Flip This Wholesaler

2/28/2008

Well, it's official- I'm moving into Skypoint April 1st!!! Woohoo! I signed the lease and gave my deposit earlier today! I'm soooooooooooooo excited! The one I ended up getting is on the 21st floor with views of downtown, the Bay, and the Hillsborough River!!! SWEET. Got it at a ridiculous price, too! Hehehehe.

Spoke to the lady at the title company today about REO #3. Everything looks good on their end, so, it looks like next Friday will be an 8k payday for me. NICE.

And then I will continue to KICK 2008's ASS!!

1/23/2008

Still waiting to hear what the verdict is on the REO I was talking about yesterday. The banks like to take their sweet old time. I'd rip my hair out of my head if I was doing short sales.

Tomorrow, I am having lunch with one of the investors that I have been working with over the last year. He's the guy I wholesaled my first deal to, and we have done 2 other deals together since then. I call him all the time with stupid questions that I should probably already know the answers to, but don't- questions such as "How do you tell if the electric has been upgraded?" or, "What the hell is a gravel roof?" He's also saved my ass (more times than I'd like to admit) from putting shitty deals under contract. In one instance, I was about to pull the trigger on an REO for 75k, but decided to give him a call and get his opinion first. He went out and looked at it and told me it needed to be torn down and was only worth the lot value (like 30k or so). Anyway, I took his advice, but I remember wondering if he really knew what he was talking about. Didn't seem like a tear down to me (in all of my infinite rehabbing wisdom). Last time I checked the property was still on the market (5 months later) with a list price of $51,500. Good thing I listened.

I've decided that I need to find some more active cash buyers, so I am going to hit up the auctions on the courthouse steps starting next week. I always say that I'm going to, but then I never do. This time I'm doing it.

1/05/2008

I had planned on writing a post before the end of 2007 giving a recap of my year, but never got around to it after my travel plans got messed up due to my irresponsible bloody mary drinking. I did, however, write an article that Trevor Mauch was nice enough to post on his site, The Rei Brain. It's kind of a snap shot of my mostly crappy first year in wholesaling. Check it out if you have a spare moment.

P.S.
I had an REO agent call me yesterday and tell me that the bank is ready to dump one of their properties that I offered on a few weeks ago. It's listed right now at $130,000, worth about $180-190k, and he said he thinks he can get them to take 90k!! I've got 2 of my buyers going to take a look at it this weekend and let me know what they will pay for it. I'll keep you posted........

Have a great weekend- make some offers!!!!

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.....

12/31/2007

Hi Everybody! I'm finally back in Florida, safe and sound, and enjoying the warm weather once again.

I was supposed to return Saturday evening, but ended up missing my flight (even though I got to the airport 3 and a half hours early). I'd like to blame the whole fiasco on the weather, but, in all honesty, it was my own stupid fault. Damn bloody marys. I had to get a hotel downtown and then catch a flight the next morning to Cincinnati, and then on to Tampa. The flight to Cincinnati ended up getting in about 40 minutes late, and so I had to make it from one end of the airport (that's a long friggin airport) to the other in about 8 minutes in order to avoid getting stuck again. If anyone was in the Cincinnati airport Sunday around 11am and saw a crazy-looking barefoot lady sprinting towards gate B7 carrying her heels and knocking over anyone and anything that got in her path, well, that was me. There was no way in hell I was missing that flight. One more day without sunshine, and I would have gone mad. I guess all of the running I've been doing paid off, as I made it to the gate with a few minutes to spare.

I took a bunch of photos while I was gone, and was planning on posting some of them, but, my p.o.s. computer wanted to get in one last "eff you" in 2007, and will not let me upload them (or is it download?) from my camera. I can't wait to take a bat to this thing.

Right before I left, I found a buyer for one of the properties I've been marketing. It's supposed to close Jan 31st, and I will make 2k if it does. The inspection period is not over yet, though (this is a conventional deal), so I'm not counting my chickens just yet. I've also got another deal that I'm working on that could get me another 2 or 3 grand, but not sure yet if it's going to work out or not. I'll find out on the 2nd.

I have a lot of other really good things going on right now that I will write about in the next couple of days. 2008 is shaping up to be a great year!

I'm having a Six Feet Under marathon tonight, ordering some chicken red curry (as spicy as possible) from my favorite Thai restaurant, and drinking my favorite red wine.

Life is good.

Happy New Year to you all- see you in 2008!!!!

12/19/2007

Two of my wholesaler friends called me today with deals that they need to get rid of. I put an ad for one of them on Craigslist, got an email about an hour later from a prospective buyer who went to look at the house earlier this evening, and is now (supposedly) going to put it under contract. This is a conventional buyer, so I give it about a 1 in 100 chance of actually working out, but if it does, it will translate into 4k in my pocket. I have a hard money buyer interested in the other property (supposedly), and am waiting to hear back from her. I'm not putting too much stock into either one of these buyers, because #1) I have never worked with either one of them before and have no idea if they are serious buyers or are just yanking my chain, and #2) they are both female buyers, and thus far, every single female buyer I have dealt with (bar none) has been either crazy, a total flake, or wanting to do a cash out deal. I'm not exaggerating, either. So, we'll see what happens, but I'm not getting my hopes up. At all.

In other news, I finally forced myself to go to the dreaded mall to do some Christmas/cold weather clothes shopping. It actually wasn't as crowded and miserable as I had anticipated, and I managed to buy a winter coat on the cheap for my trip to Illinois. You'll never guess how much I paid for it.............(drum roll, please)................. Fourteen dollars and ninety nine cents!! Woohoo. God bless Ross! It looks a little bit like I might have found it while dumpster-diving, but hey, it's black, I'm only going to be wearing it for seven days, and for $14.99, who cares?

12/17/2007

The bartending gig Saturday night made me remember once again why I HATE waiting on people. Especially snotty, high maintenance, rich people. If it wasn't my friend's deal, I most likely would have told a couple people to fuck off and then high tailed it outta there. You'd have thought the world was coming to an end when the Grey Goose ran out and people had to drink Stoli instead! Can you imagine the horror? Stoli is sooooo low class.

The evening came to an abrupt, awkward end when the very drunken host of the party started making out with his 20-something secretary in front of God and everyone, and then his WIFE walked into the room.

Nothing like a little adultery to liven up the party.

Well played, Peter.

Anywho, not much going on on the real estate front. My Mom told me yesterday that I'm not allowed to bring any work home with me, so I guess I should not be making any more offers before I go.

Well, maybe one or two, but that's it.

12/15/2007

Well, the deal closed yesterday without a hitch, which means that the number of deals I have done is officially in the double digits!! Woo hoo! I can still name them in order by street off the top of my head (because I am a dork): Northdale, Morning, Flora, Altman, Bowl, Sunrise (or Sunset, I forget), Jean, Kingston, Temple, Windsor, Trilby. I look forward to the day when I can't do that any longer.

We were unable to find a buyer for the other deal I was working on, so my friend is going to close on it himself and rehab it, which means I won't make any money, but it wasn't my lead to begin with, so I don't really care all that much. Win some, lose some.

Yesterday I had grandiose (did I spell that right?) plans of shooting off a bunch of offers, but the book I ordered from Amazon to take home and read over my Christmas vacation arrived, and I ended up reading the whole thing from cover to cover in one sitting. I started out saying I would just read the first couple of pages, and then, next thing I know it's 11pm, I'm finished with the book, and it's time for bed. Now I need a new book to read. Any suggestions? Something inspirational would be nice. Anyway, the book was very inspiring, even if you aren't into tennis, or dating Roger Federer like I am. I highly recommend it.

So, guess what I'm doing tonight? Anyone? I'm bartending! That's right, I'm dusting off the old bartending tins and going back in time. A friend of mine (who is the most phenomenal chef on the planet) is catering 3 parties tonight and needed an extra bartender. So, I'll be pouring martinis all evening (and most likely drinking them, too) at some mansion on Bayshore Blvd. $200 plus tips. Nice. Two of my other friends will be working there as well (we all used to be bartenders and/or servers in a past life), so it should be a good time. I'll try to take some pictures.

Speaking of pictures, here are some of the Busch Gardens outing......









¡Adios Amigos!

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.

12/08/2007

I was supposed to go to a hockey game tonight with my friend Jeff, but decided to stay home instead and give some serious thought to my game plan for the coming year.

I pretty much failed miserably at the goals I set for myself this year, although it definitely wasn't for a lack of trying. I really had no clue what I was getting myself into when I quit my job and jumped in full time, so I'm not beating myself up too much about it. Now that I know what to expect, I will be able to set more realistic (yet challenging) goals for 2008. I'm looking at 2007 as a dry run.

I listened to Earl Nightingale's "The Strangest Secret" earlier, to give me some inspiration. I've heard it several times in the past, and it always puts me in the right frame of mind. It's a 30 minute audio that you can listen to for free here. Mark Victor Hansen interrupts the story a couple of times, which is kind of annoying, but other than that, it's definitely worth listening to if you have some time to spare....

¡Adios Amigos!

12/07/2007

Nothing too exciting going on. I've been doing a ton of marketing for buyers. Those handwritten signs really get the phone ringing. Most of the calls are tire kickers and people who are just wasting time (mine and their own), but I always manage to gather at least a few serious buyers from each batch. I also managed to drum up some accidental business for my contractor friend......... One of my signs said "Handyman Special, 3/1 block 1300 sf, $109k!! 813-123-4567." Some guy saw the sign and, naturally, thought it was an advertisement for handyman services. I guess he just honed in on that one word and ignored the rest. Or, maybe he thought the handyman who put the sign there was, just for fun, including a description of the house he lived in and what he paid for it, just in case any of his potential customers might want to know. That makes sense. Either way, I passed the lead on to my friend, and he got a job out of it. What's funny (aside from the obvious), is that not even a week ago, I was talking to this same friend about advertising his business via bandit signs. His response was basically, "That will never work."

Have you guys started thinking about your New Year's resolutions and goals for the new year? I have, and I'm going to OWN 2008, dammit.

Come hell or high water.

P.S.
My email is effed up (shocking, I know), so if anyone has sent me an email that I haven't responded to, that's why. I'm switching to gmail this weekend.

12/04/2007

I finally got the Photobucket thing figured out- thanks guys, for helping me out. I appreciate it.

The seller of the deal I was talking about Friday where we were 4k apart on price (she wanted 99k, I needed to get it at 95k), ended up calling yesterday and saying she would take 97k. After going out to the property to meet her for the second time, I got her to accept 94k net. This is a deal that was brought to me by another investor, so we are working it together. We are marketing it for 99k net. Another wholesaler I know may have a buyer, so it will be a 3 way split, which is fine with me.

I don't really know what I'm doing differently now as opposed to what I have been doing all year, but things just seem to be falling into place all of a sudden. It's really kind of bizarre, actually. After spending this entire year struggling to put deals together and survive, it feels really "unreal" for things to be going my way for a change. It's kind of hard to put into words, and I probably just did a really bad job explaining it, but hopefully you get my drift. For those who have been reading this thing from the beginning, I think you understand.

The deal that I assigned to my investor friend is set to close next week, Thursday, I think. No worries about that one closing, as I have done business with him before, and know he is a solid buyer. Gotta love that.

What else? Oh, yeah, I think I mentioned in a prior post that I had news about Costa Rica. The news is, I'm not moving. Not just yet, anyway. There are two major reasons why I'm not going. The first, which is probably quite obvious, is that it would be really foolish of me to just pack it up and leave now that things are starting to pick up a little bit. The other reason is that I have been told by numerous people (including my friend who moved there), that Jaco (where I would be living), is a ginormous party town, and that if you have an addictive personality (which I do), that you might get yourself into a little bit of trouble. I left the bartending biz in order to avoid being in that type of environment (and also because I felt like a complete loser), and, as much as I know I would love living down there, I just don't think it would be a wise choice right now. ¿Comprende? Hehehe, I'm slowly learning Spanish.

I have some other stuff to talk about, but am about to pass out on my keyboard. Long day.

Buenas nachos. (Hehehehe).

12/04/2007

Can someone please tell me how I can take my uploaded pictures from Photobucket and include them in emails as attachments? Is that possible? I can figure out how to add a link to the photos, but not how to send tham as attachments. I've already spent an hour trying to figure it out, and am not getting anywhere besides frustrated.

Anybody??

P.S.
I'm getting another property under contract today!! I'll post details later.

12/03/2007

This article really pisses me off.

12/03/2007

Wow, I can't believe it's December already. This year sure flew by, miserable as it was.

I've got 19 days left until I head up North, and my goal is to get 1 more deal signed up before then. My experience last year, and so far this year, is that the holiday season is a great time to get deals. I'm ready to take full advantage.

I got a zillion calls over the weekend from the handwritten signs I have out. Most of them from people who don't speak English, and think I'm advertising a house for rent. How do you say "rent" in Spanish? Rento? I think I will start writing "NO RENTO" at the bottom of the signs to save myself some time (and to keep from ripping my hair out of my head in frustration). Also, I keep catching myself doing the whole, "If I talk really loud, then maybe they will be able to understand what I'm saying even though they don't speak English" thing. By the end of every "conversation" I am borderline yelling. Then I realize the absurdity of what I'm doing and just feel like an idiot.

Aye yi yi.