4/11/09
Well, I had a pretty fantastic week. My sister, her husband, and my nephew Trevor are in town for a wedding, so I got to spend some quality time with the little guy. He's crawling all over the place now, and gets cuter every time I see him.
I ended up getting those two deals I was talking about in my last post, plus another one, and am very close to signing a 4th. Sweet.
On top of that, I just made a connection with a guy who is getting bank owned properties before they hit the mls. He doesn't have any buyers or connections in the hood, so he's going to start giving those properties to me, and we're going to partner on them 60/40 (he gets 60 since he is backing the deal if I can't sell it). We've already got one locked up together, and I talked to him this morning and he said he should have 4 more coming on Monday. Having access to deals before they hit the mls is pretty much like winning the lottery. I'm not going to put all of my eggs in one basket, but if this actually works out long term, I am going to be making some seriously sick money. I'm still skeptical, but so far, so good.
A buddy of mine called one of the bigger REO agents yesterday to ask him what the hell was going on, and why there are hardly any new REOs being listed. The agent told him that the banks are holding on to all of their properties to try and create a demand in the market, which will in turn drive up prices. It seems to be working, but I would think that this is just going to make things worse in the long run as the inventory keeps piling up. He also said that Fannie Mae is one of the only lenders who is putting properties on the market right now, and that if it wasn't for their listings, his office would be selling hot dogs on the side of the road. He thinks that in another month or two, all of these properties are going to start flooding the market, and it is going to be an absolute blood bath. I tend to agree with him.
So, that's what I've got going on right now. Lots of good stuff in the works.
Have a great weekend!
Saturday, April 11, 2009
Good Times.
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19 comments:
Nice, Steph! So much for that dry spell eh? ;-)
I too have noticed the slowdown on new REO listings as well as increasing multiple offer frenzies! Will just keep plugging along because I know the deals are still there.
Yeah, they are still out there, just a little bit harder to get.
I guess the upside is that it should be easier to sell them now with all of these new buyers entering the market.
Happy Easter Steph!
Question for ya- how is this guy getting properties before they hit the mls?
Happy Easter to you, too!
He has a good relationship w one of the biggest REO agents. He gets a heads up about deals before they are listed, and usually gets the deal locked up before anyone has a chance to go check it out.
Awesome Blog, Steph! You are an inspiration. I have been reading off and on for the past year. I just made my first $1,500 on a flip last week. It was a lot of work (a short sale), but I am just happy to actually to have finally made some money in real estate.
I'm going to have offer on REO's with my short sale business. I actually had 3 buyers for that deal, and I just took the first one. I'm sure that I can get just as good wholesale deals in the city with REO's as short sales without the hassle. I'll look through the history of your blog for your system.
Congrats on your first flip, Sabrin- the first one is always the hardest..
Happy Easter, and thanks for stopping by. :)
Steph,
That's great news about those deals! It's a good feeling knowing they're closed and not wondering if they're close :) lol, sweet.
Den
Amen, brother.
Hope all is well. :)
Steph
Congrats Step!
Hi Steph!
Nice going! You are leaving all of us in the dust!:) How do you find these guys? Also, I stink at talking to people, how do you start a conversation to find new buyers? There's a construction company doing a rehab on a property on my block and I have yet to talk to them to get them on my buyers list, any pointers? I don't want to sound like a newbie, so what do I say? Thanks!
Sincerely in Christ,
Leesa C.
Eph.2:8,9
L.J. Cramer Properties
Hi Leesa,
I am just honest with them and tell them I am a wholesaler and ask if they are looking for more deals in the neighborhood. Then I try and get as much info as possible about what kind of deals they are looking for (price range, beds/baths, neighborhood, etc.)
Most people are pretty friendly and like talking about what they do, so it's really not that big of a deal.
It gets easier the more you do it. You have to be willing to get over your fear and just get out there and go for it.
Take care,
Steph
Thanks for the advice Steph!
Also how do you search the MLS for cash sales?
Sincerely in Christ,
Leesa C.
Eph.2:8,9
L.J.Cramer Properties
There's a field that you can add to the search criteria called "sold terms." Once the sale is closed, it will say how the property was purchased- cash, private, conventional, etc.
You can also just do a search for the lowest sales in the neighborhood, and those will usually be investors.
Steph
I guess u were too busy for R-Fed?
jimi
I'm never too busy for R-Fed.
What did I miss?
French Open doesn't start til May, I thought.
Hate to break it to you but ...
R Fed wed this past weekend in Basel
jimi
What you described is collusion, price-fixing, possibly even racketeering! And illegal!
And the big REO agent is also walking a very dangerous line because he (she?) has a fiduciary duty to his client, the lender, to get the most for the property. If these are GSE properties, the taxpayer is making up the difference (because Fannie or Freddie is paying off the insurance policy to the lender for the difference between the sales price and whatever it was insured for, so getting a lower price means WE make it up to the lender. Damn, real estate is such a scam!
Yeah, I'm pretty sure the the agents who do this would have their asses kicked to the curb if the asset managers knew what was going on.
Damn crooked agents.
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