All Forum Posts by: Alex Locklear

Also, would this still work even though the house doesn't have a whole lot of equity?

Bryan,

Did you just have investors show up at the auction style open house? Or were there home buyers bidding as well?

Thanks Jon.

Is there anyway to go about it so the buyer doesn't know that I'm actually making a profit? Can I not have the seller "buy me out" Of my option?

I currently have a home under option contract for 2 months. I have it under option for 212K and marketing it for sale at 220K. I know it's not a big deal, but I'm just looking to get my first deal done.

My question is: Once I have found an end buyer, what should I do? Do I send the buyer directly to the seller with the 220K price and write up a lien invoice and get paid as a lien holder? Or do I go about it another way?

Thanks in advance.

Barbara,

Thanks so much for the reply. Not very sure of the average time it takes to sell a home in my area. I do know, however, that I'm not in too terrible of an area; Raleigh,NC.

What exactly is the round robin auction method? The option's are only $10 options so not much at risk at all. I don't have much money to spend on marketing, as I'm still in college and cash flow isn't where I'd like it to be, so what do you suggest to do? I'm not opposed to spending any money on marketing, just want to know what ways are most effective?

If I were to use a seller's agent on the 2nd property I mentioned, using the following numbers: $130,000 x 3.4% seller commission= $4,420 fee.

$12,000 profit- $4,420 fee would still leave me a little profit. I'm hoping this might be a good niche for me! Any help would be much appreciated

I now have my first "deal" under a 2 month option contract.

I have the home under contract at 212K; I'm marketing it to sell at 220K. Not really a wholesale but more like trying to find an end buyer willing to pay 220K. Any thoughts on how to try and get it sold?

I'm also getting ready to put a home under option contract at 118K and going to market it and sell it at 130K. Should I sacrafice a few thousand in profit and use a seller's agent? Can I use an agent when I have someone else's home under option?

Thanks

So what percentage will the average note buying company take? Is my best bet just to do the same concept but find someone who could maybe qualify FHA?

After reading/researching/taking it all in with investing, I'm finally at a point where I believe I know what I'm going to do.

After reading up on John Alexander and the " Inverse Purchase System" I decided it would be best to give this method a try--not much money involved and seems to be quite rewarding if done the right way.

I plan on locating a property with at least 20% equity--either from a wholesaler, other investor's , or people looking to get their home sold fast. I plan on putting the home under a few weeks option period and locate a specific type of buyer--those who can't get qualified from a bank or mortgage broker due to their credit score. With the inverse purchase, I can get a home at a discounted price under option and sell it to a credit challenged buyer at full appraised value.

Example:

I'm looking to put a home under option contract for $62,500 and find someone who can't get qualifying ANYWHERE else except for myself to pay the full appraised value of $85,000. We then work with a company who specializes in note buying and they come in and buy the note from the seller at closing for about a 15% discount. Thus on a $85,000 sell with a 15% discount, the note buying company will pay us $72, 250 in cash. I will make the spread between the difference of the contract price I had with the seller and the contract price I had with the end buyer. $72,250-$62,500= $9,750 profit.

I know that wasn't the greatest explanation of my plans, but you can get the gist of it all.

Has anyone done anything like this before? Any thoughts?

Thanks and wish me luck

Who has actually USED it? Is it legit? Is it legal?

That's really all I want to know. Not if you think it's legal or illegal, we all have our speculations: I simply want to know if it is legit or not?

I want to start wholesaling to retail buyers. What I have in mind, is to simply get into an option contract with a seller; let them know that I'm an investor and plan on finding an end buyer who will pay more than what I have in contract with them, thus making money on the spread of the two contract prices. At this point, I've had some help coming up with a good promissory note to sign with the seller. I will simply have him "buy me out" of my contract by signing this promissory note and I should get paid as a lien holder at closing.

From what I've read about JA's program, this seems almost identical. Instead of using JA's program, I'd like to know if this could work?

Thanks

Would I not just have the seller "buy me out" of my option by signing a promissory note and then sending him directly to my buyer to sign the p/a contract with?