So, I got my first property under contract, BUT I need to close in 10 days or else I lose it! Can someone please offer suggestions to get some more QUICK buyers?? I’ve posted a news ad and have a few buyers that say they are going to look at it and are interested.
I guess it would be helpful if I could get more visibility on this property, such as somewhere to post to investors (other than Craigslist). For instance a forum where I could post specifics of the property to only investors in my area would be great… Does anyone know of an REI forum where you can post investor deals for your area??
Ideally, you would have already built a long buyers list. Go to the courthouse auctions and pass out info on the property to the bidders. Get contact numbers on these people.
If it is in fact a good deal, you will find someone who can close quickly.
What are the numbers on this?
Also, have the buyers that are interested meet to look over the property at the same time. Good luck.
Ok thanks for the reply… I do have a buyers list, unfortunately most of them tell me the same thing when I called them originally… “we buy anything and everywhere. call us when you’ve got a property”. So, now that I’ve got a property under contract, some of them are going to look at it. I do feel really rushed at this point though because I just got it under contract today and have to close by Aug. 3rd.
Here’s the numbers. This is in a very hot area also where values have skyrocketed over the past 1-2 years…
Appraisal value (in as is condition): 450k
Recent comps for the area for same size house: 450k - 650k
Repairs needed: I estimated about 15-20k.
Sell price: 320k
What about any mailing list to send to only investors??
You bought the home at 75 cents on the dollar. When I wholesale, my cash buyers look to buy at the very most 75 cents on the dollar. How much were you planning to make on the wholesale?
Keep plugging away. Get as many serious buyers in that home as possible. You will soon find out who your legitimate buyers are on your buyers list if nothing else.
I am posting on Craigslist, Backpage, dfwinvestors.net. This is in the Dallas area.
There was an appraisal done by the title company and as is condition appraised at 450k. Comps and other homes in the area for the same size sell for 500-600k for single family residence. It is currently setup as a duplex and I think maybe worth a little less as a duplex but not sure about that.
ARV=500k
Repairs=50k (I think this is enough to include converting the property from dulpex into single family).
sell price=305,000
Here’s another bit of info. The wholesaler I’m getting this deal from still has his signs up advertising the property. If he gets calls on the property, can he go around me to sell to someone since we have a signed contract?
In dallas, this would be considered a luxury home. Most investors would pass on it. We have somewhat similar market in San Antonio and I have one investor that ventures in these price ranges that I send him such deals.
Congrats on your first contract. Like another previous poster mentioned, see if you can get an extension from the homeowner. Meanwhile tell him to keep trying to sell it himself just in case your deal does fizzle. That way he doesn’t “take it off the market” relying completely on you to buy it, then when you can’t pull the strings together he’s all bent out of shape for obvious reasons. Just don’t get his hopes up then bail when your end doesn’t come together and 30 has passed.
Rule # 1: Build your buyers list BEFORE you get a prop under contract.
Rule #2: Remember the 80/20 rule. It applies to EVERYTHING, especially in real estate. If you have 100 investors in your buyers list, 80 are mostly wanna-be’s and 20 are at least semi-active RE investors.
Your job is to weed out those 20 and find 2 maybe 3 of them that are very active RE investors and will seriously look at every deal you can land. Then your golden.
You’re putting the pieces of the puzzle together but not quite in the right sequence yet. Switch some pieces around and you’ll be a happy camper and so will your banker.
im pretty new to real estate myself but i’m starting in wholesaling as well. i’m pretty sure the seller can’t sell the house to anyone else while you 2 are under contract. if he does you should be able to take legal action.
Here’s an update on the deal. It looks like I have a buyer, however I renegotiated the price with the guy that’s wholesaling it to me. So how would that work… Would I need to redo my contracts with the guy that’s wholesaling it to me FIRST, or can I get my buyer under contract first for less than my contract with my wholesaler?
Thanks for the reply! I don’t quite follow what you mean though… Can you please explain a little further?
Here’s how it happened. It’s coming down to the wire, so the wholesaler I’m going through agreed to drop the price to me. I dropped my price to my buyers. I found an interested buyer. If I get my buyer under contract for 270k for example, but my original wholesale contract is for 300k how would it work?? The other thing is, if I get the buyer under contract we will have to do extensions to the contracts so they will need to be redone. Couldn’t I at that time, renegotiate my price on paper with the wholesaler I’m going through?
When you say, I will have to pay for both contract ends, I don’t quite follow…
You have a contract to buy the house from a wholesaler (Seller) for $300K.
You go & wholesale it to someone else (buyer) for $270K. So the buyer’s money is what will pay the seller.
Seller is expecting $300K (according to the contract)
Buyer expecting to pay $270K (according to your contract)
Therefore if your buyer gives you $270K, you have to come up with $30K to give to the Seller. Apparently, that is what your contract say anyway.
If this is correct, then the Seller’s price has to be below $270 for you to make money!
If you are doing everything based on a verbal price reduction from a Seller, my advice is ALWAYS GET IT IN WRITING & don’t do anything until it is in writing. (Note: this is not to be construed as legal advice. Contact a legal professional for any contract interpretation questions/issues).
The date got extended until Monday!! Wow, just when I thought I was going to lose the deal all together, it got extended. Now all I need to do is find a buyer in a few days at the reduced price and then we can extend a little longer (enough to close). This is starting to get a little complex with all the extensions and assignment of contracts thrown into the mix. On top of all this, I just got contacted by a buyer who I think wants to wholesale to another investor.
That would make 3 assignment of contracts in the deal. Has anyone done this before?
I have not done 3 assignments in one deal…but that’s the beauty of Real Estate investing. You learn by doing, and you can share your experiences on this forum when others have similar situations.