All Forum Posts by: Account Closed

So I decided since the rumors were there were builders building luxury homes in this neighborhood, I'd get in my car and see if I could find those guys. Well thank the good Lord I did. Within half a mile of this house are at least 12-15 new builds. So I called a couple of these builders, they met me over at the property today. One said it looks like its worth about $250,000 as a tear down to him. He's going to make sure there are no build restrictions and call me tomorrow.

The other person was a realtor who represents a builder who says it looks like $275,000 but he'll get back to me tomorrow. He asked if I'd pay a 3% commission if he brings me a buyer, I told him if he gets me $275k for the house I'll give him 4%. This is definitely a project for a builder and not a rehabber. They're going to put up a house twice the size and depending on what they do and judging by their other projects they're probably going to out a home there that can bring $700,000 or more.

I have to say I didn't know this deal would turn into this but I must thank God. I also went to the property today and it turns out the seller didn't know where the oil tank was. It's actually in the basement and not underground. Amen!!! That was the best news all day. I'll keep you guys posted as always.

One thing thats good and bad about wholesaling is the excitement that you build from the moment you hear about it. Whether it's through an infomercial or a book or online you say to yourself can I really make this kind of money in real estate? That happened to me in March 2010 from that day I thought I would be making money in a matter of months but it didn't work out like that I had to study for almost 2 years before I was ready to take action. Now some people are not like that and can get out there and take action immediately but the point is when you're ready to take action you can create profits.

You're going to have to learn what works in your market, you're going to have to learn what is a deal and what is not a deal but you don't have to learn everything, the key is to take action. The key is to learn to recognize a motivated seller. This is where we make our money. Get out there and start making offers, take your money and put it into marketing. Now I'm not one on telling you to take your savings and invest it into real estate when you really don't know quite what you are doing yet but if you feel confident in the process of finding a deal you don't need to know everything. I didn't know everything and I made money on my first deal. The point is you have to take calculated action. Action that you know will work once you tweak the process to fit your market. A wise man told me you learn by doing. (Thanks Will lol)

If you feel you're ready to step out in faith then get out of the boat. But you want to take calculated action so I would study, study, study marketing. Then find out what buyers are looking for in your area. Find the buyers, drive around town looking for active rehab projects, ask the contractor who the builder or the investor is, go to the building department in your county, find the guys there looking for permits, go to the closest investment club meeting, the point is to locate a handful of serious players in your town and find out what they consider a deal. Its much harder to just start looking around for a deal because you don't quite know what a deal is yet. you could be looking in an area that people are staying away from because properties take too long to sell there. once youve done this, focus on marketing, marketing marketing. If you can get a steady stream of leads to sort through then by the law of averages you'll find some deals as you refine yourself. You'll make mistakes but there are ways to protect yourself. Whatever you decide you have chosen the right vehicle. God bless you on your journey.

I was just sitting here saying to myself, the next deal, I'm not telling anyone anything until all my research is done. You literally took the thought out of my head. I appreciate the advice and throughout this deal I've been very excited which caused me to leave some details out of my explanation. I will do that Will. Thanks to everyone who has shared their opinions and advice. I will keep you all posted.

Why would you say i need favorable replies, what are you talking about? I have always been very respectful to everyone on here including you James. I gave the short version and realize I left some details out but don't be negative just ask me to explain. I wouldn't assume the worst and call somebody greedy when you don't know all the details. You call me greedy especially when last year you came at me wrong, how would you expect me to take it. Fact is I love everybody and would never disrespect any one. I'm excited about what's going on in my life and am sharing it as it happens with some people that I feel have the experience and wisdom to help and support. I wish all of you the best in your lives and businesses. God bless.

K Marie, the only steps left to close this deal is an oil tank removal and title being pulled. Not too much to do, definitely not a lot of work

Got you J Scott but the point is everything we had was speculation that's why we didn't have a signed contract and he wanted to send his contract to show his commitment and not have me sell it to anyone. I'm not being played, I didn't sign anything until I got more info, I purposely made that decision. Now I'm getting ready to make $100k on a wholesale. Praise the Lord. I'm not going to go for the full amount. I'm in the business of leaving extra meat on the bone if I'm making a great deal. This deal is an investment into my year. I'm going to learn to rehab a house including adding an addition. My buyer will hopefully net $150k when the deals all done. If I was making 20k, I'd want to go with the full 70% of ARV. With this profit I'm happy to pass on the rest to Alfred. If she hadnt offered me $200,000 id be selling this deal for $175,000. that meeting made me $35000. If I'm getting played I could only pray that I get played like this a couple more times this year. Add to that I'm getting my realtors license next month which will really give me the advantage I need. We're off to the races. And as far as sending you that info J Scott the reality is I'm not going to do that and you know it. I have the buyers I need right here in my backyard, I'm not going thru that type of process to sell you a deal.

As a side note, I just know there's been more criticism on this forum than I expected. When I said I had the deal locked up, more than half of the people were saying you got the numbers wrong, no way you got a deal for that low, the seller probably doesnt really live there, yada yada yada. There are a few people that were very encouraging but the fact is whether someone is new or not makes no difference. It's about how much they've prepared and what they can do. Dont be negative, but this will be my last time talking about my deals on here because i realize that what im making on wholesale deals people are making on rehabs but I'm in a different market, different living expenses, higher insurance, etc. everything cost more in Nj. i just think its hard not to have some animosity if you're in a place where things are much lower..

J Scott If I was greedy I'd take the ARV of $500K, take 70% of that minus the $100K rehab and advertise the deal for $250K. I'd market it to the other rehabbers and builders that don't know anything about what I bought it for (like you do) and they'd buy it. I'd do a double close, and be on my way with my $150K. I think you should do what you said in your sarcasm last year and come up to New Jersey and buy all my deals. If you don't remember

https://www.biggerpockets.com/forums/48/topics/72801?page=2

You were such a non believer, but the reality is everything I find up here will have a minimum of a 6 figure spread. Minimum. That's what I believe. Even when I thought the ARV was $350,000 if I didn't believe in a deal like this how could I have offered the seller $85,000 to get the deal for $100,000? I couldn't. You gotta shoot for the moon! I don't know where my average wholesale will be but I've done one for $18K and one that looks like it will be $100K and I'm getting ready to take the marketing that got me these 2 deals and multiply the volume by almost 10. Maybe I will wholesale 30 of these deals and pay cash for my house. Please no more negativity. God is good

For the people that watch how much wholesalers make on a deal, I want you to consider this. Let's say you have a private lender that you pay 10% and the average deal you buy is $60,000 including repairs, you sell that deal for $100K and net around $20,000. You then find a deal that's you can buy for $60,000 including repairs but you can sell this for $150,000. Would you say to the private lender, "hey I'm making $50,000 more so I'll give you 18%", No. The lender is happy at 10%, maybe you show him a little more love knowing you got a killer deal and give him 12%, but if he started counting your money you'd be a little upset. So don't criticize me because I've been blessed because I'm passing that blessing to him. Do you think he'd be saying I still want the deal if he wasn't getting a deal. The fact is I was the naive one from the start because he saw the comps and knew what he could be getting at $150K, I didn't, he knows builders are buying homes like this and knocking them down building mansions on them. I didn't, and now I do and if you think I'm not going to make $100K for bringing someone a deal where they can make $175-$200K, then I'm sorry my brother but I don't agree with you.

Ok, I'm going to give you guys the long version. I didn't think I would have to, but I think from the critical responses I'm getting its necessary. Me and Alfred (rehabber) started to form a relationship in December right before I got this deal locked up. Before my offer was fully even accepted I gave him the heads up on the place. His wife is a realtor so I asked him to run some comps but I was going off of Zillow saying $335-$350. He said that he'd buy it quick at $150 but we never landed on a price. I didn't even have an accepted offer from the seller yet. Once the seller accepted my offer which was right before Christmas we let our attorneys know but my attorney was away for the holidays and so was the seller. Now he sent the contract down to the seller in VA but they were working by snail mail and it took a couple of days to be returned. Right after Christmas Alfred said that they were going to send their contract over just to make sure they had it locked up, but we both agreed I wouldn't sign anything until my contract with the seller was fully executed. So his contract for $150K sat in my attorney's office waiting for my signature. I also knew that I wanted a local realtor's opinion of what we could sell it for from a neutral perspective. When she told me we could probably sell the house for $400-$425K (and more if we expanded the size) that changed the deal because Alfred's wife's comps were the low comps not these which were the mid range, nicer houses most likely colonials like this one and certainly not the bigger houses that are being built. So I didn't call him and say "hey you didn't tell me there were $400K+ comps I just said I did some further evaluation and the comps are higher so I'm going to have to raise the price. I said I'm meeting with the realtor Monday but I know the comps are much higher. That's when he said "we still have room to go up, no problem". He knew what he had. When I met with the realtor yesterday (to get comps), that's when she offered me $200,000.

Now regardless of what you may think J Scott, everyone who I do business with knows my ethics and my faith. If I was a jerk I would have said "deal" immediately to the realtor. I called my wife and told her, then I called Alfred and said how much of a jam I was in. I didn't go to that meeting looking to get a price. I never had the intentions of shopping the deal any further, what I did want to know was "what were the real comps" because I'm going to make a business decision where everyone wins. But I'm not going to ignore the fact this woman just offered me $35,000 more cash. I told Alfred flat out I didn't want him to buy the house at that number because I was still thinking about an ARV of $400K, I wouldn't feel bad about it if its an owner occupant. I told him I don't feel comfortable making the money I'm making if you guys are going to sell the house for $400K. But that's when he said we want the house, we're going to add on to it and look to sell it for close to $500,000 and you'll be in on the deal with us. This guy loves me and said this is just the beginning. So in his mind, he's happy because he'll be in the deal for $300K and looking to sell it for $500K. As a wholesaler it's my job to find deals. The better deals I find, the better for me. If the deal is great, someone will buy it for 70% of ARV, in New Jersey on a $300,000 you'll make about $50,000 profit NET. But I know wholesalers that lock a deal up at say 55% of ARV and sell it to the rehabber for 60% because they found a real killer deal. They walk with like $5,000. That's not me, J Scott, let's say he gets $475K, he's buying this deal at 62% of ARV. If he gets the $500K it's even lower.

This is directly from the website squeeze page and personally I've had many people put their info into the squeeze page but do you really think this is offensive?

"If you are a serious investor buying at least one house per quarter for rental or rehab, then you are in the right place right now.

If you are new to investing, broke, just finished a Carleton Sheets home study course, or just flat out don't know what you're doing yet ... go away.

This page is for VIP investors who close with cash, close fast, and don't ask questions. They know a slam dunk deal when they see one, and they don't give me a hard time.

If that's you ... keep reading ...

Im not interested in working with new rehabbers right now, maybe in the future, but the 7 guys that i have could each buy 3 deals if i had them right now. i never understood why people needs thousands of buyers unless theyre doing a ridiculous amount of volume. id just rather form a great relationship with 7-10 players that will close on anything thats a deal. i could sell them all one house a piece and kill it. This website is not for owner occupants and there is a 99.9% chance that an owner occupant will never see it. I think it's actually funny but if I'm a cash buyer that's serious how does that upset me? I'm the guy you said is in the right place. I don't know, just a difference of opinion I guess.