All Forum Posts by: Danielle C.

Thanks for the advice Scott. I feel better already. Based on the comps that I received, do you think I should lower the offer or go with what the sellers have listed? I don't want to turn off the sellers or bank, however I think that because I can close with cash (hml) should help.

Also, if the selling agent is not intending on doing the negotiation, I would be interested in having an experience negotiator work this. Do they usually request full payment upfront or do they defer their fees until you close, if you close?

Thanks again!

Danielle

Hello,

I am newer to wholesaling and haven't completed any deals yet. I accidentally have come across a deal that *may* be worth pursuing, however I need your advice.

Property is listed at 159k, however the realtor has confirmed there haven't been any offers yet, so there is no knowledge whether the bank will accept. Coincidentally, it was 169k yesterday. It was intially listed at 219k in september. This is a good area with quality schools.

The realtor (mine, not the selling realtor) stated that two identical models sold in last 90 days for 245k and 259k respectively. She also noted that there is another identical on the market currently for 240k.

Negatives:
a) Backs to a train. I am finding out if the other models that sold do.
b) No basement. I am confirming that other models that sold did not have either. I would assume that since the other models are identical, that they didn't.
c) The house is a really ugly red brick, which of course can be painted nicely.
d) There is a pipe burst in the house, however it is running out of the garage. There is no "noticable" mold, however there is some drywall damage.

I am confirming which bank holds the mortgage to verify seasoning rules. I am also confirming the DOM for the two that sold and the third that is available.

I have been spending all of my time researching wholesaling for FSBO's. I am familar with SS's, however just the basics. I intend on selling retail, however at a deep discount to move it quickly. If value is 240k, I'm thinking selling at 200k. In that event, after HML and other expenses, I'm still making 20k if I use an agent or 30k if can move myself.

Questions:
I would have to use a straight PSA. What are my options if I need to back out after offer is made?

How long of an inspection period should I request?

How much of EMD should I expect or request to put down and when do I tell them I will? After buyer accepts offer?

Any other tips or advice would be greatly appreciated. I am a bit nervous because I wasn't anticipating this. Since the homeowners have dropped the priced twice this week alone, I assume they need to move it and I want to hurry to lock the deal up before another investor does.

Thank you!
Danielle Cage

Sounds good. I was thinking, why not just call them, however they could just say, yeah, sure, we're still buying... but are they? And what are they buying?

So it is better to do the extra leg work to get more accurate information.

I'm new and so my questions are still basic, however I'm learning so much every day. I really appreciate those with experience who are taking the time to answer these question.

Thanks!
Danielle C.

Hey Jeff,

Quick question, why don't you recommend that she just directly contact the buyers? Is it because in general they don't want to be bothered with calls like these or is it because by this back door method, you can get detailed information without chasing the buyer?

I'm just learning, so I was curious.

Thanks!
Danielle C.

Chris, sounds good to me. I just wanted to ensure that there wasn't any special "treatment" that I should give them.

Thanks all for your replies!

Hey Demos,

I want to actually contact the large wholesaler and ask if they can send my properties out to their buyers. I will give a specific fee to the wholesaler if their buyer purchases.

And you are absolutely right, I have no intentions on using they as my only hope for a selling. I would just like to use them to increase my potential buyers.

So I suppose my question is, how common is this practice? How much of a fee would you recommend offering to the large wholesaler when approaching them?

Thanks!!
Danielle C.

Thanks for the info Demos. I was more like considering actually selling to their buyer and just offering a fee to the wholesaler, thereby maximizing my profit.

Is this a no-no? I'm thinking that it never hurts to try and it could be quite proserperous for both myself and the large wholesaler. They really do nothing other than forward the listing and make a %. It's like free money for allowing me to piggy back on their buyers without ever compromising their list.

Thanks,
Danielle C

Hello,

To start, I am new to this site and wholesaling. I am currently building a business and action plan. With that, I am going to have tons of questions, however I have seen that most on this site have been very kind to newbies. If you have any pointers or tips, please feel free to advise, even if I don't ask - I just may not yet know to ask the question. :)

On to my question... How many wholesalers sell to larger wholesalers? They have large buyer lists and are established. I have a few established, large wholesalers in my area who have huge buyers lists. I am considering contacting them and offering a certain percentage (perhaps 10%?) to them if anyone of their buyers purchase my property.

If it were a concern, I would even sign something that would prohibit any of their buyers from trying to backdoor that wholesaler. The way I see it, it’s profit they didn’t have and it’s greatly helping me sell. It’s also helping me to get started out, which is invaluable. I won’t depend on their buyers only and will continue working to create my own list.

So, how many of you currently / previously wholesale to other wholesalers? How has it worked for you? Any tips on what to say and not to say when initiating contact? The groups that I am aware of are well established for 10+ years in my area, so not stepping on toes is important.

All comments are appreciated!

Thanks,
Danielle C.

Hi Tim,

Thanks for the greeting. I would agree, Naperville is one of those areas where home prices were being inflated by the month. Now, alot of homeowners are hurting because they kept refi'ing. Good area for short sales I believe. One issue for me is funding because many of the homes are 350k+, however there are plenty of other suburbs with lower home values in "chicagoland".

I took a look at your profile, very inspiring actually. I am very curious about one thing. After your "big D" you went to indy with little money and not good credit. Sounds like you have more than successfully pulled out of that. What strategy did you use and how did you get that start... if you don't mind me asking of course :)

Thanks,
Danni

Hello Everyone,

I'm excited to be a new member to biggerpockets. I'll give a brief introduction, for anyone that is reading:

I am new to investing, though not the idea of it. I have toyed around with that since I was 19. I recently came back to it after a career in Operations that was not fulfilling and going nowhere. I don't like working for people - not good at kissing upper management's intangibles :) Though, I am very easy to get along with.

Anyway, currently, I am loving this site and spending every free moment that I have reading as much as possible. This site is priceless with the wealth of information that the members have and so many seem happy to share it, which is wonderful. Thanks!

To begin with, I would like to focus on wholesaling with a focus on pre-foreclosures. I am open to short sales as well, however they won't be a focus of mine. With that said, I understand that this is hard work. I don't plan on getting rich quickly, however I do plan on creating wealth over time. Eventually, I would like to get into buy and hold, and then move on to ruling the world. No, just kidding on that. Is humor allowed here? : )

Anyway, I am currently creating a business plan along with an action plan. Once I have done that and feel more comfortable with the information that I gather here and elsewhere, as well go so some local REI meetings, I will begin looking for hard money lenders, building a buyer's list and of course sellers. Again, I understand that I am oversimplifying, however I’m certain you don’t want ALL of the details.

I am looking for anyone that has any tips or sage advice that they can give. I would also love to network with anyone local in the area that is in any aspect of the RE business (or looking to get into it). At this stage, I am just trying to be a sponge, so I am reading, reading, reading as well as sorting things out. So please, feel free to say hi.

I am going to have a TON of questions, so hopefully I won’t be too redundant for you. Please feel free to give me the cold hard truth when replying. Any answer is good answer, even a bad one. I just ask for tact… it’s something I always give and ask for in return.

My RE goal is simple: to help people out stuck in bad positions, creating a win / win situation for the seller, myself and the end buyer.

Thanks and glad to be here!

Danielle C.