All Forum Posts by: Jackie Lange

It is almost impossible to use an agent to help you FIND wholesale deals to flip.  I've done 1000s of wholesale flips and only 2 came from real estate agent leads.  They just don't get the concept of wholesale flips.

If the agent produced the buyer for the wholesale flip as described above, you are right, she should lose her license.  You are getting some bad advice!

The formula for buying/selling wholesale houses has to do with private lender/hard money lender requirements. Most of them will not lend ore than 65% of the ARV minus repairs.

Has your "coach" actually done any wholesale deals???  It does not sound like it!

You ABSOLUTELYy need to know the estimate of what the repair costs are. If not, you can not make an intelligent offer on the property. Speaking of offers, of course, it is better not to make an offer because usually the seller would take less if you ask what they would take. You need to know the repair costs estimate and the ARV and what is the most a rehabber could borrow from a hard money lender... only with all three of these ingredients can you know what your offer needs to be so you still make a profit. Withtout all three ingredients, you will run in to the problem of offering too much for the house. Then you won't be able to wholesale it.

You are getting some really BAD advice from this "coach!!!!!!  I hope you did not pay anything to be coached.  

I never paid more than LOT value for a fire damage house.  

Meet with Code Enforcement to determine what will need to be done to the house before you can get a CO (certificate of occupancy) again.  They usually require all new electrical wiring, new plumbing, etc.  A fire damage property is much more expensive to repair so you need to get it super cheap

If you are new to rehabbing, I strongly suggest that you wholesale the property.  

Additional "house hacks" are to convert a long term rental in to a vacation rental which is rented by the week. Advertise on vrbo or airbnb to get 3-4 times more rent.

If you have a large property with 4+ bedrooms, convert it to an assisted living facility. (following your states rules of course).  You can get $3000 to $8000 PER BEDROOM.

Use www.RentOMeter.com   It's free.

Enter an address or zip code to see what houses rent for in an area.

Make sure you are comparing apples to apples -- same SF, same price range, same features.

 I would never buy REOs there are too many better ways to buy houses at much better prices.   Of course I know that legals cause property damage too - but I've never seen any to the extent of this property.

It's probably ridiculous to think that people should come in to the country legally too. 

 I tried trespassing, code violations, and eviction but no court would touch it because they were all illegals.  They said it had to go through ICE.  But ICE would not do anything

I've bought about 800 fixer upper/wholesale type properties but none of them have been REO's and none of them had the kind of damage that I had with this property. I found that I could get much better deals (with no competition) by NOT buying bank owned houses. And I bought a couple hundred subject-to or seller finance properties but they were all in pretty good condition when I bought them.

 This was about 5 years ago.  I would not rent or sell to anyone who was not in the country legally.  If they came in to the country illegally, even initially, I would not do business with them.

I live in a foregin country now.  There is a process for living in any foreign country legally.  The rules are clearly defined.  I jumped through all the hoops and paid all the legal fees to become a legal permanent resident with a cedula and soon to be citizen.  So I have zero tolerance for anyone who enters any country illegally.  There's a right way and a wrong way to move to a country.

If there is no respect for the law when them move to a foreign country, then there is no respect for the rule of law when it comes to contracts or property rights either.

First of all, I've never had anyone who was in the country legally steal HVAC systems, cabinets, a garage door, and take a sledge hammer to the house.  

And when people are in the country legally, it is easy enough to get them out with a simple eviction.  But the courts would not touch it because they were all illegals - I was referred to Immigration.  But ICE kept passing the ball and would not do anything.

Be VERY careful renting or selling to undocumented workers ( previously called illegals).  I once sold a property to a guy who had an green card.  He had great income.  Then he moved 3 other illegal families in to the house.  The guy I sold to moved out and no where to be found.  I foreclosured for non-payment but the illegals stayed.  It was next to impossible to get these illegals out of the property.  I called ICE in Dallas, they said call DC. DC said call Dallas.  Three illegal families and Immigration nor the police would not do a darn thing.  

Finally, the illegals left with the HVAC system stolen, the garage door missing, a sledge hammer taken to the walls, all cabinets stolen.  Anything they could remove to sell... they took it.

Anyone who was previously in the USA illegally, obviously has no regard for the rule of law. 

So I would not consider the millions of new un-illegals good prospects for renting or selling to.