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...

4/8/2007

Have you ever gotten so pissed off that you broke out in hives?? Anyone?

It's only happened to me once before, a long, long, time ago. And then, today, it happened again.

I was supposed to have 2 closings this week (both REOs)- one Thursday, and one Friday. Both of them are not happening now because of the stupid, lazy, worthless, incompetent, listing agents.

I am trying to get extensions on the contracts, but who knows what will happen. It's like a crap shoot with these idiots.

I have never, in my entire life, witnessed such incompetence and laziness. Never.

I will write more about it later, but just to give you a taste of what I'm dealing with-I put one of the properties under contract 3 weeks ago. It's supposed to close on Thursday of this week. I called the title agent today to see if I could get the HUD. She told me the listing agent sent her the contract YESTERDAY, and they need 7-10 days to complete the lien search . Are you fucking kidding me???? How do you just hang onto a contract for three weeks? WTF?

So, I immediately called the listing agent (who, of course, didn't answer) to find out why in the hell it took her 3 fucking weeks (I did not drop the f-bomb in the message, btw, although I really, really, wanted to) , to get the contract to the title co. I left her the message at 1pm today, and still haven't heard back from her.

I don't have the energy to explain what is going on with the other deal. I'll just say that it has been a complete nightmare thus far . I just signed the FIFTH contract on this property today because the agent has his HEAD UP HIS ASS. It was supposed to close this Friday, and my buyer is ready to go, but it ain't gonna happen because the listing agent is a complete hack job.

Even though I probably have another bleeding ulcer now, I did learn a valuable lesson about dealing with REOs........ Never, ever, ever, ever, ever, assume that the listing agent is doing their job, because 9 times out of ten, they aren't, and you need to take matters into your own hands if you want to get anything closed.

Signed,
Frustrated

3/18/2008

Still waiting to see if this buyer is going to get approved for hard money. It looks good, but you never know. If not, there's another guy who also wants it, so we'll see. I hate waiting. Cash buyers are so much easier to deal with.

Speaking of cash buyers, I found another one yesterday. He called on one of my signs that I put out over the weekend. He's a landlord looking to pick up some cheap rentals. My favorite kind of buyer, by far.

The other cash investor that I hunted down last week called me yesterday to see if I wanted to meet at Starbucks for coffee (that's always a no-brainer question for me). Apparently he wants to start wholesaling, too, and wants me to help him sell some of his properties. Not really how I wanted things to go, but that's OK. The more the merrier. He just picked up an REO before it hit the mls (the listing agent called him first because she knows he closes his deals) for $32,000. He's going to try and wholesale it for $59,900 , which he shouldn't have any problem doing (that's almost 28k, in case you don't have a calculator handy). It's a 3/2 1100 sf house that only needs 10-15k. Probably worth 120k-ish.

I need to get me a 28k deal. Then go on a nice vacation...

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.

2/22/2008

So, I went to look at that Skypoint unit that I saw on Craigslist last week, and I LOVE IT!!! Love, love, love it. The owner and his girlfriend are super cool people, too. It would pretty much work out perfectly for all of us, because they only want to rent it for a year or two, and then move in, and I only plan on being down there for a year or two, and then moving elsewhere (Costa Rica?). They even offered to throw in their new furniture if I decide to rent it (sweet). I would have given them a deposit today, except, there's a little problem.....

There USED to be a park right across the street (up until a few weeks ago), but now it is a construction site. I guess they are re-doing it or something. So, I asked the guy at the concierge desk where people walk their dogs, and he said, "Well, that's kind of a sore subject around here." I guess a lot of people with dogs bought condos here because the park was right across the street, and now the park is gone, and people are PISSED. So, I need to figure out where I'm gonna walk Jim. There's a dog park about 2 miles away, which is fine during the day, but I'm not gonna be walking 2 miles at night through downtown. So, I'm going down there tomorrow to scope out the area and see if it's gonna work out or not. I talked to my Mom and my friend Brett, and they both said, "Well, what do you think people in New York do?" I don't know. I guess I could always just put Jim to sleep. Just kidding. So, anyway, I'll go check it out tomorrow, and then make a decision. I really, really, really, want this place, though. I told the owners I would call them Sunday and let them know either way.

Oh, here's a funny story for you..... Remember the Ronald McDonald House that I made an offer on a few months back? Well, it's still on the market, and I have been putting in offers every 3 weeks or so for the last few months. Each offer I make is less than the previous. My objective was to just keep offering on it until I got it, or someone else did. Well, yesterday morning I put in another offer, and when I got back from the gym, I had a missed call/voicemail from the listing agent, and I just KNEW that he was calling to tell me they accepted my offer. Hehehehe. Here's what the voicemail said, loosely:

"Hi Stephani, this is Randy Realtor calling you back about the offer you made on the Ronald McDonald House. The bank has rejected your offer, and the asset manager has advised me that she does not want to see any more offers from you on this house. Ever. If you have any questions, feel free to call me at 123-4567......."

Hahahahahaha. Guess my plan backfired, huh? Oh, well, a little bit of rejection never killed anyone, as far as I know. I should put in another offer next week, just for kicks. Just kidding.

Have a great weekend, y'all.

2/7/2008

Yesterday I hit the mother load as far as buyers go. I sent out an email blast (which I rarely do because I think they are annoying, and also everyone and their brother sends them out like 5 times a day, so every investor gets bombarded with "deals" non-stop, all day every day, along with emails hawking courses and webinars that always start out by saying, "I CAN'T BELIEVE HE DID IT- JOE BLOW INVESTOR IS REVEALING HOW YOU, TOO, CAN MAKE SEVENTEEN MILLION DOLLARS THIS YEAR IN REAL ESTATE....). Anyway, I sent out an email blast yesterday marketing one of the deals that my wholesaler friend just got under contract (this is an REO that we both bid on, and he ended up getting it because he knows the agent, and also he put up a 5k non-refundable deposit. Bastard). It's a good deal, so I put a bunch of signs up around the house, and also sent an email blast. Well, one of the guys on my email list (never met the guy before, and still have no idea how he got on my email list) called yesterday, and said he wants the house. Nice. we talked for about half an hour on the phone, and I quickly surmised that he was not the run-of-the-mill, full-of-shit investor/wholesaler that usually calls my ads/signs and wastes my time with questions like, "What kind of fruit trees are in the yard?". I checked his name (and his partner's) on the tax records, and, like he said, they are buying the SHIT out of properties right now. Lots and lots o' properties. JACKPOT! I told him about the other 2 REOs that I may (hopefully) be getting, and he told me to give him first dibs if I do get them. No problemo.

They are supposed to be calling me in the next hour to set up a time and place to meet and sign the contract and give me a deposit. We'll see if they actually follow through. I think they will, though.

I love finding new buyers.

P.S.
Why are there mice on Google today?

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.

1/17/2007

I am pleased to announce that I have REO #2 sold!! My rehabber friend went to take a look at it and wanted it. It's set to close a week from tomorrow. I was initially hoping to make 5k on this one, but it will be 3k instead, which is fine by me. This is another instance where I could probably find a buyer for a few grand more, but I'm going with this offer because I know it's a done deal. This is the 3rd deal he has bought from me, and I know I don't have to worry about any bs with him. I had my friend John (I put the offer in through him) call the listing agent and tell her (not ask) that we needed to add my partner on to the contract. No problemo. I was all stressed out about it as usual, but it was no big deal. They don't care as long as it gets sold. I got some coaching from my friend Chad in Atlanta, who was the one who told me about this whole quit claim thing a few months ago. Thanks, Chad! Doing it this way is saving me quite a bit of money in closing costs. It's also pretty darn easy to do.

Here is what the numbers look like on this one...... ARV $115k-$120k, Repairs 20k (I was way off on my repair estimate, btw), list price $54,900, contract price $55,000. Assignment fee 3k, which will be paid outside of closing in exchange for a quit claim deed to my buyer.

One of my goals for the month was to buy a new computer (laptop), which I will be doing once this deal closes. I can't wait!! Check it out- it's PINK!! I've had a picture of it tacked up on my wall right behind my desk for about a month now. Motivation.


Me wantee.

1/16/2008

REO #2 is officially under contract!! I got the call yesterday. I sent it to one of my buyers last night who I know likes this area, and he just called and told me he's going to check it out right now and will probably take it.
SWEET!!

I'll update later, hopefully with news of a signed contract!

Look out 2008, here I come.....

1/14/2008

The listing agent of the REO that I made an offer on over the weekend called to tell me she received my offer and would be submitting it to the bank. I don't see why it wouldn't get accepted, seeing that it was a cash offer for over list price, but who knows what sort of shenanigans are going on. My offer price on this one was $55,000, and I plan on marketing it for $59,000. I don't think it will be hard to sell at that price- it's a 3 bedroom block home in a semi-decent neighborhood. Now I just have to wait....

Oh, guess who called me Friday asking if I had any properties available....... Crazy Caroline! Can you believe it? She said she's in buying mode again, and told me to send her what I have. One of my wholesaler buddies just got a property in one of the areas she likes, so I sent her the info and she went to check it out this afternoon. I should be hearing back from her tomorrow. Who knows, maybe we will end up being friends after all, and one day while we are having mimosas over brunch I will tell her all about my blog- how I refer to her as "Crazy Caroline" in it, and how when I first met her I hated her guts and thought she was possessed by the devil.

Hehehe.

1/13/2008

Nothing much going on. I spent most of the weekend in bed, reading. I did manage to scan the mls yesterday for new listings, and found a gem of an REO that just came on the market at a REALLY GOOD price. I called the listing agent to ask if it was under contract already, and she told me she had recieved 1 offer, but it was really low. I went to check the place out yesterday (all sick and feverish), and put an offer in for 1k above list price. I'll be shocked if there aren't at least 10 other offers on the table by tomorrow morning. You never know, sometimes you get lucky.

If you haven't decided yet who you are going to be voting for, this website might help you with your decision. I answered all of the questions, and it chose the candidate that I am planning on voting for. Check it out if you have a second.

1/12/2008

Well, the closing for the REO that I got under contract last week closed yesterday afternoon. The closing ended up being at the buyer's house, as the title company that the bank was using was in Ft. Lauderdale. They sent a mobile closer (a very grouchy one) to handle it. I was going to have my title company prepare the quit claim deed for me, but an investor friend of mine told me not to waste my money, and sent me a template of the one he uses . It's pretty straightforward, actually. Only a half page long, and took about 10 minutes to put together. I was a teensy bit afraid to ask Grumplestilskin to notarize it, because she was really mean and kept talking about what a long day she had, how bad traffic was, how bad she wanted to go home, etc. I made her already awful day just a little bit worse when I accidentally signed the paperwork with a black pen instead of blue (oops). I thought she was going to jump across the table and stab me in the heart. Also, I thought I was going to have to go into a ten minute explanation regarding the purpose of the quit claim, but she just notarized it without asking any questions, thankfully. Anyway, I was out the door 20 minutes later with a check for 2k in hand. Woohoo!

Since I had never seen the property, I thought I would take a drive by it on the way home from the closing, just for kicks.......



Pretty, huh? In a "Kermit the Frog used to live here" sort of way.

I seem to be coming down with whatever it is that is making everyone sick lately, so I'm going to spend the day in bed reading.

Have a great weekend!!

1/3/2008

Well, I got my buyer added to my contract with no problem. I met him at Starbucks this morning to sign everything and get his deposit. I was all worried that the listing agent was going to pitch a fit about me adding another buyer to the contract, but he didn't even care. Sweet. Also, my buyer told me that he will be ready to buy another property in about a month, and then another, and then another, etc. He's been doing this for 20 years (up until now, he was buying at auction), but if I can keep delivering him good deals, he will keep buying them from me. SWEET. I need about 5 more buyers like this, and I will be sitting pretty. By the way, I found this guy by driving around the neighborhood where I had a deal I was trying to sell and calling all of the for rent signs to see if the landlords were looking for more properties. It took me a few hours to do, but it was definitely worth it.

Tomorrow I'll be back to making offers. My goal is 100 offers a month, which is very doable if I stay focused.

1/2/2008

Well, what do you know- I got my first deal of the year today! One of my cash buyers called me while I was on vacation asking if I had any properties in the neighborhood where he bought the last one from me back in November. I didn't, so first thing this morning, I sent out 4 offers on properties in the area he wanted, offering all cash, 7 day close, 3 day inspection. I knew I couldn't get hurt at the prices I was offering, so I wasn't worried if one of them got accepted right off the bat. The offers went out around 9am, and at 9:30 I got a counter from one. This property is an REO, and has only been listed 28 days. The list price was $84,000, I offered $65,500. Their first counter was $74,000, which I was kinda shocked at. So, I called my buyer and asked him what he would need to get it at. It just so happens that this property is right next door to the last property I wholesaled to him, so he was very familiar with it already. He said he could pay $72,000 (I was thinking more along the lines of 76k-78k which is what he bought the last one for, and why I offered what I did). I went back and offered $69,000 (I could have offered less, but didn't want to get greedy and lose it, especially since I knew this buyer was solid). The bank came back at $70,500, I countered at $70,000, and they accepted. Not a big payday, but I'll take 2k for doing 15 minutes of work any day! I haven't even seen the inside of the property. Since the spread is so small, and would get eaten up with the closing costs involved in a simultaneous close, I am adding my buyer onto my contract, and then once it is closed, quit claiming it back to him for a 2k fee. Make sense? I haven't tried this yet, but know a few people who have. I was a little nervous running it by my buyer, but we have a pretty good rapport (he's as easy going as I am) and he was totally fine with it.

I'm SOOOOO happy to get my first REO out of the way! I know there will be many more to come- I plan on going after them with a vengeance. It's also nice to be doing this one with this particular buyer, because he is so easy to deal with.

Not a bad way to start the year off! Not bad at all.....

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!

12/12/2007

I sent out 5 more offers yesterday. 3 were REOs, 1 was an estate, and 1 an out of state owner. The out of state one has been on the market for about a year and a half now, and this is my 3rd offer on it- it gets lower every time. I'll just keep offering until he caves. The place is a complete dump in the hood, but at 35k, I could make a nice wholesale profit on it. It's all good in the hood....

Today my friend John and I are heading out to Busch Gardens for some fun in the sun (yes, it's still in the 80's here).

I love Florida!

12/09/2007

I've got 5 offers to fax in first thing in the morning. All of the properties are vacant, need work, and have been sitting on the mls for several months. My offers are embarrassingly low (less than 50 cents on the dollar, minus repairs) but hey, the market sucks, and what else are we to do?

I don't know about you guys, but I plan on taking full advantage of this doom and gloom picture that the media is painting. They are doing such a fantastic job of scaring the ever-loving-shit out of every homeowner in America, and it is creating a fantastic buying opportunity for those who are still in the game. People can spew negativity at me all day long about how bad the market is, how bad it's going to get, and on and on, but I know from my own experience that PEOPLE ARE STILL BUYING GOOD DEALS RIGHT NOW!!

There is a ginormous amount of potential in this market to make some serious cashola, and I'm damn fired up about it. You should be too.

If Bob Norton can make 6 figures A MONTH wholesaling REOs in one of the most depressed real estate markets in the country (Detroit), then there is no excuse whatsoever for me not to be successful in Tampa. Not a single one.

11/27/2007

Geeze, I have so much going on right now, my head is spinning. I seriously have been running around like a crazy person since yesterday morning. Nonstop. I'm exhausted.

Well, hold on to your seats cause I've got good news!!

The listing agent of one of the properties I've made 2 offers on over the last few months called me yesterday to tell me the sellers were ready to dump the place, and told me to submit another offer if I was still interested. My last offer was for $100,000 and it was rejected. She didn't come right out and say so, but she alluded to the fact that the sellers would probably take that amount now. Learning from one of the mistakes I made on the deal I lost last week, I decided that before I put my offer in, it would be wise to seek the advice of one of my investor friends who happens to be a cash buyer and is looking for a home to rehab in this particular area. He told me if I can get it for 95k, he could pay me a $2,500 assignment fee. So, I offered 90k with a 24 hour inspection period and a 14 day close. We ended up getting it for 95k!
Niiiiiiice.

On top of that, I think I have a buyer for one of the properties I am marketing for my wholesaler friend. We already agreed on a price, but are waiting for the owner to move out (she should be out tomorrow or Friday), so he can see the inside. If this one works out, I will make 2k.

All I have to say is IT'S ABOUT DAMN TIME!!!!!