1/15/2009
Well, I now have 4 deals going, and have 3 of them sold! The only one I have left to sell is the one I just got accepted Tuesday at 16k, and I can sell that one in my sleep. I offered to close this one in 10 days, but the bank set the closing date for Feb. 10th, which is an ETERNITY in my world, so I am going to take my time selling this one, and am going to hold out for top dollar. I think I can get 23k easily for this house. It only needs flooring, and an ac condenser to be ready to rent, and it will easily rent for $600-$650.
One of the deals I put together yesterday is with a friend of mine (who is the REO King of Tampa) who beat me to the punch on a house that just popped on the market at a ridiculously good price. It is a totally remodeled 3/2, and it came on the market at 23k. I was at the house within 15 minutes of it being listed, and had an offer of 24k in within the hour. No contingencies, 7 day close, and I gave the listing agent both sides of the commission. And that crafty bastard beat me to it. So, we put a deal together yesterday with one of my buyers who wanted the house. Easy money on that deal...
OK, gotta run- going to put out a bunch more signs...
P.S.
If you are a Steve Cook student and didn't get the memo today.......the doors to the Wealth Explosion Event are now open to us- don't forget to sign up! If you aren't already a Steve Cook student, and would like to be.....go here for more info. One of the many bonuses of being his student is that you get to attend all of his events for free...
P.P.S.
If you live in the Tampa Bay area, beware of the feces-throwing monkey! (thanks for bringing this to my attention, Dustin) :)
Thursday, January 15, 2009
And then there were..........FOUR!!
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21 comments:
What did your friend offer on that house to beat you?
Stephanie i've been reading your blog for a while now and I have been follwing your success. I remember when you were first starting out and nothing was going your way but you didn't give up and now you are really successful. i have a couple of questions. I'm trying to start wholesaling houses here in the cleveland ohio area. My first question is do the banks require you to use there title company to close or can you use your own. Alot of banks out here want you to use there title company. Will this make it hard to wholesale houses to other investors. My second question is what are some tips for building a good buyers list.
Kareem
kareemharper@yahoo.com
Brandon- he already had the property before it even hit the market- he's basically got the listing agent in his pocket.
Kareem,
Yes, the banks will require you to use their title company to do the lien searches, title work, and prepare all of the closing docs- there is really no way around it. You can do the actual closing, though, wherever you want to. You just have the bank's title company send everything over to your title company when it is ready to close, and then you do the closing with your title company and they will wire the funds and FedEx the docs back when everything has closed.
As far as building a buyers list...I research the recent cash sales on the mls, and find out who is buying what, and then I go find them (usually at the house they just bought). I also use handwritten signs quite a bit to advertise deals- I find most of my buyers this way..
Hope this helps,
Steph
Thanks for the quick response. Is your title company allowing you to use you buyer's money to close your transaction because Iam having trouble finding a title company to do it like that. They all seem to want you to bring your money to the table first to close your end then you can close with your investor.
Kareem
kareemharper@yahoo.com
Yes, I am using my buyer's cash to fund both deals. There are 4 title companies in Tampa (that I know of), who will do it that way.
I found all of them through referrals from other investors. Find the active wholesalers in your area and ask them who they are using..
If you can't find one you can always use transactional funding to close the A to B sale. It will cost you more to do the deal, so you will have to take those costs into consideration when you are making your offers.
Stephanie, since you are not closing on these houses yourself and you said before you accept an offer from a bank you already have it sold how do you avoid your buyers going around you and buying the property directly from the bank thus cutting you out the deal.
Kareem
kareemharper@yahoo.com
Kareem,
Most of the investors I work with are repeat customers that I have built a relationship with. I bring them good deals, so there is no reason for them to cut me out.
I would rather take the chance of someone going around me than risk putting something under contract that I might not be able to sell, but so far, I have never had anyone go around me..
Steph
Hi Stephanie,
I'm a new reader of your blog and am really enjoying it. It's funny, I constantly see wholesalers asking how to build buyers lists and such. As an investor I find wholesalers whom I contact via their web sites don't even respond. (Cincinnati) It's like we're ships passing in the night. Your investors are fortunate to have found a professional in you. Congratulations on all your success.
Good stuff, Steph! Oh...and ROTFL on the poop throwing monkey - what is REALLY goin' on over there!
Hi Melinda- thanks for stopping by...If you ever decide to buy property in Tampa- you know where to find me :)
Shae- isn't that hilarious?? I hope they never catch him..
If I were you, Steph, I'd also hope you don't run across him.
I ain't scared...
Steph,
Lets just hope you don't get into a bidding war with the monkey... If that happens just let him have the deal...
Also, If you start seeing the
monkey market-
Monkey Buys Crappy Houses
Call 555-555-5555
You may want to find a new profession, cuz it could get messy if you cross him... Naw, you would probably take the monkey...
Okay Im done... I could go on and on, but I think I've kicked this horse enough:)
Hehehe!!
"Monkey Buys Crappy Houses"- I love it!
Hello Steph,
My name is Jay. I attended my first REI meeting last night. It was exciting to see all these money makers in one place. I found plenty of landlord investors who are looking for 2-4 unit apts.
I am going to call my Realtor 2moro so I can make offers.
My question to you Steph or any1, once you make an offer, at what point do you tell your buyers about the property to see if they have an interest?
If u tell them before ur offer is excepted, do you give them a purchase price based on the minimun margins you are willing to settle for?
Example: your offer is 60k on a 100k bank price. Your margin 10-20k. Price to end buyer 75-85k...
Hi Jay,
Glad to hear you are getting out there and taking action..
Once I get a good counter from the bank, I will call my investors and send them by. Usually I will give them a range- like, "I can probably get this to you in the mid 20's.." and they will tell me if that number is anywhere in the ball park.
I usually know exactly what numbers they are looking for in the neighborhoods I am working, so I usually know right away whether or not I have a deal..
Hope that helps,
Steph
Thanks,
How do you go around the earnest deposit if the bank requires it?
If you are making 3 offers a day, that can be very expensive...
There are a few banks/agents who will require a copy of the earnest money in certified funds along with your offer, but most of the time you do not have to cough up the deposit until after your offer is accepted.
That is something you can put in your contract- "Earnest money to be deposited within 24 hours of ratification."
Oh, ok. By that time you already know whether or not you will be moving forward with the deal based on your end buyer's decision on the property.
Hey Stephanie.. I just want to say to you that you are such a motivation, i remember the struggles that you encountered getting started and you never gave up. Im embarassed because I did. So I kinda feel off the universe but, you know sometimes you just have to regroup. I hope its in the card for me to be successful as well.
-Serena
Hi Serena!
Nice to hear from you...
Give me a call sometime so we can catch up..
Hope all is well
Steph
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