11/14/2008
Well, I closed deal #1 today with California Guy (yay!). We have another one that should be closing in 2 weeks. He was flying out to CA right after the closing to meet with his financial backer, and as he was leaving he asked me to have 10 properties lined up for him when he gets back next week. Sweeeeeet. Once he gets these first two houses rehabbed (shouldn't take too long), the money guy is going to fly in from CA for a grand tour. I can't wait to meet this guy. We spoke twice on the phone and hit it off quite well, so I'm looking forward to sitting down with him in person when he gets here. Also, I'm looking forward to putting his million dollars to work. Hehehe.
In other, non-real estate related news......I got a new haircut yesterday. I spent about 4 hours online looking for the perfect haircut, and then I finally found it and printed it out. And then I forgot the picture at home so I had to try and explain it to my hair dresser, and as it turns out, I am not that good at explaining. So, instead of looking like Katie Holmes in this picture:
I ended up looking like George Washington in this picture:
No kidding- my head looks like a giant mushroom. Sweet.
Ahh well... it will grow back eventually...
Have a fantastic weekend, y'all!
P.S.
Check out my interview over at Clifford's new site..
P.P.S.
If any of you guys ever have questions about wholesaling REOs, please feel free to post them in the comments section, and I will be happy to answer them. I am getting a ton of emails, and am having a hard time keeping up..... many of you guys have similar questions, so I think it would benefit everyone if they were posted here as opposed to private emails. I will still answer your emails, but it may take me awhile.... I am working on a new website that will have a FAQ section, and am tossing around the idea of an REO discussion forum. It's still a work in progress, but I'm getting there...
Friday, November 14, 2008
Closing Deals, and Bad Haircuts, and Stuff
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10 comments:
A FAQ would be great for people!! That's a good a idea. I have a question and I'm sure it will be in the faq lol....
Do you generally do simultaneous closings when wholesaling REO's. Meaning the title company uses your end buyers money to fund the transaction? Also, When you first started what did you do for your Earnest Money. I know you like to use your end buyers money for that as well but what If you can't find a buyer that fast and the bank wants the deposit ASAP once the contract is closed. Thanks
Steph,
Thanks for this blog - it is very inspiration for those of us just started out. Congratulations on your success and I hope it only grows from here.
How did you find the realtor through which you are submitting offers to? Who actually writes up the offers - you or the agent?
Thanks,
Joel
Steph,
Your blog is very informative. I enjoy reading about you kicking tail and taking names. I have a quick question about the closings. Most of the foreclosures in my area close with a title company out of town. How are you able to double close these? Would I have to bring money to closing for the first one, and then have the second closing at a title company in my town with my cash buyer? What do you suggest for these? It would be easier if they were both in the same town as I could just have both at the same time. Your thoughts, and how did you set this up if you've encountered the same thing?
Kyle- Yes, I am doing simultaneous closings, so I do not have to have the cash to close- my buyer's funds are used to fund both transactions. Not all title companies will do this, though, so you will have to ask around. I know of 4 in Tampa that do them, and I found all of them through other wholesalers who do what I do.
Like you said- on my first several REO deals, I would use my buyer's deposit. I would only put houses under contract that I was positive I could sell, and many times, I already had a buyer lined up before all the paperwork was signed. I still will not put something under contract unless I know I can sell it because I do not want to have to close on anything myself, and I also do not want to be backing out of contracts.
Joel- sometimes I will make the offers through a good friend of mine who has his license, and sometimes I will make them directly to the listing agent. It just depends. A lot of times, you will have a much better chance of getting your offer accepted if you are going directly through the listing agent, because they get both sides of the commission.
I write up the contracts myself whether I am using my friend or the listing agent.
Anonymous,
It is the same here- the bank's title companies are usually out of town, and they make you use their title company to do the title work. Once they have the title commitment and HUD ready, I have them email it to me, and I forward it on to my title company so they can prepare everything for the second transaction. We then do a "courtesy closing" at my title company, and both transactions (me buying from the bank, and me selling to my buyer) are closed at the same time. My title company then wires the funds for the first transaction to the bank's title company and also FedExes the signed closing docs back to them.
Hope that helps,
Steph
Steph,
That does help...I guess the first thing I should do is put out bandit signs and start marketing for buyers in the area...I have already started calling "for rent" signs in my area. Alot of the landlords seem like there not buying....but Im not going to let that stop me. Once I have a decent size buyers list I will then start making offers. Does this sound about right? Thanks-Kyle
Hi Kyle,
Yes, that sounds like a good plan.
If you want to find out which investors are buying houses right now, have a realtor do a search for houses that have sold for cash in the last 30 days. Once you get the list, drive by the houses, and you will most likely find a sign in the front yard, or a rehab crew on site. I do this quite a bit to find out who the active buyers are in the areas I work. If you start doing this on a consistent basis, you will have a nice buyers list in a short period of time.
Steph
Thanks Steph - RE: making offers through the listing agent - what contract do you use to make the offer and Is there one standard realtor contract that you use in your area? - where I live everyone real estate company's contract is a little different.
thanks,
Joel
99% of the bank owned properties have to be submitted on the Florida Board of Realtors As-Is contract.
Once you get an offer accepted, the bank will then have their own "addendum" that they make you sign- which is basically a whole new contract with all of their stipulations.
Steph
gotcha - thanks Steph
A George Washington haircut -- now that's "money."
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