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Author Topic: I don't need no Stinkin license  (Read 19782 times)

Offline Randoskie

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I don't need no Stinkin license
« on: November 08, 2016, 06:35:12 pm »
I just got a call from someone claiming to be from the real estate licensing bureau. He had an unknown number as it wudnt show up on my call screening. He says we got a call about some houses your selling and that your doing it with out a license and that's what we do down her is issue licenses.
I tell him I'm a real estate wholesaler and I don't need a license but thanks for calling and I hang up.
The phone rings again and he says we somehow got cut off, I say, we didn't get cut off, I hung up on you. Well we need to talk more about real estate wholesaling to see if you need a license. Because if your buying and selling houses you need a license.
I tell him that's B__S___.
I get these properties on contract with an earnest deposit and that gives me equitable interest. Now stop bothering me.
I again hung up, and he hasn't called back.
Maybe some asswipe realtor called, they hate us wholesalers, especially me, my name is all over town, I met another wholesaler a while back and he says, so your the famous Rando.
Probably the best thing I like about my job is I don't have to answer to any frikin license board and play those games with rules and regulations.
If I wanted to deal with all that and work for chump change and be jealous of wholesalers I wud become a realtor.

Let's make some Money...

rando

Offline javipa

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Re: I don't need no Stinkin license
« Reply #1 on: November 08, 2016, 06:46:38 pm »
So funny!

I played like I was a stupe, once when that happened to me.

An agent demanded to know my real estate license number, so she could report me for stealing listings.  Never mind she could have looked me up ...if I 'was' in fact a licensed real estate agent.  Just for giggles, I gave her a bogus number, that was too many numbers, and she just about had an out-of-body exorcism on me.

You know it's worse for them, when you laugh? 

Earlier that day, I had placed a business card on the door of a listed house, with a note on the back suggesting the seller call me when their listing expired.

Oh, the fur that flew... 
"149 Ways (Plus One) To Find Motivated Sellers..!"  -Free Report-
>>> Click: http://sub2marketdomination.com/how-to-find-motivated-sellers-2/

Offline Randoskie

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Re: I don't need no Stinkin license
« Reply #2 on: November 08, 2016, 07:48:03 pm »
Haha, that's funny. I once had a seller call me on my I Buy Houses for Cash ad, I made a low offer and got the house on contract, then later I find out it's listed. The agent called me asking what was going on, I told him the seller is obviously not happy with your performance, He tells me he's seen a lot of investors come and go, I tell him I've seen a lot of realtors come and go and mostly go, He came unglued and started a barrage of ranting, I said, hold on a second, I hit record & my google voice comes on and says, this conversation is now being recorded. All I hear is a.... Click.
The seller called later and I let him off the hook and tore up the contract.
If you want to drive a realtor crazy, you put them in a round room and tell them there is a nickle in the corner.

Offline javipa

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Re: I don't need no Stinkin license
« Reply #3 on: November 08, 2016, 07:55:07 pm »
I am laughing SO hard!!!   :biggrin :biggrin :biggrin
« Last Edit: November 08, 2016, 08:44:38 pm by javipa »
"149 Ways (Plus One) To Find Motivated Sellers..!"  -Free Report-
>>> Click: http://sub2marketdomination.com/how-to-find-motivated-sellers-2/

Offline Redstar1324

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Re: I don't need no Stinkin license
« Reply #4 on: November 08, 2016, 08:29:24 pm »
That's great, but if everything stays like it is...

Trump will get 308 electoral votes and win.

Looks like we're safe.

Offline javipa

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Re: I don't need no Stinkin license
« Reply #5 on: November 08, 2016, 09:48:30 pm »
I don't want to generalize, too much here, but many of these listing agents are lying sacks of bull manure.

They're objective is more about listings, and less about selling. 

Their clients get duped into believing thier agent has their back, when at best they just list their house at an inflated price, hoping someone will come along and not bang the pot too hard on price.

And when the house fails to sell, or attract enough/any attention from buyers, the listing agent offers all sorts of excuses to justify the lack of activity, or interest ...never mind coming up with solutions that should have been offereed from the get go.

To be fair, some agents understand marketing, and do get results.  They are few.

Meantime, the sellers are left to suck drain water waiting for 'some action', and worse, feel overly vulnerable when their agent appears out of nowhere, with an offer to re-up the listing.

So, when one of these sellers finds my card stuffed in their door jamb, they eagerly call me to talk turkey.

When an agent intercepts my cards in their client's door jamb, I get mean, nasty, and threatening calls.

My position is, if the agent were honest, skilled, and knew how to market houses, instead of listings, I would never have the chance to talk with their clients.

Meantime, I make in thirty days, what the average agent makes in twelve months, and do it on one deal.  And nobody ever complains about my performance.

Yay for flipping stale listings.
"149 Ways (Plus One) To Find Motivated Sellers..!"  -Free Report-
>>> Click: http://sub2marketdomination.com/how-to-find-motivated-sellers-2/

Offline Randoskie

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Re: I don't need no Stinkin license
« Reply #6 on: November 09, 2016, 12:15:25 am »
I have told many sellers that were thinking of listing their houses. An agent will promise you more than the house will sell for, just to get the listing. They will leave you high and dry, & then after 6 months and several price drops & your house hasn't sold, you can give me a call.
I've lost thousands of dollars because agents have told sellers that what I'm doing is illegal, the sellers believe it cuz after all they have a license. What I dislike about them the most is their know everything attitude and giving out legal advice because they passed the 2 day class and the realtors exam.
I cud go on and on about my dislike for realtors, but, I don't want to get in a bad mood. I'm watching election results.
Wow, I think Trump might just win.
Let's make America great again.

Offline Randoskie

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Re: I don't need no Stinkin license
« Reply #7 on: November 09, 2016, 10:24:38 pm »
So Javipa, give us a run down on exactly what your doing. Your targeting listings that have been on the MLS for 90 days or more?
Do you negotiate a substantially  lower price than the MLS price. You wait for the listing to expire?
I want more info, I want in.

rando

Offline Luke9686

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Re: I don't need no Stinkin license
« Reply #8 on: November 09, 2016, 10:43:25 pm »
Rando,

A deal I'm in the middle of I'm taking subjec to, loan balance is $82K with payment of $775 PITI.  I've got it resold with owner financing for $124900 with $12,500 down and monthly payments of around $1150/month PITI.

So I got the $12,500 down, monthly spread of around $400/month with a $30,000 backend profit.

Offline javipa

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Re: I don't need no Stinkin license
« Reply #9 on: November 10, 2016, 03:37:59 am »

So Javipa, give us a run down on exactly what your doing. Your targeting listings that have been on the MLS for 90 days or more?
Do you negotiate a substantially  lower price than the MLS price. You wait for the listing to expire?
I want more info, I want in.

rando


>  OK, no I don't negotiate big discounts, because my overhead is practically non-existent (apart from my marketing costs). 
>  Stale listings aren't necessary, but increase the likely motivation.  If you get to the sellers fast enough, and they're truly motivated, they'll drop their listings faster than Macaulay Culkin's underpants at a Michael Jackson slumber party.
>  Listings don't have to expire. 
>  When I get a deal, I have the seller tell the listing agent to take a hike, and somebody pops the sign out of the yard.

I dished out an example some years back, and was excoriated for giving 'unrealistic examples' of what could be done, and that I was just trolling for business.  One of these critics summarized a deal I provided and I laughed, because it DID sound like a hyped up fantasy deal.  It sounds different when someone reads back to you what you wrote... So, I've stopped sharing my deals, and stuck with giving feedback instead. 

That said, and since my critics have long since disappeared, I can tell you what I'm doing, despite the fact that I sell this information.

The following example is NOT my primary way to find deals, but it's one great way ...one more hook in the water, as it were.

Meantime, here's an actual deal you can reverse engineer for fun and profit, and to shoplift my intellectual property (j/k):

*  I got the suspects with a stale listing on a $495,000 house to call me.
*  I confirmed the comps, checked the title, and reviewed his equity situation.  I don't mess with upside down deals.
*  He wasn't upside down, so, I met the suspect at the property to make my pitch, and confirm he had at least a 10% gross equity.  He owed $450,000
*  I qualified the suspect five different ways, and he survived my process.
*  I made him a very tiny cash offer, based on the fact that he had effectively no equity (by my definition) and worse, I showed him that he would be out of pocket, waiting months to find an actual buyer, willing to pay full price, and with financing ready.
*  Instead, he signed my 1-page agreement, and we scheduled a final closing.
*  We closed and I gave the seller the money I promised.  $5,000.
*  The seller gave me his deed, and I took over his payments on a $450,000 first.
*  I emailed the two buyers with the $55,000 down payment I wanted, that responded to my seller-financing ad on my now $550,000 house.
*  The first buyer to give me the down, owned the house.
*  I literally deposited the first buyer's down payment in my bank, had the buyer sign my installment contract, and I gave him the keys, in that order.

Meantime, I jacked up the resale price to bring up my back-end profits, and overcome the risk I was taking by offering no-qualifying financing to an unqualified buyer, which after Dodd/Frank is legally impossible to accomplish without running your buyer through a loan originator.  My buyer still wouldn't qualify, because he mostly had awful credit, and an unverifiable income, which made my financing so attractive in the first place. 

Never mind the house was six years old, with a pool.  Which brings  up another reason I don't flip obsolete 'dumps' from say the 1990's.  Nobody wants to give me the big bucks for tired, older houses.

Meantime again, I didn't sell a bargain.  I sold bargain financing (relatively speaking) on a house that everyone wanted to own. 

And that's how I make more in 30 days, off one stale listing, than the average agent makes in a year (which is about $35,000 last I read). 

Now, the questions come:
1)  How come a pretty house with a pool wasn't selling?
2)  Why didn't the seller just reduce his price?
3)  Why didn't the seller get a new agent?

This price point was moving a little slow.
The agent was a little too busy with 'faster' deals.
The seller couldn't lower the price, because there wasn't enough equity to cover all the expenses.
The seller was more motivated than the agent understood.
I came along and promised a faster option, that wasn't going to cost him anything.
My offer became a no-brainer.

"149 Ways (Plus One) To Find Motivated Sellers..!"  -Free Report-
>>> Click: http://sub2marketdomination.com/how-to-find-motivated-sellers-2/

Offline Redstar1324

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Re: I don't need no Stinkin license
« Reply #10 on: November 10, 2016, 08:35:24 am »
If I read this correctly, the seller was willing to take just $5,000 when he had $45,000 equity?

Offline Luke9686

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Re: I don't need no Stinkin license
« Reply #11 on: November 10, 2016, 10:14:09 am »
First thing to realize is that equity isn't real.  It's an artificial number floating out there.  Sure, there was a $45K spread sitting there, but they had no way to access it.  By the time the house sold through traditional means, the "equity" was actually negative equity.  Jay provided a value to all parties, showing the seller his equity was really a negative number and giving him $5K for it.

He then provided value to the buyer through non-qualifying financing.

Offline Redstar1324

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Re: I don't need no Stinkin license
« Reply #12 on: November 10, 2016, 10:49:32 am »
How was it negative by the time he sold it?

Are you talking about realtor fees and closing costs?

Offline javipa

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Re: I don't need no Stinkin license
« Reply #13 on: November 10, 2016, 12:50:33 pm »

If I read this correctly, the seller was willing to take just $5,000 when he had $45,000 equity?


Yes, you read that correctly.  If the house had been vacant, I would have negotiated less money.  After all, he was making payments on a vacant house, and I was about to save him from spending another five to ten thousand in overhead, while he waited for a cash buyer. 

But he was gonna make house payments somewhere, so the issue came down to 'moving money.'  Frankly, where I'm at, $5,000 barely gets the seller out of the driveway.  It can be expensive to move in/out; come up with rental deposits; and advance rents.
-------------------------------------------

Luke described how the equity situation works, beautifully.
"149 Ways (Plus One) To Find Motivated Sellers..!"  -Free Report-
>>> Click: http://sub2marketdomination.com/how-to-find-motivated-sellers-2/

Offline Randoskie

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Re: I don't need no Stinkin license
« Reply #14 on: November 10, 2016, 01:31:21 pm »
Haha, it does sound like BS, I've done a few similar deals with underwater houses, It's interesting that buyers will pay more for a house than it's worth if they can walk right into an  existing loan with no qualifying.
But I have a mental block, I can't wrap my head around houses that cost much more than 100K. I've flipped so many in the 40-60K range. Time to kick open the gate.
But if I ever made over 50K on a deal I wud run thru the street naked on a full moon lit night shaking a bull frog and go full retard.
It's time to learn some new skills. I got so much to learn.
How much is the Javipa course?

Rando

 




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