Real Estate Investing Forums

Real Estate Investing => Bird Dogs, Wholesaling => Topic started by: Redstar1324 on February 05, 2017, 02:20:15 pm

Title: Craigslist FSBO property
Post by: Redstar1324 on February 05, 2017, 02:20:15 pm
I found a house on Craigslist that was FSBO. I verified through the property appraiser that it is in the fact the owner I've been talking to.

https://orlando.craigslist.org/reo/5989466848.html

He wants $40,000 for it. The Zestimate is $53,597.

He even emailed me the recent four point inspection. He offered to show me the house some time next week. I really don't know how to compute repair value on this. The house was built in 1934. The comps I run show an average of $33/square foot, putting the value of this house at $36,036, much less than the Zestimate. Since this house is so old, I'm not sure if my comps are accurate. Should I be looking only for comps from newly rehabbed houses that maybe could make this houses ARV at over $100,000? I don't want to start "wishful thinking," and I really do need accurate numbers.

70% of the Zestimate minus $5,000 is $32,517.90. Then, I need to subtract repair costs, which at $30/square foot, brings my offer to a total of $-242.10.

Obviously, I'm doing something wrong here. Is this a possible wholesale opportunity?

https://www.dropbox.com/s/54z7cpk2p1lx9pv/2905%20Vermont%20Ave%204-Point.pdf?dl=0

This is a link to the 4 point inspection. It definitely needs a new roof and I think the electrical panels would have to be updated. They are a brand that I've never even heard of.

The address is 2905 Vermont Ave. Lakeland, FL
Title: Re: Craigslist FSBO property
Post by: javipa on February 05, 2017, 05:22:58 pm
For now assume Zillow is accurate enough.  I'm betting the seller has already had offers below $40k, and he has adjusted for repairs.  However, you have to believe that he's still asking for more than he expects to get, because even numbskulls know they need to ask for more then they expect to get.

You can't (should not) use blunt force trauma to adjust the seller's opinion of value.  That just creates resistance.  Ease in, by yellow padding the seller, using his own numbers.  Show him what he would net if he got full price of $40k, after discounting all the costs.  Here's how it might go:

YOU:       Mr. Seller, you see that after we deduct all these costs from $40,000; commission, closing costs, roof, bathroom, floor and repairs, utilities, insurance, mortgage payments, and so the bottom line comes to $22k, before my all-cash discount of $5k.  So, I'm prepared to offer $17k in cash.

SELLER:  I'm not using an agent, that's why I called you.  And I've already discounted the repairs in my price."

YOU:        I understand Mr. Seller, but anyone buying from me has to consider these costs, including me, if worse came to worse.  Meantime, you and I both need to see the same bottom line. 
(adding)
Mr. Seller you haven't been able to sell your hell hole at this price for six months, and that's partly why I'm here making this cash offer.  Meantime, it makes no sense for me to pay retail, and then try to sell retail.

---------------------------------------------------------------
***You cannot base your repairs estimate on $30 sqft.  You base your repairs on what's needed.  A roof costs $3,500 (we're talking "roof," not concrete, tile, or dimensional asphalt).  Carpet, paint, new garage door, etc. costs 'x' dollars total.

Don't overthink the estimate.  Your end-buyer will make that determination.  Every buyer has different priorities, and you're hopefully selling to the one with no major priorities, other than 'clean and functional.'
---------------------------------------------------------------

Or the conversation might go:

SELLER:  I'm not selling my house to you for seventeen thousand dollars.  I've already been offered more than that.

YOU:        I understand that Mr. Seller.  I suggest you take that offer, because who knows how long it's gonna be before you find another stupid crazy buyer willing to offer you that much.  Meantime, this is a fair, reasonable, all-cash offer, as I've shown you here (pointing to your notepad with all the figures that show how you arrived at your price), and it's good until 5:00 p.m.

The reason I have to limit the offer until 5 o'clock is because I am making other all-cash offers, and I only have so much cash, and I can't buy every house I see. 

SELLER:  I don't need to wait until 5:00 p.m. to say "no."

YOU:        Of course, not, because I'm sure if you wait long enough, your house will eventually be worth $40k, but just not today.  Maybe if you ploughed in that $15k we discussed for repairs, in four, or five years you can get most of your money back.  However, if you would rather have cash now, my offer stands at $17k.

NOTE:  It costs relatively the same money to fix a $50,000 house as it does to fix a $150,000, except when it comes to older houses.  Older houses routinely have MORE things wrong with them.  So take unexpected costs into consideration when evaluating really old houses. 

Frankly evaluating and flipping pre-WWII houses is a specialty.

 


Title: Re: Craigslist FSBO property
Post by: Randoskie on February 05, 2017, 05:50:39 pm
This is probably the 5th time I explained how I do it to you. I start at 50% of the Zestimate & that is $26,500
Subtract $5,000 for your fee. Offer the seller $21,500
if he accepts you can Advertise it on CL for $28,500, negotiate down to 26,000 and walk away with a $4,000 assignment, Do not go look at the house unless you just want to waste your time. No need to estimate repairs, just assume this old house needs everything.
If seller wont consider 22K, tell him you have cash and the place needs too much work, but maybe you can squeeze out 24,000 with your partners approval and you will pay all closing costs.
If he says he wont do it, then move on, do not waste more than 30 minutes on this POS, unless you like wasting time.
Newer houses with less repairs adjust accordingly. I go up to 60 to 70% of Zestimate, but the seller HAS to be Distressed.
It's not rocket science.
This seller is hoping to find a newbie investor to buy it, he don't care that it needs 40K in foundation work and upgrades and if you buy it for 40 & repair it you will be stuck with a 80K Nightmare worth 50K

I've been slacking, but I got 100 post cards going out from addresses I got for free from my bird dogs. The ad on CL costs 25 buks, and it takes some effort to recruit and motivate these finders and keeping their addresses and names organized, but, it can pay off big.
I often wonder why nobody else takes a little time to use this method, I've made some serious ass profits from my bird dogs.
Also, I need to get my bandit signs out, havnt found a reliable person to do it, so I will spend a few hrs putting them up. The last batch was 500 bandit signs that I paid $900 for the colored pre printed ones and I made 28 frikin grand off of those and I got 100 to still put up. The best prices are at   dirtcheapsigns.com
I also made up some door knob hangers and paid 2 girls 75 buks each to pass them out in a neighborhood and I made $14,000 on a nice house with pool the seller lost her job and had medical problems and just wanted to move back near her family.
I will find some more girls to distribute these.
So not only am I trying to motivate you, but also myself.
Let's make some Money....
Rando
Title: Re: Craigslist FSBO property
Post by: Redstar1324 on February 05, 2017, 07:04:18 pm
I just sent him an offer for $21,500. I didn't even get into detail about the numbers. He said he estimates repair cost at $5-7,000 and thinks the home is worth $60,000 fixed up.

His response:

"Appreciate the offer but we are way off on price. I would accept 38.5k for a quick sell, but with 5-7k in repairs this will be a house that generates 1k a month  and worth 70k in 2 years. We're talking $31 per square foot. Not a bad deal."

I know it's pointless to say anything back, but we aren't even close to a contract (meeting of the minds). I might as well be talking Swahili to him.

I want to explain to him something that shows that I'm making sense. How can I show him that what I'm saying isn't gibberish.

It's no big deal if this one doesn't work, but if I'm talking Swahili to every person I contact, that's an issue.

And trust me, I will be getting as many bird dogs as possible once I can afford to start mailing again. I will put their addresses with priority over those from ListSource. Do you instruct your bird dogs to take pictures or do anything other than just get addresses?

Perhaps I could start my Swahili interpretation with:

I'm not buying it to rent it, I'm buying it to fix and sell it retail. And that it doesn't generate $1,000/month, it generates $1,000/month before expenses, taxes, etc.
Title: Re: Craigslist FSBO property
Post by: Randoskie on February 05, 2017, 07:29:31 pm
Seller... The house was built in 1914 and it needs about 5-7K in repairs.
Wholesaler... Oh really, have you ever upgraded the kitchen or baths?
Seller.... no but the cabinets and fixtures are still functional.
Wholesaler. Does it have pink tile work? Have you ever upgraded the windows or electrical or plumbing and why does the back part of the house looks like it's sinking 4 inches?
Seller, Oh the back part of the house is near a sink hole that I filled in with my household garbage and sand. You can easily fix that with an old car jack and some 2/4's 2 sacks of concrete and a six pack.
Wholesaler... Is the house owned free and clear?
Seller..... Oh yea, cept their might be an old lien from when my sister got arrested and I bailed her out. Oh yea, Yea the house is owned by her also and her and I don't get along so well. Especially since I lived here for 40 years and never offered her a red cent. And she's the one paying the property taxes and the water bill and I kinda kicked her off the property when she had som gall & asked for money.
Wholesaler.... Well, I'll do $21,500 and I hope you don't call.
Title: Re: Craigslist FSBO property
Post by: Redstar1324 on February 05, 2017, 07:35:58 pm
That's great except that half of that stuff is inaccurate. He owns it free and clear and without seeing it, I won't be able to tell if it has a sink hole. I would venture to guess that it does not.

I wish I could accurately assess repair value. I would be glad to itemize it for him and be completely transparent about what I'm doing.

I would guess his repair figure is low, but I can't say for sure because I don't know the correct answer.

The roof would cost $3,500. It's a 3/1, so the bathroom would cost $1,500(?). I don't know the extent to which the rest of the house needs repairs. Do you know if Cutler-Hammer circuit panels need to be replaced? I wish I could itemize the repair cost accurately.
Title: Re: Craigslist FSBO property
Post by: javipa on February 05, 2017, 07:44:49 pm
Well, that's one way to make an offer.  Meantime, you've given the seller zero reasons or rationale to accept your offer.

Notwithstanding ...the seller did came back with a counter, which shows me that he is motivated to do 'something.'  He didn't just say 'no.'

If this were me, I would wait a couple days, and then acknowledge that we were far apart, and that I understood his position, and add that I can only make reasonable offers where I can also make money, not become a landlord.  Then I would re-submit the original cash offer.

Until the property is sold, you can still take another bite at the apple.  So, spend a couple days brushing your teeth, and then resubmit your offer.  See what happens.  You have zero to lose.

Frankly, this house looks like something from the "Nightmare On Elm Street" movie set.  There's not a lot to love here.  Never mind the ghetto pricing. 

Redstar, you're the only one making a serious offer here.  Keep your apple-cutting knife sharp, because you're mostly-likely not competing with anyone on this.  Even so, if the deal can't be bought for the right price, it's not your deal anyway.

I applaud you doing 'something,' even if it's not the way I'd do it.
Title: Re: Craigslist FSBO property
Post by: javipa on February 05, 2017, 08:14:26 pm
Rando,

You're just exactly so right on. 
Title: Re: Craigslist FSBO property
Post by: Redstar1324 on February 05, 2017, 09:00:04 pm
I'll get back to him, but I'd like to explain my position with actual numbers. I should be able to calculate repair cost from the pictures, but I don't know how. Is this a result of me being unprepared and not having talked to enough contractors?

I would guess that his repair estimate is too low, but I don't know what the right answer is.

Once I have that, I can get back to him and explain my position and bump the offer up to $24,000 like Rando said.

What exactly needs to be done to the house? Does it need all new cabinets? New floors throughout? Do the hardwood floors look good enough? Obviously, any carpet would need to be replaced. Is that brand of circuit panels outdated just like FPE is? I don't know.
Title: Re: Craigslist FSBO property
Post by: Randoskie on February 05, 2017, 09:43:40 pm
I'm sure Javipa's method wud go farther in getting that deal. But I've got a callous where my bleeding heart used to be.
When dealing with these types of people it reminds me of all the difficult old stubborn codgers I've had the pleasure of dealing with. . This guy wont listen to reason, no matter how many figures you throw at him, he wud rather let the property go back to dust than give an inch. Repeat after me... I only want Motivated distressed sellers.
However this guy may be ready to talk in 6 months.
But for now. He wants a new snow plow and a used but clean with low miles 1996 RV to take that trip to visit uncle earl in Utah. And do a little hunting, uncle earl said there are some big elk over in sandy creek near tabletop. 
A fun aspect for me is trying to figure it all out with out going crazy.
Now get on to the next one b4 I come over there and rub ur nose in a better deal.
Title: Re: Craigslist FSBO property
Post by: Redstar1324 on February 05, 2017, 09:47:12 pm
I'm already looking at new ones on Craigslist. I would like to get back to this guy with exact numbers for repairs, though.

It would be practice if nothing else.

If I could learn to estimate repair cost, I can wholesale properties in other states through Craigslist "for sale by owner."
Title: Re: Craigslist FSBO property
Post by: Redstar1324 on February 06, 2017, 05:54:26 pm
Here's another one.

https://orlando.craigslist.org/reo/5972803707.html

Zestimate at $199,270. Listed at $85,955.

I left a message with the owner to find out specifically what needs to be repaired. I'm still not good at evaluating repair cost. That is my major hangup at this point.
Title: Re: Craigslist FSBO property
Post by: Randoskie on February 06, 2017, 06:44:02 pm
Sounds like a bogus add, a newbie investor is fishing for buyers like it says to do in the course he purchased.
If you see a property listed on CL for 50% of value, you need to sharpen your spear and go for the kill or realize it's Mr. newbie taking his first steps.
Title: Re: Craigslist FSBO property
Post by: Redstar1324 on February 06, 2017, 06:56:29 pm
Sounds like a bogus add, a newbie investor is fishing for buyers like it says to do in the course he purchased.
If you see a property listed on CL for 50% of value, you need to sharpen your spear and go for the kill or realize it's Mr. newbie taking his first steps.

I called him. He said he's an experienced investor. I told him I'd go see it tomorrow. I don't really want to and I'm not sure it will help because I still don't know how to calculate repair cost.

What should I offer? I'll go for the kill right now.
Title: Re: Craigslist FSBO property
Post by: Redstar1324 on February 06, 2017, 09:53:53 pm
50% of the lowest Zestimate (there's two) mins $5,000 is $92,098. That's more than the sellers offer.

Should I offer him at his offer, then expect to resell it for more?

He said he's never even seen the property.
Title: Re: Craigslist FSBO property
Post by: Randoskie on February 06, 2017, 10:34:42 pm
Holy moses Redstar, If ur ARV is correct,  you might have a deal there.
Offer 10K less than his price and settle for 5K less. get it on contract and flip it for 5-15K more than the contract price.
Go for the throat and a get the kill shot.
But, an experienced selling for 50% of value? It cud happen.
Title: Re: Craigslist FSBO property
Post by: Redstar1324 on February 06, 2017, 11:20:12 pm
Holy moses Redstar, If ur ARV is correct,  you might have a deal there.
Offer 10K less than his price and settle for 5K less. get it on contract and flip it for 5-15K more than the contract price.
Go for the throat and a get the kill shot.
But, an experienced selling for 50% of value? It cud happen.


Just sent him an email with an offer for $76,000.
Title: Re: Craigslist FSBO property
Post by: Redstar1324 on February 07, 2017, 12:27:09 pm
I talked to the seller and he is insisting that I see the house. I told him I want to just make an offer based on the pictures, but he wouldn't let me.

So I'm seeing it on Friday.

I really don't know why this guy is insisting that I see the house. I could tell him I've been doing this for years and can tell what it needs by the pictures.
Title: Re: Craigslist FSBO property
Post by: javipa on February 07, 2017, 01:43:56 pm
I have to laugh, because there's professional thought behind 'not' actually seeing the property before making an offer, and just as much thought behind getting in front of the seller, if not inside the house, in order to make an offer.

The problem is, no matter which tack you choose, you don't want to lose the initiative by equivocating to the seller's demands, without getting something in return.  In this case, the seller has successfully negotiated a physical look-see without giving up anything in the process.

So, you show up, take a tour, note every single deficiency you see, ignoring the seller's low-estimates for repairs, and continue making the longest list you can possibly make, using a black Sharpie to write on pages of a well-used legal pad, until maybe you've got three pages of repairs.  Don't refer to the notepad.  Don't mention any dollar figures you have in mind.  Let the seller imagine the worst figures, based on the amount of ink he sees you put on the legal pad.

Once the tour is over, and you still want to pay $76k, you pull out your already-completed purchase offer for $76k, and say "Approve this, and you've got a deal."

If you believe the house is worse than expected, and not really the deal the seller represented, then you pull out your note pad and review the repair items with the seller, and make an offer that is less than you made on the phone. 

Frankly, it's impossible to anticipate all the things the seller will do and say, so the bottom line is to hold to your Maximum Allowable Offer and not argue with the seller over his price, but simply agree he can get his price in a few years, especially if he spends the money on repairs, and does all the hard work.  In fact, you encourage him to do all the hard work, because he can get a better price.  And then remind him that he can have cash now, or gamble he can get more cash in a few years.  It's his choice.

I could say way more, but...   
Title: Re: Craigslist FSBO property
Post by: Redstar1324 on February 07, 2017, 01:48:24 pm
Yea I'm already kind of irritated that I gave in to his demand to see the house, but since I've never done a deal, why not?

Now I wish I actually knew how to estimate repair cost instead of just bluffing.
Title: Re: Craigslist FSBO property
Post by: Randoskie on February 07, 2017, 02:10:02 pm
Nothing wrong with meeting the seller if it's not too far. But usually when they insist on me seeing the house it means the house is in seriously bad shape and to make sure I really want to pay the crazy exorbitant amount we talked about.
My first few deals I was so nervous I had to go to the restroom and gulp some water cuz of dry mouth, now I carry water with me.
I think I'm more excited than Redstar. Why wait till Friday, U shud of made the appointment today, you cud of had it sold by Friday.
Title: Re: Craigslist FSBO property
Post by: Redstar1324 on February 07, 2017, 02:14:06 pm
I'm going right now. He's giving me the lockbox code. He seemed excited to talk to me - "the investor"
Title: Re: Craigslist FSBO property
Post by: Luke9686 on February 07, 2017, 02:48:53 pm
Well got damn!!!!  Here's to you posting back in a couple hours with a signed contract in hand.
Title: Re: Craigslist FSBO property
Post by: Redstar1324 on February 07, 2017, 04:05:53 pm
As I entered the house, it dawned on me that I have no idea how to rehab a house. I wouldn't know what a rehabber would want to do. I know it needs new floors and new walls (is that even a thing?). Some of the floors look good.

The plumbing and electrical looked good.

I really don't know how to quote him.

I told him I'd get back to him in a couple hours.

He wasn't at the house and I'm glad because he would have seen my inexperience.

I need a checklist next time.
Title: Re: Craigslist FSBO property
Post by: Randoskie on February 07, 2017, 04:25:57 pm
Tell seller you didn't realize how rough it was, it needs a ful gut and rehab, but you can see some potential.
Your partner says we can only do $60,00 because of the condition, area & risk factor.
But, we can close in 30 days or less and we pay all closing costs.
Wer ready to pull the trigger, you ready to do this deal?
Sign here.
Title: Re: Craigslist FSBO property
Post by: Redstar1324 on February 07, 2017, 06:04:58 pm
He said that he only got the house for $81,000 so he can't do the prices I wanted. No deal
Title: Re: Craigslist FSBO property
Post by: javipa on February 07, 2017, 06:30:34 pm
Redstar. you did great! 

Keep at it.
Title: Re: Craigslist FSBO property
Post by: javipa on February 07, 2017, 06:41:46 pm
The investor only marked up the price $5k?  OK, he's got a contract on it, but not the title.  Nobody takes title for a $5k turnaround.

If this guy doesn't have this house sold immediately, this tells me that the comps were wrong.

Track the deal, and find out what it actually sells for.  If you can, monitor the after-rehab sale price, and analyze the deal from beginning to end.  If there's an open house, go visit it.
Title: Re: Craigslist FSBO property
Post by: Redstar1324 on February 07, 2017, 07:40:53 pm
Redstar. you did great! 

Keep at it.

Thanks.

I just looked it up and it's a HUD home. Does that change anything? Can I start buying HUD homes to flip myself?

I will monitor it's progress.
Title: Re: Craigslist FSBO property
Post by: javipa on February 07, 2017, 08:46:25 pm
I can't tell you about HUD homes, other than they are first offered to owner-occupants, and then to investor, and then the prices drop incrementally, until somebody buys it.

I gave up on HUD deals about twenty five years ago, after being unable to buy at the discounts I needed.  Never mind HUD was turning empty rentals into low-income housing, because they couldn't get the prices they needed.  This further depressed the market I was farming, as those who don't respect themselves, much less authority moved in and turned the neighborhoods into ghetto-wannabies. 

In fact, there was such an uproar by homeowners that HUD relented and stopped housing dependents, and started selling them for what they could get.  It took more than a decade to recover from that fiasco.  I was already out of that market by then.  And by 'recover' I'm talking like raising the Titanic through a sea of Molasses.

Like anything, if you're willing to specialize, you can eventually find whatever you want. 
Title: Re: Craigslist FSBO property
Post by: Redstar1324 on February 07, 2017, 09:41:44 pm
Okay on to the next one...
https://orlando.craigslist.org/reo/5990888823.html

Zestimate is 144,871.     Half of that minus $5,000 is $67,435. It's listed at $69,550.

There's no pictures on Craigslist or Zillow. I'm gonna offer $65,000.

Is that a good idea? I don't really want to go see it if I don't have to.

I verified through the property appraiser that the owner is a private individual who lives right down the street.

Just think if I can do three of these per month at $5,000/house, that's $180,000/year.

I could see myself getting hooked on this really fast.
Title: Re: Craigslist FSBO property
Post by: Luke9686 on February 08, 2017, 07:52:07 am
Make sure you're telling all these people "I'm looking to buy three more properties in your area in the next few months, and I offer this really cool referral program.  If you know of anybody needing to sell a house, and I end up buying it, I'll pay you xxxx dollars once the transaction closes."

Also tell them the types of houses you buy; inherited houses, people in foreclosure, vacant houses, tired landlords, etc.
Title: Re: Craigslist FSBO property
Post by: Redstar1324 on February 08, 2017, 09:46:33 pm
Here are pictures of the most recent house I posted.
https://www.dropbox.com/s/rpivlfwy4k7ba38/image2.JPG?dl=0
https://www.dropbox.com/s/guabi5k52q9af5j/image1.JPG?dl=0
https://www.dropbox.com/s/o901sinuqazayvu/image3.JPG?dl=0

The lady I spoke to was a wholesaler and said she thinks it needs to be completely torn down. It's on an acre.

I have no idea what this means as far as what price I can offer.

I need to learn how much things cost to build/repair.
Title: Re: Craigslist FSBO property
Post by: Randoskie on February 08, 2017, 11:02:42 pm
Get out there and figure it out, that's what we all did. go talk to these sellers, gain confidence, learn the values of neighborhoods.
Fail a few times or 10 or 20, get out there and make a mess of things, and have some fun.
Title: Re: Craigslist FSBO property
Post by: Redstar1324 on February 09, 2017, 04:52:39 pm
I have no idea what to do with that house, by the way
Title: Re: Craigslist FSBO property
Post by: Randoskie on February 09, 2017, 06:58:18 pm
How bout wholesaling it for cash? Are you second guessing everything, fearful, hesitant and on and on?
Haha, I'm glad I don't have to go thru the newbie experience again. It was horrible, terrifying,
I think a lot of people never make it to square one because of the fear.
What are you going to do?
Title: Re: Craigslist FSBO property
Post by: Redstar1324 on February 09, 2017, 07:01:33 pm
How bout wholesaling it for cash? Are you second guessing everything, fearful, hesitant and on and on?
Haha, I'm glad I don't have to go thru the newbie experience again. It was horrible, terrifying,
I think a lot of people never make it to square one because of the fear.
What are you going to do?

The seller (another wholesaler) said it probably needs to be demo-ed and rebuilt from scratch.

I, of course, have no idea what that costs.

I need to start making calls to contractors.
Title: Re: Craigslist FSBO property
Post by: Luke9686 on February 09, 2017, 07:05:29 pm
No you don't.  You need to get it under contract and sell it.  Your contract has an escape clause.
Title: Re: Craigslist FSBO property
Post by: Redstar1324 on February 09, 2017, 07:22:54 pm
No you don't.  You need to get it under contract and sell it.  Your contract has an escape clause.

For how much? That's what I'm lost on.
Title: Re: Craigslist FSBO property
Post by: Randoskie on February 09, 2017, 09:13:35 pm
Take a stab at it, ur spear don't need to be sharp, You can club it to death.
OK, half of zestimate, deduct 20K for repairs and $5,000 for your fee.
Then if he's ready to talk, sharpen the spear, go for the kill, negotiate him down some more because his dog is ugly.
leave no witnesses.
Title: Re: Craigslist FSBO property
Post by: Redstar1324 on February 10, 2017, 10:51:22 am
Take a stab at it, ur spear don't need to be sharp, You can club it to death.
OK, half of zestimate, deduct 20K for repairs and $5,000 for your fee.
Then if he's ready to talk, sharpen the spear, go for the kill, negotiate him down some more because his dog is ugly.
leave no witnesses.

They accepted an offer for $58,000.

What do I put for Earnest Money on the contract? It currently says zero.

I'm 99% sure this is another wholesaler.
Title: Re: Craigslist FSBO property
Post by: Randoskie on February 10, 2017, 01:43:32 pm
Some state require at least $1 to make it all legal, not sure about Florida. I used to put down 5 or 10 buks but now I just write in zero.
If it's another wholesaler that's OK, Ive done deals with 5 wholesalers involved.
But you shud ask,
My Johnson, is this your house your selling? No, I'm selling it for a friend, oh, your a wholesaler, oh not really, Yea Kinda.
OK I need to know the numbers, what did you get it for? So your making x amount and I want to make x amount, we need to get together on this with the contract and everything.
I will run it past  my list of 47,000 buyers, some are in Peru & Africa and I will start some mass marketing online.
Title: Re: Craigslist FSBO property
Post by: Luke9686 on February 10, 2017, 02:01:24 pm
As a side note they can actually pay you the earnest money.
Title: Re: Craigslist FSBO property
Post by: Redstar1324 on February 10, 2017, 02:28:55 pm
As a side note they can actually pay you the earnest money.

The sellers are gonna give me $100?
Title: Re: Craigslist FSBO property
Post by: Luke9686 on February 10, 2017, 03:58:13 pm
Technically you could.  That being said I usually put a $10 EM, and never actually give it to anybody.  It's taken care of at closing. 
Title: Re: Craigslist FSBO property
Post by: Randoskie on February 10, 2017, 05:00:45 pm
Really? That sounds like a perfect way to do the earnest deposit, which might even be construed as a note due and keeps the deal legit.
I lost $500 buks on a deal that I thought was a sure thing, can you say cloudy title, liens, probate goodbye money?
I liked the seller, he was way overweight and very sickly living in this decrepit hoarding house in bad filthy conditions.
He spent the money to move in with a GF for truck rental, & for some helpers, I was a sucker for a sad story. I of course never asked for it back.
This was a few years ago and I wonder if he's still kicken.
Title: Re: Craigslist FSBO property
Post by: Redstar1324 on February 10, 2017, 05:04:29 pm
Technically you could.  That being said I usually put a $10 EM, and never actually give it to anybody.  It's taken care of at closing. 

I'm sure the process will become familiar to me after one time.
Title: Re: Craigslist FSBO property
Post by: Luke9686 on February 10, 2017, 06:44:31 pm
If they ever question me about the EM, I always say I'll drop it at the attorney's office with the contract (attorneys close transactions where I live).
Title: Re: Craigslist FSBO property
Post by: Redstar1324 on February 10, 2017, 09:21:16 pm
If they ever question me about the EM, I always say I'll drop it at the attorney's office with the contract (attorneys close transactions where I live).

I hate attorneys just as much as I hate Realtors. But we'll see what happens.
Title: Re: Craigslist FSBO property
Post by: Randoskie on February 11, 2017, 12:56:39 am
My former bird dog Bob got me one of my first deals 4 years ago and since then we have done a bunch together.
He's went on to do deals on his own. But he still calls me when he has the worst junkers. It's funny how I can sell these junk houses that most people wudnt let their dog stay in. & Bob can find them.
Well he calls today with exactly what I want, a junky house that the tenants did a number on.
Bob got it for $35,000 I told him I could get us 42 or 45 for it.
Bob also sent photos, it's a 3/1 1,000 SF huge lot and the after repair value is over 100K
I'ts really tore up, we will be happy to make 5K each for our assignment.
My buyers wont wait too long on this one. I'll be surprised if its still available in a few days.
I also got it on CL for $48,500
Let's make some Money...
Title: Re: Craigslist FSBO property
Post by: Redstar1324 on February 11, 2017, 12:32:39 pm
This deal was no good because the people pretending to have the property under contract had no legal right to the property.

The actual owner walked out and told me he still owned it and he is on the property appraiser.


He said he would sell that one and the neighboring property for $400,000.
Title: Re: Craigslist FSBO property
Post by: javipa on February 11, 2017, 01:59:02 pm
This deal was no good because the people pretending to have the property under contract had no legal right to the property.

The actual owner walked out and told me he still owned it and he is on the property appraiser.


He said he would sell that one and the neighboring property for $400,000.

So, that's $200k a piece?  And you didn't make a cash offer to the 'actual' seller? 

Why not?

While you're talking to a seller, don't be shy to ask if he knows anyone who wants to sell.  Sellers often know someone else who wants to sell.  They flock together that way. 

Keep dragging the net.

Title: Re: Craigslist FSBO property
Post by: Redstar1324 on February 11, 2017, 02:34:08 pm
I got his number and needed to run the numbers first.
Title: Re: Craigslist FSBO property
Post by: Randoskie on February 11, 2017, 03:05:24 pm
Just found out my prospect house has 22K in liens, it can be depressing dealing with all the BS and failure after failure.
But, that's the nature of the beast, we pick ourselves up and keep going, failure is not an option.
Title: Re: Craigslist FSBO property
Post by: Redstar1324 on February 11, 2017, 03:29:37 pm
Just found out my prospect house has 22K in liens, it can be depressing dealing with all the BS and failure after failure.
But, that's the nature of the beast, we pick ourselves up and keep going, failure is not an option.


Did you find that out through the title company? Did you lose your earnest deposit?
Title: Re: Craigslist FSBO property
Post by: Randoskie on February 11, 2017, 03:45:01 pm
Another wholesaler I've done a few deals emailed and said  he offered $16,000 cuz it had 50K in liens. I emailed Bob and he wanted to know how I knew it had liens cuz he had just met the seller and she admitted she owed 22K in liens.
Bob said when he went to the house a few dqays ago the tweakers wudnt let him enter the house but agreed to use Bob's camera and took a bunch of photos. What a mess, Place was or shud be condemned. The meth heads were complaining about no heat and water. Squatters wanted some better amenities.
Bob actually got his camera back. Bob is embarrassed he sent me such a sorryass deal.
I come across some addicted people and living in these bad conditions.
They shud make that meth illegal.
Title: Re: Craigslist FSBO property
Post by: Redstar1324 on February 19, 2017, 12:20:05 am
Judging from the pictures, what type of work would you say this house needs done?

https://orlando.craigslist.org/reo/5989466848.html

Would you consider this a light, medium, or heavy rehab?
Title: Re: Craigslist FSBO property
Post by: Luke9686 on February 19, 2017, 07:38:02 am
Hard to tell without knowing your market.  In my area my buyers wouldn't do anything other than a deep cleaning on that house to get it rent ready.  How's the roof, furnace and A/C?

Are these deals routinely found in your area?  In my area I'm selling houses that rent for $650-$700 for $44-45K.  That deal on that Craigslist link would be flying off the shelf in my area.  I gotta convince my buyers to buy in Florida.

How much would insurance be on that house?
Title: Re: Craigslist FSBO property
Post by: Redstar1324 on February 19, 2017, 08:28:51 am
Similar deals are routinely found on Craigslist FSBO.

I emailed about the roof and have not heard back.

I don't know about insurance.

I thought Florida was a good market. Am I wrong?
Title: Re: Craigslist FSBO property
Post by: Luke9686 on February 19, 2017, 10:11:05 am
Compared to what's available here, that's outstanding cashflow.  Depending on how much insurance and taxes are on a house like that.  Insurance here is cheap; ~$60-70/month.  I've heard insurance rates in Florida are high though.
Title: Re: Craigslist FSBO property
Post by: Randoskie on February 19, 2017, 01:24:00 pm
Seems like a good deal, maybe $2,000 for paint and cleaning and this house be ready to rent.
$40,000  I would buy it if the numbers are right.
Maybe you can talk them down to $32,500 with an all cash offer and flip it for $37,500
Title: Re: Craigslist FSBO property
Post by: Redstar1324 on February 19, 2017, 03:56:42 pm
It needs a new roof as well. I'll still offer $32,500.

I need to start making some money.
Title: Re: Craigslist FSBO property
Post by: Redstar1324 on February 22, 2017, 05:21:59 am
They said they would accept $38,500.
Title: Re: Craigslist FSBO property
Post by: Luke9686 on February 22, 2017, 09:02:25 am
Seller, remember I'm going to be paying all costs, paying for all the needed repairs, whether I've seen them or not, and can pay you cash and close on the day of your choice.  Is $38,500 the best you can do?  (silence)

(No matter what they say)

Seller, the great thing about selling to me is I'll be paying with all cash, and don't need to use funding.  Believe me, there is nothing more frustrating than things falling apart in escrow because the buyer couldn't get the funds approved.  You can't see yourself doing any better than $XX?

(No matter what they say)

(Silence).  Hmm, is that the best you can do?




Always ask three times.  At the end of the day, get it signed up no matter what.  Even if you only make $1K; the experience will be invaluable.  Plus it will make this whole thing real.
Title: Re: Craigslist FSBO property
Post by: Redstar1324 on February 22, 2017, 09:22:54 am
I still have to worry about flipping it to a buyer.

There is nothing telling me that I'll be able to do that.
Title: Re: Craigslist FSBO property
Post by: Randoskie on February 22, 2017, 11:42:57 am
Hmmmm, some self doubt, a little indecision, some hesitation, second guessing, I been there, I still go there, but I don't live there anymore. What u gonna do rednuts?
Title: Re: Craigslist FSBO property
Post by: javipa on February 22, 2017, 12:04:46 pm
"Rednuts"  HA!!!! :beer
Title: Re: Craigslist FSBO property
Post by: Todor S on February 22, 2017, 03:35:01 pm
It seems to me that the more help you get from people here, the more abusive you become. Your attack on a personal level is uncalled for. You should consider removing yourself from these forums, since you have a problem with controlling your violent outbursts. I will take a wild guess that people come here for some productive discussions, not to read your nonsense.

Title: Re: Craigslist FSBO property
Post by: Randoskie on February 22, 2017, 09:26:44 pm
What, a total lack of humor? Cmon Redbut, lighten up. Maybe if you made some money you wudnt be so onery.
I'm not a red neck, I'm a steak and tater eating Okie, maybe if you actually read my book you cud do some deals.
Repeat after me,,, I do believe in spooks. I will do a deal.