Newbie with her first house under contract!! Need wisdom!

15 Replies

Hello!  I am super excited as after many months of looking for deals, I have a house under contract.  I do have a buyers list, but am a bit nervous. 

Can you give me any words of encouragement??  

How hard is it to find a cash buyer that wants my deal?  

If you are a cash buyer, do you prefer a detailed information about the property or just the numbers?

Thanks in advance for your shared wisdom!

If you cannot find a REAL buyer, then you get the opportunity to step and buy it yourself. Congratulations!

I found that it is damn near impossible to make the buyers list work when it is to short or you are in a time crunch. Recently in our company we had a deal that we could not get a buyer for in our 21 days of due diligence. Instead of giving up on it I started making phone calls to investor/wholesaler friends of mine in Indianapolis. It looks like we have a buyer for it so myself, the company, and the seller are all a lot happier about it.

To the point. Don't expect an email blast to do all the work. It may pay off to make some phone calls. Good salesmanship never hurts.

@Karen Lovelady , I prefer to see details. 

And I would also add that if you can't find a buyer, it's because you do not actually have a deal. Everyone is starved for deals right now, but no one is going to risk losing money. If your buyers list is made up of people that know what they are doing and they aren't biting, that should tell you something. Or you could just subscribe to the greater fool theory, blast it out to 2,000 people and hope someone is both starving and doesn't know what they are doing. Of course, that is one of the things that gives wholesalers a bad name in the first place.

Thanks for your various feedback. I do have a buyer/partner for this property. The only problem is that after inspection we discovered it has some bigger issues than originally estimated.

I’m trying to understand why a seller doesn’t have to disclose asbestos (vermiculite) in the attic? I guess if you don’t touch it, then you are good. But the property also needs all the electrical redone - not a breaker box nor grounded plug in the place. Putting in all new electrical requires going into the asbestos filled attic. Not to mention the major issues surrounding the plumbing - yikes. Not by the untrained eye.

I’ve definitely learned a lot this week. Hoping the seller takes our amended offer!

Originally posted by @Karen Lovelady :

Thanks for your various feedback. I do have a buyer/partner for this property. The only problem is that after inspection we discovered it has some bigger issues than originally estimated.

I’m trying to understand why a seller doesn’t have to disclose asbestos (vermiculite) in the attic? I guess if you don’t touch it, then you are good. But the property also needs all the electrical redone - not a breaker box nor grounded plug in the place. Putting in all new electrical requires going into the asbestos filled attic. Not to mention the major issues surrounding the plumbing - yikes. Not by the untrained eye.

I’ve definitely learned a lot this week. Hoping the seller takes our amended offer!

 Hope you got clauses to get out if they don't!

Hi Karen 

I'm just curios to see how every thing went for you. I'm a newbie and  thinking about starting of with wholesaling. If the sale doesn't go through are you then required to buy the property? 

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@Karen Lovelady Welcome to Bigger Pockets!
Have you posted the property on BP market place ? You can get potential cash buyers. Good luck !

Originally posted by @Jonathan Tang :
Originally posted by @Karen Lovelady:

Thanks for your various feedback. I do have a buyer/partner for this property. The only problem is that after inspection we discovered it has some bigger issues than originally estimated.

I’m trying to understand why a seller doesn’t have to disclose asbestos (vermiculite) in the attic? I guess if you don’t touch it, then you are good. But the property also needs all the electrical redone - not a breaker box nor grounded plug in the place. Putting in all new electrical requires going into the asbestos filled attic. Not to mention the major issues surrounding the plumbing - yikes. Not by the untrained eye.

I’ve definitely learned a lot this week. Hoping the seller takes our amended offer!

 Hope you got clauses to get out if they don't!

Seriously!  That would have been a bummer, but I did have clauses to get out of the contract.  We terminated about two weeks ago.  But, they called us back a week later and asked if we had any wiggle room.  LOL!  We went under contract at our price last night.  Time to get to work!

Originally posted by @Kristen Selby :

Hi Karen 

I'm just curios to see how every thing went for you. I'm a newbie and  thinking about starting of with wholesaling. If the sale doesn't go through are you then required to buy the property? 

Thank you @Kristen Selby.  

We terminated about two weeks ago. But, they called us back a week later and asked if we had any wiggle room. LOL! We went under contract at our price last night. Time to get to work!  It is a big fixer, but we think we can make some money on this one.  

Looking for hard working, reasonable workers in the Pueblo area.  Msg me if you have some good referrals for electrical, HVAC and plumbing.  

If you got the property lower, then you may have an easier time to find a buyer. But no one mentioned put it up on craigslist and list everything that is wrong and list your numbers and see if you get a bite. Or you can call all of the people that have we buy house ads all over Craigslist as well and see if any of them will buy it. Or if you run into a wholesaler while do that you could always JV or joint venture with them assuming that they have buyers.

@Karen Lovelady When you find a Cash Buyer, I advise that you vet them. Ask him/ her, for Proof of Funds (a Bank Statement dated within the past 30 days). If he/ she is using a Hard Money Lender, request a Pre Approval Letter dated within the past 30 days.

Regarding what information you should provide I would suggest the complete Street Address, photos of the interior and exterior, the ARV, Comps, and estimated repairs. Make certain your ARV and Comp numbers ARE ACCURATE! Too many Wholesalers over-inflate the ARV and underestimate the repairs, to make the property appear to be a great deal.

I would also encourage you to do a Double Closing because having a property under contract, with no intent to purchase, and marketing the property is illegal in many states.

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