All Forum Posts by: Bob C.

"- If I have an inspection contingency..."

Yes, I have consider doing it that way. The problem I'm told is if after 10 months the bank gives me an answer and then I do the inspection and I need to renegotiate the price because of some problem the bank has to start all over again. Perhaps you use your inspection just for deal breaking issues?

"- The title search shouldn't have to be paid for upfront..."

Correct. Not upfront. But I'm committed to paying them because I'm requesting service. I'm saying it's a cost even if the deal doesn't go through.

"- I won't offer earnest money until I get bank approval..."

Okay, this one blows my mind. How do you have an executed contract if there's no earnest money? The banks will not consider my offer unless it's accompanied by a fully executed contract.

YES Monnnnnths.

This is what I've been doing. I haven't had a deal happen quicker than 6 months. I have a few now approaching 10 months and no end in sight.

Let me add to what has been said....

To get an answer from the bank, they need to see a binding contract (this has been said)

To get to that

-You have to have done your home inspection ($$)

-You have to pay lawyers fees for contract work (in NY anyway). Not necessarily up front, but you'll get a bill for hours when the deal goes sour.

-You have to pay for (at least a preliminary) title search

-Some towns require a well test before they give their "muni's". No matter what the local protocol is, the bank will insist you pay for that.

-You have your earnest money tied up for months (Typically, around here 10%)

And if that were not bad enough... 10 months later the bank says they want $30k more because the the outside of the house is pretty and the BPO is high. No regards for the frozen pipes and holes in the roof.

Deal killed. House continuses to deterioate. I wait for it to go to auction - maybe in a year or two. (forclosures around here are running 5-6 years)

@Dev Horn

I wonder if you changed #2 to something like...

2) "What do you think its worth, right now, as it stands?"

So 1, 2, 3 leads the seller along our logic and can see our position better when we make that offer.

Thoughts?

Hi Justin. Welcome to BP!

You might get a better response / help if you post that question on it's own. Start a new topic.

Thanks Dev

So... We've got the Rule of Seven..

Is there a guideline to when things typically drop off?

Do we mail to these folks forever?

Yeah... and eventually the deals just come to YOU.

Have you considered asking "Why are you selling?"

Seems important... well... maybe not, if you are not negotiating.

Hi Ken!

There's a REIA that I go to in Poughkeepsie. 25-40 people per meeting in attendance. Good networking. http://www.mhv-reia.com/

HOLY COW!!

Talk about quick and tangible results.

I was bouncing around different threads the other day, learning, devouring, soaking it all in and I ran across a discussion re kitchen cabinets. Here's a topic that has been vexing me. I can't stand spending 6 or 7 thousand dollars for decent cabinets. (a notch or two above crappy builders grade cabinets). I kept hunting for a better solution - I knew there was WAY too much profit margin in those cabinets.

In this thread, someone mentioned Grossman's Bargain Outlet. I had never heard of the store and the prices that were being discussed sounded amazing. I looked up the store and it turns out there is one about 50 minutes away from me. I sent in my kitchen design to them and in a matter of hours I got a quote. for a large kitchen that I'm about to do that was quoted from two other local sources recommended by other investors in the area of $10,000. Bargain outlet was about 6500 (for equal quality)!!! OMG!!

So... BANG!! Bigger pockets just saved me $3500 on this one house - not to mention the thousands that I'll save from all the other houses going forward.

And this is just ONE example!! I have no doubt that this kind of epiphany is going to happen regularly around here.

I just want to say thank you to BP and the community. I hope someday I will be a will to contribute to/help others on this board.

Hello BP Peeps

I've decided to stop lurking and start participating.

I'm a serial entrepreneur embarking on my next fun adventure. I've always loved the process of taking a worn out structure and bringing new life and utility to it. Over the years I've done many build outs for my business offices and done much work on my own home.

I've always been a hands-on kinda guy and my friends call me "Jack" ...of all trades. Whenever I get called "Jack" I know I'm about to be asked to fix something. In rehabbing, I use this skill to communicate with the contractors - and keep them from ********ting me. Although I can do the work, I'm better suited for marketing / getting houses / doing deals.

In previous businesses, my marketing skills (email, website, and radio) were at the core of my success. Negotiation skills are fairly decent. I love negotiating for everything, everywhere. But, perhaps I'm not enough of a hard *** when I negotiate with contractors.

For fun I fly, mountain bike, and when time permits - race on road tracks.

I started looking for my first house about a year ago. To date, I've rehabbed one and it's currently under contract. So far (knock on wood) it'll be profitable. I've got several more under contract and just waiting for the banks to clear titles (REOs) and/or accept my offer (short sales).

My goal is to flip about 12 SF houses per year.

Cheers!

-Bob