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Author Topic: I can Write my Own Check but it means Ripping the Legs off of an Old Lady  (Read 11084 times)

Offline Redstar1324

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Why do you want to target MLS properties? Why do you think I was joking about the termites? Why do you insist on inspecting these house? Do fish feel pain and have feelings? Is life abundant throughout the Universe? Is it really impossible to go faster than the speed of light? What is dark matter? Is our Universe going to expand forever and then eventually cool and go dark? Or will it be pulled back by gravitational forces into itself to explode into another big bang?
Will Redstar ever stop asking questions?


I don't want to target only MLS properties, but it is my best option right as I've gotten no leads from my ads.

I think I could write a better escape clause than the termite one, so that's a non issue.

Why do I insist on inspecting the house? Because I have to know the cost of repairs. Right?

If I'm talking to a buyer and he asks me what kind of shape the house is in, I can't tell him that I have no idea or that I've never seen the house.

Offline Randoskie

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Why do you have to know all this crap that don't matter? Why cant you have the potential buyers check out the property and make their own repair estimates? Why have I repeated this solution multiple times? Is that concept too easy?
Why don't you use Gold River's suggestions to find FSBO's and my suggestions? Have you ever heard that term paralysis of analysis? It's a fatal disease and you got a terminal case.

Offline Redstar1324

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Why do you have to know all this crap that don't matter? Why cant you have the potential buyers check out the property and make their own repair estimates? Why have I repeated this solution multiple times? Is that concept too easy?
Why don't you use Gold River's suggestions to find FSBO's and my suggestions? Have you ever heard that term paralysis of analysis? It's a fatal disease and you got a terminal case.

Because if I don't have a reasonable estimate of repair cost, I don't know how much to offer.

ARV * .7 - repair cost - $5,000 = the most I can pay if I want to make $5,000.

I talked to a very sensible realtor today who understood what I was doing. I am optimistic about that.

I HAVE NO LEADS AND NO IDEA HOW TO GET THEM!

Craigslist has proven ineffective. I'm unwilling to spend money on online advertising when that one doesn't even work.

I am hoping the bandit signs will work and I am optimistic about that, too. I may just end up with calls from other wholesalers.

The only other methods I've been told to find leads are:

 Put business cards on cars at the unemployment office, send letters to attorneys...

I've also been told to do direct mail to absentee owners. Okay so if there are 10,000 absentee owners in this metropolitan area, you're expecting me to spend $4,900 on stamps?

And why would I be looking for absentee owners? Aren't the majority of the people I'm hoping to do business with facing foreclosure and therefore living in their house.

How many leads have you gotten this year? Where did they come from? How many of them did you close?

Offline Redstar1324

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Giving back to the forum, as I like to whenever possible...

If you find the owner of a vacant house, on the property appraiser or whatever, and you were going to write them a letter....

You can go to www.anywho.com and probably find their phone number...

(Or any number of similar sites)...

And if it's an LLC or corporation, go to the website for that states division of corporations, search for it and find the registered agent...

That could save A LOT of money on stamps...

Offline Randoskie

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My brain is imploding here, a few questions answered results in even more of the same and similar questions that have already been answered, Will it ever end? Just kidding I actually enjoy the pain and frustration of trying to get you going.
I don't count the leads that have come in, maybe I shud. I've got 5 deals so far this year and only made $22,500 I was depressed about that but then I thought, hell that's over 5 Grand a month.
 And I have 3 in escrow, one is paying out 12K One is paying out 15K and one is paying out a frikin $28,000  Out of that I will pay out 14K in bird dog and partner fees. The 28K one I been working on for awhile, it's a probate, got an appraisal finishing up and I hope to close on it in the next 30-60 days. It's a junk house not quite falling down, but in bad shape, I got it on contract for 12K and have it sold for 40K
I never calculated the repairs, my buyer looked it over and decided he wud pay my 40K asking price.
The seller knows how bad it is, that's why I got it for 12K. So why not just negotiate the lowest price with the seller and let your buyer deal with the inspections. I know that's too easy for you to comprehend but try to grasp that concept.

I buy my absentee owner lists in lots of 2500, and that will cost you about $1,500 to mail out that many post cards if you print them yourself. out of 2500 post cards I might get 50 calls and do 1 or 2 deals, average deal is $7,000  Then the next month I run it again, yea, the same list, and I might only get 20 calls and no deals. Next month I run it again and might get 30 calls and do 1 deal.
It's a big gamble, but it usually pays off, I usually double or triple my money. The direct mail experts say to mail to the same list 7 times b4 you give up on it.

I explained that 4 ads in Craig's List is pitiful, and if you gave up, you deserve to be broke. I have explained several times it takes many freaking ads, I had 50 going before I started doing deals. You seem to lack the main most important ingredient to wholesaling success, persistence and the never quit attitude.

Targeting absentee owners is one of the best ways to find motivated sellers. Most are landlord types, there is a small percentage that are fed up with late or no payments, evicting tenants, their houses being trashed, living in another location and not being able to get to property to do repairs etc. Some of my best deals were from fed up landlords
Why don't you read some books on wholesaling, then read them again and again, you wont have to subject yourself to looking like you have a learning disability on this forum?
Calling a lot of sellers can be a big waste of time and effort, I like to soften them up with an introductory post card. Calling can be depressing getting hung up on and yelled at and told no many times. But if you got the guts for that sort of thing.

Offline Redstar1324

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So my only real leads right now are from the MLS.

Should I just make offers on every single one?

Even if it's in pristine condition?

I agree I need to get something going, but I have no properties to make offers on at this point, other than the MLS.

And I just got 5000 business cards in the mail, so things might change now.
« Last Edit: May 06, 2016, 05:30:37 pm by Redstar1324 »

Offline Randoskie

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Well, it just seems your not desperate enough to get some FSBO deals going.
I like Gold River's suggestion to put fliers on windshields, my suggestion it to walk lower income neighborhoods and hand out brochures on porches, or place dozens of ads on Craig's List. Or recruiting bird dogs, or doing direct mail, or contacting other wholesalers, or calling fisbo's on Craig's list and ask if they are willing to sell or do a lease option. I got one deal cuz my bird dog stopped at a yard sale and found out the owner lost his job  and had to sell. Have you tried driving lower income areas? Why did you stop?
If you spent as much time looking for deals as you do on this site.
Is it our fault you wont follow instructions? Do you blame us because you don't like our suggestions? How long will you continue to ask redundant questions and not do what we suggest or only give it a half ass effort?
Do you insist on doing things your way? What happened to your bird dogs? Did you give up on that? Place more ads, motivate them, are you wish washy, have you read any books to increase your confidence. Have you read any books to learn leadership skills?
Reminds me of my sister, I said if you need any money let me know, she perked right up and says, yes I need money. I told her great, I need help in my business, come over tomorrow morning and I'll put you to work. Then ther was silence, and she never came over or called.
When you get desperate enough, maybe you will finally get your s__t together

Offline Redstar1324

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Well, it just seems your not desperate enough to get some FSBO deals going.
I like Gold River's suggestion to put fliers on windshields, my suggestion it to walk lower income neighborhoods and hand out brochures on porches, or place dozens of ads on Craig's List. Or recruiting bird dogs, or doing direct mail, or contacting other wholesalers, or calling fisbo's on Craig's list and ask if they are willing to sell or do a lease option. I got one deal cuz my bird dog stopped at a yard sale and found out the owner lost his job  and had to sell. Have you tried driving lower income areas? Why did you stop?
If you spent as much time looking for deals as you do on this site.
Is it our fault you wont follow instructions? Do you blame us because you don't like our suggestions? How long will you continue to ask redundant questions and not do what we suggest or only give it a half ass effort?
Do you insist on doing things your way? What happened to your bird dogs? Did you give up on that? Place more ads, motivate them, are you wish washy, have you read any books to increase your confidence. Have you read any books to learn leadership skills?
Reminds me of my sister, I said if you need any money let me know, she perked right up and says, yes I need money. I told her great, I need help in my business, come over tomorrow morning and I'll put you to work. Then ther was silence, and she never came over or called.
When you get desperate enough, maybe you will finally get your s__t together


I have 150 bandit signs coming in the mail. (If I put up 50 of them all over the Orlando metropolitan area and don't get a single call, then I don't know what)

I just got 5000 business cards today that I can tape on doors and put on cars.

Other than that, I think I'll use the MLS a lot.

I read a book that told me I should be making hundreds of MLS offers every week.

One of my bird dogs got back to me with 6 leads. Three of them turned out to be bank owned, the other three I will have to write a letter to.

Offline Randoskie

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All right Dude,  yea I have heard of investors making a killing off the MLS, And that's something I shud do also, The trick is to make low ball offers on many properties, but Realtors don't do that, they make full price offers, that's all they know. It wud probably seem crazy to them to make 100 offers to get 1 deal.
Some investors are going after public records, evictions, Tax Liens, Code violations, divorces, bankruptcies, foreclosures etc. I bet your county has these records online, you can bet your last chingo madre there are some deals in there.

Offline Redstar1324

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All right Dude,  yea I have heard of investors making a killing off the MLS, And that's something I shud do also, The trick is to make low ball offers on many properties, but Realtors don't do that, they make full price offers, that's all they know. It wud probably seem crazy to them to make 100 offers to get 1 deal.
Some investors are going after public records, evictions, Tax Liens, Code violations, divorces, bankruptcies, foreclosures etc. I bet your county has these records online, you can bet your last chingo madre there are some deals in there.

Yea I should look at that stuff.

(Except for the foreclosures because that requires actual cash rather than an assignment of contract, to the best of my knowledge)
« Last Edit: May 07, 2016, 03:20:39 am by Redstar1324 »

Offline Redstar1324

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If a Craigslist FSBO property doesn't match the formula ARV * .7 - repair - $5000.... should I skip it?

There is one that is asking $55,000... says it has an ARV of $85,000 and needs $20,000 in repairs.

According to the formula, the most I could offer on this would be $34,500.

So does this mean I should just skip over this one as if it doesn't exist?

Is that what you would do?

(The majority of the rehabs on Craigslist sell for above the amount that would be profitable according to this formula, so this would mean skipping a good portion of what might otherwise have potential)

Should I be making lowball offers on everything that I see on Craigslist? Whether it needs rehab or not?

I'm beginning to realize that it's not about waiting for the perfect property to jump out at you, it's more about making 10000000000000000's of offers and getting 5 yes's.
« Last Edit: May 07, 2016, 02:28:50 am by Redstar1324 »

Offline Gold River

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Hi,

     I told you to go see a few hundred homes over the following months to get to know your prospect market since you have zero real estate property experience so you get a feel for what homes in your market are like! I told you that by doing this you will have some understanding of condition and market to assess value and project (Estimate) what repairs / rehab / remodel may cost you in that area!

I also told you to make your offers blind at first and make sure you offer 70% for a pristine property with some updating in the past 5 years and little if none deferred maintenance and then from what you have learned driving by and looking at homes to subtract any work needed or projected to be needed from that 70% number.

I told you that you could pretty much assume that carpet and paint would be required inside and out and to figure at least one bath or kitchen would need remodeling! If you could verify it is or was occupied in the last 30 to 90 days you can assume it has heating and a working hot water tank, working water and sewer. If it's been empty for quite some time assume it could need a new furnace, new hot water heater and may need water / waste water repairs.

I was very clear that you should be getting estimates and talking to contractors / sub contractors to get pricing on everything based on a 1000 sq. ft. house with 3 bedrooms and 2 baths, then take linear or sq. ft. or bath / kitchen or window / door or exterior / interior pricing numbers and divide the estimate by 1000 sq. ft. and get for instance a square foot carpet cost you can multiply by 500 or 50,000 sq. ft. if you need to, the same thing goes for tile, painting, etc. If the average basic bath remodel is $4k in your area you now know that cost and if a kitchen with new appliances is $8k you now know that number!

By making blind offers you avoid driving all over town, but because your a new inexperienced investor you still need to get to know your market and that does not mean you need a realtor to let you into 200 homes, it means you need to drive by and look at 200 homes, the obviously empty or written on the listing as empty ones you can get out of your car and look in the windows! Don't be stupid about all of these things as you can make every excuse as to why it won't work but in reality it's up to you to make it work.

I told you to look at MLS listings that are over 90 or 120 or 150 days old and especially if there not bank owned and are empty, then make offers based on your assessment even if your offer is $50k, $75k or $100k less than asking price, who knows the seller may be out of state and not understand the condition, market and required repair costs!

Here Rando makes the original post, it did not need your response and once again this is now 20 plus posts into a long drawn out back and forth about things Rando and I have already told you 3, 4, 5 or more times, you need to stop making excuses and stop being over analytical and start doing it!

Dam I could have already bought a house in Florida by now and I live in the Western US and would have to do it remotely! I told you that you can see pictures of virtually every home on Zillow but not to use zestimate for value but rather find the sold property (Yellow Icon) which then opens to price and sale date! This is the accurate sold info and you then have to find the 1/4 mile and 90 day, 1/4 mile and 180 day, or 1/2 mile and 90 / 180 day information.

Stop posting as I told you, you now have 400 posts but absolutely no experience and no real estate knowledge, read the wholesale section from 15 years ago forward, don't ask questions unless it's because you have an excepted offer and a buyer and need to know how to do the paper work.

My fingers are starting to get calluses and my finger tips are starting to look like a big rock on the end of a stick! I've gone from 30 words a minute to 70 words per minute without a typing lesson and I am beginning to think this is a nightmare like rolling a rock uphill in hell!

Rando and I have done everything we can to help you and answer all your questions 50 or 100 times, now go do it or pretend to try to do it!
Stop analyzing and stop the what if and try it, if nothing else the seller rejects your offer then you can figure out why, but until then you don't know until you make the effort and you can't make the effort until you get over the micro analyzing your doing!

Rando and I are going on vacation for the next 100 years on a world tour and were going to throw our computers and cell phones away!
And were going to eat a lot of good exotic food and drink a lot of good liquor!


                        GR


                           

 
« Last Edit: May 07, 2016, 05:22:26 am by Gold River »

 




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