All Forum Posts by: Doug Haisten

Daryl;
great advice! I don't want to reinvent the wheel so reading what successful investors flipping REOs is worth gold. However, the real variable, for me anyway, is the part where you said don't lock up a property unless it is a "good deal". What consitutes a good deal. I could deals until the cows come home at the banks asking price but not find a buyer of me new property and go broke way before those cows got home. If I price too low I won't get any properties and wouldn't I loose being considered a serious buyer? My thoughts on determining what to offer on a property is that I have to take into the account the repair costs and a fair profit for the ones buying from plus a fee (much smaller than the profit for my buyer) for me. That said, is there a percentage of the fair market value the banks typically won't go below? For a property that needs, say, $30K in rehab what is a fair profit for the rehabber?

DiverDoug (Doug)

John C:
I too am just starting out at wholesaling. The thought of going to a back to back closing and not have a buyer was a great fear of mine too both in lost time and money as well as hurting my reputation. I ran an ad in Craigs List and within 4 days got 3 buyers. They told me exactly what they wanted (in terms of how much rehab they were willing to do, what areas, and how much they want to spend. I have to size up the costs of rehab when I see the properties and make sure my offer to the bank is enough for my buyers to make money asa well as me. If the buyers don't think they will make money then they won't be buyers and then Im stuck with a property.

I was wondering though what contigencies to put in a offer on an REO so your post and thd subsequent answers were great! What Wheelhouse said about the inspections is certainly educating. Good luct. I am anxious to see how it goes for you.

Doug

Rodney:
I am just starting out as a wholesaler (actually I'm just starting out in real estate in general) and have yet to make a deal. However, I posted an ad on Craigs List and got 3 buyers in 4 days. I just have to find the properties now.

I spoke with an escrow company to see if they would do a simultaneous REO closing. They will but indicated the problem would be with the mortgage companies. The escrow exec said banks may balk if the B-C price exceeds the A-B by 30%, even if the C (buyer) uses cash. Has anyone here tried to do a simultaneous sale and the bank said no due to the mark up? Also, it was suggested getting a property before it is listed on MLS (shown as sale pending when the property gets on the MLS) was unscrupulous if not illegal. Any comments?