All Forum Posts by: Leigh C

@Raine Levans If you have an executed contract it doesn't matter if you will ultimately not be able to get financing, you have a contract that they need to be released from.    

@Vernon Gray

Never done this but i've seen it work.

Send proof of funds for what you have, and send a message that you want to take the seller out to lunch to discuss.    

Wholesalers outright lie about ARVs

Realtors will inflate the values to try and get listings...

If you expect to use a wholesaler to source deals (they typically take the fat off most deals) and a realtor to verify the ARVs expect to do a few flips for free or at a loss.

Don't get me wrong, good realtors and wholesalers are out there.....just like unicorns.

due on sales clause with your lender should mess up these plans.

@Jay Hinrichs  Flirting with the idea of building spec houses down in the keys.   Up till now i've focused only on flipping with zero experience in new builds.    Over 60 flips completed in 2016 with 30 more in the pipeline to be sold in 2017.  

@Jay Hinrichs   Ahh, makes a lot more sense.    The joys of leverage. 

@Justin R.    Question answered then, i don't need an actual #.   Sometimes houses in GA are pretty inexpensive so I hoped it was on a 10k trailer.

Best advice is to fight to get someone to track the money.   Maybe you can see where it lands in the end to do something about it.     We all assume it left the country and is out of reach, but you might get lucky.     Should be interesting if you could get the title company or realtor's E/O insurance to cover.  

Is the buyer getting a loan?    Did the house pass inspection?     Is there anything you have fixed in the past that might scare the buyers if you disclosed it now as a possible future problem?     Any crazy neighbors or maybe look at the sexual offenders map and see if anything is close to disclose.

Killing a deal isn't too difficult if you are getting fair market value.     Buyers can pick something else easy enough and shouldn't be too hard to motivate.      

@Account Closed  Eh, I pay my ground team 5% of gross net.   Jay paid over 15%   Obviously nobody knows to what scale this project was.   Mine are typically low time investments, something like 10-30 hours per house.   Also we go by volume as some houses are super easy with high returns, others all of us regret ever taking it on, good washes out the bad in theory. 

It's also worth mentioning, i rarely see over 100k profit, never have we gotten over 200k.    We still play in the short end of the pool for the most part. 
    

@Justin R.  I hate to ask, but how much did you lose?