Newbie Starting Out

[THATREIGUY]

sooooooo i check the home out and like she said it wasnt in bad shape at all its in a nice suburban area i could use some new windows though(the wood kind) and it looks like the paint color and design hasnt been changed since the 90's  so i went over the purchase contract with her we signed and i told her that i buy alot of properties and sometimes when one project isnt done in time to free up the money i pass things over to my other investor friends(picked that up on a youtube video) and i asked her would that be alright if i did so and she said fine i just want out... so we signed for $22,000 with a 14 day inspection clause i took a ton of pictures with my sis-inlaws camera and i decided im going to sell it for $35,000 because it has small repairs that need to be done and its ARV is around $88,000 lets go!!! 

[nsu1997]

Alrite!!!! just got off the phone with a woman that just recieved a home after her dad's death its was his and he owned it since 1989 and its a free and clear. last years taxes are owed with a ARV of around $88k most homes on the block have been sold for $85-97k and she's chucking the equity over to me I told her i could do 20k cash she accepted she said i have enough problems with my own home to deal with another. plus she wants it gone because she cant take the pain of her dad kinda sad... so we set up a showing tomorrow so i can check things out abit and see what shape its really in. to. she assured me it was in good she shape but you can never be to sure..i cant wait to put that baby under contract how much should i try to make off of it??? and should i let her know that i will be selling my interest to somebody else??

Good job! Did you get it under contract yet? Sounds like a very good deal. Tip: in the future never name the price first. Instead ask them, "If I pay you all cash and close quickly what would be the least you would accept?" Then ask, "Is that the best you can do?" You'd be surprised how low a motivated seller would sell for.

You should make as much as your market will bear. Heck, at $88k ARV you could mark it up to $44 and still be selling at 50 cents on the dollar which should move it quickly (assuming it doesn't need a huge amount of repairs). You'd make $24k and never touch the house.

No real need to tell her you'd be selling your interest. No reason to hide it either. Fact is she shouldn't care where the money is coming from, as long as she gets it.

[REIMillions]

Ditto on what Sean stated.... If you are developing a list of serious buyers that can buy at the drop of a dime short sales are NOT the way to go. They take entirely way too long and you don't want to wait forever to make some serious CA$H. The typical short sales can take months to be approved, you have no clue how many deals I had fall in the toilet because the bank wanted to take forever to respond. Even after waiting an eternity for the bank to come back with a reply 7 out of 10 times it will be a no.

I see your serious getting started in real estate, so you may not want to waste your time playing with banks. You need to find these properties before they are even up for foreclosure. There are countless of people under financial burdens and are willing to sell their home for way less then is owed. You need to promote yourself online and offline. In the newspaper, phonebook, bandit signs, word of mouth etc.

Short Sales is not the way too go.

Hello all im fairly new to the forum but i've read a few post as to creating a name on here..anyway im going to be starting my real estate adventure monday..i've made up my mind to start out wholesaling because it fits my investing style right now..(i have bad credit, no saved cash  ) i've been doing a little research in my market as to building a buyers list(i have 3 cash buyers) and i want to start out with foreclosures and bank owned properties,but i believe i need a proof of funds letter to even submit a offer?? what is the process in making a offer and getting it excepted and what type of contingency's should i put in place so that i have enough time to let my buyer know about it?? and should i let my buyers know that i deal with bank owned so i'll need there immediate attention?? thanks in advance 

[bivsflips]

Sounds like you have the makings of a good deal. Go to the home and do a thorough inspection. If 20k is what she is willing  to take.. unless the house is a shell inside you should get it under contract.

I would caution you..Do not fall in love with the prospect of your first deal. Keep focused and run your numbers. Closing costs, holding costs, repairs, your profit, mktg for end-buyer...just make sure the numbers will support this deal. Get good comps, and start marketing right away, to gauge interest in that neighborhood. Even if the numbers look good if nobody wants to buy there you are spinning your wheels.

As far as how much to make, I would say to consider the investor...if you want them to be a repeat buyer make them love doing deals with you. You don't have to make a killing but don't short yourself..5k is usually a good barometer but you can make as much as the deal will allow. The more you make the less your investor makes so keep them happy and you will have them for more deals in the future.

[THATREIGUY]

       As we speak im holding a $5,000 Non Refundable Earnest Money Check from a buyer i picked up from craigslist my deal will be closing next week and i'll collect $4,000 at close.... Plus i had someone today call me about a nice home for sale $18,900 with a FMV of $28,000 that would make a great rental i would like to set up a lease option on it so i can get some supplemental income going from it  man o man and i having a great day!!!!

[nsu1997]

There's a STRONG case to be made for simply taking action. You did exactly that, and that's exactly why you have a killer deal and most newbies frankly never will. Congrats!

A little bit of education + a whole boatload of action = success

[Delondon]

      As we speak im holding a $5,000 Non Refundable Earnest Money Check from a buyer i picked up from craigslist my deal will be closing next week and i'll collect $4,000 at close.... Plus i had someone today call me about a nice home for sale $18,900 with a FMV of $28,000 that would make a great rental i would like to set up a lease option on it so i can get some supplemental income going from it  man o man and i having a great day!!!!

SEE this is what I like to see. So many people simply don't do it, that complain about what does not work and don't do a single thing. I have been showing people how to use Craigslist to find buyers for a while now, and it works. Cash buyers know how to find deals there and we know how to find their money. lol.

Congrats on taking action, and you get 5 stars for getting a 5K binder deposit 

[THATREIGUY]

yESSS!!!!! i just wrapped up my closing collecting my last part of my fee which was $4,000... i tell ya   Real Estate will free your mind and your bank account      hahahaha so much to do now that ive finally finished my first deal it was so easy when i look back at it... i feel like a pro    joke... i think i cracked the code to success though... im ordering some bandit signs tomorrow and taking the wifey out to dinner...

[Delondon]

yESSS!!!!! i just wrapped up my closing collecting my last part of my fee which was $4,000... i tell ya   Real Estate will free your mind and your bank account      hahahaha so much to do now that ive finally finished my first deal it was so easy when i look back at it... i feel like a pro    joke... i think i cracked the code to success though... im ordering some bandit signs tomorrow and taking the wifey out to dinner...

 Congratulations to you. I wish you many years of success with this new found  venture. Keep going and never stop.

[bafeld2010]

Can you recommend a good course that walks you thru step by step and gives examples of forms to use. thanks

[Delondon]

Lol @ bafeld2010 

[THATREIGUY]

 


do a few searches on this site for the topics you need answer's to...its so much free information out here try that first...then decide if you still need a course because really its all about taking the first step...this business is from what i come to find is 80% action 20% knowledge...basically because the knowledge comes from taking action....     

[Shelterkid]

Hey REIGUY great job, your story has inspired me tremendously

[Delondon]

Nice way to break down the 80 20. You got to love this place.

[idhomebuyer]

I have to agree, that your success story is motivating for me. It would be nice to have some money for debt relief and the christmas holiday.

Did it take the full 30 days to go from contract to closing?

      As we speak im holding a $5,000 Non Refundable Earnest Money Check from a buyer i picked up from craigslist my deal will be closing next week and i'll collect $4,000 at close.... Plus i had someone today call me about a nice home for sale $18,900 with a FMV of $28,000 that would make a great rental i would like to set up a lease option on it so i can get some supplemental income going from it  man o man and i having a great day!!!!