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Author Topic: A few questions about wholesaling  (Read 14786 times)

Offline Redstar1324

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A few questions about wholesaling
« on: April 12, 2016, 01:58:10 pm »
This is in response to my first wholesaling mission today. I found several houses by driving through low-income areas and looking for houses with overgrown grass.

I am familiar with the property appraiser, is that how I estimate ARV? Which I know can fluctuate very rapidly. What is the BEST and most accurate way?

Also, I called the county comptroller and asked about mortgages on record. They told me that I can find out the name of the lending institution, but cannot find out the amount still owed. Is there any way to find out this information? I wouldn't trust just asking the owner and taking his word? Should I just estimate from the age of the mortgage on record? Is that really accurate?

Offline Randoskie

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Re: A few questions about wholesaling
« Reply #1 on: April 12, 2016, 02:18:01 pm »
Redstar,
There you go making things more difficult and complicated than creating fusion from an atomic particle.
You don't need to know if there is any thing owed on the property or shudnt care.
If seller owes 80K on a 40K junker you offer 30K and walk away. If he has code enforcement liens and a mortgage that amounts to 20K it comes out of his pocket and wont affect what you offer.
Zillow shud give you an estimate of the houses worth and also show houses in the area that sold recently.
If the Zestimate comes in at $74,600 and the house is boarded up and looks like it shud be torn down, your going to offer $20,00 or less and you might go up to 25K
If that same house is rented and looks in great shape your going to offer $52,000 cash
It's a big guessing game and it depends on the motivation and desperation of the seller or lack of.
What works for me is I go in without a clip board, no suit and tie, and get the seller to spill their guts, let them talk.
Get them nice and friendly before you go for their throats.
Rando

Offline Redstar1324

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Re: A few questions about wholesaling
« Reply #2 on: April 12, 2016, 03:00:50 pm »
Redstar,
There you go making things more difficult and complicated than creating fusion from an atomic particle.
You don't need to know if there is any thing owed on the property or shudnt care.
If seller owes 80K on a 40K junker you offer 30K and walk away. If he has code enforcement liens and a mortgage that amounts to 20K it comes out of his pocket and wont affect what you offer.
Zillow shud give you an estimate of the houses worth and also show houses in the area that sold recently.
If the Zestimate comes in at $74,600 and the house is boarded up and looks like it shud be torn down, your going to offer $20,00 or less and you might go up to 25K
If that same house is rented and looks in great shape your going to offer $52,000 cash
It's a big guessing game and it depends on the motivation and desperation of the seller or lack of.
What works for me is I go in without a clip board, no suit and tie, and get the seller to spill their guts, let them talk.
Get them nice and friendly before you go for their throats.
Rando

Okay I understand how to estimate ARV now.

But what I don't understand and what seems really important is this....

If the owner owes $80,000 to BB&T, does this mean that I now owe it? And if there are $10,000 in outstanding Code Enforcement fines, do I now owe them? And wouldn't this affect the amount a flipper would want to pay for the house?

I like to overly prepare on mathematical issues such as this.

Offline Redstar1324

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Re: A few questions about wholesaling
« Reply #3 on: April 12, 2016, 03:17:08 pm »
I really need to get started on this absentee owners list.

It's easier than you might think since the property appraiser let's you download everything in MS Excel...

Then send out mass mailing lists....

Good idea!

Offline Redstar1324

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Re: A few questions about wholesaling
« Reply #4 on: April 13, 2016, 01:18:23 pm »
Just looked up the owners to one of the houses I found yesterday...

It is BB&T.

Does that mean I can't wholesale this house?

Offline Randoskie

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Re: A few questions about wholesaling
« Reply #5 on: April 13, 2016, 04:08:21 pm »
Can you spell out BB& T for us trailer park okies?

Offline Mdhaas

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Re: A few questions about wholesaling
« Reply #6 on: April 13, 2016, 04:53:09 pm »


Quote
Can you spell out BB& T for us trailer park okies?

bee, bee and tea  :beer  Sorry, i had to do that.  :banana
« Last Edit: April 13, 2016, 04:55:10 pm by Mdhaas »
If at first you don't succeed.....................skydiving is not for you

Offline Redstar1324

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Re: A few questions about wholesaling
« Reply #7 on: April 13, 2016, 06:12:53 pm »
Can you spell out BB& T for us trailer park okies?

Branch Banking & Trust....

Since this is a bank owned house, does that mean I can't wholesale it?

I'm just trying to make some money here

Offline Randoskie

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Re: A few questions about wholesaling
« Reply #8 on: April 14, 2016, 01:19:27 pm »
Bank owned properties are a whole different ball game, First of all your dealing with a bank that don't want you to make a profit, also your dealing with a Realtor and if they knew you wanted to wholesale it you wud be kicked to the curb before you cud say "What Happened".
Then your going to need proof of funds and to jump thru all their hoops, you want to buy and flip it now, well, they don't care if it's 6 months from now. You will probably need at least a $2,000 earnest deposit.
The bank will make you sign a document saying you wont sell this property for 90 days or maybe 120 days, some bank actually put restrictions on how much you can make, I'm serious here.
Oh yea, you will need to do a double closing so the bank and realtor don't know your wholesaling and how much your making while you illegally flip this house that you signed in blood that you wouldn't sell for 90 days.
So if you want to experience Real Estate Hell, try to wholesale a bank owned house.
Again Redstar, I'm amazed how you make everything so complicated and difficult. How bout you find some distressed junky homes, negotiate with seller and wholesale them, Is that too easy for you? No Challenge?
Have you considered just taking action and doing it?

Offline Redstar1324

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Re: A few questions about wholesaling
« Reply #9 on: April 14, 2016, 03:07:07 pm »
Bank owned properties are a whole different ball game, First of all your dealing with a bank that don't want you to make a profit, also your dealing with a Realtor and if they knew you wanted to wholesale it you wud be kicked to the curb before you cud say "What Happened".
Then your going to need proof of funds and to jump thru all their hoops, you want to buy and flip it now, well, they don't care if it's 6 months from now. You will probably need at least a $2,000 earnest deposit.
The bank will make you sign a document saying you wont sell this property for 90 days or maybe 120 days, some bank actually put restrictions on how much you can make, I'm serious here.
Oh yea, you will need to do a double closing so the bank and realtor don't know your wholesaling and how much your making while you illegally flip this house that you signed in blood that you wouldn't sell for 90 days.
So if you want to experience Real Estate Hell, try to wholesale a bank owned house.
Again Redstar, I'm amazed how you make everything so complicated and difficult. How bout you find some distressed junky homes, negotiate with seller and wholesale them, Is that too easy for you? No Challenge?
Have you considered just taking action and doing it?

I just did find one of those houses, and it was a bank owned property.

These are the things you learn by doing...

Offline Redstar1324

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Re: A few questions about wholesaling
« Reply #10 on: April 20, 2016, 11:26:14 pm »
Bank owned properties are a whole different ball game, First of all your dealing with a bank that don't want you to make a profit, also your dealing with a Realtor and if they knew you wanted to wholesale it you wud be kicked to the curb before you cud say "What Happened".
Then your going to need proof of funds and to jump thru all their hoops, you want to buy and flip it now, well, they don't care if it's 6 months from now. You will probably need at least a $2,000 earnest deposit.
The bank will make you sign a document saying you wont sell this property for 90 days or maybe 120 days, some bank actually put restrictions on how much you can make, I'm serious here.
Oh yea, you will need to do a double closing so the bank and realtor don't know your wholesaling and how much your making while you illegally flip this house that you signed in blood that you wouldn't sell for 90 days.
So if you want to experience Real Estate Hell, try to wholesale a bank owned house.
Again Redstar, I'm amazed how you make everything so complicated and difficult. How bout you find some distressed junky homes, negotiate with seller and wholesale them, Is that too easy for you? No Challenge?
Have you considered just taking action and doing it?

These are the questions that are holding me up and after I get them answered, I will do this....

Do I hire a licensed inspector inspect the house? If so, doesn't this mean I need a few hundred dollars to get in? If not, how can I accurately calculate the repair costs?

More importantly, the clause in that contract from "Real Estate on Steroids" says that I can back out based on the inspection. However, in wholesaling, isn't the idea to "back out" if you can't get it sold? I am "paying" tens of thousands of dollars that I don't even have, so this would be a very important thing for me to know. A mistake on a technicality would be disastrous for me. Are you saying that I should LIE to the seller and say I am backing out due to an inspection, when in reality, I have backed out because I couldn't find a buyer fast enough?

I have a list of 13 buyers that I want to start calling...

Offline Randoskie

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Re: A few questions about wholesaling
« Reply #11 on: April 20, 2016, 11:57:26 pm »
Redstar, you don't need to hire an inspector, your the inspector, your buyers are the inspectors. You don't need to calculate repair costs, let your buyers do that.
Why lie to sellers? Tell them you cant sell it cuz the price is too high.
If they wont lower their price then tear up the contract and say later days.
The beauty of Wholesaling is there is no Risk, these people are not going to force you to buy their house. I put a 21 day inspection clause in my contracts but I usually know in 10 days if anybody wants it. The great deals are sold in 2 hours, mediocre deals in a few days or a week.
Did you ask tons of questions about sex before you jumped on Peggy Ann? Hell no, you learned by doing, lots of mistakes, but your passion and desire carried you thru.
You ask any more questions without taking action I got a cattle prod with your name on it.
Rando

Offline Randoskie

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Re: A few questions about wholesaling
« Reply #12 on: April 21, 2016, 12:14:45 pm »
I wonder how many more questions and excuses can this guy come up with.
It would be really comical if it wasn't so pitiful. It's been about 6 months since he got on this forum and started ranting on and asking questions and making every excuse known to man. He could of had some profitable deals by now.
I got a feeling there is nothing you can say or do to get this guy in gear. If he ever does get going he will be defeated by the first obstacle.
Can you imagine Thomas Edison having this attitude, how many things wud he have invested?
I shud save all his questions to give to my students and bird dogs to show how you can destroy your endeavor by over thinking, questioning every little thing and never getting started.
My problems is I always jumped before I looked, but, then again, it works. I heard of a book called  Ready Fire Aim, I'm gonna have to order it, since it fits my belief perfectly.

Offline Redstar1324

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Re: A few questions about wholesaling
« Reply #13 on: April 21, 2016, 08:58:04 pm »
I wonder how many more questions and excuses can this guy come up with.
It would be really comical if it wasn't so pitiful. It's been about 6 months since he got on this forum and started ranting on and asking questions and making every excuse known to man. He could of had some profitable deals by now.
I got a feeling there is nothing you can say or do to get this guy in gear. If he ever does get going he will be defeated by the first obstacle.
Can you imagine Thomas Edison having this attitude, how many things wud he have invested?
I shud save all his questions to give to my students and bird dogs to show how you can destroy your endeavor by over thinking, questioning every little thing and never getting started.
My problems is I always jumped before I looked, but, then again, it works. I heard of a book called  Ready Fire Aim, I'm gonna have to order it, since it fits my belief perfectly.

Here's where I got today. I spent about an hour driving and got 4 house.

I called one of the buyers I had on my list even though I knew I was getting ahead of myself.... they said I need to come back to them with exact numbers.

Now, I have to get in touch with the owners of these houses. I need a firm way of estimating ARV and estimating repairs needed.

I'll even give you one of the addresses.... 1282 Depugh St. Altamonte Springs, FL

http://www.zillow.com/homedetails/1282-Depugh-St-Altamonte-Springs-FL-32701/47675991_zpid/?fromHowMuchMyHomeWorth=true

Zestimate of $70,644.

http://parceldetail.scpafl.org/ParcelDetailInfo.aspx?PID=1821305020D000190

Appraised value of $28,380.

Maybe I don't understand the Zestimate, but is that supposed to be the ARV? I could call the people at Zillow to find out.

Either way, I now need to work on getting in touch with the owners by mailing their address on file on the property appraiser or leaving something on the door.

I will be doing this full time once I have these few last questions ironed out.

I'm not exactly a professional home inspector, but maybe I could wing it. I just wouldn't want to "wing it" so much that I show my buyers that I have no idea what I'm doing.

Moving forward step by step.... you will see that I will have wholesaled at least 20 houses by the end of this year.

Once the process is down, I can repeat it like robot.

Offline Redstar1324

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Re: A few questions about wholesaling
« Reply #14 on: April 21, 2016, 09:56:32 pm »
By the way, I think I should say THANKS.

I foresee myself making a lot of money doing this once I iron out these last few hiccups.

 




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