All Forum Posts by: Doug Haisten

After I determining a buy price how bound are the listing agents to submit the offer to the bank? There have been a couple of reo properties I wanted to make an offer on that had not made it to the MLS. The listing agent kept telling me all the way to the point when the property sold. Another agent (works with the same nationwide realty company) that I was working with looked into one of these properties and told me that was being held for someone else to buy before it gets listed . Today I spoke with a listing agent about some reo properties and he spent 15 minutes telling me how tough the competition is and how without experience I'd never get a deal. Finally he said he may take an offer and see what could done with it. Finding properties that would be good deals seems to be less difficult (not easy) than finding agents to work with.

The real key part to the either equation is the determination of the ARV and/or the aquisition price. Kristian I like your equation. I assume the Sales Price is the same as the ARV and in the other equation the 30% (100%-70%) is the aquisition costs?

Doug

I am in the process of finding some deals, mostly REOs, for some buyers. In doing this I was given my buyers' criteria for the type of property they want to buy. I want to buy these and them sell them to the buyers using back to back closings as I can't really afford to "carry" the properties. A problem I have though is the buyer wants to see the property first (certianly understandable). However, if I show the reo property to the buyer I fear the buyer will go around me to buy the property direct. Worse if I have a realtor helping me find the properties the buyer could go direct to the realtor. Is there an agreement wholesalers can have signed with the the buyers not to go around me?

Doug

Lisa,
how did it go with your offer?

Doug

Does the appraisal come into play if I am making a cash purchase?

Bill:
I have seen in other forums heated debates on the issue of using the listing agent vs me having a buyer's agent. I have to admit using the listiing agent does make more sense. What is the best way to find who the listing agents are?

Doug

Johnny:
I have been trying to find out for a couple of weeks about how the offer letter was to be formatted and what needs to be provided. I am anxiously looking forward to any answers you get.

That being said, what are you planning on doing with the house if you get it? If you are planning on selling it, making an offer at the bank's list price would mean you would have a hard time selling it and make any money off it. Did you run determine the comps/ARV and allow for repairs and profit?

Doug

Ryan (and those with similiar points of views to newbies and wholesaling), thank you for voiced comments of support for those of us just starting out. In answer to an earlier question, it was suggested by other long time investors at a RE Club that people just starting out like me do so wholesaling until I get a few deals under my belt. I am curious though, if not an investor what are people called that are just starting out and spend their spare time (or quit their jobs) and money reading books, studying, driving neighborhoods looking at properties and hours on sites such as BP trying to find a way into this carreer? What did those people that are now successful investors call themselves the day they decided to be a real estate investor but hadn't bought a property yet? My bed ridden 82 yo grandmother has 3 properties. Is she an investor? Despite not owning a property (my ex got that) and not having closed a deal, I consider myself an investor, albeit a non producing one. I am starting in wholesaling because while I do have good credit and money, I don't have enough to lose on a bad deal or two. Also, while wholesaling is just one way to start in this business, it does appear to be simplier (not easy) than getting people to transfer property into some Joint Trust and letting an LLC I set up buy the Trust and then sell the trust to my buyer. That is just a little over my head right now. Until i get that knowledge I guess I'll just have to stay an investor/wholesaler.

Rusty (and anyone else wholesaling REOs),
Did you use a buyers agent or did you use the listing agent?

Doug

I have been making dry runs, going through locating, determining ARV, visting the properties, estimating work to be done, getting POF letters etc. I am at the point or submitting an offer letter. Anyone have suggestions on how I format/word an offer letter?