BiggerPockets

:shock:

I got NO sleep last night because my wheels just kept turning at how much I LOVE real estate and how excited I am to get started in wholesaling. So, today I bought a digital camera and called some realtors. I found a potential deal. Please help with ANY and ALL input.

Single family home
4 bedroom 1 bath
Bank REO
Asking price- 19,900
AS-IS appraisal- 44,000
According to the comps, it could have an ARV of 61,000.

Is this a deal? My fee will be $5500

So far, the realtors have been cool and have not asked any hard questions. Do I tell them that I am a wholesaler? What will the bank think of the assignment?

I will post pictures of the property a little later. I am going to open my new camera and get going. :D

Hello Blue and thank you for your response.

I have yet to see the inside in its entirety. I did see the inside porch and what looked like the living room though. There is carpet and it needs cleaning if it's going to be kept. The walls were also dirty and needed painting. I am looking for a little more feedback and will probably make an offer on it tomorrow or Thursday. How will this work since this is a foreclosure. Will the bank allow this?

I will posted pictures of the property as well.

Thank you again.

I hope so too, Blue. Thank you for all of your input thus far though.

yvonne,

any updates on this deal? i'm curious to hear about the latest.

Just some thoughts that I thought might help.

1. Never, ever, ever... ever be afraid to submit an offer. Give yourself an inspection period and clarify that you can cancel for any reason.

2. If you look an a property always submit an offer within 24 hours. Doesnt matter if the property is worth less than you thought or if it needs more work than you hoped. Doesnt matter what the realtor says about the offer. If I spend more than 10 minutes on a property they are getting an offer for me it's standard operating procedure. I've done quite a few residential wholesale deal (Closed 56 in 18 months) I submitted over 700 offers to close those deals

3. Bank REO's can be tricky the LLC comment I saw above works I generally stay away from Bank owned properties. They rarely accept contracts other than their own.

4. There is nothing good that can come out of you disclosing your intentions with the property to an owner or a realtor. One of two thing will happen either they are ok with it because they are extremely desperate or you will scare them off because they do not understand or they think its illegal or whatever reason they come up with. I disclose it only if I absolutely have to.

" I am a real estate investor and am interested in your property/listing. I would like to do a brief walkthrough and submitt an offer within 24 hours. The only contingencies my contract will have is a short inpection period and of course clear title" Get's em everytime they ask very few questions and treat you as a very serious buyer.

If you want to get into it full time I would suggest you submit a minimum of 3-5 offers per day.

Feel free to contact me if you have any questions.

Also remember that with most REO's they will not allow you to assign in most instances (more often than not) and short sales are worse for this same problem. You can do a double closing but be careful and make sure that your title company will cooperate in the deal.

Also for arguments sake if you had put a contract on this property and you did not get a buyer, what would have been your out? Do you/did you have a financing route to close out the property with? Or is your intention to tie it up and see what you can do?

If the latter is the case be very careful with realtors, because you will get a bad name where the realtors are concerned. They are always cool until they realize the money they thought they were getting in not going to show up.

Yvonne,
Saw that you're NY - curious, was this the buffalo area? Sounds like buffalo numbers. Don't get too worked up. I found things like this in another area. More will come. Before you get worked up on comps and values - determine what this will cash flow. Based on the numbers you posted - this appears to be a high rental area. Areas like this tend not to flip quickly. Be prepared to hold onto a property for some time. Part of that preparation is knowing that it will cash flow while you wait to flip it so you are not killed on holding costs.

And btw - realtors in areas like this know what they are doing when they show you high comps. You're not the first investor they've sold to. Never forget that their purpose in life is one thing - to get you to buy the property.

Tim

Hey everyone..I am just starting off in this areana but was wondering if anyone had any tips on how to find investors,,

Tim, this is further upstate that Buffalo. Potsdam to be exact.