All Forum Posts by: Paul Amegatcher

 Juan,

Do you have  a problem with the low ball offer or a problem with the seller accepting it?  Most sellers know what houses are selling for in their neighborhood.  They may not understand comps and such but they know the value of their property.  Also motivation removes any logic as to why people discount their properties.  Would your feelings about the scenario change if we replaced "wholesaler" with "investor".  If an investor purchases the property for $40K will that be okay with you.  I find that this forum has a hatred for wholesalers that defies logic. 

Paul Amegatcher

How much repair do you estimate the property needs?  This deal looks thin to me.  If you use the 70% rule then the max offer before repairs will be $42k.  If you have repairs of $20k then the max a rehabber will pay will be $22k.  What's the average days on market for $60k homes in your area?  Do you have any investor buyers lined up that are interested? Just some things to consider.

Paul

Call 3 contractors to bid a job and tell me if you get the same quote.  It is ridiculous to expect the Wholesaler to give you an accurate quote when they don't know your construction costs.  I believe it is a two way street some wholesalers underestimate and some rehabbers are overpaying for renovations. 

Its a Hud property and it's a condo. Also it needs renovations. I would value that property at $40K ARV. It's located in a good rental area. Should rent for $650+.

Rick,

I am not an attorney so take this with a grain of salt.  It is always legal to sell something that you own, even if you only own for 5 minutes.  Double closings are legal.  Assignment of a contract is legal.  What is illegal is entering into a contract without the intent of closing or performing what the contract states.  The issue with wholesaling or assigning of contract that most people have are that some people advertise the property they have under contract instead of advertising the contract.  This is where you fall into the definition of brokering without a license.   If you are truly worried about all this then just get you realtors license and sleep with a peace of mind. 

Transactional funding is used for double closings. Most transactional funding lenders charge 1.5%.

Get transactional funding and you will be alright.  Also you can legally only advertise the contract and not the property.  Google Jeff Watson Ohio wholesaling for more information.

Paul

Your best bet is to have a real estate attorney in your area craft a contract that is bulletproof.  This will save you a lot of headaches.  They will also make sure that your contract complies with local laws and regulations.  The cost should be minimal as it will be about an hour or two of their time.  

Paul Amegatcher

 Valeria,

Check out this video on how to do a mail merge for a yellow letter campaign. 

https://youtu.be/xCcyUfCIOgE

I use plain yellow printer paper rather than the lined paper.  Also I print my envelopes using my printer as well, so no long nights writing addresses on envelopes. My cost is about $.50 per letter mailed not counting the cost of the list and time spent to stuff and stamp envelopes. I have Costco account so I buy 100 stamps for $46, self adhesive envelopes 500 for $10 and printer paper 500 for $8. Good luck to you.

Your investor can sign a two month rental agreement with the seller to cover the two months that they will be staying in the property.  Also you can push your closing date to end of May that way the seller does not have to move.  Another option is to move them into a extended stay hotel.  Just some thoughts.