All Forum Posts by: Austin Faux

Yes Gary we have a contractor scope of work you can look at. Go ahead and give us a call and we can email that to you. You'll talk w/Colin and he can take care of you. I'm also in the National Guard doing some training for the next month so my availability is speratic. 

Great investment property 4 BLOCKS from Illinois College. Perfect for BRRRR strategy (Buy it, Rehab it, Rent it, Refinance it, Repeat). We've had two potential buyers and both dropped off. The first was another wholesaler that couldn't find a buyer, and the second was a guy that wanted to live in the property and decided last minute...literally cancelling via text hours before the closing. As such we just want to get rid of this property and are dropping it's sale price from $17,000 to $7,999 or BEST OFFER!!!! Seriously if you've got cash and can close quick we'll do it!

CALL NOW: (515) 360-8431 <-----------

Highlights: 

• 4 Blocks from Illinois College
• ARV: $110,542.50
• Cash Purchase: $7,999 - Or BEST OFFER!
• Seller Finance w/$3,000 Non-Refundable Down.

CALL NOW: (515) 360-8431 <-----------

Comps:

Since the property is pretty much gutted on the inside you can mold the bed, bath and floor plan pretty much to your liking. As such there is a 3/3 property that sold for $130,000 that had some light rehab done according to the pictures. Alot of the homes around the college campus which have had some rehab are selling between $100,000 - $130,000, but overall the neighborhood swings from around $80,000 - $125,000.

$130,000 (528 Rosedale Blvd) $86/sqft

$126,000 (17 Greenbriar Dr.) $77/sqft

$110,000 (861 W State St) $64/sqft

$110,000 (1008 Grove St.) $62/sqft

Avg Sqft = $72.25 x 1530sqft = ARV $110,542.50

Rehab:

The rehab is extensive and needs lots of work.  We've had a few different contractors go through the place and we've gotten different numbers ranging from $50,000 - $80,000.  The property potentially has some termite damage, but that hasn't been confirmed.  The reason we mention it is because one of our previous buyers said his contractor told him it has some termite damage, and he walked away.  But the contractors we had walking through the place didn't say anything about termite damage.

CALL NOW: (515) 360-8431 <-----------

So I have a property in Illinois that we bought at a tax auction about 4 months ago.  Since then we have found a buyer that we're going to seller finance the property to, and he is very committed.  The city sent us a letter saying:

"The Inspection Department would like to remind you of the issuance of violation #14-00158 dated 4-07-14 for a structural violation at the above mentioned address.  This violation is still open according to our office.

Most violations have a time frame of 30 days but yours was extended through cooperation with our office.  it was then extended further due to the winter weather prohibiting compliance.

Spring has now arrived and the compliance issues must be resolved.  Please contact our office to cooperate in a new compliance plan or to schedule a re-inspection of the property.  If this is not completed by 4-15-16, a notice to appear in Municipal Court will be issued."

Both us and the buyer have called the city to try and make amends and get this compliance plan set, but this is the first time I've gotten a letter like this, and it freaked me out a bit.  Am I good here, taking all the right steps?  Or is there something else I should be doing?

@Doug Pretorius I've tried Wholetailing with a few realtors in the past, and they didn't like it.  I think my downside was I didn't tell them I was trying to wholetail, and the realtor thought I was buying to fix and flip.  But overall I was trying to get properties under contract with the realtor, find all the financing, do the initial inspections, get the contractors in place and then I was going to turn it over to another investor.  Once the realtor saw what I was doing she said I was being unethical....lol.

Is there a better way to wholetail?

So FYI I'm still rather new-ish at all of this....lol.  So I got a deal under contract from a guy that lives  out of state.  His mom passed away a while ago, and he's been taking care of the property from afar.  I decided to call up a local real estate agent to get a better idea about the area, and the realtor told me the property is still under the Mom's name.  I have no idea how to double check if that's true or not, but I'm assuming my contract with the Son is now void?

I haven't taken the deal to a title company yet because I'm trying to wholesale it.  My plan was after I get the second contract I would then take it a title company.  Maybe that's the wrong way to do it?

Any ideas on how to get this done?  I would totally love any help.

Thanks!

Ying Sa with Community CPA is extremely knowledgable on real estate matters. When I was out at the Des Moines REIA she was there giving a presentation on real estate tax info and she was really, really impressive. Here is there website: http://www.communitycpa.com/home

So how come it only works if I too am a realtor?  I mean Wendy Patton's technique makes sense if you're not a realtor.  The only thing I can think of to justify "you are a realtor yourself" is the level of trust needed in order to convince the realtor that the deal is good and worth doing from the seller's perspective.  Is the realtor worried about losing their license or getting into legal trouble or something?

Really....hmmmmm.....I may have to put in a bit more research and get it going. Right now I have my VA calling on Craigslist ads, I'm putting window stickers on peoples cars with my phone number that say we buy houses-ish, some mailers about 200/week not earth shaking, needle moving....lol

If you make a call on Craigslist for example and the person has a realtor, what exit strategies are doable at that point? I mean I'm assuming you can't do a sandwich lease option, or try to pull the owner into a JV to fix, flip and split profit at that point. Are you limited to just doing a wholesale or a normal ole' fix and flip at that point?

Thanks everyone for the input.  @Bill S. you said you got one deal, but couldn't close on it.  I'm curious though how much work did you have to put in to get that one deal.  Was the bandit sign worth the time?  I'm just trying to figure out if Bandit Signs around Denver are worth it.  

I may end up putting in the time to test it and see what kind of results I get.