All Forum Posts by: Dennis Pressey Jr

Dan, shoot me a message. I am in South Jersey. I am sure I can give you some help.

Based on our description my answer would be "it depends"...

Really.

Because it is all dependent upon the market! Just because the property is 1/2 price compared tot he large population centers, does not make it a good deal/area. I am sure you know this.

I would ask you these questions;

Average Sale Price?
What is the average Days On Market?
What is the ratio of Renters vs. Owners?
Other factors like - city worker population residing outside city? distance to large centers/cities?

I would start there. :)

If it is in NJ, make sure that you are CERTAIN it is approved. That phrase is tossed around lightly, even by "professionals".

Get proper discovery for oil tanks and such. Post building phase appraisals, tax increase.

Beyond that, at the right price - it can be a great opportunity. Especially in North NJ, Hoboken or similar. Hope you do well on this one!

Planning single family or multi?

@Stephen Barton  - Yes, we are knowledgeable in constructions/contracting. Essentially, there is nothing about a house that will make us not take it, minus oil leaking tank!

Other than that - it is about price only.

My gut is in a knot! Because the septic is not an automatic "No Deal", the house is such a steal for the area. As I said, we plan to list it for $315, our $280 is a quick sale arv for qualification of deal.

Bank does not seem to want to move an inch further, we already got them down to $125 from $180!

@Anthony Crecco  & @Bill Jacobsen  - Thanks for the input. We are going to relax a couple days on communications and see if we can get a few of our big ticket items in at a better number. (Not low, just take some of our Nerf out - we also like to add a minimum of 12%, depending on total)

Hey everybody, thanks in advance.

Here is the short story. Home is under contract for $125,000. During the inspections, it was reveal there is a unsatisfactory septic system. It was poorly taken care of and is totally maxed in capacity, soil can no longer drain property due to deposits. (For others that may have septic issues).

The septic repair in my area is going to be $22,000. So....

Here are the PRE SEPTIC numbers:

$280,000 ARV

$125,000 BUY
 $65,000 REHAB
 $30,000 CLOSING/HOLDING
_________
$220,000 INVESTED @ 78% ITV

If we add the $22,000 for the septic, we still make money however our margins get very tight % wise. The $280,000 ARV is a solid, QUICK SALE price. We expect to list this at $315,000.

Thoughts!?

I am a member. Rough $216 per year and up. (this membership gives you the cash buyers list. @Maxine Hough 

I have dealt with them and their wholesalers - not a transaction yet. We have only discussed deals, they have sent me a few property reports and such. The guys I've dealt with thus far are pretty solid with fair valuations.

There is no verdict on the Cash Buyers list just yet....still dialing away :)

For what purpose?

I have used them for investors. Never purchased a property.

Chad, assigning a contract does not mean you are "hiding" anything. I think there are many misconceptions here. The seller of the home can and should know how much your fee is, you are assisting the home owner solve an issue they have.

So, you are not "preying". A good wholesaler will clearly explain and stand on their position because their benefit is their service. Quick closing, cash, no fees...

So, if a homeowner is inevitably going to have their house taken, lose their credit and the whole deal - why would it be preying to buy their home for a fair price to that covers their expenses and allows the homeowner to save their credit, get needed funds, and avoid a long drawn out process.

Does this make sense?

1) A good wholesaler has great marketing and sales skill - particularly negotiation and closing. Amongst other traits.

2) Each wholesaler will have their own particular criteria, sometimes based on their investors needs, sometimes based on a general formula.

3) No. Wholesalers are not giving "loans" of any sort, they are simply securing a property, then selling their rights to a contract or home for a fee.

Assignment over double close because it is less moving parts. Also, if a wholesaler does not find a buyer, their contract better cover their butt. Meaning you should not have to "perform" on the contract in anyway that will leave you owning a large debt. So, contingencies are key here. These are inspection periods, and some situations even will call for you to simple ask the owner "hey, I am going to find you a buyer. We agree anything over 50k is my fee?"

Search 70% rule for general guidelines on purchase criteria, this is a general rule. If you live and die by this rule, you will buy 2 properties per year and make about 0 dollars. At least in NJ :)

Anybody feel free to correct me.

Can I market a short-sale that I have under contract? What would control this? Per contract? State? Fed?

Offer has been accepted, just waiting for closing. Purchased is "financed".

Looking to bring in a buyer to build to their specs and lock in a sale as soon as possible.

Thanks