Flip This Wholesaler

Sell, Sell, Sell!

That's the plan, Stan.

Just a suggestion: check your contract to see if you can get out of it. Many contracts provide that the property has to be in the same condition it was when you purchased it (which would be the date the contract was signed by both parties). You may be able to get your earnest deposit back. Happy buying/selling!

Hi Raquel-

We are actually out of contract because they couldn't close on time, so I'll be getting the deposit back. :)

Hope you are doing well,
Steph

Hey Steph, Roshard here.

How do you have access to the MLS? are you an agent. My apologies in advance for the rookie question. Thanks!

Steph,

What is your strategy for putting out the signs? I know that 100 signs are alot. Do you put them out yourself?

I really do appreciate you always answering my questions.

Your awesome,

Hugh

Hi Roshard,

One of my friends made me his assistant- which basically consists of me having to pay a fee and sit through a stupid training class. Now I have access.

How's your 1 hr of reading coming along, btw?

Steph

Hello Hugh,

100 signs is a lot, but I want some new buyers, so I'm willing to do it. I put them out myself. I usually go really early in the morning on the weekends before people are out and about.

It's kind of a pain, but they work, so I don't mind. I usually will pull a bunch of listings the night before and pick properties to look at in the area while I'm putting the signs out. Kill 2 birds w one stone. :)

Are you liking the Rockstar training? How many weeks left?

Steph

Hey Steph,

Lee knows his stuff. I've learned a great deal from him so far. It two more weeks of training. Next week is closing and paperwork and the following is motivational stuff by the King of wholeslaing. Thats what he calls himself anyways.

To be honest... Your blog is just as good. I've learned just as much here.

So if you come out with a popstar verison just let me know.

Hugh

Popstar version- that's a good idea. :)

If you haven't figured it out already, you can always come here to ask questions if you have any, and I am happy to help.

Steph

Thank you Steph... Your the bomb.

Hey Steph,

Just an idea... I think a good one if I say so myself.

Why don't you put together a ebook from your experience as REO wholesaler and sell it. I bet you can get least 50 or 100 bucks for it. I know from following your site and flipping homes you have lots of people that follows you. I think it would be great way to make some money and help others also.

Just an idea.

Hugh

Hey I can't sleep and thought I would start your book for you. LOL

Title: Tampa Steph Flipping REO Crazy.

Chapter 1 How I got Started
Chapter 2 How I find Buyers
Chapter 3 Finding REO Properties
Chapter 4 Marketing
Chapter 5 Joint Venturing with others
Chapter 6 Closing Process
Chapter 7 FAQ Page
Chapter 8 Case Studies

Hey I got you started you just now have to fill in the pages LOL

Hugh

Oh you can have a foward page by Joe Price. LOL

Hugh, you are cracking me up!

I'm actually already working on an ebook that I will be selling once the new blog is ready. I've been procrastinating writing it for about 3 months now, but have finally broken ground. Still not sure of the price, though. It will either be 49, or 99. I'll send you a complimentary copy once it's done, and you can give me your input. Deal?

Steph

Hi Steph, Just a n idea but Do not grow to fast because you are pretty good right now! By the way do the signs work?

Thanks for the advice, anon. Unfortunately, I'm not satisfied with pretty good..

Yes, the signs work.

Steph

Steph
As much activity and deals you are doing, have you considered going with a personal assistant to deal with some of the scut work and let yourself concentrate on the deals?

Hi Richard,

I'm really not that busy, to be honest with you. :)

I've got the offer process down to a science, and it usually only takes me a few phone calls to sell my deals.

I may start paying someone to put my signs out, though. Not sure what a good price would be, but it would probably be worth it to have someone else do it for me...

Steph

Before when I was finding sellers, I would pay someone $80 to put out 75 signs.

I'd nail the sign to the post, and bring him the signs. Gave him a map of which general location to put it out. I'd give half up front and then half after it was complete. In the beginning, I told him that 'we' would check to see that the signs were up, and then give him the rest. After a few weeks, I wouldn't even check because I trusted him, but I still give him 1/2 afterwards.

Hopefully, I'll get some kind of wholesale deal under contract, either a short sale or REO, so I can use him again to find buyers.

Sabrin

Steph, I already put down my first offer for an REO. I think the house may have a sinkhole problem that I didn't notice (not something apparent, but something that may blow up in the future), so I was wondering if this kind of thing usually scares you away from the deal or not.

On another note, I am still very unsure about the valuation process in general. My offer is a little under 45% FMV, but the comps (cash sales in the area) don't look too bad. Regardless, I heard Lee say that the Tampa market has investors buying from wholesalers at around 50%, so I may have not left enough meat on the bone (this property, however, is in Palm Harbor, in a really sweet but rentable neighborhood).

I looked at another property that had at least one moldy wall and a probably illegal structure, a hunking big cement block shed, built in the backyard. I may be able to get in on that one at +/- 44% FMV, but again, I'd appreciate your thoughts on whether this is a profitable enough deal given the possible issues described.

Gosh Steph, please tell me to stop if I ever abuse your time or confidence. You have passively and actively helped me so much in the last couple of weeks, but as a neighbor of mine used to say "you don't want to ride a good horse until he's dead" (or something like that... I dunno, my neighbor was from Tennessee, and I'm just a Dominican-New Yorker. :P ).

Thanks a 1,000,000,

A&R

Thanks for the info, Sabrin- I was thinking $1/sign would be a fair price. I don't think it would be hard to find someone to do it, either..

Alexander- I always run when I see settlement problems (which is quite often). I put one under contract last summer and thought I was getting the deal of the century. I went back to look at it after I got the banks addendum (but before I signed), and noticed HUGE step cracks on the back side of the house. I was able to get out of the deal, thankfully. Now, I always make sure to walk around the entire house and inspect the walls for cracks.

I know that Lee has put several houses with settlement issues under contract, and sold them. I don't know where he finds buyers for them, but he does.

Anyway, to answer your question about what price you need to get properties under contract for (and you probably aren't going to like this answer), it really just depends on the what area you are working in. It varies all across the board. I haven't used a percentage or a formula to construct my offers in over 2 years. I just know exactly what my buyers are looking for in each of the different neighborhoods I am working in.

When I was starting out, I had a really hard time figuring out what I needed to get properties for, too. I ended up taking Bob Norton's advice (one of the guys in my mastermind group), and I picked one area of Tampa (Clair Mel), and figured out what price I had to get properties for in that area. I called up one of my wholesaler friends, Jim, and just asked him what price was a good price for a block home in Clair Mel. at the time, a good deal was 75-80k-ish. Once I had that ballpark figure, I was off to the races! I hit the mls and just started making offers that were in the 60-70k range.

Bottom line is- you really need to get out and learn the market. I suggest focusing on one area or neighborhood at a time. It can be overwhelming if you try and conquer the entire city all at once..

Hope that helps.

Steph

P.S.
I didn't realize you were taking Lee's course when I sent you that last message on Facebook. :)

Yeah don't worry, your answer (along with every information you put out there, seriously) is always helpful.

Thanks for the feedback,

A&R

Hey Steph Roshard here

My one hour reading is doing quite well. So far I'm halfway through the Science of getting rich, If you don't have a copy of that let me know and I will e-mail it to you. (It's free no copyright stuff involved) It's a great book but for a person just starting out reading this kind of material it might go right over a person's head. After that is Millionaire Mindset which is a great book too and then Think and grow rich. I have been reading them all 1 hour at a time and it seems like I retain a lot of the information more. It's good stuff. Let me know if you need those e-books and I will e-mail them to you. Talk to you soon. RJ

That's awesome that you are keeping up w it Roshard- nice job.

I would LOVE to get The Science of Getting Rich from you! I've been trying to check it out of the library, but someone keeps beating me to it..

Keep up the good work.

Steph