Flip This Wholesaler

5/18/2008

Well, Friday night I went out with some friends to celebrate the crashing and burning of the Slim Shady deal. We started off at the Hub, then walked down to The Fly, and then back to the Hub where the crowd is a lot less plastic-y, if you know what I mean. Good thing both places are within walking distance of Skypoint, because believe you me, we were in no condition to drive. We did, however, manage to crash the pool at 4am (it closes at midnight, supposedly). Hehe.

Remember that guy I was talking about who supposedly has an investor looking to spend ten zillion dollars on Tampa real estate? Well, I kept harassing him with calls and emails because I had a gut feeling that he might possibly be a worthwhile contact to have. He ended up calling me Friday after seeing one of the properties I'm marketing on Craigslist. He's still sticking to his story that he has investors (cash investors) from NY that are looking to dump a lot of cashola into this market. Nice. We talked for awhile, and then set up a lunch for this week. I guess I'll find out soon enough if he's full of it or not. I sure hope not. $$$$$$$.

One of my buyers who is ready for another property called me last week to ask about an REO that just came back on the market. He told me what he would pay for it (not sure why he didn't just make the offer himself, but who am I to argue?), and asked me to try and get it at that price. I put the offer in (leaving enough room for a tidy little profit for myself), and got a counter back from the bank Friday afternoon. They came down 15k off of list price, which still isn't good enough, but we're getting close. We'll see what happens.

I also picked up another cash buyer from the signs I put out a few weeks ago. This guy's been investing for a long time, but hasn't bought anything in several years . He says he's in buying mode again, and asked me to send him whatever I get. Nice. I tell you, as much as I hate putting those stupid signs out, I always seem to pick up a buyer or two. So, I will keep putting them out.

And that's all she wrote.

10-4, over and out...

P.S.
There is a very interesting thread going on over at the Flippinghomes forum regarding the foreclosure mess that our country is in. Check it out if you have a spare moment...

5/7/2008

Holy crap I'm beat. This getting up with the sun and swimming laps thing is kicking my ass. In a good way, though. I'll be back for more tomorrow.

I decided yesterday that I was going to bake cookies for my Mom and my sister (who is now a Mom herself), for Mother's Day. I always send things late (I'm horrible at procrastinating about stuff like that), so I promised myself that I would get them in the mail by this afternoon. I headed out to the grocery store early, and bought all of the ingredients for chocolate chip and sugar cookies. As you know, I SUCK at cooking, and shouldn't be allowed in the kitchen ever, unless it's to open a bottle of wine or a beer or something. Anyway, the whole process took about 3 hours, and my kitchen was a complete disaster when I finished. I resisted temptation the whole time I was making them, but decided to try one when I was all done. You know, just to make sure they didn't taste like crap. Well, long story short (too late, I know), once I took a bite I quickly realized something was horribly wrong. Horribly. They tasted very un-sweet, if you know what I mean...

Turns out, I forgot to add the effing sugar. HAHAHAHAHAHAHA.

What an IDIOT.

Well, at least Jim liked them.




Other than my cookie disaster, the day went pretty well. I got two really good counters on offers I made Monday. I went to take another look at one of them, and, of course got lost in the hood for a half hour or so, looking for one of the comps. The house I was looking for was just bought by an investor whose name I keep seeing in the tax records, and who I have been trying to hunt down for the last couple of weeks. When I finally found the house, I was delighted to see this in the front yard:



That would be a for rent sign with his phone number on it. If he's buying cheap rental properties, he might as well be buying mine....

I gotta go to bed. I'm beat.

3/6/2008

The REO I was talking about 2 posts ago (REO #4), is now in a "multiple offer situation"- dreaded words. Basically, it means every wholesaler and investor, and their Moms and Dads saw the price drop, put an offer in, and now we are being asked for highest and best. I upped my price $500, and am pretty sure I won't get it. I'm at quite a disadvantage in situations like this when there are other investors bidding against me that can offer higher earnest money deposits, and close in a day or two with their own cash. Right now, I just can't compete. Same situation occurs when a property comes on the market at a no-brainer price- like the 3/2 1200 sf house that popped up on mls 3 days ago for $27,250! Last time I talked to the listing agent, there were 11 offers on the table. I'm curious to see who gets it.
The good thing for me is, there are an ASSLOAD of REOs on the market, with assloads more being added every day, so there's plenty to go around....

Last Friday, I talked to the lady at the title company that is handling REO #3. She told me everything looked good, and we would be able to close this Friday (tomorrow) . So, I called back Monday just to make sure (I don't believe anyone anymore when they tell me that everything looks good), and a different lady told me the title work hasn't even been started yet. WTF??? She said she would try to expedite things (yeah, right), and I just resigned myself to the fact that it wasn't going to close until the 18th, which is the last day they have to close. Well, apparently, she wasn't bullshitting me, because she called earlier this AM and told me everything is ready on their end. The only thing that is missing is the addendum adding my buyer onto my contract. I emailed it to the listing agent a week and a half ago (by the way, I didn't even ask if I could add my buyer on the contract, I just wrote up an addendum, had it signed by my buyer (and me), and sent it over to the listing agent in an email telling him I wanted my partner on title and to have the bank sign it). No resistance whatsoever. Anyway, I emailed it to him a week and a half ago, and he just got it to the bank yesterday. Friggin slowpoke. Anywho, all we need to close is that signed addendum, which means we SHOULD be able to get it done tomorrow. Woohoo!

Let's see, what else? Oh yeah.....I'm an Aunt!! Auntie Steph. Trevor was born a day early- Monday eve at 5:21 pm. I'm going to head up to St. Louis in the next month to meet him. Can't wait.

1/30/2008

Sorry for not posting much lately, I've been catching up on some non-related rei stuff that has been keeping me busy.

I got a great counter yesterday from one of the REOs I made an offer on Monday. It's listed at $78,000, ARV $135k-ish. My initial offer was 50k, and they countered at 65k. I went out and looked at it today, and it's not that bad. Broken windows, ghetto-fabulous addition that needs to be fixed, paint and carpet, and kitchen and bath updates are needed. I could sell it at 65k pretty easily, and actually have a buyer already lined up. I countered back at 55k and am now playing the waiting game. I decided I'm not doing anymore (or any more?) deals unless I can make at least 5k. Two of those a month, and I'm golden.

12/14/2007

Of the ten offers I made Monday and Tuesday, here are what the results look like:

4 rejections without counters (this includes the "NO" offer that you all had the pleasure of viewing)

2 already had contracts on them but weren't updated in the mls (drives me nuts)

2 I haven't heard back from (both are REOs, which usually take a couple days to respond)

2 counters- one came down 15k, the other 7k. The one that came down 15k is another that I have made several offers on over the past 6 months. I need to get it in the 50's or low 60's, and her counter was 90k (down from 135k originally). I'll keep after this one until I get it, or someone else does.

Today is my last day to make offers until after Christmas, as I do not want to get one accepted while I am up North in the freezing tundra of Illinois and have to be scrambling around trying to find a buyer when I am supposed to be enjoying time with my family. So, I plan on making 5 more offers today, and will spent the next week marketing properties for 2 of my wholesaler friends. Would be nice to squeeze 1 more deal in before the end of the year!

Speaking of deals, the one I wholesaled to my friend is closing today- he called yesterday to let me know he'll have a check for me this afternoon-Sweet!

11/21/2007

Shoulda accepted the 115k counter.

Coulda made a few grand.

Woulda been able to buy myself a new computer.

The property is now under contract by another investor (one of the people on my buyers list, no doubt).

Son of a nutcracker.

Failing forward, that's how I roll.....

P.S.
Go here and send a postcard to our troops!! And pass it on.

11/7/2007

I called at noon to put in my counter of 125k net. The listing agent called me back around 3:30 to tell me they accepted. Now, just waiting on a signed contract back.

Someone mentioned on the flippinghomes.com forum that I should lock the property up first, and then deal with the judgement/lien situation (if there is one), and that's what I decided to do. Hopefully it won't be an issue, and I can get this closed quickly and smoothly. I kind of have this feeling the whole thing is going to blow up when they find out about the liens, but I guess I will just have to wait and see.

I'll put some pictures of the property up tomorrow. I'm still really sick, and need to get some zzzz's.

11/07/2007

So, after I posted yesterday, I hopped in my car and headed over to the property I got the counter(s) on to get a bunch of pictures. I was busy running numbers in my head on the way there, and missed my exit by about 3 miles or so, which wouldn't be that bad if it weren't the beginning of rush hour traffic. By the time I finally got there, I felt like passing out, because the cold medication I took was finally starting to kick in (it was the knock-you-on-your-ass kind that makes you sleep for 12 or so hours).

Anyway, I got all of my pictures, locked the place up (it is on a combo lockbox), and got in my car. I figured, since it was still light out, and traffic was going to suck anyway, that I would drive by the comps again just to make sure I wasn't missing something. Then I realized that the sheet with all of the property information on it was not in my car. Shit, I left it inside. And I can't remember the lockbox code. No worries, I will just call the realtor and ask him. Wait, where's my phone?? SHIT!! I left that inside the house, too. Now what? I tried to remember the lockbox code, and tried a bunch of different combinations- jmb, jmy, jry (I knew it started with a j). None of them worked. Luckily the realtor sign was in the front yard with his office number (no cell number) on it. So, I drove up to the gas station and used the pay phone. Voice mail. SHIT. I could call any one of my realtor friends and ask them to look the guy's number up on mls, but I don't have any of their numbers memorized. Son of a nutcracker. So........I ended up driving ALL THE WAY BACK HOME, sick as a dog that is sick, sweating, and ready to pass out. In rush hour traffic. Finally, I got home, got the realtor's cell # from the listing, called him and got the combo. R-M-B. I knew it started with a "j." Then I got to drive all the way to and fro (again) to go fetch my BlackBerry. I can turn a one hour trip into a 3-4 hour fiasco like no one else.

OK, back to the deal......

As it stands, their last counter was $132k, and now the ball is in my court. My feeling is that I need to sell this for under $130k to make it go fast. My last counter was for $123k, so I'm thinking I will counter $125k as my highest and best. I have another hour or so to think it over. I'm OK even making as little as 2k on this deal. I just want to keep the momentum going.

Oh, also, I ran the owner's names on the county clerk's website last night, and out popped about 12-15 judgements and liens. Some of them have been satisfied, and some of them are around 30 years old, so I'm not sure if this is going to effect the seller's ability to close at the agreed upon price. As usual, I got some great advice about this situation over at my home away from home . I'd be lost without that place.

So, that's it for now. Hopefully I'll have good news to post about later in the day.

11/6/2007

I am sick as a dog right now (a sick dog, anyway), but am being a trooper because I got some rather good counter offers in yesterday and need to do homework. You know when you're so sick that your whole body aches, and you kind of feel like you are wandering around in a fog? Well, that was me yesterday when the phone calls started coming in. All I wanted to do was stay in bed, but, from what I've learned so far, you can't steal in slow motion, so I forced myself to go out and look at 3 houses yesterday (I did not get lost, though, which is always a bonus).

One of the properties I already made an offer on about 3 months ago for $108k. I made my second offer for $100k. The realtor called yesterday and told me they already had a cash offer for 120k a few months ago (right around when I made my first offer), and that she was trying to get in touch with that investor to see if he is still interested at that price, and asked if I would come up to 120k. The property is listed right now at $140,000, and has an ARV of around 185k. This area is kind of tricky, though. During the boom, prices went nuts in this particular part of Tampa, and now they are dropping just as fast. I don't really have any buyers in this area, so I am a little leery (did I spell that write?) hehe. I'm a little delirious, sorry. Anyway, I'm still doing some research, talking to other wholesalers, and trying to find out what price I need to be at. This property is an estate, btw.

The second property is an REO, which I don't think I'm going to get. I don't think they will come down to my price, but you never know.

The third property is another estate that has been listed 3 months or so. I am most excited about this one. The comps are a solid 200-210k, in a great neighborhood, and the house only needs minor work to rent, but updating throughout to retail. It was listed at $163k, I offered $115k, and they countered at 145k.

OK, gotta run. I'll keep you all posted, unless I drop dead first. hehe.