All Forum Posts by: Dell Schlabach

I wholesaled four house in the last two month, the lowest profit was 5,000 highest 10,000 Two were in between, but closer to 10k. These are on houses that will retail for 100,000-150,000. The rehabber will likely make 20-25. 

In our area I can sell those all day long, if I could get them cheaper, I could increase my fees, and my rehab buyers would still be happy. 

We use a systematic process similar to what Dawn mentioned, we always start with the front picture of the house, and follow the same order in each house, that order follows our property analysis sheet that we complete on the walk through. If you look at 8 houses, and you are reviewing all at the end of the day, you can tell where one ends and the next begins,  We also make sure not to take too many pictures. 8 max of only the high ticket items, roof, windows, kitchen, electric panel, kitchen, baths, furnace, ac, front and back, andything unusual,  i dont want a picture with a hole in drywall that will cost 25.00 to fix, no pictures of carpet of paint, or things we will replace in every house.... always a couple photos for perspective. 

We do a rehab analysis sheet on each property, before we leave the property we will know what we can pay for it before we go to the next one. If the pictures are confusing, we will still know what we were willing to pay.

I have an assistant that does most of the analysis these days and we write offers from there, I go take a look at only the properties when we get a counter offer that looks promising, or if we can offer list or better. 

Create a system, take minimal pictures, keep practicing : -)

A real buyer should be able to do an analysis very quickly and make a decision right away. If someone shows me a deal in our area, takes me all of abouts 15 minutes to do a walkthrough, check the comps, run the numbers, and be  able to tell you what I ccouldpay you. If there was an unusual foundation issue or something structural I can typically have a contractor quote the same day and get back right back to you. 

In my opinion the dollar profit always over shadows the rule, I personally dont use the rule. I see it as a quick way to get you in the ball park, but we use real numbers on all our analysis. ARV - Holding, Closing, Selling Costs - Cost of Money -Projected Repair Costs - Desired Profits = Maximum Offer.

If I can make 30,000 on a realitivly easy rehab that can be done in 4-6 weeks I am ok with 30k profit on a 300,000 house.

Welcome to the awesome community of biggerpockets. 

You can think of it as your mentor, the group being infinitly wiser with a vast array of experience one mentor couldnt amass in many lifetimes. 

Questions asked will typically be responded to with numerous ideas, viewpoints and insight.

Are you a buyers agent, listing agent, specific focus?

What area of investing are you wanting to persue, learn?

We have a seperate checking for all our business expenses. If we use a personal card for anything, we reimburse ourselves from the company.  We use Lowes LAR account for most of our materials.  Theres an extra tracking mechanism build in there, where all reciepts show up online. Including signatures by the person who didnt turn the reciept in to the office :-)

Our main tracking comes from quickbooks where every reciept is recorded, every check, every hud, every loan, basically every piece of financial data. It is tracked by catagory and class (ie which property). Thus with the click of a button dozens of different reports can be run to analyze and track the details of your business.

Heres a place to start, also upper right hand corner of the page is a search field, type in wholesaling...you will find a very lot of reading and plenty of opinions on the subject

http://www.biggerpockets.com/forums/21/topics/1448...

@Mark Ferguson    Heres the email from the realtor, you are saying she just made up the 24 hour portion...?

Hi Dell,

I wanted to give you a quick update on the HUD offers you placed a while back. When they first counter offered they only allowed 24 hours for a response but they actually continued to send the same counter offer email. The property at 230 Gnau is still listed. They were asking 65,000 and you bid 40,000. They came back with a net to HUD of 52,000 and they recently sent me an email with an offer of 45,630 net to HUD. I took a class today that discussed HUD offers and the lady teaching the class told me that HUD never sends counter offers. Pretty funny since you've now received two of them on the same property.........

If the seller wants 1.5 and you can sell it for 3. If repairs can be done for .25 and all your holding closing and selling costs come in at .25 seems like purchase price of 1.5 doesnt matter as long as you have access to the cash. 

What do you think @Chris K. 

Interesting, so a HUD property is listed for 100,000, I offer 80,000, Hud sends an email proposing to sell the house to me for 90,000, and I have 24 hours to accept the offer.

That is not a counter offer from HUD?