Flip This Wholesaler

4/23/2008

The closing for the other REO I had under contract closed yesterday without a hitch. This one was just about as much of a pain in the ass as the one that closed last week, but it's over, I got paid, and that's all I care about... I ended up making close to 2k more on this deal than I had anticipated because I WAY over estimated the closing costs. My buyer paid all of the closing costs on the second transaction, and the bank paid most of the closing costs on the first transaction, and then I got a credit for the taxes, so when all was said and done, I only had to pay about a hundred bucks in closing costs.

I've now closed 2 deals with this particular listing agent in the last two months. He's got a ton of listings right now, so I'm pretty happy to be in his good graces. These relationships are going to pay off big time in the long run.

The third deal I have under contract (the one w 4 wholesalers involved), is scheduled to close this Monday. This one is not bank owned, but was on the mls for sale by an investor. I don't foresee any problems with this one (famous last words. hehe). The buyer has bought several properties this year from one of the wholesalers involved, so that's always a good sign.

I've been without mls access today and yesterday, so, haven't been making any offers. Also, have some non-real estate related stuff going on that has taken a lot of my time up.

I've set some pretty lofty goals for myself to accomplish over the next year. It is going to take quite a bit of hard work, and more importantly, DISCIPLINE (which I lack, oftentimes), but I can do it if I set my mind to it.

I'm finding that anything is possible if you are willing to put forth the effort, pay the price, and refuse to give up. I know that probably sounds trite and cliché, but it's the damn truth.

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

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!!!!

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!!!!!

11/20/2007

So, I went to meet my new favorite cash buyer at Starbucks yesterday. From the few times we spoke on the phone before meeting, I could tell we were going to hit it off. What a nice guy. We sat and talked on the patio for a half hour or so. He's been in the business since the 80's, and is doing quite well for himself. I tried to ask as many questions as I could without being too annoying. Man, I can't tell you how nice it is to sit and talk to someone about real estate without them going off about how the market sucks, how real estate sucks, how the guy on CNN or Oprah, or whoever told them that real estate is now a bad investment. It gets old after awhile. This guy is going to town right now- snapping up bargains, pulling some cash out, and holding on for the long haul. I've only been in this business full time for a year, and even I can see what a great buying opportunity this market is presenting for those who can pull their heads out of the media's ass, grow some balls, and think for themselves.

Anywho, I got the contract signed, got a 2k deposit, and we are closing tomorrow! How do you like that? I've got roughly 15 minutes of work into this deal, if that. It pays to network. I'm not sure if I mentioned it in a prior post, but I found this buyer by driving around my farm area and calling all of the "for rent" signs, talking to the landlords, and asking if they were looking to buy more properties in the neighborhood. Here's a link to the post I made on Flippinghomes.com yesterday that explains the deal in a little more detail.

I guess the other deal I was working on is dead. Unless, maybe, the listing agent died, or has been kidnapped or something, and that's why he does not answer his phone or return voicemails. He's also not returning calls from the title company, which is pissing me off, because they have my 1k deposit and I can't get it back until they talk to him and find out if I submitted the required documentation within the 7 day inspection period (which I did).

Remember that deal that I lost out on to the other investor a few weeks ago? Well, apparently he did not close on it, because I looked it up on the mls last week, and the listing is expired. So, I sent the out of state owners one of my generic "I'm looking for a home in Hillsborough County" letters, and they called yesterday. We talked for a few minutes on the phone, and I told him I would get back with him today with an offer. This could be a good one. We'll see.

I told my friend John last night that if I don't get a deal wholesaled off of the mls by the end of the year, I am going to gouge my eyes out with a spoon. I guess I better get moving.

11/19/2007

I'm headed to Starbucks to sign a contract with the buyer I was talking about yesterday!

The easiest 2 grand I've ever made!! WoooHooo!!

I'll post details later.

Still haven't heard back from the realtor about the other deal. I left him a msg at 10am. Guess they are still thinking it over? Shit, this could be a very profitable day if they accept the offer.

Keep fingers crossed!!

11/9/07

Still waiting on the signed contract back from the realtor. I don't like waiting. He called yesterday and said he was meeting with the sellers first thing this morning and will fax it right over. So, I decided to not get too crazy trying to find a buyer until I have that in my hands. I had a guy who called on my Craigslist ad yesterday, and was ready to buy it (the house, not the ad), until he found out it was on mls. I guess he had a bad experience last time with an appraisal due to the property being listed for so long at a certain price. Or something like that. Oh well. Good thing is, he is a CASH buyer, and actively looking for properties to rehab, so that's a bonus. I love finding new buyers. Cash buyers, especially. If any of you guys/girls reading this think that there are no buyers out there anymore, I can tell you for a fact that that is a bunch of bs. Do not listen to all of the naysayers, please. The people who tell you the market sucks, and you can't make any money right now are the people who are either (1) stupid, (2) chicken shit, or (3) both. I'm in a declining market right now, and there are still people buying good deals left and right. The smart investors are buying right now, and I can see why. Remember back about 2 years ago when everyone was saying, "Man, if only I would have bought some homes a few years ago, I'd be sitting pretty right now." Remember? Well, guess what? Now's your second chance!!! I suspect, though, that the same people who were saying "Shoulda, coulda, woulda" 2 years ago, will also be saying it 2 years from now, and so on and so forth.

Get out there and get some deals guys!! Quit procrastinating, and start today!!! I mean it. Don't come back here until you have done something (even something little) that will get you a little closer to your goals (whatever they may be). Do something BOLD today.

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.

I had a very busy day today. My intentions were to go look at the three properties that I picked out last night and make offers on all of them. As soon as I got up, I got a call from a realtor who had a client that received a postcard from me. He bought two pre-construction homes less than a year ago, and was trying to get rid of them. Neither one had enough equity to do anything with. I had a nice talk with the realtor and told her a little about what I am looking for. She said she would keep my info. in case she comes across anything I might be interested in.

A bit later I received an email from a seller trying to unload a condo he bought last year, fixed up, and now can't sell. ARV is around 280k, his mortgage balance is 199k. The unit has been completely redone. He said he would take 235k. I thought it might be worth pursuing if I could get him to sell for what he owes- maybe a subject to. Then I found out that the HOA fees are $565/month. Holy cow.

I got another call from a guy who bought a property 2 months ago with the intentions of rehabbing, then selling retail. He bought the property for 135k, getting financing from an HML. His payments are $1800/ a month w/ a 1 year balloon. He installed central heat/air, did some minor cosmetics, then ran out of money. The ARV is around 200k. The house still needs flooring throughout (it has terrazo floors), and updating in the bathroom. The house is in an area I am not familiar with, so I am going to meet him there tomorrow morning to check out the house and the neighborhood. I spoke to him several times today- originally he was asking 145k, but then said he would take less and is willing to negotiate. I called the investor I flipped my last property to, as well as another investor I met while I was trying to find a buyer. The investor I flipped my last property to told me to call him after I take a look at the house and see what condition it's in. The other investor told me it was probably too tight, but he would ask around. He is mainly wholesaling right now, and is doing very well. I asked him if he would like to get together next week for lunch to brainstorm, and he agreed. I have recently decided that I need to surround myself with like-minded people who are out there making things happen.

This last week, I have really pushed myself to step out of my comfort zone. It is not easy to venture into unknown territory, but once you do, it really feels good.

Tomorrow I have someone coming to look @ my townhome that I rehabbed and am living in . Sure would be nice to sell this place before the end of the year.

The offer that I put in last week on my realtor's listing countered @ 200k. The house was listed for 229k, worth around 260k. My offer was 177k. I think my realtor wasn't too happy that I didn't take it @ 200k. I again explained to him that my MAX purchase price is 70% of value minus repairs. I will keep my eye on it and put in another offer in a month or so if it hasn't sold.

Yesterday I went to look @ a townhome that I saw listed on Craigslist. The owners have relocated to Atlanta (actually they've been there since June), and the house has been vacant all the while. It needs updating throughout, paint, and carpet. Listed @ 124k, ARV 130k. My offer was $80,225. I haven't yet heard back.

I also sent out a bunch more postcards yesterday and today. I have about 100 out there that I've recently sent (within the last week), so I expect my phone to start ringing in the next day or so. Hopefully.

Today I checked out another home I saw listed on Craigslist. It's been vacant for about 3 months. ARV 240-245. Asking price 230k obo. Owners have moved into another property and are motivated. I have an appointment to see it tomorrow @ 10am. Going to offer 163k.

Still no luck selling the townhouse I'm living in. Haven't had any showings in 2 weeks or so. Hopefully it will sell by the end of the year. With the market the way it is though, who knows.

The meeting with my realtor went very well. I explained to him in more detail what my plans are, what sort of offers I'm going to be making (70% ARV max), and what I need him for (to fax my offers). He seems very eager to work with me, and seems to have a pretty good grasp of what I'm trying to accomplish. Hopefully he will still be as eager after I start making offers that get rejected.

I put in an offer on one of his houses yesterday, but still haven't heard back.

Tomorrow I'm going to send out a bunch more postcards, and do some follow up to leads that I spoke to last month.