Flip This Wholesaler

5/10/2008

I guess I should have kept my big mouth shut.....The buyer who was supposed to drop off the deposit is STILL giving us the run-around. My friend who has the property under contract called me yesterday evening to tell me what was going on. Apparently the buyer's partner (it's always a red flag when there is a "partner" involved- always.) keeps saying he's on his way over to drop off the check, and then, for one reason or another, never makes it. I guess this happened 4 or 5 times, and so my friend called and said he can't figure out what's going on. This is a guy, by the way, who is the craftiest, smartest, cleverest (I know that's not a word, but it sounds better), investor that I have met thus far, and who I would venture to guess, is doing more business than any wholesaler in Tampa right now, so when he says he can't get a read on a situation, I'm genuinely surprised. We have done 5 or 6 deals together, and usually he just takes control of the deal, and I don't hear anything from him until it's time to pick up my check. So he tells me that he really thinks these clowns are going to buy the house-they actually contacted the title company AND the listing agent (without telling us first), to see if they could close it yesterday. This created (another) big fat mess, since neither the title company nor the listing agent had any idea who the hell these guys were. ANYWAY, my friend called me and said he needs a second opinion, and asked if I would call the "partner" and see what I thought. He also said that as furious as he was that this guy kept giving him the run-around, that he just couldn't be a dick to him because it would be like getting mad at Ned Flanders. I didn't understand what the hell he was talking about until I got off the phone with the guy. I got the same impression from him- that he has every intention of buying the property. Nice guy too, and if he is full of shit, then he's the best hustler in town, because he has us both fooled. And this ain't our first rodeo, either.

OK, so, long story short, last I heard from him, he was driving out to Odessa (this was yesterday at around 8pm) to get the contract signed by his "partner" and he would have the contract and the deposit to my friend's office by early today. And that's where we are at with this deal. There's some more drama involved, but it's too convoluted to explain, so I won't.

Oh, do you want to hear the funniest part about this whole mess? Anybody wanna take a crack at what the "partner's" name is? Anyone?

SHADY.

I swear. May God strike me dead with a random bolt of lightning next time I go outside, this guy's name is SHADY. It's in the tax records and everything.

Apparently his Mom was a psychic.

4/10/2008

I got both of the closing dates moved up on the deals that were supposed to close today and tomorrow. One of them, though, I STILL do not have the executed contract from the bank yet, even though my offer was accepted over 2 weeks ago. Every time I think I have it locked up, the bank sends over another addendum to sign. Very frustrating. I'm really beginning to take great pleasure in taking these idiots to the cleaners. Bending them over, so to speak. They deserve it... Anyway, as it stands, one of the deals is supposed to close next Friday, and the other the following Monday.

Also, remember the deal I got under contract about a month ago- the one I was working with my hood buyer, that had title issues? Well, we finally got a contract on that 2 days ago. Closing is set for the 28th.

If all 3 of these deals actually close, I think I may have a heart attack.

This weekend, the mentoring/mastermind group that I am a part of, is meeting in Tampa for the first time. I'm pretty excited about it- it's quite an impressive cast of characters... Tomorrow night we are all having dinner together, and Saturday, going to Busch Gardens. Going to be a great weekend.. I'll be making like a sponge and soaking up the knowledge....

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

1/3/2008

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.....

12/19/2007

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?

12/15/2007

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.

12/07/2007

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).

12/03/2007

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.

11/30/2007

Sorry for slacking off with the posting. I've been busy, busy, busy all week- in a good way.

I'm currently marketing 3 different properties, and I have 10-15 handwritten signs out in the neighborhood of each property. Needless to say, my phone has been ringing off the hook. I found a local sign company (courtesy of my short sale friend), that sells blank signs on the cheap. I bought 100 12x18 signs for under 50 bucks (I think they were 44 cents apiece plus tax). I ordered them in the morning, and went and picked them up just after noon. That pleased me immensely, as I am not big on waiting. In case anyone is interested, the company is Blair Plastics, phone # 813-319-1000. Ask for Bill. Tell him Steph sent you, so maybe I will get a discount on my next order ;0).

Let's see, what else... Oh, I realized that if I am putting out signs in a predominantly Spanish-speaking neighborhood, that it would probably be a good idea to either be able to speak Spanish, or have an interpreter on call. I took 2 years of Spanish in high school, but didn't really retain much. I just know enough to get by. ¿Dónde está mi cerveza?

I'm working on another deal with one of my investor friends that I may be getting under contract tomorrow. As it stands, we are 4k away from a deal (seller wants 99k, we need to get it at 95k). I'll find out tomorrow what the verdict is.

I hate to jinx myself for the millionth time this year, but I'll just go ahead... I really, really, really, think that I've turned a corner. No- really. I think I've finally made it through the hardest part (I hope, I hope, I hope), and things are starting to fall into place. All I know is I am busting my ass to make it happen.

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!!!!!

11/26/2007

I just got done booking my flight home for Christmas. My Mom insisted on sending me money for the ticket, and started crying when I tried to refuse it. Bless her heart. I'm sure I've mentioned it before, but I really lucked out in the parent department. I haven't seen my Mom or Dad since my sister's wedding, and haven't been back home since I don't even know when. Long time. I usually try to visit in the summer, because even just thinking about the bitter cold, gray skies, and frozen, dead, everything, kind of makes we want to commit suicide just a little bit. Also, like I mentioned before, I have a touch of the SAD.


Anywho, I've decided that I need to make 100 offers before I go home for Christmas. I'm leaving on Dec. 22nd, so I figure if I make 5 offers a day (including today), that will put me at 100 offers 1 week before I have to leave, which will give me 1 week to find a buyer and get things wrapped up before I head out to Illinois to freeze my ass off for 7 days. Ultimately, I'd like to have a deal closed before I leave so that I will have nothing to worry about while I'm there, but I'll settle for having something in the works.

My wholesaler friend has 2 new properties for me to market, so I started doing that today. My intentions were to start marketing them over the weekend, but the turkey and breggnog (brandy and eggnog- also known as eggnandy) talked me out of it.

I'm also working on another deal that another one of my wholesaler friends called me about on Friday. It's kind of a long, tangled, messy story, that involves another wholesaler going behind his back and cutting him out of the deal, but in a nutshell, he's going to pay me a grand if I can get the property under contract for a certain price. There are about 5 other parties involved in this ginormous mess, so I'm really curious as to how it will turn out. I'm meeting with the seller either tomorrow or Wednesday, so I'll let you know what happens.

I also have news about Costa Rica, but it's an hour past my bedtime, and I need some zzzs.

11/24/2007

I hope you guys all had a fantastic Thanksgiving!! Mine was delicious. I somehow managed to cook the entire dinner myself, which, if you knew anything about my cooking abilities (or extreme lack thereof), you'd be quite impressed. I would say my cooking skills are right on par with my directional skills, if not worse. So, cooking an entire Thanksgiving dinner all by myself is quite an accomplishment.

Speaking of accomplishments, the deal that I sold for the other wholesaler closed on Wednesday!! Sweet. It was kind of a last minute thing- we thought we were going to have to wait until Monday to close it, but ended up getting it done late Wednesday. I need to do more deals like that. Easy, Peasy, Japanesey.

I was planning on getting back to work today, but got distracted, and ended up screwing around at Channelside all day with my short sale friend Nathan.

So, tomorrow I will get back to work. I must get one more deal closed by the end of the year. I must.

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!!