead/dying processor fan. It's a pretty simple fix for a techie to do. Bad news is, the fan usually waits to go bad until the day after the warranty expires.
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